ISLAMABAD: The United Nations Conference on Trade and Development (Unctad) says the digital economy is thriving, with annual smartphone shipments more than doubling since 2010, reaching 1.2 billion in 2023.

Unctad’s ‘Digital Economy Report 2024’ says the number of Internet of Things (IoT) devices is projected to surge 2.5 times from 2023 to 39 billion by 2029. New data from 43 countries, representing about three-quarters of global GDP, show that e-commerce grew nearly 60 per cent from 2016 to 2022 to reach $27 trillion.

Data shows e-commerce grew 60pc from 2016 to $27tr till 2022

However, the report points out that this growth is taking an increasingly heavy toll on the environment. The digital economy is resource-intensive. A 2 kilogramme computer requires 800kg of raw materials and a smartphone, from production to disposal, requires about 70kg.

While the production phase is the most impactful — generating some 80pc of smartphone greenhouse gas (GHG) emissions — environmental harm occurs throughout the lifecycle of devices and ICT infrastructure, including through e-commerce.

Digital waste is growing faster than collection rates. Waste from screens and small IT equipment rose 30pc between 2010 and 2022, reaching 10.5 million tonnes. The report says that improper disposal leads to pollution and other health and environmental hazards.

The report highlights that while digitalisation thrives global economic growth and offers unique opportunities for developing countries, its environmental repercussions are becoming increasingly severe.

Developing countries remain unevenly affected both economically and ecologically due to existing digital and development divides, but they can leverage this digital shift to foster growth.

The report emphasises the pressing need to address the environmental costs of rapid digital transformation. Key concerns include the depletion of finite raw materials for digital and low-carbon technologies, escalating water and energy consumption and the growing issue of digitalisation-related waste.

As digitalisation progresses at an unprecedented rate, understanding its link to environmental sustainability becomes increasingly critical. Developing countries are pivotal in the global supply chain for transition minerals and metals, which are highly concentrated in a few regions.­­

Published in Dawn, August 15th, 2024