Greening E-Commerce: Tools and Frameworks towards Shaping the Digital Economy (GIZ)

5 Dec 2023 11:30h - 13:00h UTC

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Full session report

David Jensen

The analysis examines the impact of e-commerce on the environment and emphasizes the importance of sustainable practices. It acknowledges that e-commerce has both positive and negative effects on the environment. On the positive side, approximately 30% of global GDP flows through e-commerce channels, and around 2 billion people are involved in e-commerce. However, the analysis points out that current e-commerce platforms may not be promoting sustainability and could even be accelerating consumption.

To establish a more sustainable e-commerce landscape, the analysis recommends enhancing product comparability and recommendation engines. It stresses the significance of product comparability in enabling consumers to understand the environmental impact of products and make more sustainable choices. Additionally, recommendation engines should prioritize sustainable products and assist consumers in making informed decisions based on product sustainability.

The discussion also highlights the need for international standards for digital product passports. The analysis mentions that Amazon currently lacks product comparability due to the insufficient access to data on the environmental footprint of products. It emphasizes that digital product passports, which store the entire lifecycle of a product, can facilitate product comparability and informed decision-making.

Concerning digital public infrastructure and national digital transformation strategies, it is mentioned that approximately 60 countries are developing national digital transformation strategies. However, these strategies often disregard the environmental dimensions. Therefore, the analysis emphasizes the importance of “greening” national digital transformation strategies and plans for digital public infrastructure.

The analysis further emphasizes the necessity for a global forum to address major digital sustainability challenges. While the Coalition for Digital Environmental Sustainability is mentioned as a global forum, the analysis points out the absence of a dedicated forum for discussing these challenges.

Regarding governance and coordination, the analysis mentions that the United Nations Environment Programme (UNEP) has been assigned the task of developing a global environmental data strategy. This strategy aims to harmonize and govern global environmental data, including the data essential for digital product passports.

Concerns are raised about the risks associated with digital product passports (DPP). The analysis emphasizes that DPPs require significant capacity building and enabling support to adequately address these risks. However, the EU’s vision of DPP implementation is highlighted as a good model, encompassing both regulations and development cooperation support.

Moreover, the analysis discusses the forthcoming Digital Economy Report by UNCTAD, which focuses on the impact of the digital economy on the environment. David Jensen, who considers it excellent, praises the report.

The analysis also highlights the concept of digital public infrastructure, which refers to the digital infrastructure established by governments to enable digitized government services. It includes digital identities, digital payments, and digital product passports. However, the terminology surrounding digital public infrastructure is described as confusing and evolving, calling for improved definitions.

The pervasive issue of consumerism, potentially exacerbated by digital platforms, is emphasized. The analysis suggests demanding algorithmic disclosure to understand the optimization goals of platforms, which often focus on consumption. It further suggests that linking the environmental footprint to the price of a product could positively influence consumer behavior.

David Jensen, expressing a positive sentiment, advocates for better, more responsible digital consumption practices. He hopes that digital platforms can assist individuals in becoming better consumers rather than encouraging excessive consumption. He emphasizes the importance of enabling consumers to choose what the algorithm optimizes based on their values.

The analysis acknowledges the role of education in shifting consumer behavior towards a greener economy but argues that education alone may not be sufficient. It notes that the dopamine-triggering incentives linked to consumption often overshadow the lessons of education.

Lastly, the analysis points out the need for a global digital compact involving governments and the private sector to address sustainable e-commerce. The Secretary-General is eager to explore this digital compact, and e-commerce sustainability is highlighted as one of the major issues raised by Member States.

In conclusion, the analysis provides insights into the impact of e-commerce on the environment and emphasizes the importance of sustainable practices. It highlights the need for improvements in product comparability and recommendation engines, as well as the establishment of international standards for digital product passports. The analysis also calls for the greening of national digital transformation strategies and plans for digital public infrastructure. It highlights the need for a global forum to address digital sustainability challenges and emphasizes the importance of a global environmental data strategy. Additionally, concerns and mitigating measures regarding digital product passports are presented. Overall, the analysis advocates for greater awareness and action towards making e-commerce more environmentally friendly, along with the need for a global digital compact to promote sustainable e-commerce practices.

Marta Soprana

Digital trade and environmental concerns are increasingly becoming core topics in international trade agreements. Preferential trade agreements have emerged as platforms for setting rules on digital trade. Negotiations are currently ongoing under the Joint Statement Initiative on Electronic Commerce to address these issues. Additionally, there has been an increase in the number of provisions related to environmental sustainability in these agreements over time. Studies have shown that digital trade, e-commerce, and the environment are interconnected. Digitalization and digital trade have the potential to open up opportunities that can help achieve environmental objectives.

