E-commerce and Sustainability: an overlooked nexus (Brazilian Center for International Relation – CEBRI)
4 Dec 2023 11:30h - 13:00h UTC
Knowledge Graph of Debate
Session report
Full session report
H.E. Matthew Wilson
Going digital and embracing e-commerce is considered crucial for economic growth in developing countries. Small and medium-sized enterprises (SMEs) and micro enterprises make up about 95% of e-commerce usage in developing countries, underscoring the importance of digital transformation at the grassroots level.
In light of the current environmental crisis, trade and economic policies must prioritize sustainability. The impact of climate change, such as flooding, freezing, drying up, and burning, reported at COP meetings, emphasizes the need for sustainable policies. Therefore, new policies should align with sustainable development goals and address climate change and other sustainability challenges.
Discussions regarding e-commerce and sustainability are crucial for shaping our future. The development of a paper on this subject and the increasing incidents of climate crises support the importance of these discussions. Integrating sustainability concerns into e-commerce practices is believed to have positive outcomes for economic and environmental aspects.
Smart regulation of e-commerce is necessary to address potential negative impacts and ensure sustainability. The lack of regulation can result in global damage, as seen in the 2008 financial crisis. Therefore, breaking the silos within the World Trade Organization (WTO) and establishing comprehensive regulations for e-commerce is crucial.
E-commerce and sustainability should be global concerns, demanding immediate action. The rapid development and widespread adoption of e-commerce call for measures to control and mitigate its impact. The convening power of the WTO should be utilized to prioritize e-commerce sustainability on the global agenda.
Additionally, there are often overlooked sustainability dimensions in e-commerce. Despite being considered efficient, e-commerce has environmental impacts through data usage and electricity consumption. The human dimension, including labor and working conditions, as well as the environmental footprint of packaging in e-commerce, contribute significantly to its sustainability.
While there has been significant progress in WTO negotiations on e-commerce, there has been no explicit focus on sustainability. Incorporating sustainability discussions explicitly into these negotiations is necessary to fully realize the potential of digitalization in reducing environmental impact.
The private sector, especially from developing countries facing market access and standards compliance issues, should consider sustainability in relation to e-commerce and trade. Adopting sustainable practices ensures environmental responsibility and contributes to decent work and economic growth.
Sustainability encompasses social, economic, and environmental aspects and must be understood holistically for balanced and truly sustainable development. This approach is vital for climate action and conserving life on land.
When making decisions, reliance on evidence and thorough analysis is crucial, rather than opinions. Evidence-based practices and analysis inform policies and actions related to industry, innovation, and infrastructure.
Addressing the digital divide and sustainability divide is pressing to prevent the replication of 20th-century inequalities. Attention should be given to these issues to ensure that digital and sustainability benefits are accessible to all and do not exacerbate existing inequalities.
In conclusion, embracing digitalization and e-commerce is crucial for economic growth in developing countries. However, this must be done sustainably, considering environmental, social, and economic aspects. Integrating sustainability discussions into WTO negotiations and implementing smart regulation are essential for prosperous and environmentally responsible e-commerce practices. Collaboration between the private sector, governments, and international organizations is necessary to ensure a holistic and equitable approach to e-commerce and sustainability, creating a better future for all.
Wei Guo Tang
The analysis of the speaker’s statements reveals several important points regarding the ongoing JSI negotiations and their implications for various topics, including privacy, sustainability, indigenous rights, and worker protection. The JSI negotiations discuss the protection of personal data, highlighting the importance of addressing privacy concerns in digital trade.
However, the analysis also points out that indigenous rights and the interests of minority communities are not adequately discussed in these negotiations. This raises concerns about the inclusivity and equity of the discussions, as it is crucial to ensure the voices and rights of marginalized groups are taken into account.
On the topic of sustainability, the analysis highlights that provisions in e-commerce rules can have tangible impacts on sustainability. Measures to tackle spam, for example, contribute to reducing the environmental impact of digital activities. Additionally, provisions such as e-invoicing, e-contracts, and single windows facilitate digitization, reducing environmental damage. This demonstrates the potential of e-commerce regulations to promote more sustainable practices.
