UNCTAD Digital Economy Report 2024: Balancing digital growth and enviromental impact

The UNCTAD (UN Trade & Development) published the Digital Economy Report 2024, which highlights the urgent need for sustainable and inclusive strategies in digitalisation. As the digital economy expands, its environmental toll grows significantly, with the production and disposal of devices contributing to rising energy consumption and digital waste. Developing countries bear the brunt of these environmental costs while gaining fewer benefits, often exporting raw materials and importing digital waste, exacerbating their ecological and economic vulnerabilities.

The UNCTAD report emphasises the critical need for a global shift towards a circular digital economy. It calls for durable product designs, responsible consumption, and sustainable business models prioritising recycling and reuse. Addressing these challenges requires coordinated action from policymakers, industry leaders, and consumers to curb the environmental impact and ensure that the benefits of digitalisation are shared equitably across the globe.

The report urges international cooperation to achieve this, particularly in managing critical minerals essential for digital technologies. It highlights the importance of balancing economic opportunities with environmental and social responsibilities, ensuring that developing countries are not left behind in the digital era but are instead empowered to advance sustainably.