However, it is crucial to strike a balance between incorporating environmental concerns in e-commerce and ensuring that this does not deter developing countries and small to medium enterprises (SMEs) from participating in international trade. The need to understand the nexus between e-commerce and the environment is emphasised. Careful consideration of environmental concerns is vital in the design and implementation of electronic commerce, without undermining the potential for development and economic growth in these countries and SMEs.

Concerns arise regarding potential barriers to international trade resulting from efforts to promote environmentally friendly practices in e-commerce. The lack of multilateral rules pertaining to digital trade further complicates the regulatory landscape. It is imperative to ensure that the greening of e-commerce does not inadvertently hinder opportunities for developing countries and micro, small, and medium enterprises (MSMEs).

Education plays a key role in initiating conversations and raising awareness about greening the economy and its benefits. Educating individuals about the concept of a greener economy and the opportunities it presents is crucial. It is acknowledged that transitioning towards more sustainable consumerism trends and greening the economy is not an overnight process but requires gradual and sustained efforts.

In conclusion, digital trade and environmental concerns are gaining prominence in international trade agreements. Preferential trade agreements are being used to lay down rules on digital trade, while environmental provisions are increasingly being incorporated into these agreements. The nexus between digital trade, e-commerce, and the environment is evident, and digitalization presents opportunities for achieving environmental objectives. However, it is important to carefully balance environmental concerns in e-commerce without impeding the participation of developing countries and SMEs in international trade. The need for multilateral rules and education on greening the economy is also highlighted, recognising that transitioning to more sustainable practices is a gradual process.

Christian Bilfinger

The analysis highlights the significance of promoting greener e-commerce as a crucial component of sustainable development in developing countries. This is supported by the fact that greener e-commerce contributes to a more sustainable economy overall. Germany, recognising this importance, is actively providing financial and technical support to developing countries, helping them adapt to climate change and reduce their greenhouse gas emissions. This support demonstrates Germany’s commitment to fostering sustainability and addressing the environmental impact of e-commerce in developing nations.

Furthermore, the analysis emphasises the need to develop digitalisation and e-commerce with sustainability in mind, particularly in developing countries. It is argued that this can be achieved by creating digital policies based on universal standards and promoting an international trading system that is green, sustainable, fair, and development-friendly. Such efforts would enable developing countries to participate in the digital economy while ensuring that sustainability remains at the forefront.

Building capacities in developing countries is also recognised as a key actionable step towards achieving a digitally sustainable economy. Investments in training and capacity building are deemed imperative for overcoming potential barriers that may hinder the adoption of sustainable digital practices. It is noted that micro, small, and medium-sized enterprises (MSMEs) and women-led companies can greatly benefit from joining digital markets. Therefore, it is essential to invest in people on the ground to enhance their skills and knowledge, ultimately facilitating their participation in the digital economy.

Smart national and international regulation and blueprints are identified as crucial elements in incorporating green practices into the digital economy. It is suggested that regulations and blueprints should be created by considering existing companies and future potential companies. This approach aims to ensure the effective implementation of green practices while taking into account the different capacities and capabilities of companies. It is noted that this concept is already partially implemented in Germany.

In addition, the analysis recognises the importance of reducing the digital divide and promoting inclusivity in the digital economy. Different forums have been identified as having specific strengths that can be tapped into to address this issue. The argument put forth is that no single approach or forum is suitable for all, and it is recommended to utilise various actors and forums to effectively tackle the challenges of green e-commerce and reduce the digital divide.

The analysis also highlights the significance of organisations like the United Nations Conference on Trade and Development (UNCTAD) and the United Nations Environment Programme (UNEP) in advancing the goals of e-commerce and sustainability. UNCTAD plays a crucial role in bringing together different institutions and sectors, while UNEP expands knowledge about e-commerce and its environmental impact. The continuation of these organisations is supported, recognising their important contributions in their respective fields.

Finally, there is an emphasis on the need for developing countries to take on more active roles in shaping the rules for e-commerce. Currently, only a small number of developing countries are engaged in major initiatives for e-commerce. It is argued that for e-commerce to be truly inclusive and beneficial for all, the voices and perspectives of developing countries must be actively included in the decision-making processes.

In conclusion, the analysis underscores the importance of promoting greener e-commerce and incorporating sustainability into digitalisation efforts in developing countries. It highlights the support provided by Germany in terms of financial and technical assistance. Building capacities, investing in training, and implementing smart regulations are vital steps towards achieving a digitally sustainable economy. To address the challenges of green e-commerce and reduce the digital divide, various actors and forums should be utilised. The continuation of organisations like UNCTAD and UNEP is recommended, while simultaneously emphasising the need for developing countries to play a more active role in shaping e-commerce rules. Overall, the analysis highlights the potential for e-commerce to be a catalyst for sustainable development and calls for concerted efforts to ensure its implementation with sustainability at its core.