The analysis also emphasizes the importance of considering sustainability in the policy-making process when setting up data centres. It mentions that Singapore, due to limited land availability, ruled out hosting data centres, indicating a consideration for long-term sustainability. Furthermore, the analysis notes that cold climates are more conducive to data centres as they require lower energy consumption to maintain low temperatures. This highlights the need to factor in sustainability considerations when making decisions about the location and operation of data centres.
Furthermore, the analysis highlights the positive contribution of e-commerce to development-centric objectives and job creation. It mentions that South Asians are using platforms like Fiverr and digital labour platforms to provide services, creating economic opportunities, particularly in places like the US. This underscores the potential of e-commerce to contribute to decent work and economic growth.
Another important observation from the analysis is the need for more work in socialising stakeholders about the benefits of digital transformation. It suggests that there is a lack of awareness and understanding among stakeholders about how digital transformation can assist in job creation and the provision of services online. This emphasises the importance of engaging and educating stakeholders about the potential advantages of digital transformation.
Additionally, the analysis highlights the significance of collaboration and partnership among stakeholders, including governments, companies and individuals, to address the complexities of e-commerce and sustainability. It stresses the need to bring these stakeholders together to align their interests and extract common value.
Moreover, the analysis emphasises the importance of basing the discourse around digital transformation and sustainability on data and facts. It suggests that a fact-based discussion is essential for understanding the true impacts and potential benefits of digital transformation for sustainability.
The analysis also underscores the need for worker protection, particularly in the gig economy. It mentions the importance of providing adequate protection for workers, considering factors such as job security and fair working conditions.
In conclusion, the analysis reveals several noteworthy insights. It highlights the key aspects of the JSI negotiations, such as the discussion on the protection of personal data. It also points out the need to address indigenous rights and the interests of minority communities in these discussions. Additionally, the analysis emphasizes the impacts of e-commerce regulations on sustainability and the importance of considering sustainability in the policymaking process for data centres. The analysis also underscores the positive contributions of e-commerce to development objectives and job creation, as well as the need for increased stakeholder engagement and awareness about digital transformation. Finally, it stresses the importance of worker protection and the establishment of reliable and concrete rules around sustainability and digital transformation by countries and international entities like the WTO.
Valerie Picard
The analysis reveals several key points regarding the priorities and challenges faced by businesses in relation to digitalization and sustainability. It is observed that businesses are increasingly focusing on integrating digitalization and sustainability into their business models as strategic imperatives. This highlights a shift towards becoming data and services companies built around the internet and data. The sentiment towards this trend is largely positive, recognizing the benefits and opportunities associated with embedding digital and sustainability practices.
However, while businesses prioritize sustainability, there is a significant gap when it comes to reporting their environmental impact. The analysis highlights that only 8% of businesses currently report their impact, despite 83% prioritizing sustainability. This discrepancy raises concerns as reporting is important for transparency and accountability in sustainable business practices. Consequently, there is a call for businesses to improve their reporting efforts to ensure that their sustainability initiatives are effectively communicated to stakeholders.
Another challenge identified is the complexity of environmental and sustainability regulations, which can exclude businesses from international trade. This is particularly evident for micro, small, and medium-sized enterprises (MSMEs), especially in developing countries. The proliferation of regulations can disproportionately impact these businesses, hindering their participation in global trade. The sentiment regarding this issue is neutral, acknowledging the complexity of balancing environmental regulations with trade facilitation for businesses.
To address these challenges, there is a need for reform within the World Trade Organization (WTO). Specifically, there is a call for the WTO to take concrete actions, such as agreeing on digital rules, renewing and making permanent the moratorium, reviving negotiations on environmental goods and services, and collaborating on the trade facilitation agreement. The analysis highlights the absence of digital rules within the WTO, particularly in relation to the free flow of data and data localization requirements. Renewing and permanently enforcing the moratorium is seen as a way to prevent excessive bureaucracy that could hinder businesses. Additionally, negotiations on environmental goods and services are deemed essential for promoting circular economy practices and sustainable trade. Collaboration with businesses on the trade facilitation agreement is emphasized as a means to optimize border procedures through multilateral and multi-stakeholder policy coordination. Overall, the sentiment towards these proposed actions is positive, recognizing the potential benefits of WTO reform in addressing contemporary trade-environment and trade-digital issues.
