Digital Boom May Harm Environment: UN

UN Report Warns of Digital Economy’s Environmental Impact

A recent report by the UN trade agency UNCTAD highlights significant environmental concerns tied to the booming digital economy. UNCTAD emphasizes the need to address these issues through renewable energy investments.

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Rising Energy Consumption

UNCTAD Chief Rebeca Grynspan noted that technologies like artificial intelligence and cryptocurrency mining have dramatically increased energy consumption. For instance, Bitcoin mining’s energy use surged 34 times from 2015 to 2020, reaching 121 terawatt hours, more than the annual energy consumption of Belgium or Finland.

Internet Usage and E-commerce Growth

With 5.4 billion people now online, the digital economy is thriving. E-commerce sales jumped from $17 trillion in 2016 to $27 trillion in 2022. While digital technologies can reduce paper use and improve energy efficiency, their environmental downsides are often overlooked. Digitalization relies heavily on carbon-rich electricity and materials.

Data Centers’ Energy and Water Use

In 2022, global data centers consumed 460 terawatt hours of energy, equivalent to the power used by 42 million US homes annually. This is expected to double by 2026. Data centers also have significant water footprints. Google and Microsoft reported using billions of gallons of water in 2022, causing local tensions.

E-commerce and E-waste

The number of online shoppers grew from under 100 million in 2000 to 2.3 billion in 2021, leading to a 30% increase in digital-related waste from 2010 to 2022. Developed countries generate more digital waste per person compared to developing and least developed countries.

Demand for Critical Minerals

The World Bank estimates a 500% surge in demand for minerals like graphite, lithium, and cobalt by 2050 due to digitalization. Africa holds significant reserves of these minerals, essential for low-carbon and digital technologies.

Development Opportunities

The demand for critical minerals offers resource-rich developing countries opportunities to add value, diversify economies, and boost development. Technology transfer and efficiency improvements are crucial for aligning with climate goals. Amid global crises, developing countries should focus on domestic processing to gain a larger share of the digital economy, generate revenue, and create jobs.

Recommendations for Sustainability

UNCTAD suggests several measures to make digital growth more sustainable:

Adopt circular economy models: recycle, reuse, and recover digital materials to reduce waste.
Optimize resource use: create plans for efficient raw material use.
Strengthen regulations: enforce tougher environmental standards.
Invest in renewable energy: support energy-efficient technologies.
Promote international cooperation: ensure fair access to digital technologies and tackle global digital waste and resource extraction issues.

Conclusion

“The digital economy is key to global growth,” Grynspan concluded. “We must implement practices that align with environmental sustainability and climate commitments.”

Re-reported from the article originally published in UN News.