Bridging the Digital Divide for Transition to a Greener Economy
Table of contents
Disclaimer: It should be noted that the reporting, analysis and chatbot answers are generated automatically by DiploGPT from the official UN transcripts and, in case of just-in-time reporting, the audiovisual recordings on UN Web TV. The accuracy and completeness of the resources and results can therefore not be guaranteed.
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Audience
The discussions revolved around several key topics, including the initiatives taken by the ICT sector to reduce carbon emissions and mitigate their environmental impact. The sector has been sourcing renewable energy through long-lasting contracts with suppliers, building efficient data centres that run on renewable energies, and replacing old networks with fibre for increased energy efficiency. These efforts have been praised and are seen as positive steps towards addressing climate change.
Another area of focus was the ongoing and more efficient review of the WTO telecoms agreement. It was argued that enhancing the effectiveness of regulators can lead to well-regulated markets and lower prices, ultimately benefiting users in terms of affordability and choice. The sentiment towards this topic was positive, highlighting the potential positive impact of such a review.
The discussion also touched upon the importance of the Internet as a global public good. It was highlighted that 51% of the world population is currently connected to the Internet, demonstrating its widespread reach and impact. There was a consensus that the Internet should remain globally accessible and not be fragmented, as this is seen as vital for fostering innovation, enabling connectivity, and promoting economic growth. However, there was opposition expressed towards the fragmentation of the Internet, with concerns raised about the potential negative consequences of such a development.
When it came to WTO policies, the impact on local transitions was deemed a neutral topic, with a desire to understand the correlation between WTO’s policies and local/domestic initiatives. This reflects a need for further exploration and analysis of the effects of such policies on local economies.
Furthermore, there was a negative sentiment towards the control of foreign corporations in sectors without permanent commitments. The argument put forth was that countries should have the flexibility to control the participation of foreign corporations in their sectors without being bound by permanent commitments. Bolivian hospital services’ commitment under WTO rules was mentioned as an example, resulting in decreased autonomy due to the inability to withdraw commitment.
The continuation of the moratorium on electronic transmission tariffs also received criticism, as it has led to significant revenue losses for developing countries. It was noted that developing countries and least developed countries (LDCs) lost approximately 56 billion US dollars in tariff revenue from 2017 to 2020. Moreover, major corporations not having to pay taxes on their profits made in developing countries further compounded the issue. This negative sentiment underscores the need to reassess the impact of the moratorium on developing economies.
The discussions also revealed opposition to the plurilateral Joint Statement Initiative on E-commerce being negotiated in the WTO. It was highlighted that multilateral discussions on e-commerce were rejected at the Buenos Aires Ministerial, and there was a concern that multilateral resources of the WTO were being directed towards plurilateral discussions instead. This negative sentiment towards the initiative reflected a desire for a more inclusive approach and a focus on reducing inequalities.
Developing countries’ needs for resources and financing for infrastructure and skills development related to e-commerce were considered a neutral topic. This highlighted the recognition of the importance of supporting developing countries in their efforts to leverage e-commerce for economic growth and development.
There was also a negative sentiment expressed towards the role of UNCTAD (United Nations Conference on Trade and Development) in capacity building on e-commerce. It was argued that UNCTAD, as a neutral arbiter, should focus on advocating for rules beneficial to developing countries instead of favouring big tech and rich countries. This reflects a concern that the needs of developing countries might not be adequately represented or prioritised in the current discourse.
Overall, the discussions provided a comprehensive overview of the various perspectives and concerns surrounding the ICT sector, internet access, WTO policies, and e-commerce. The sentiments expressed highlighted a mix of positive, negative, and neutral views, underscoring the complexity and diverse range of opinions on these important topics.
Antonia Kartzigana
The World Trade Organization (WTO) plays a central role in digital trade discussions, focusing on areas such as electronic commerce and inclusivity. The WTO’s services agreement provides insurance against policy reversals in digital sectors, ensuring stability for businesses.
The work program on electronic commerce, established in 1998, allows WTO members to avoid imposing customs duties on electronic transmissions. This promotes the free flow of information, bridging the digital divide and supporting developing countries.
The Joint Statement Initiative (JSI) on electronic commerce involves 89 participating members working to build upon existing WTO rules and ensuring inclusivity for developing countries. Participating in global trade discussions allows developing countries to have their concerns represented and contribute to the rules that impact them.
Bindings in trade agreements offer certainty and predictability, attracting investment and providing market access. Developed countries have undertaken more bindings, supporting smaller players.