Moreover, the analysis underscores the importance of WTO principles, such as transparency, non-discrimination, and Most-Favored Nation treatment, in implementing environmental regulations. It also highlights the need for stronger multilateralism to effectively handle the increasing complexity of trade and environmental issues. This reiterates the significance of collaboration and cooperation among nations to address global challenges.
The analysis also discusses the potential of the circular economy, with only 7.2% of the global economy currently operating in a circular manner. It is emphasized that 90% of materials ending up in landfills could be reused, recovered, repaired, repurposed, or refurbished. Therefore, there is a need for new rules and practices to support the transition to a circular economy. Developing economies are identified as having the most to gain from embracing circular practices, as they often bear the burden of waste disposal.
In terms of digitalization and sustainability, there is a call to support micro, small, and medium-sized enterprises (MSMEs) in their transition towards digital technologies and sustainability. The analysis highlights that digitalization enabled millions of small businesses to stay afloat during the COVID-19 pandemic. Additionally, it is noted that MSMEs in rural areas should have access to the internet to unlock their full potential and enable global market participation. The sentiment is positive towards supporting MSMEs in their digital transition and sustainability efforts as it is seen as crucial for their basic competitiveness and business viability.
Furthermore, the analysis emphasizes the importance of multi-stakeholder collaboration in addressing contemporary challenges. There is an emphasis on bringing together various stakeholders to have comprehensive conversations and develop effective solutions.
Lastly, the analysis touches upon the examination of competition laws relating to the green transition. It is argued that proper examination of these laws is needed to ensure they do not hinder the application of the best solutions for sustainability. The sentiment towards this issue is negative, suggesting a concern that current competition laws may not fully support the transition towards green practices.
In conclusion, the analysis highlights the increasing focus on digitalization and sustainability as key priorities for businesses. It identifies challenges such as the low reporting of environmental impact and the complexity of environmental regulations. The need for WTO reform to address trade-environment and trade-digital issues is emphasized, along with the potential of the circular economy and the importance of supporting MSMEs in their digital transition and sustainability efforts. The significance of multi-stakeholder collaboration, examination of competition laws, and the negative impact of unfair subsidies are also noted. Overall, the analysis underscores the importance of integrating digital and sustainable practices into business models and calls for collaborative efforts to drive positive change.
Yasmin Ismail
The analysis examines various aspects of e-commerce and its impact on sustainability and development. One of the main points highlighted is the potential of e-commerce to promote green and sustainable supply chains, offering a real opportunity for the future of trade. However, concerns are raised regarding the work conditions in least developed countries where e-commerce is prevalent, emphasizing the need for better consideration and improvement.
To address environmental issues, the analysis suggests cross-disciplinary dialogue and the establishment of task forces, bringing together ministries to develop projects that aid countries in implementing sustainable practices. Ongoing dialogue is also necessary to address the evolving technologies related to e-commerce.
The analysis emphasizes the knowledge and data gaps in developing countries and suggests task forces as a solution to bridge these gaps and gain a better understanding of e-commerce in these nations. Additionally, a developmental and sustainable approach to e-commerce is advocated, particularly for bridging the digital divide in developing countries.
The growing problem of e-waste associated with e-commerce is also discussed, highlighting the need for trade agreements to consider this issue and promote circular trade and sustainability.
Collective action and dialogue are deemed imperative for incremental changes towards sustainability, with stakeholders from all sectors, including the private sector and consumers, playing a crucial role. Moreover, the analysis stresses the importance of cultural shifts among consumers for a sustainable e-commerce sector.
