Latest news with #LaurenceTubiana
The Guardian
6 days ago
- Business
- The Guardian
Tax on AI and crypto could fund climate action, says former Paris accords envoy
Governments should consider taxing artificial intelligence and cryptocurrencies to generate funds to deal with the climate crisis, one of the architects of the Paris agreement has said. Laurence Tubiana, the chief executive of the European Climate Foundation and a former French diplomat, is co-lead of the Global Solidarity Levies Task Force, an international initiative to find new sources of funds for climate action by taxing highly polluting activities including aviation and fossil fuel extraction. She said cryptocurrency should certainly be taxed, and levies on AI should be considered. 'That could be a first step – again, it's the same rationale [for AI as taxing cryptocurrency], because they use a lot of energy,' she said. 'Crypto seems to be something which is not regulated at all, and of course it's a concern, from the financial stability element.' The equivalent of Poland's annual energy consumption is expended each year just on generating bitcoin, one of the leading cryptocurrencies. AI also consumes vast resources, resulting in IT companies scrabbling to secure electricity supplies in locations around the world. Taxing AI could prove tricky, Tubiana conceded, as companies might try to shift the location of their datacentres. Although there was likely to be 'pushback' against taxing cryptocurrencies, particularly from the US, where Donald Trump is an enthusiastic supporter of the technology, she said central bankers had expressed an interest. 'Because we need to regulate it – it's organised crime sometimes, so you should look at where the money's coming from, and who is the user,' Tubiana said. The taskforce has assigned a group of experts to examine how this could be achieved. The taskforce has scored an early success in the form of an agreement among some countries to put new charges on business-class and first-class airline tickets, and private jets. France, Spain, Kenya, Barbados, Somalia, Benin, Sierra Leone, and Antigua and Barbuda were the first countries to sign up to the accord announced at the end of June. The French president, Emmanuel Macron, said: 'We have to mobilise more and more countries in order for these critical sectors which are benefiting from globalisation to contribute to the financing of this common effort [to combat the climate crisis]. I want to urge all possible countries to join this international framework because it's absolutely key, and it's part of our agenda.' Such taxes could raise €147bn (£127bn) a year, if the big economies joined in. The use of private jets increased by almost 50% between 2019 and 2023, and first- and business-class flying recovered more speedily than economy class after the Covid lockdowns. Polls suggest that charging premier-class passengers more would be a popular move. Tubiana said: 'When you have your car, you pay tax, and when you fly you don't pay tax, so there is an element of justice there that resonates.' Countries could impose such taxes without a global agreement, she added. 'The aviation tax is not that complicated, because it's really a sovereign decision.' A potential carbon tax on shipping is also still under discussion, after the International Maritime Organization agreed steps towards such a deal in April. A further meeting will take place in October, and Tubiana said she was 'reasonably optimistic' a new levy would be decided. The taskforce is also examining options such as a tax on buying shares in the stock market, which could raise as much as €105bn a year without distorting the market, according to research. Sign up to Down to Earth The planet's most important stories. Get all the week's environment news - the good, the bad and the essential after newsletter promotion Rebecca Newsom, the global political lead of Greenpeace International's Stop Drilling Start Paying campaign, urged the taskforce to go further and push for taxes on fossil fuel production. 'The obvious next step is to hold oil and gas corporations to account,' she said. 'As fossil fuel barons rake in obscene profits, and people are battered with increasingly violent floods, storms and wildfires, it's no surprise that eight out of 10 people support making them pay. Members of the Global Solidarity Levies Task Force and rich countries around the world should act upon this enormous public mandate.' Tubiana, who guided the Cop21 conference in 2015 at which the Paris agreement was signed, also expressed concern about the direction France was taking in international climate negotiations. Macron has mooted a delay to the European Commission's proposal of a 90% cut to greenhouse gas emissions by 2040, a target that is supposed to be confirmed by the EU parliament and member states in September before the Cop30 climate summit in Brazil in November. Tubiana said Macron's new-found hesitation over climate policy was 'a very sad story'. She warned that it would backfire and would reduce the chances of a strong outcome for Cop30, at which countries must set new emissions goals under the Paris agreement. 'How can we ask anybody to do something if we're not doing it, if we're not proving that we believe we can decarbonise the economy?' she said. 'I hope they will wake up to the bad signals they are giving. It's really not reasonable to think that delaying action will benefit the economy of France. We need innovation, we don't need to delay.'