The moratorium on electronic transmissions exempting them from customs duties has been a topic of discussion, with studies highlighting limited impacts that vary across specific countries.
Recognizing the importance of digital inputs, the WTO acknowledges their role in the development of digital and green economies. Duties on digital inputs can hinder growth in these sectors.
Overall, the WTO’s efforts in the digital sphere, including services agreement, work program on electronic commerce, and JSI, shape global digital trade policies. They prioritize inclusivity, address concerns of developing countries, and promote certainty in trade agreements. The impact of the moratorium on electronic transmissions and the role of digital inputs are also recognized. The WTO works towards a digital future that promotes growth, reduces inequalities, and fosters partnerships for sustainable development.
Yasmin Ismail
The analysis highlights various key points related to achieving twin transitions and the importance of collaboration and coordination among policymakers. One key point raised by UNCTAD is the need for a twin transition, which involves both the digital and green transitions. To successfully accomplish this, policymakers must work together and break down silos. This collaboration is essential to ensure a smooth transition that encompasses various sectors and areas, such as technology, economy, and policymaking.
Another important aspect identified is the significance of empowering national expertise. It is argued that domestic academia, researchers, and tech experts possess a better understanding of the local context. Therefore, investment should be made in leveraging local resources and knowledge to empower national expertise. This approach would enable countries to address challenges effectively and devise strategies that align with their specific circumstances.
The analysis also emphasizes the need to promote digital and environmental literacy, particularly among the younger generation known as Generation Z and Alpha. These young individuals are more aware of environmental issues and require access to online resources and digital tools to enhance their understanding and contribute towards sustainable development efforts.
Furthermore, the development of robust digital and eco-friendly infrastructure is deemed crucial. It is suggested that by investing in such infrastructure, countries can meet the demands of the twin transition effectively. Additionally, adopting green public procurement practices can stimulate demand for green products and services, thereby contributing to the overall sustainability agenda.
Reskilling the workforce is another important consideration highlighted in the analysis. A study by Microsoft estimates the emergence of numerous technology-oriented jobs by 2025, indicating the need for prioritising upskilling initiatives. By providing individuals with the necessary skills, they can enhance their employability and successfully adapt to the changing needs of the future workforce.
The analysis also underscores the importance of inclusive and innovative funding mechanisms for small and medium-sized enterprises (SMEs). These mechanisms can support the growth and development of SMEs, ensuring their financial access and reducing inequalities in the economic landscape.
Trade policies also play a crucial role in facilitating the twin transition. It is argued that trade policies should enable access to technologies, goods, and services required for the transition. Countries need to prioritise their specific needs and align their trade policies accordingly to effectively integrate into the twin transition process.
The inclusion of the twin transition in bilateral and regional trade agreements is deemed necessary for successful implementation. It is suggested that these agreements should incorporate provisions that address both digital and green transitions. Moreover, the innovation of technology transfer frameworks is seen as crucial in facilitating knowledge exchange and collaboration among countries.
The analysis also examines the work programme on electronic commerce, recognising its focus on development. However, it raises concern over the absence of the African continent from the Joint Statement Initiatives (JSIs). This observation signifies that not all developing countries are adequately represented, highlighting the need for more inclusive participation and collaboration.
Lastly, the analysis draws attention to the environmental impact of e-commerce. It is noted that the text lacks proposals addressing this environmental concern. The impacts of e-commerce on the environment should be investigated more thoroughly, and appropriate measures need to be implemented to mitigate negative effects.
In conclusion, the analysis highlights the importance of breaking silos, leveraging national expertise, promoting digital and environmental literacy, developing robust infrastructure, reskilling the workforce, ensuring financial access for SMEs, enabling trade policies, and addressing the environmental impact of e-commerce to achieve twin transitions successfully. By considering these factors and implementing appropriate strategies, countries can foster sustainable development and contribute to the attainment of relevant Sustainable Development Goals (SDGs).
Jane Drake Bruckman
Digital technologies have the potential to significantly contribute to achieving sustainability goals. According to the Global Enabling Sustainability Initiative, 103 out of the 169 sustainable development goals can be directly influenced by digital technologies. The deployment of existing digital technologies is projected to accelerate progress in sustainability by 22% and mitigate downward trends by 23%.
Digital tools have a wide range of applications in various sectors, such as monitoring energy efficiency, facilitating the reuse of components and materials for the circular economy, and managing traffic. These tools also play a significant role in the agricultural sector by helping farmers reduce water and fertilizer consumption.