In summary, the analysis underscores the opportunities and challenges of e-commerce in terms of sustainability and development. It highlights the need for a comprehensive and collaborative approach involving task forces, cross-disciplinary dialogue, and a focus on work conditions, social protections, and e-waste in trade agreements. Ongoing dialogue and collective action are essential for driving positive change in the sector.
Victor do Prado
The analysis indicates a strong interconnection between e-commerce and sustainability. It highlights the rising use of e-commerce and artificial intelligence, resulting in increased energy consumption. E-commerce, growing in all formats and relying on data flows, consumes a significant amount of energy. This underlines the need to address the environmental impacts of e-commerce and pursue a more sustainable approach.
The analysis also highlights the importance of regulation in ensuring the sustainability of e-commerce. It refers to the 2008 financial crisis as an example of the consequences of a lack of regulation, emphasising the necessity for regulation in e-commerce. The World Trade Organization (WTO) is identified as the primary forum for regulating e-commerce. The argument is made that the WTO should implement smart regulations on e-commerce to encourage innovation and development in developing countries.
Additionally, there is a need for interconnected discussions that break the existing silos within the WTO. Currently, separate discussions on trading goods, services, and intellectual property hinder the integration of environmental considerations. Therefore, it is recommended that discussions within the WTO integrate with the environmental committee to effectively address the sustainability aspects of e-commerce.
The analysis also highlights the urgency of controlling the detrimental environmental impacts of e-commerce due to its rapid growth. The WTO is urged to prioritize e-commerce sustainability in its discussions. The positive aspects of e-commerce are acknowledged, including paperless trade, e-contracts, and transit rules that have positive environmental impacts and reduce pollution. These positive aspects should be considered alongside the electricity consumption associated with e-commerce.
Furthermore, the analysis suggests reframing the moratorium in terms of sustainability to address environmental concerns. The moratorium, extended every two years, could be seen as an environmental incentive to foster sustainable practices in the e-commerce sector.
The developmental aspects of e-commerce are also emphasized, including the need for technical assistance and the operationalization of technology transfer. The analysis points out that having both hardware and software is crucial, but high import duties on hardware in many countries pose a challenge.
The environmental impact of e-commerce is not limited to a particular region; it affects everyone, especially those in the global south. Therefore, it is imperative to consider the environmental repercussions when discussing and regulating e-commerce.
To obtain a comprehensive understanding of the costs and benefits of e-commerce, accurate measurements are essential. The analysis suggests that an accurate cost-benefit analysis requires the right measurements and highlights the complexity in measuring trade due to online purchases.
To explore further the positive aspects of e-commerce on sustainability, the analysis recommends creating an interagency task force. This task force should include not only governments and international organizations but also think tanks, scientists, and businesses. It is important to consider multiple perspectives to ensure a comprehensive and inclusive approach.
The analysis also observes the need for coordination within international organizations and emphasizes the importance of breaking silos. It highlights the lack of coordination in international organizations and calls for a greater effort to address this issue.
In conclusion, the analysis emphasizes the interconnection between e-commerce and sustainability, while stressing the need for regulation and integrated discussions within the WTO. It underscores the urgency of addressing the environmental impacts of e-commerce and promoting its positive aspects. Additionally, the analysis highlights the importance of considering the developmental and environmental aspects of e-commerce, accurately measuring its impacts, and establishing coordination within international organizations
Audience
Multiple speakers in the discussion emphasise the importance of sustainability in the context of e-commerce, particularly regarding regulations surrounding data centres. They highlight the potential for data centres to become more environmentally friendly by utilising artificial intelligence to improve efficiency. However, there is concern about the possibility of restrictive regulations inhibiting sustainable practices in this sector.
The significance of policy space is stressed to effectively regulate sustainability in e-commerce. The speakers argue that current regulations may hinder efforts to determine the terms of data storage, which could impede sustainability goals. They emphasise the need to consider the developmental aspect of sustainability, including job creation and poverty reduction, especially in developing nations.
While acknowledging that e-commerce has both positive and negative impacts, the speakers suggest conducting a cost-benefit analysis to better understand its necessity and benefits. They caution against excessive regulation, as it may stifle innovation and economic progress, particularly in developing countries where policymakers may not fully understand the complexities of implementing effective regulations.