Abdesslam Benzitouni

The analysis highlights the various ways in which the e-commerce industry can contribute to environmental sustainability, with a focus on the initiatives implemented by Jumia, a prominent e-commerce company in Africa. Jumia has recognised the importance of reducing its carbon footprint and has taken steps to integrate environmental considerations into its operations.

One of the measures taken by Jumia is the adoption of e-bikes and electric bicycles for deliveries in Ghana, Kenya, and Senegal. By partnering with companies that utilise these eco-friendly transport options, Jumia can significantly reduce carbon emissions and contribute to climate action. In addition, the company has made the decision to halt door-to-door deliveries in rural and secondary cities. This not only helps to cut costs but also reduces carbon emissions associated with unnecessary travel.

Another key aspect of Jumia’s sustainability efforts is waste reduction. The company seeks to minimise waste by promoting the sale of refurbished mobile accessories on its platform. By extending the lifespan of products through recycling and refurbishment, Jumia contributes to responsible consumption and production, which is a crucial element of sustainable development.

Despite the challenges of balancing environmental sustainability and cost-effectiveness, Jumia remains steadfast in its commitment to environmentally sustainable practices. This is evident in the company’s efforts to work with different stakeholders and implement sustainable practices, even though it is not yet profitable. By prioritising both environmental sustainability and cost-effectiveness, Jumia sets an example for other companies in the e-commerce industry.

The greening of e-commerce provides a significant opportunity for developing countries. Jumia, being one of the first companies in Africa to embrace sustainability, has already made substantial strides in this area. For example, Jumia was the first company to deliver packages using e-trucks in remote areas of Senegal. This not only demonstrates the company’s commitment to sustainable practices but also shows the potential for positive environmental impact in developing countries through greening initiatives in e-commerce.

The analysis also highlights the importance of having clear sustainability targets. By understanding what needs to be achieved and creating an action plan, companies like Jumia can effectively measure the impact of their sustainability efforts. This understanding extends beyond the company itself, as it is equally important for stakeholders and logistic partners to be aware of the carbon footprint and contribute to sustainability goals.

Furthermore, the analysis emphasises the need for a multi-stakeholder approach for the successful implementation of environmentally sustainable practices in e-commerce. Collaboration between non-governmental organisations, private companies, and regulators is essential for disseminating the necessary information and ensuring that society as a whole adopts greener practices.

Promoting local products within the e-commerce industry can have a positive impact on the local economy. By avoiding long-distance transportation of goods from distant regions like Europe or China, e-commerce can support local businesses and foster economic growth. Jumia, for example, has a significant number of women entrepreneurs in Kenya who specialise in local products, further demonstrating the potential for social impact and job creation.

To gauge their environmental performance, companies can utilise application programming interfaces (APIs) to obtain information regarding their carbon emissions. This understanding enables companies to identify areas for improvement and work towards reducing their environmental impact. By leveraging their APIs, companies like Jumia can gain insights into their carbon footprint and take necessary actions to minimise their negative environmental effects.

Noteworthy observations from the analysis include the concerns raised about excessive consumerism during events like Black Friday and Christmas sales, which are known for their abundance of offers. While e-commerce has the potential to be greener and better, it is crucial to promote responsible consumption to avoid contributing to unsustainable consumer habits.

In conclusion, the analysis demonstrates that e-commerce can play a significant role in environmental sustainability, as exemplified by Jumia’s efforts in Africa. Through initiatives such as the use of e-bikes, optimal route planning, waste reduction, and collaboration with stakeholders, Jumia shows a commitment to balancing environmental considerations and cost-effectiveness. The greening of e-commerce presents opportunities for developing countries, but careful consideration of contextual differences is necessary. Clear sustainability targets, a multi-stakeholder approach, and utilising APIs to understand carbon footprint are important for achieving sustainable goals. Promoting local products can have a positive impact on the local economy. However, it is essential to address issues of excessive consumerism during events like Black Friday and Christmas sales. While conscious consumption is a separate and broader discussion, it is crucial to improve e-commerce practices to ensure a more sustainable future.

Audience

The audience member highlighted the issue of ambiguity surrounding the term ‘digital public infrastructure’, which is often used interchangeably with terms like digital public goods and public digital goods. They expressed the need for clarification to avoid confusion.

Regarding environmental impact, e-commerce has been found to be more environmentally friendly than traditional retail, particularly in developed countries. This finding is crucial in our efforts towards sustainable consumption and production.

There is growing concern about the misuse of the term ‘sustainability’, leading to unfair competition between sustainable and non-sustainable retailers. This practice, known as greenwashing, undermines genuine sustainability efforts. It is argued that measures should be in place to protect the term ‘sustainability’ and prevent greenwashing.