Governments are recognising the positive impact of information and communication technology (ICT) and internet connectivity on climate action and energy improvement. For instance, the Philippines is emphasising the role of ICT in its efforts to address climate change and improve energy efficiency.
Additionally, digital technologies improve efficiency and productivity across diverse sectors, including manufacturing, construction, and agriculture. Bridging the digital divide requires the development of digital skills, infrastructure, and suitable regulatory frameworks. It is crucial not to miss opportunities to utilise digital technologies in solving global problems.
In conclusion, digital technologies offer immense potential for achieving sustainability goals. They can drive progress in sustainability, promote efficient resource use, and facilitate the transition to a circular economy. It is important for governments to recognise the importance of ICT and internet connectivity in addressing climate action and energy improvement. Bridging the digital divide and promoting cooperation are key to maximising the benefits of digital technologies and addressing global challenges.
Mehmed Sait Akman
The analysis explores the complex relationship between digital transformation and sustainability, highlighting several key points. Firstly, it reveals the existence of a digital divide between developed and developing countries. The study emphasizes that although internet access is crucial, it alone is insufficient to bridge this divide. More developed regions within countries tend to have better connectivity than less developed areas. This digital divide contributes to income inequality and poverty as individuals in less connected areas miss out on economic opportunities provided by digital technologies.
Another important aspect is the interconnectedness of digital and green transformations. The analysis underscores the role of digital technologies in reducing greenhouse gas emissions and optimizing energy use. These technologies can aid in the transition to renewable energy sources and provide platforms for the trading of renewable energy credits. Engagement of small and medium-sized enterprises (SMEs) is essential for sustainable practices in the green production process. The analysis emphasizes that both digital and green transformations are vital and mutually dependent for a sustainable future.
Additionally, the study notes that improvements in digital technology alone do not guarantee the achievement of sustainability goals. Deliberate decisions and actions are required to ensure that digital transformation aligns with sustainability objectives. This deliberate approach highlights the need to consider the impact of digitalization on climate and work towards climate-beneficial digitalization.
Furthermore, the analysis stresses the importance of establishing a regulatory framework and robust infrastructure to enable access to digital technologies. It suggests that reliable infrastructure is necessary for effective digital transformation. Moreover, the low percentage of financing for information and communication technology (ICT) by multilateral development banks highlights the need for increased investment in this area.
The analysis emphasizes the concept of global digital public goods, which are seen as crucial for bridging the digital divide. Digital public infrastructure plays a critical role in achieving this goal. Additionally, it underscores the importance of empowering individuals through digital skills and knowledge, with a focus on integrating these skills into education and training programs.
The analysis also highlights the significance of domestic policies and regulations in trade, particularly in the context of the digital and green economies. It argues that trade policy should begin at home, suggesting that domestic-level decisions and actions play a significant role in shaping these economies.
Finally, the analysis suggests that international efforts should prioritize the regulation of emerging technologies like artificial intelligence (AI), which may have negative externalities. It advocates for a thorough examination of the potential risks and consequences associated with AI, and the implementation of regulatory measures to mitigate these effects.
In conclusion, the analysis focuses on the existence of a digital divide and its impact on income inequality and poverty. It underscores the interconnectedness of digital and green transformations, emphasizing the importance of deliberate decisions and actions to align digital transformation with sustainability objectives. The analysis also highlights the significance of establishing a regulatory framework and infrastructure for digital access, along with the role of global digital public goods. Additionally, it addresses the importance of equipping future generations with the necessary knowledge and skills to navigate the challenges and opportunities of the green and digital economies. Finally, it highlights the need for international regulation of emerging technologies to effectively manage potential risks.
Moderator – AyÅŸegül ÅžahinoÄŸlu YerdeÅŸ
The analysis highlights the pivotal role of digitalization in driving decarbonization efforts and promoting a green transformation. According to the World Trade Organization (WTO)’s 2022 World Trade Report titled “Climate Change and International Trade,” digitalization is recognized as a significant driver of decarbonization. This acknowledgement underscores the positive impact of digital technologies in reducing greenhouse gas emissions.
Moreover, the analysis reveals that existing digital technologies are contributing to shrinking the carbon footprint in key sectors, including energy, transport, manufacturing, construction, and agriculture. Investments in digital technologies facilitating green transitions have also seen substantial growth. These findings emphasize the interconnection between digital and green transitions, showcasing how digital technologies can contribute to achieving sustainability goals.
However, the analysis also highlights a pressing challenge, the digital divide between developed and developing countries. Bridging this divide is crucial as it can impede progress towards sustainable development. The report points out that the digital divide disproportionately affects certain groups, such as women, youth, farmers, and businesses in remote locations. Therefore, reducing this divide is essential for promoting inclusivity and ensuring equitable access to digital benefits for all.