The Guardian
6 days ago
- Business
- The Guardian
Tax on AI and crypto could fund climate action, says former Paris accords envoy
Governments should consider taxing artificial intelligence and cryptocurrencies to generate funds to deal with the climate crisis, one of the architects of the Paris agreement has said. Laurence Tubiana, the chief executive of the European Climate Foundation and a former French diplomat, is co-lead of the Global Solidarity Levies Task Force, an international initiative to find new sources of funds for climate action by taxing highly polluting activities including aviation and fossil fuel extraction. She said cryptocurrency should certainly be taxed, and levies on AI should be considered. 'That could be a first step – again, it's the same rationale [for AI as taxing cryptocurrency], because they use a lot of energy,' she said. 'Crypto seems to be something which is not regulated at all, and of course it's a concern, from the financial stability element.' The equivalent of Poland's annual energy consumption is expended each year just on generating bitcoin, one of the leading cryptocurrencies. AI also consumes vast resources, resulting in IT companies scrabbling to secure electricity supplies in locations around the world. Taxing AI could prove tricky, Tubiana conceded, as companies might try to shift the location of their datacentres. Although there was likely to be 'pushback' against taxing cryptocurrencies, particularly from the US, where Donald Trump is an enthusiastic supporter of the technology, she said central bankers had expressed an interest. 'Because we need to regulate it – it's organised crime sometimes, so you should look at where the money's coming from, and who is the user,' Tubiana said. The taskforce has assigned a group of experts to examine how this could be achieved. The taskforce has scored an early success in the form of an agreement among some countries to put new charges on business-class and first-class airline tickets, and private jets. France, Spain, Kenya, Barbados, Somalia, Benin, Sierra Leone, and Antigua and Barbuda were the first countries to sign up to the accord announced at the end of June. The French president, Emmanuel Macron, said: 'We have to mobilise more and more countries in order for these critical sectors which are benefiting from globalisation to contribute to the financing of this common effort [to combat the climate crisis]. I want to urge all possible countries to join this international framework because it's absolutely key, and it's part of our agenda.' Such taxes could raise €147bn (£127bn) a year, if the big economies joined in. The use of private jets increased by almost 50% between 2019 and 2023, and first- and business-class flying recovered more speedily than economy class after the Covid lockdowns. Polls suggest that charging premier-class passengers more would be a popular move. Tubiana said: 'When you have your car, you pay tax, and when you fly you don't pay tax, so there is an element of justice there that resonates.' Countries could impose such taxes without a global agreement, she added. 'The aviation tax is not that complicated, because it's really a sovereign decision.' A potential carbon tax on shipping is also still under discussion, after the International Maritime Organization agreed steps towards such a deal in April. A further meeting will take place in October, and Tubiana said she was 'reasonably optimistic' a new levy would be decided. The taskforce is also examining options such as a tax on buying shares in the stock market, which could raise as much as €105bn a year without distorting the market, according to research. Sign up to Down to Earth The planet's most important stories. Get all the week's environment news - the good, the bad and the essential after newsletter promotion Rebecca Newsom, the global political lead of Greenpeace International's Stop Drilling Start Paying campaign, urged the taskforce to go further and push for taxes on fossil fuel production. 'The obvious next step is to hold oil and gas corporations to account,' she said. 'As fossil fuel barons rake in obscene profits, and people are battered with increasingly violent floods, storms and wildfires, it's no surprise that eight out of 10 people support making them pay. Members of the Global Solidarity Levies Task Force and rich countries around the world should act upon this enormous public mandate.' Tubiana, who guided the Cop21 conference in 2015 at which the Paris agreement was signed, also expressed concern about the direction France was taking in international climate negotiations. Macron has mooted a delay to the European Commission's proposal of a 90% cut to greenhouse gas emissions by 2040, a target that is supposed to be confirmed by the EU parliament and member states in September before the Cop30 climate summit in Brazil in November. Tubiana said Macron's new-found hesitation over climate policy was 'a very sad story'. She warned that it would backfire and would reduce the chances of a strong outcome for Cop30, at which countries must set new emissions goals under the Paris agreement. 'How can we ask anybody to do something if we're not doing it, if we're not proving that we believe we can decarbonise the economy?' she said. 'I hope they will wake up to the bad signals they are giving. It's really not reasonable to think that delaying action will benefit the economy of France. We need innovation, we don't need to delay.'