The concept of true pricing is suggested as a solution to promote greening in retail and e-commerce. By accounting for the environmental and social costs of production and consumption, true pricing aims to provide a more accurate representation of the value of goods and services. This could incentivize more sustainable choices.

The excessive consumerism observed during events like Christmas and Black Friday raises questions about the existence of green commerce. The focus on consumption during these occasions often leads to the discard of goods and contributes to waste production. This calls for a reevaluation of our values, emphasizing experiences and human connections over the consumption of goods.

The negative environmental impacts of excessive consumer culture are evident in increasing waste production, rising CO2 concentrations, and average annual temperature. These impacts underscore the urgency of addressing responsible consumption and production.

There is a call for fundamental changes in consumer culture and values, particularly among younger generations and within the education system. Education is seen as a critical factor in shaping consumer behavior and promoting responsible consumption. By instilling values of mindful consumption and emphasizing quality education, we can work towards a more sustainable future.

In summary, the need for clarity in terminology, mindful consumption, and education is emphasized in promoting responsible consumption and production. These factors are crucial in addressing the challenges posed by excessive consumerism and working towards a more sustainable society.

Jaime Coghi Arias

E-commerce plays a critical role in Costa Rica’s economy, contributing significantly to the country’s GDP and employment. The services sector, including e-commerce, is a major driver of economic growth, with 73% of the country’s GDP generated from this sector and 75% of jobs created within it. This positive analysis highlights the importance of e-commerce for Costa Rica’s economic development.

Furthermore, e-commerce has led to the diversification and sophistication of service exports in Costa Rica. In 2022, modern services exports accounted for 61% of total services exports, a substantial increase from 9% in 2000. Costa Rica is now the third-largest exporter of modern services in Latin America. This evidence demonstrates how e-commerce has created new opportunities for service exports and supported the country’s economic transformation.

Governments play a crucial role in promoting sustainable e-commerce practices by setting environmental standards and incentives. Regulations and standards around environmentally friendly packaging, renewable energy usage in logistics, and green certifications for businesses are key measures that can encourage sustainability in e-commerce. The positive sentiment expressed towards this stance highlights support for government intervention in promoting sustainable e-commerce.

In addition, policies in telecommunications, energy, and transport services have a significant impact on the success of e-commerce. These policies provide the necessary infrastructure and logistical support for e-commerce to thrive. For example, policies in telecommunications and energy services, as well as logistics and transport, contribute to the smooth functioning of e-commerce. Further research is needed to fully understand the impact of these policies on e-commerce.

E-commerce also presents opportunities for greening the economy. Costa Rica, for instance, has made significant progress in producing clean energy, with 98% of its energy coming from sustainable sources in 2022. This enables countries like Costa Rica to attract environmentally conscious consumers and explore new markets. The positive sentiment towards this argument indicates the potential benefits of greening e-commerce for developing countries.

Regulations and standards can encourage sustainability in e-commerce, and digitalization measures such as e-invoicing can help reduce carbon emissions. The private sector also plays a crucial role in greening e-commerce through the implementation of sustainable practices. However, finding concrete solutions to consumerist societal values remains a challenge, as indicated by the neutral sentiment in this stance.

International cooperation is key to the development and greening of e-commerce. As it stands, there is a lack of a multilateral framework for the development of e-commerce. Governments have a responsibility to cooperate in this area, and organizations such as UNCTAD and UNEP should be involved in discussions to provide expertise and guidance. This acknowledgment of the need for international cooperation demonstrates the recognition of the shared responsibility in greening e-commerce and achieving sustainability goals.

In conclusion, e-commerce is an essential component of Costa Rica’s economy, driving GDP growth and employment. It enables the diversification and sophistication of service exports, and governments can promote sustainable e-commerce through regulations and incentives. Policies in telecommunications, energy, and transport services contribute to the success of e-commerce. Greening e-commerce presents opportunities for developing countries, although addressing consumerist societal values remains a challenge. International cooperation is crucial for e-commerce’s development and sustainability, involving organizations such as UNCTAD and UNEP. The analysis highlights the significant potential of e-commerce to drive economic growth and sustainability.

AB

Abdesslam Benzitouni

Speech speed

182 words per minute

Speech length

1468 words

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483 secs

A

Audience

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155 words per minute

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799 words

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309 secs

CB

Christian Bilfinger

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168 words per minute

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2235 words

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799 secs

DJ

David Jensen

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198 words per minute

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3407 words

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1030 secs

JC

Jaime Coghi Arias

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137 words per minute

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1724 words

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753 secs

MS

Marta Soprana

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170 words per minute

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2659 words

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937 secs