The analysis emphasizes the importance of the WTO in discussions related to digital transformation and the green economy. However, it also reveals a dearth of in-depth discussions on the interaction between digital transformation and the environment within the organization. There is a need for more comprehensive dialogue and collaboration between the fields of digital transformation and environmental sustainability within the WTO to address this gap.
Additionally, the report highlights the potential of digital technologies to counterweigh negative environmental externalities. Despite accounting for only 1.4% of global carbon emissions, the ICT sector contributes to reducing greenhouse gas intensity across the entire economy. The growth in emissions from the sector is projected to be offset by energy efficiencies and increased use of renewables. This underscores the positive role that digital technologies can play in promoting responsible consumption and production.
In conclusion, the analysis underscores the significance of digitalization in driving decarbonization efforts and promoting green transformations. It emphasizes the need to address the digital divide, particularly in developing countries, and calls for the WTO to foster more comprehensive discussions and collaboration between the fields of digital transformation and environmental sustainability. Digital technologies have the potential to mitigate negative environmental impacts and contribute to the achievement of sustainable development goals.
Session transcript
Moderator – AyÅŸegül ÅžahinoÄŸlu YerdeÅŸ:
So, good afternoon, ladies and gentlemen, and welcome to this public forum session titled Bridging the Digital Gap for Transition to a Green Economy. This session is organized by Ministry of Trade of Turkey, and we thank you very much for joining us today. Let me first introduce myself. My name is AyÅŸegül Åžahinoglu YerdeÅŸ. I’m currently serving as the Deputy Permanent Representative in the Turkish Mission to the WTO. It will be an honor and pleasure for me to moderate this session. As the title speaks for itself, today we are going to discuss the complexity of the relationship between the green and the digital transition, as well as how to successfully navigate these two agendas for a sustainable future in a manner which is just inclusive and fair. As you know, we are currently at the time of an environmental crisis, which poses an existential threat on the humanity, and as you know, global efforts are continuing, which are translated into governments’ nationally determined contributions under the Paris Agreement or the Sustainable Development Goals under the UN. We are also at the same time in the midst of a digital revolution, if I may put it simply. The WTO’s 2022 World Trade Report, which was titled Climate Change and International Trade, acknowledged that digitalization acts as an important driver of decarbonization. This is a hot topic for consideration, and recently academia, civil society, international organizations and governments as well are carrying out extensive work on this issue. So parallel with this trend today in this session, We are aiming to similarly focus on the interplay between the digital and the environmental transformation and whether digital technologies can contribute to our green transformation. We will look also at what challenges lie ahead, especially the digital divide between the developed and the developing countries, and how to overcome this. What policies are required to unleash the transformative potential of the digital technologies on the environment? Of course, not the least, we will look at what role does the WTO play in all of these discussions. So, now, let me introduce our panelists. I’m delighted to have with us with such a distinguished panel composed of experts from academia, business, and civil society with government and international institution background. So, I would like to start first by Ms. Jane Drake-Bruckman. It will be fair to say that Jane is one of the outstanding experts in the field of trade and services and digital trade. She has served in the Commonwealth Secretariat, the OECD International Trade Center. She was also a Chief Economist with the Australian Department of Foreign Affairs and Trade and also served at the Australian Delegation to the EU in Brussels. She has prominent work in the academia as well. She taught macroeconomics at the Chinese University of Hong Kong and trade and services in the University of Adelaide. Last but not the least, she is a co-convener of the Asia-Pacific Services Coalition and also a founder of the Australian Services Roundtable where she is acting as the director at the moment. She is also a member of the G20 Trade and Investment Research Network. On my right side, our second panelist is Ms. Yasmin Ismail. She is a program officer at Cuts International Geneva. Since 2019, she has been leading Cuts research and technical assistance projects for delegations of developing countries in Geneva on e-commerce and the digital economy, particularly. Prior to joining Cuts, Yasmin served as project manager at Global Partners Governance Ltd., a UK-based international consultancy firm. She also served as international cooperation specialist at the Egyptian Cabinet Information and Decision Support Center. My third panelist on my left is Mr. Mehmet Said Akman. He is an associate professor of international trade and European integration. He is currently director at G20 Studies Center at the Economic Policy Research Foundation of Turkey, which is a leading policy think tank. He teaches as adjunct professor in the Middle East Technical University in Ankara, Turkey. He has substantial academic work in the field. In the past, he has been a visiting researcher at the European University Institute in Florence, London School of Economics, and at the Center for International Governance and Innovation in Canada. And like Jane, he is also a member of the steering committee of the G20 Trade and Investment Research Network. And finally, of course, but not the least, our fourth and