KATHMANDU: Digitalization is rapidly advancing, driving commerce and innovation across various sectors.
However, this progress raises concerns about its impact on sustainable development and environmental goals.
The accelerating pace of digitalization is creating a global challenge, balancing technological advancement with environmental sustainability.
Developing and least developed countries face significant obstacles in promoting both digitalization and sustainable development, while major economies’ rapid digital growth is further straining the environment, according to a newly released report.
The United Nations Conference on Trade and Development (UNCTAD) has published “The Digital Economy Report 2024: Shaping an Environmentally Sustainable and Inclusive Digital Future.”
The report calls for policies that promote inclusive development and minimize the negative impacts of digitalization.
“Digitalization is evolving rapidly, offering new solutions but also posing obstacles to sustainability,” the report states.
It emphasizes the need for collaboration to create a democratic governance framework to effectively address these issues.
The report highlights the necessity of an integrated approach to digital technology transition to avoid jeopardizing sustainable development.
“A just, low-carbon, and digital technology transition requires an integrated approach that combines social progress, environmental protection, and economic success within a framework of democratic governance,” it notes.
UN Secretary-General António Guterres underscores the importance of tackling digitalization and environmental sustainability together.
“We cannot address digitalization and environmental sustainability in silos. This report calls for more comprehensive data on the environmental impact of digitalization and digital policy frameworks that advance the Sustainable Development Goals and honor climate commitments,” he asserts.
The UNCTAD report further stresses that every phase of digitalization, from production to end-of-life, impacts the environment.
“The direct effects on natural resources, including transition minerals, energy, water, greenhouse gas emissions, and waste-related pollution, constitute the environmental footprint of the ICT sector,” the report explains.
The report also raises concerns about the growing digital waste and the increasing importance of transition minerals in the international development agenda.
It calls for decisive initiatives at national and international levels and effective global governance to manage these challenges.
However, the report acknowledges the difficulty in accurately assessing the environmental impact of digitalization due to insufficient data.
“There is a lack of timely, comparable, and accessible data, and few harmonized reporting standards. Analytical studies rely on various sources that quickly become outdated due to the rapid pace of digital developments. Existing studies do not adequately capture the environmental impact of recent advancements in AI or the shift to 5G mobile networks,” the report states.
Rebeca Grynspan, Secretary-General of UNCTAD, emphasizes the importance of international cooperation to ensure equitable distribution of digitalization’s benefits and costs.
“We must strive for equitable distribution of the benefits and costs of digitalization, ensuring that no one is left behind in the digital age. We must work together to establish comprehensive global governance frameworks that promote sustainable digital practices and empower developing countries to participate fully in the digital economy,” she observes.
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