The need for policy coherence and discussions across different sectors is highlighted as vital for global progress. The speakers note that silos exist in all governments, leading to policy incoherence, and advocate for improved coordination and collaboration among stakeholders.
They argue that sustainability should not be limited to environmental considerations alone, but should be approached holistically, encompassing broader developmental, economic, and social dimensions. They stress the importance of promoting multi-stakeholder engagement to challenge and change the prevailing view on sustainability held by big tech companies.
To promote sustainable cross-border e-commerce, better coordination between postal operators and customs administrations at a global level is deemed necessary. The speakers provide an example of a successful project in Cambodia that brought together these two key players for enhanced operational efficiency, highlighting the positive impact of collaboration.
The fate of digital gadgets after their lifespan ends is a pressing concern, as rapid technological advancements render them obsolete. While e-commerce has created jobs, the speakers express concern that individuals lacking skills in using digital gadgets may be left behind, exacerbating social inequalities.
The impact of artificial intelligence on the job market is another area of concern. AI now performs tasks such as transcription and translation, potentially making certain jobs redundant. The concentration of data control in the hands of a few powerful companies in the e-commerce sector is also noted as a significant issue.
The speakers advocate for proactive measures to promote sustainability, including greater multi-stakeholder engagement and improved coordination among international organizations. They underscore the need for a comprehensive approach to e-commerce that takes into account its environmental, sustainability, and developmental aspects.
It is concluded that the term “development” should not be separated from “sustainability” but should be understood as an integral part of the broader concept. The speakers call for greater attention to be given to the interplay between sustainability and development in e-commerce discussions and initiatives.
Moderator
During the conversation, the sound technician confirmed his role in the meeting as the audio recording specialist. He mentioned that he was available to assist with any technical issues, providing his contact details for reference. The participants noted that they did not require any high-tech equipment, such as microphones, as the recording could be executed without them in a room of that size. They expressed their satisfaction with the low-tech nature of the meeting, stating that they did not have any presentations or PowerPoint slides.
The conversation then shifted to the topic of room allocation, with participants mentioning the difficulty in finding the right rooms. They highlighted the confusion caused by unclear instructions regarding room locations, mentioning instances where room details were not provided or where doubts arose regarding which room to go to. They described the building as a labyrinth and expressed their struggle to navigate it, noting that even after spending days and nights there, they still did not fully comprehend its layout. They jokingly referred to some rooms as “secret” and agreed that the building’s configuration made finding rooms a challenging task.
The participants briefly discussed their professions and connections to the ministry. One participant mentioned being a teacher based in Paris and being a part of a Brazilian film team, while another participant mentioned being a former peace engineer with a longstanding connection to the ministry.
Towards the end of the conversation, the participants discussed photography and the upcoming reception. One participant mentioned providing their information to the photographer and confirmed arrangements for being picked up in front of their colleagues. The conversation concluded with some lighthearted remarks and compliments exchanged among the participants.
Overall, the conversation mainly revolved around technical matters related to audio recording, challenges faced with room allocation, and casual discussions about the participants’ professions and connections. The participants exhibited a sense of humour and camaraderie throughout the conversation, highlighting their willingness to engage in small talk and make light of the difficulties they experienced.
Speakers
A
Audience
Speech speed
184 words per minute
Speech length
2105 words
Speech time
687 secs
HM
H.E. Matthew Wilson
Speech speed
191 words per minute
Speech length
2745 words
Speech time
862 secs
M
Moderator
Speech speed
175 words per minute
Speech length
1089 words
Speech time
374 secs
VP
Valerie Picard
Speech speed
170 words per minute
Speech length
3038 words
Speech time
1070 secs
VD
Victor do Prado
Speech speed
145 words per minute
Speech length
3152 words
Speech time
1300 secs
WG
Wei Guo Tang
Speech speed
190 words per minute
Speech length
1997 words
Speech time
629 secs
YI
Yasmin Ismail
Speech speed
126 words per minute
Speech length
2399 words
Speech time
1143 secs
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