final panelist will be Ms. Antonia Kartzigana. She is a counselor in the Trade and Services and Investment Division of the World Trade Organization. She has worked in the WTO since 1998. Currently, she is the secretary of the WTO Council for Trade and Services. deals among others with issues relating to movement of natural persons, e-commerce and air transport services. Antonia has published extensively on matters relating to trade and services and contributed to many conferences and academic seminars. Her work includes coordination of the WTO’s 2019 World Trade Report on the future of digital services trade. Having introduced our esteemed panelists, I would like to know that I’ve asked them to limit their presentations for 10 minutes and we will have our session for 1 hour and 15 minutes towards the end. Hopefully we will have time, we will have a Q&A session. Okay, so having said this, without further ado, I would like to turn to my first speaker, Ms. Jane Drake-Bruckman, to give us a glimpse of whether digital technologies provide solutions that can be conducive to green transformation. What examples you can give and the role of trade in this whole picture as well, we would like to hear from you. And Jane, please, the
Jane Drake Bruckman:
floor is yours. Thank you very much, Shagul. I’m delighted to be asked this question. We have a room full of experts who I’m sure have a lot of knowledge of the relationship between digitalization and the green transition. So I’m not going to present a PowerPoint and I just want to talk quite simply to this story of how digitalization, which let’s just define that as the emergence and adoption of digital technologies and associated digital tools, helps to make businesses more efficient and as a result is already having an evident impact. on productivity and competitiveness across every sector of economic activity in developed and developing countries alike. There is quite a strong emerging evidence base showing how the use of digital technologies can make it easier to achieve multiple objectives at once across many of the sustainable development goals, including by monitoring and helping achieve energy efficiency both in our homes and at the business level, by facilitating the reuse of components and materials for the circular economy, by managing traffic, by helping the agricultural sector to measure and reduce water and fertilizer consumption, by monitoring the climate and carbon emission reduction process and helping environmental mitigation activities of all kinds. All of these activities, of course, also require data, so trade for me is immediately a necessary part of this picture because trade in all the digital services which contribute to these activities, including cross-border flows of data and cross-border movement of natural persons with the expertise that these new technologies and new activities demand are all naturally part of the trading system. There has been some recent work by the industry itself, the ICT sector, if you like, and the telco sector in a new partnership called the Global Enabling Sustainability Initiative, which shows that across the 169 sustainable development goals, 103 of them are directly influenced by digital technologies. They did an analysis of 20 targets and indicators across all the SDGs and showed that the expected deployment of existing digital technologies will on average accelerate progress in sustainability by 22% and mitigate the downward trends by 23%. This is because the impact of digital technologies is not in any one particular sector, it’s economy wide. The big five, energy, transport, manufacturing, construction and agriculture, these tend to be singled out as the big five, biggest greenhouse gas emitters, are seen as key for any successful twinning of the green and the digital transitions. A recent European Commission report has drawn attention to the extent to which existing digital technologies will play a role in reducing these sectors carbon footprint and how new technologies, still emerging, still evolving, are going to be deployed to take the process further. So in the energy sector, what are we talking about, sensors, satellite data, blockchain, all of which can help strengthen energy security by improving forecasting of energy production and demand, preventing weather related disruptions, facilitating cross border exchanges. In transport, new generation of batteries and digital technologies like AI and Internet of Things will enable major shifts towards sustainability and multimodal mobility across all the modes of transport, even short distance aviation. In the manufacturing sector, digital twins, virtual counterparts of physical objects or processes using real time data and machine learning are all expected to improve. design, production and maintenance. In the construction sector which is one of the least digitally enabled of these five sectors in fact where there is room for much improvement, building information modelling which is now commonly deployed in architecture and engineering could really improve energy and water efficiency affecting design choice and the use of buildings and in agriculture, quantum computing plus bioinformatics can enhance the understanding of biological and chemical processes and help reduce the need for pesticides and fertilisers. Meanwhile, recent work by UNIDO has shown that this growing understanding of the role of digital technologies potential in the green transition is driving a massive surge in investment and innovation. It’s up about 60% in saving water, minimising waste, saving materials and up about 85% in saving energy. So as I see it, digital trade and investment, the joint development of digital standards and engagement in digital regulatory cooperation are all key ways in which the world can share digital technologies and bridge the digital and the development gap and meanwhile bring particular benefit to those with fewer opportunities in the offline marketplaces such as women, youth, farmers and businesses in remote locations. So in my part of the world, the UN Commission