Euronews
03-07-2025
- Business
- Euronews
France and Spain join fight to tax luxury air travel for climate funds
France and Spain have joined a coalition of countries pushing to tax private jets and premium class flights to raise money for climate action and sustainable development. The two European nations have joined forces with Kenya, Barbados, Somalia, Benin, Sierra Leone and Antigua and Barbuda. The coalition's goal is 'to increase the number of countries applying taxes on airline tickets, including for luxury travel, and to tax private jets based on best practices,' the French Élysée said in a statement. The initiative was launched on the sidelines of a United Nations development summit in Seville on 30 June. How much money could these taxes raise? A recent study commissioned by the Global Solidarity Levies Task Force estimates that taxing private jet fuel worldwide could generate up to €41 billion annually. Adding levies on first- and business-class tickets could bring in nearly €37 billion more. Combined, the coalition's efforts could unlock over €78 billion per year to support climate resilience and sustainable development projects. The study also suggests that an additional, broader levy on commercial jet fuel could push this total to around €187 billion annually. New sources of finance With many richer countries cutting official development aid for poorer nations, some are looking for new sources of finance, including taxing the most polluting industries. Launched at COP28 in November 2023, the Global Solidarity Levies Task Force was set up to explore new kinds of taxation from polluting sectors that could support developing countries to decarbonise and adapt to the impacts of climate change. Laurence Tubiana, co-lead of the Global Solidarity Levies Task Force Secretariat, said that new levies on premium flyers could 'raise vital funds'. 'In the current context, everybody is pessimistic, saying we cannot do anything. Today's announcement is proof that we can make progress,' Tubiana added. French President Emmanuel Macron said at the summit in Seville that after progress had already been made in the shipping industry, this was a 'huge step forward' for the aviation sector. 'Having Spain (in our premium flyers coalition) is very good news, and we need more and more countries,' he added. 'We need those that benefited from globalisation to contribute more to financing.' Macron urged all possible countries to join this "key" international framework. Why target private jets and premium flights? Aviation accounts for more than 2.5 per cent of all human-caused greenhouse gas emissions, and it remains one of the sectors with the fastest-growing emissions. Private jets are especially polluting. In 2023, they emitted an estimated 19.5 million tonnes of greenhouse gases, according to a study by the International Council on Clean Transportation (ICCT) - more than all flights departing London Heathrow that year. Since the COVID-19 pandemic, premium travel has surged. Emissions from private aviation rose by 46 per cent between 2019 and 2023. Premium cabins, including first and business class, have larger seats and more legroom, which means fewer passengers share the emissions from each flight. This drives up the per-passenger carbon footprint dramatically. As a result, first and business class travellers produce up to 3 to 4 times more CO2 per kilometre than those flying economy. 'Flying is the most elite and polluting form of travel, so this is an important step towards ensuring that the binge users of this undertaxed sector are made to pay their fair share,' says Rebecca Newsom, global political lead for Greenpeace International's Stop Drilling Start Paying campaign. A global survey by Greenpeace and Oxfam found that three out of four people support extra taxes on premium flyers because of their outsized impact on the climate.
Yahoo
06-03-2025
- Politics
- Yahoo
Nation adopts aggressive new pollution policy in wake of court ruling — here are the bold new objectives
Switzerland is stepping up its efforts to cut emissions, approving new climate targets. Reuters reported that the goal is to reduce emissions by 2035 to at least 65% of 1990 levels. Last year's European court ruling that Switzerland was not doing enough to protect the environment prompted this more aggressive approach to combating rising global temperatures. These new objectives coincide with the country's commitment to The Paris Agreement, a legally binding international treaty adopted by 196 parties in 2015 at the UN Climate Change Conference in Paris, France. Do you think more places of worship should embrace clean energy? Yes — it sets a positive example Only if it saves money No opinion Absolutely not Click your choice to see results and speak your mind. In contrast, President Trump is withdrawing the United States from The Paris Agreement, as he did during his first term, citing that it poses an unfair economic burden on the U.S. Environmental groups have criticized the decision. As NPR reported, Laurence Tubiana, CEO of the European Climate Foundation and an architect of the Paris Agreement, was unhappy about losing U.S. support but said that international climate action "has proven resilient and is stronger than any single country's politics and policies." Despite policies and politics, we can still take steps as individuals to combat the warming of the planet. Upgrading your appliances can reduce energy usage in your home, resulting in cost savings. Installing solar panels is another way to combat the warming of the planet, and community solar programs allow you to tap into clean energy without the need to install rooftop panels. By adopting new climate targets, Switzerland is taking a more aggressive approach to the climate crisis. The country had previously committed to cut emissions in half by 2030 from where they were in 1990. The new amendment is part of a long-term climate strategy focused on the important role of renewable and clean energy. Join our free newsletter for good news and useful tips, and don't miss this cool list of easy ways to help yourself while helping the planet.
