UNCTAD report calls for ensuring environmental sustainability in digitalization

KATHMANDU, JULY 14: Digitalization has become one of the most rapidly advancing areas globally, significantly influencing commerce and innovation. However, it has raised concerns about its impact on a sustainable future and development goals. Balancing environmental considerations and climate change with the push for digitalization has become increasingly important, especially in least developed and developing countries, which face challenges in advancing both digitalization and sustainable development. Meanwhile, rapid digitalization by powerful economies has exacerbated environmental issues.

The recently released "The Digital Economy Report 2024: Shaping an Environmentally Sustainable and Inclusive Digital Future" by the UN Trade and Development (UNCTAD) addresses these concerns. The report advocates for policies that promote inclusive development while minimizing the negative impacts of digitalization. It emphasizes the need for collaboration to create a framework for democratic governance to address these issues effectively.

According to the report, an integrated approach is necessary for the transition to digital technology to ensure that sustainable development is not compromised. This approach should combine social progress, environmental protection, and economic success within a democratic governance framework. UN Secretary-General Antonio Guterres also underscored the need for an integrated approach, calling for comprehensive data on the environmental impact of digitalization and digital policy frameworks that advance Sustainable Development Goals and honor climate commitments.

The report highlights the environmental impacts throughout the digitalization cycle, from production to end-of-life, including effects on natural resources, energy and water usage, greenhouse gas emissions, and waste-related pollution. It calls for resolute initiatives at national and international levels and effective global governance to address these issues. However, the report notes the difficulty in assessing the exact impact of digitalization on the environment due to insufficient data and rapidly outdated studies. Existing studies do not adequately capture the environmental impact of recent developments in AI or the shift to 5G mobile networks.

Rebeca Grynspan, Secretary-General of UNCTAD, emphasized the importance of international cooperation to ensure equitable distribution of the benefits and costs of digitalization. She stressed the need to leave no one behind in the digital age and to establish global governance frameworks that promote sustainable digital practices and empower developing countries to participate fully in the digital economy.

The UNCTAD document further reminds us that the entire cycle of digitalization—from production phase to end-of-life—has environmental impacts. The direct effects on natural resources, including transition minerals, energy and water, as well as greenhouse gas (GHG) emissions and waste-related pollution, constitute the “environmental footprint” of the ICT sector.

The report expresses concern over the expansion of waste related to digitalization and the increasing importance of transition minerals on the international development agenda. It suggests resolute initiatives at the national and international levels and effective global governance to address these challenges.

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