for Asia and Pacific has started to do some important work on measuring in the Asia-Pacific region the contribution that digitalisation and digital trade is making to all of the SDGs and there is, and I see Escab is here in the audience with us, but it is quite clear. that trade in digital services is facilitating the tracking and efficient use of resources, leading to reduced material footprints, digital finance is expanding access to trade and financial products, fostering innovation, driving the industrial diversification needed for success in the green economy, and reducing paper consumption through use of e-signatures, paperless trade and reduced travel. The examples are actually endless. I mean, no matter what it is you want to do, whether it’s water saving or building an eco-friendly urban environment, all of it requires smart energy systems. I think I should wind up quickly because time is passing and just say that it is important to note that obviously the ICT sector itself, including applications of AI, also, like all other economic activity, also uses inputs of energy and hence contributes to carbon emissions. The finger is often pointed, for example, at data centres as especially big energy users. But we should keep this in perspective, both in relative terms and in terms of the ICT sector in mitigating problems in more highly energy-intensive sectors. A very recent academic study has shown that ICT accounts for 1.4 per cent of global carbon emissions, 1.4 per cent. Data centres account for between 0.1 and 0.2 of global greenhouse gas emissions and between 2000 and 2018 the energy use in data centres increased, yes, it increased by 6 per cent, but in that same period of time computing workload increased by 550 per cent. That’s a pretty efficient use of data centres. Meanwhile, ICT is contributing to reducing greenhouse gas intensity right across the economy through remote sensing, systems optimisation and control, and predictive maintenance. So much so that the latest ITU study is forecasting that growth in emissions from the ICT sector will increasingly be balanced out. The net emissions will be balanced out by energy efficiencies and greater use of renewables. The last thing I’d like to tell you is that, of course, we can’t measure with any precision the exact amount of ICT and AI-induced savings in energy across the economy. But machine learning applications are already being deployed to start precisely measuring the footprint and the savings from digital technologies. So digital technologies themselves are going to help us measure that footprint of digital enablement. And I’ll leave it there for now, Aisha.
Moderator – AyÅŸegül ÅžahinoÄŸlu YerdeÅŸ:
Thank you very much, Jane. This was very useful in understanding how digital and green is connected. And you have set the stage for us to discuss more about how digitalisation agenda and environment agenda can work together. It was also very interesting that how digital technologies have the potential to balance the negative externalities as well. And you have also mentioned the digital divide. Speaking up on this, I would like to turn to my second panellist now, Mr. Sait Akman. Sait, I have a couple of questions for you. First of all, can you elaborate a bit more on the digital divide from the perspective of the developing countries? Why reducing the digital divide is important, especially in light of the environmental goals? What are the challenges to overcome this divide? And I would like to also ask you to share your views with us on how do you see the nexus between digital technologies and environmental transition?
Mehmed Sait Akman:
Thank you very much. Let me express my thank you very much again and for your kind invitation to this panel, which is actually bringing two major transformation process, digital transformation and environmental transformation, and how it will impact and how digitalization can help tackling climate change and environmental degradation. Of course, we have the third aspect, trade aspect, which I’m not going to go in detail because the next speaker, Antonia, will be dealing more about it. But in the title, you say digital gap, yes? Sometimes in the literature, we say digital gap, but sometimes we call it digital divide. It is often used to describe the gap between people who have access to reliable broadband or affordable internet services. But this is, I think, a definition that we have to review and maybe we have to redefine saying that digital divide refers to gap between demographics and regions that have access to modern ICT, that’s information and communication technologies, including not only internet and mobile phone, but all other. tools as we develop the digital technologies and those that do not. So the gap is constantly shifting as far as this access is concerned with the development of technology. You asked me about the developing economies. Yes, the developed economies are fairly better, but it doesn’t mean that we don’t have divide even in advanced economies among different parts of society and businesses. But the case in developing countries are even much, much, of course, not worthy. Maybe we go to the next slide or should I do it now? Okay. Well, if you just define it in terms of Internet access, that was one of the SDG targets under Topic 9 to have access to the Internet in least developed countries by 2020. And that has not been fulfilled very well. This year in India, it’s not only an access to Internet. Maybe we should benefit the digital technologies. There must be some digital dividends to be shared by all the digital technologies. In the New Delhi Leader’s Declaration, I noticed they had references to digital divide in different paragraphs, including the role of digital transformation, AI, data advances need to be addressed to mitigate the digital devices. And they also mentioned a topic called digital public infrastructure as an evolving concept. for bridging the digital divide. This is important, I think, and there is also the gender aspect. I mentioned about demography, but also the gender aspect. So