Arab News
28-02-2025
- Business
- Arab News
Europe must double down on green transition
Never has it been so obvious that Europe must stand on its own. But as European leaders debate how to do so, they should not fall for the bogus trade-off between security and competitiveness, on the one hand, and climate goals on the other. Doing so would squander one of Europe's major strategic advantages: its substantial lead in the transition to a low-carbon economy. This advantage is not just a luxury for calmer times or a distraction from the pursuit of security and economic resilience. After all, energy is at the heart of Europe's security challenge. Dependence on Russian gas proved to be a critical vulnerability in 2022, triggering economic and political shocks that are still reverberating. Higher energy costs have constrained many EU member states' fiscal capacity — and thus their ability to invest more in defense. In the three years since Russia launched its full-scale invasion of Ukraine, Europe has made positive strides in weaning itself off Russian gas. But while liquefied natural gas from other suppliers has provided short-term relief, it does not offer lasting energy security. This winter's colder temperatures sent gas prices higher again, highlighting Europe's continued vulnerability. Investing in more LNG infrastructure will not solve this problem. The LNG market, perpetually subject to cold snaps, supply disruptions and increased demand from other regions, is inherently volatile. The only path to genuine energy security runs through the transition to a clean, domestic energy system based on renewables, batteries and related technologies. Such a system would stabilize prices for households and businesses while insulating Europe from external pressure. Europe has already made headway on this front. Renewables generated 47 percent of the EU's electricity in 2024, surpassing fossil fuels, which fell to 29 percent — their lowest share on record. But we must maintain this momentum. No energy-intensive industry — including artificial intelligence — can hope to invest and scale up in Europe if it remains exposed to fossil fuel volatility. The European Commission is rightly focusing on strengthening Europe's clean industrial base: the design and production of the materials and technologies that will drive both economic competitiveness and decarbonization. The EU's work toward a 'Clean Industrial Deal' represents a chance to position Europe as a global leader, not just a participant, in the economy of the future. The only path to genuine energy security runs through the transition to a clean, domestic energy system Laurence Tubiana But given budget constraints, any new funds must be deployed wisely. That means emphasizing emerging clean technologies like batteries — a market projected to grow by 30 percent annually up to 2030. While China has a head start with its vertically integrated battery supply chains and advanced expertise, Europe still has a chance to compete and establish a strong position. Indeed, Poland is already the world's second-largest lithium-ion battery producer. Europe's strategy must align with our values. The Clean Industrial Deal will be a test of the EU's ability to ensure that no region or community is left behind. The EU is at its best when helping member states bolster social and regional cohesion. It has a strong track record of managing economic integration, mitigating the downsides of globalization and fostering regional development through tools like cohesion funds. It now must devise bold social and employment policies (including retraining) to create high-quality jobs in all regions — especially those with carbon-intensive industries. This will require strong cooperation among member states. A free-for-all of national state aid and industrial policies would deepen regional divides. Last year's Letta Report on the EU's single market proposed that member states contribute a fixed percentage of their state aid allocations to a common fund. Contributions in the range of 5 percent to 15 percent could generate up to €51 billion ($53.4 billion) annually, some portion of which could be allocated for clean industrialization. Lowering Europe's climate ambition in the name of competitiveness would be a grave mistake. Companies across the continent are vying to secure a share of a global clean technology market that is projected to exceed $2 trillion by 2035. The EU Green Deal remains central to this vision, providing certainty for businesses by guaranteeing a growing market for their products. Changing course now would significantly complicate matters, derailing countless business models and leaving Europe behind. Hence, some European companies have publicly warned against backtracking and many more, including several CEOs whom I have spoken to, express the same concerns privately. The EU's sustainable finance framework is an important part of its strategy. As last year's Draghi Report on EU competitiveness emphasized, Europe's problem is not a shortage of capital but inefficiencies in how its abundant savings are allocated. Investors need high-quality, reliable and comparable corporate disclosures, including insights into climate risks. The sustainable finance framework might not be fashionable, but it is essential in providing this information. As investor groups managing some €6.6 trillion in assets recently warned, any significant backpedaling risks choking off European companies' access to finance. Thousands of businesses that are planning for and investing in a low-carbon economy would be undermined. Lowering Europe's climate ambition in the name of competitiveness would be a grave mistake Laurence Tubiana Strengthening European strategic autonomy requires not isolation but interdependence. Although the EU's Critical Raw Materials Act rightly aims to scale up domestic mining, refining and recycling of the materials essential for the green transition, Europe will remain reliant on imports. Rather than chasing the illusion of total self-sufficiency, the EU should focus on deepening cooperation with reliable international partners. Notwithstanding developments in the US, many countries still believe in working together on shared challenges. As Olivier Blanchard and Jean Pisani-Ferry argue, the EU, which embodies multilateralism, is well placed to organize an effective collective response to climate change and energy insecurity with like-minded partners. By committing to an ambitious 2040 emissions reduction target of 90 percent, the EU can lead by example and negotiate new climate agreements with third countries such as Japan, Brazil, China and (possibly) India. China, in particular, has a huge stake in building a green economy, not least because it needs export markets for its enormous clean tech manufacturing sector. Europe's climate leadership is not a burden but a strategic asset. Doubling down on the green transition will help secure its economic edge, strengthen energy security and reinforce its global standing. The choice is clear: we can lead with confidence or risk falling behind in a world that will not wait for us. • Laurence Tubiana, a former French ambassador to the UN Framework Convention on Climate Change, is CEO of the European Climate Foundation and a professor at the Ecole Normale Superieure. Copyright: Project Syndicate
