The digital economy – environmental impact, creative industries, women entrepreneurship, and trade in SDGs

eTrade for all Newsletter

On 14th July UN Trade and Development (UNCTAD) released the latest edition of its Digital Economy Report which focuses on how to shape an environmentally sustainable and inclusive digital future.  UNCTAD also launched a series of reports addressing other different aspects of the digital economy, including creative industries, women in e-commerce and trade and the SDGs.

In this section we highlight key insights, the latest data, and relevant statistics to help you stay informed in these critical areas.

A global shift towards circularity focusing on responsible production and consumption is crucial to making the digital economy an empowering force for people and the planet.
Digital transformation is deeply impacting the production and consumption of creative goods and services, generating opportunities for some and challenges for others.
Targeted support and gender-sensitive policies are key to helping women entrepreneurs, including e-commerce small business owners, thrive in the global digital economy.
With increased digitalization, trade in services becomes increasingly relevant.

Digital Economy Report 2024

UN Trade and Development (UNCTAD) launched The Digital Economy Report 2024 on 10 July.

This new report highlights the significant environmental toll of the global digital sector, with developing countries bearing a disproportionate share of the burden. While digitalization fuels global economic growth and presents opportunities, its environmental repercussions are increasingly severe, particularly for countries already struggling with digital and development divides.

Key figures to understand the environmental impact of the digital economy

The ICT sector is estimated to have emitted between 69 to 1.6 gigatons of CO2 in 2020, representing 1.5-3.2% of global greenhouse gas emissions.
Producing a 2 kg computer requires approximately 800 kg of raw materials.
Demand for critical minerals like graphite, lithium, and cobalt could surge by 500% by 2050.
Data centers consumed 460 TWh of electricity in 2022, with consumption expected to double by 2026.
Digital-related waste increased by 30% between 2010 and 2022, reaching 10.5 million tons globally.
Developed countries generate 25 kg of digital waste per person, compared to less than 1 kg in developing countries and just 0.21 kg in least developed countries (LDCs).
Only 24% of digital waste was formally collected globally in 2022, with a mere 7.5% collection rate in developing countries.
Business e-commerce sales surged from $17 trillion in 2016 to $27 trillion in 2022 across 43 countries.

UNCTAD advocates for innovative business models and robust policies to enhance the sustainability of digital growth. Key recommendations include:

Adopting Circular Economy Models: Prioritize recycling, re-use, and recovery of digital materials to reduce waste and environmental impacts.
Implementing Resource Optimization: Develop strategies to use raw materials more efficiently and reduce overall consumption.
Strengthening Regulations: Enforce stricter environmental standards and regulations to mitigate the ecological footprint of digital technologies.
Investing in Renewable Energy: Promote research and development of energy-efficient technologies and sustainable digital practices.
Promoting International Cooperation: Foster collaboration among nations to ensure equitable access to digital technologies and resources, and to address the global nature of digital waste and resource extraction.

SDG Pulse 2024 – The pulse of progress towards the Sustainable Development Goals

The sixth edition of UNCTAD’s SDG Pulse, launched in July 2024, provides a comprehensive analysis of global progress towards the Sustainable Development Goals (SDGs) and highlights both advancements and persistent challenges as we pass the halfway mark to the 2030 deadline. This edition of the SDG Pulse focuses on four key transformations identified during UNCTAD’s Ministerial Conference in Bridgetown, Barbados: multilateralism and trade, development finance, diversification, and sustainability and resilience.

One of the report’s critical findings is the increasing significance of digital trade as a driver of economic transformation. Over the past decade, digitally deliverable services—those that can be ordered or delivered remotely over digital networks—have seen a significant rise, particularly in developing economies. For instance, in 2023, the exports of digitally deliverable services from developing economies were three times higher than in 2010, with SIDS experiencing a four-fold increase.

However, despite a 180 per cent increase from 2010 to 2023, LDCs’ exports of digitally deliverable services have seen slower growth, highlighting ongoing disparities in digital infrastructure and access.

MORE SDG DATA AND GRAPHS

Creative Economy Outlook 2024

The Creative Economy Outlook 2024 was released by UN Trade and Development (UNCTAD) on 11 July.

The creative economy includes audiovisual products, design, media, music, performing arts, publishing and visual arts. An evolving concept by nature, it involves goods and services based on creativity and intellectual capital as primary inputs.

Digitalization is transforming creative industries. For example, in 2023, streaming services expanded their share by 10.4%, now accounting for more than two thirds (67.3%) of global music market revenues.

Meanwhile, AI is enhancing content creation, distribution and consumption. It generates scripts, movies, music, images, captions, animations and virtual reality content, while improving post-production workflows and analyzing user data. AI is widely used in newsrooms, with 41% of news teams employing it to create illustrative art, 39% for social media content, and 38% for writing and generating articles.

While digitalization and artificial intelligence expand opportunities for growth and efficiency, they also raise development concerns about the digital divide, job shifts, quality control, privacy and consumer protection, copyright, and market monopolization.

Policymakers need to monitor technological developments and update policy and regulatory frameworks to seize development opportunities and mitigate risks.

READ THE CREATIVE ECONOMY OUTLOOK 2024

The impact of non-tariff measures on women’s e-commerce businesses in developing countries

UN Trade and Development’s (UNCTAD) released on 5 August, “The impact of non-tariff measures on women’s e-commerce businesses in developing countries”, sheding light on the unique challenges faced by women-led businesses in the digital economy and the role of non-tariff measures.

This new report underscores the importance of targeted support and gender-sensitive policies to help women entrepreneurs thrive in the global digital economy. The findings highlight how sectors with high female participation, such as agriculture and food, could benefit from Non-Tariff Measures (NTMs). These measures, like sanitary regulations and technical standards, not only boost consumer confidence but also promote trade with minimal costs through requirements like labeling and packaging.

The report also emphasizes the need for regulations addressing cross-border online activities, which differ from traditional NTMs. These rules can protect female exporters from gender-based threats, including online violence and harassment, thereby enhancing their e-commerce participation.

Furthermore, the digitalization of customs and trade procedures is identified as a critical tool for easing gender-specific challenges. For digitally savvy women exporters, reducing in-person interactions through digital trade processes can make exporting safer by mitigating risks of harassment and corruption, issues women disproportionately face.

READ ABOUT WOMEN IN E-COMMERCE

Learn More :

https://mailchi.mp/unctad.org/etradeforall-newsletter-2024-08