the use of Internet is increasing, but in terms of bridging the device, I mean the digital device, there are differences, divides within the same country between the more developed parts of the country and the least developed parts of the country, including Turkey, including Bulgaria and some other countries. It’s getting narrower in more advanced economies, but developing countries also need to have more improvements in digital technologies to be accessed by all parts of the society. I don’t only mean individuals. I also mean undertakings, business, which are a part of this economic process and also the environmental process. So my first point in my PowerPoint, I have to show some points. I don’t know whether they’re powerful or not, but is Internet access enough to bridge the digital divide? Yes, there is a spread of Internet everyone uses, but still we need the access of SMEs, for example, small businesses and some other parts of the society. They need reliable widespread access to digital networks and services to reap the digital dividends. And therefore, as the UN High-Level Roadmap on Digital Cooperation observed, these technologies cannot be restricted to the idea of connectivity only, but it requires building digital ecosystems much larger, including data pools and public platforms. Otherwise, while the technologies are increasing, improving, but digital dividends, that’s the benefits of digitalization, are not fairly shared by the people in the world, by different parts of the societies, mainly for two reasons. The first one is that many people cannot participate effectively in the digital economy or in a meaningful way. The second reason is that these benefits are sometimes offset by emerging risks, like, for example, rising inequality, inequality in terms of access to digital technologies, because better educated, well-connected, and more capable have received most of the dividends and benefits, but these gains actually are circumscribed in that way. So this brings us to a kind of vicious circle. There is digital divide, which brings income inequality, because most people cannot use it efficiently, and becomes poverty, and poverty brings more digital divide. This vicious circle should be cut somehow. I will come to the environment part, but just one more, we should not only focus on the upper part, because in most of the declarations you see that digital divide should be bridged, making the internet more accessible, affordable, open, and safe. That is connectivity. But this is only one part of the story. The next is the dividends. So we need to split the benefits and reduce the risks. Which ways? This is important. I will come to this point in maybe the next slide. So I mentioned about two major transformations we are facing, digital and green transformations. So how to have a overlapping between two. That means how digital transformation can help green transformation. And this intersection should be enlarged, actually, where digital technologies should be used and regulations should be adopted in such a way to reduce the degradation, environmental degradation and mitigate the climate challenge and boost green growth. The next one, please. So for example, there are many views, one from ITU. Digital technologies could potentially slash global greenhouse emissions. Or Center for Climate and Energy Solutions, in their studies, they say that digitalization is a new opportunity to optimize energy use and decrease greenhouse gas emissions. Of course, there are a lot of works in the literature about how to reduce global greenhouse effect by using new technologies. The next one, please. This brings me to my second point. There are multiple ways for digital technologies to tackle climate action. Jane mentioned about some of them on a sectoral level. But sustainable and greener supply chains are important. I actually would like to take your attention to GVCs and their role in global economy. And ways for making them more greener will also help developing countries to bridge these dividends because digitally tracking the products, materials through supply chains will be much easier. Of course, the engagement of SMEs, especially in my country, in Turkey, is also very important in the green production process because this should not be only confined to big SMEs. industries. And of course, adoption of renewable energy, this is also important because digital markets can provide platforms for sale and purchase of renewable energy credits, which is a developing area in terms of financial markets. And we also can mention about circular economy, maybe we can put it circular carbon economy that is aiming to reduce waste and efficient use of resources. We can even enlarge the list through sustainable consumption, for example, of consumers. But before coming to consumers, most of the impact is through production on the climate and greenhouse effects. So we should be more concerned about value chains and SMEs and business undertakings and how they can be deployed to use more efficiently, how to harness digital technologies to make the production process more sustainable. There were a lot of initiatives in the world I see to bridge digital divide, including the Global Digital Solidarity Fund, which is actually claiming that this is a basic right for every individual to have access to digitalization, a way to enable people with reliable Internet. But of course, it is not only confined to Internet, we also have the UN Secretary General’s high-level roadmap for digital cooperation, which is actually important, I think, in unlocking the full potential of digital technologies and data to attain SDGs. And also related to environment, and in response to this UN Secretary General’s There are, I see, several initiatives like Coalition for Digital Environmental Sustainability or Climate Technology Center and Network which was hosted by UNEP, United Nations Environmental Program. UNEP actually is important because they have several digital transformation sub-programs that we should follow to reduce the emissions by one-fifth, for example, carbon dioxide emissions or use of natural resources in products by 90 percent. These are significant, but how to achieve them? Well, I should say as another point that achieving such global sustainability is not an inevitable outcome of digital transformation. When you have digital improvement, it does not directly bring you to such achieving the sustainability goals. It requires deliberate decisions and actions. So for example, in the leaders’ summit, they talked about digital public infrastructure. The technology can enable rapid transformation for bridging digital divide and accelerate inclusive and sustainable development. But this is actually an important point, but you know in G20 there are a lot of commitments, but how can we make them more actionable? This is important. They had a framework for systems of digital public infrastructure that Turkey and other developing countries should be reviewing from their perspective. Another point is the climate beneficial digitalization. So how to do this? It’s not only a reliable environment. This was also proposed in Business 2018. India, but infrastructure is important. Many times in their studies about the topic, World Bank and OECD mentioned about infrastructure and access is also important, but therefore this regulatory framework for access to digital technologies should be a concrete action with accountable institutions. My colleague Yasmin I think will provide some examples so I don’t go into detail, but also streamlining some funds. For example, multilateral development banks in that sense, for example, the ICT share of financing ICTs by the multilateral development banks is very low, only 1%, and aid for trade related to this only 1.2%, it’s too low. And of course another important thing to keep individuals more engaged with using technologies more effectively in the context of sustainability is how to utilize digital technologies, skills and knowledge. This brings me to my last point, digital global public goods. This is another evolving concept now, which means that digital infrastructure procured by public and can be a public good that anyone can use without charge, that’s non-excludable aspect of public goods, and without preventing others using it, non-rivalence for the SDGs. But of course we have challenges about digital global public goods, which I can mention maybe during our comments, I don’t want to go further. Lastly, I have some points which may make this digital green transformation more related to trade issues, but I leave it to Antonia as you will be talking about it. Thank you.
Moderator – AyÅŸegül ÅžahinoÄŸlu YerdeÅŸ:
very much. Thank you very important points that you touched upon. Reducing vulnerabilities of the of those that are falling behind especially the small and medium-sized enterprises and the importance of creating a digital ecosystem for them to thrive and to help them participate in the global value chains that are getting ever greener each day. It’s of paramount importance. We understand that a big challenge in this twin transformation is that it has to be fair, just and inclusive so that we can succeed. So building on what you have said so far I would like to now return to Yasmin. Yasmin, can you tell us some, can you tell us that what are the key actions for developing countries first to overcome the digital gap, second to make sure that digitalization agenda and environmental agenda can work together. Thank you so much Aishegul and
Yasmin Ismail:
thank you so much for the invitation to be on this panel with very distinguished experts from various fields. My presentation will be action-based and will be very let’s say brief and will focus only on what and if a developing country would like to like put an action plan now in order to run a digital and green transition, what are the headlines of its action plan and later on each country can fill in the gaps depending on the context. So next please. Action one, the economy will be digital and green so please wear the two hats, break the silos. We are witnessing what UNCTAD has called a twin transition So in my opinion, we need to bring the best national experts and minds on this from each country and we need to achieve both simultaneously if we want to catch up fast. So it requires strategies that run hand in hand and avoid contradictions. So simply put, policy makers need to wear the two hats and break the silos for a faster catch up. So economists, ICT policy makers, trade officials, negotiators, environment policy makers, climate change negotiators, please come together, consult, coordinate and break your silos. Next action please. We are also witnessing a dual transformation of the economy and we need expertise. We often tend to bring international expertise which no doubt has value but what I want to put forward here is that for this one, this transition, digital and green, defining the future of our economies, we need to empower our national sources. Empower your national academia, researchers, thought leaders, tech experts and entrepreneurs. They understand the specific context of the country more than anyone else, more than me and more than anyone else. Empower them and invest in them so they can propose contextualized solutions. Foster and invest in research and innovation in digital technology and green solution and support local universities, research institutions. tech start-ups to work on relevant projects to pull this transition together. So Saeed, good news, perhaps more money for you. Action three is promote digital and environmental literacy. And I would like you to just have some look at this photo. These are some children and look at what they are drawing. Solar panels for circularity, electric cars, our planet in the middle, there is no doubt that generation Z and generation alpha are more aware of the challenges related to the environment. And also, they are more apt with digital skills. My three-year-old son just broke up my password for my iPhone. So it is no secret. So empower them wherever they are to have access to online resources, master digital tools and utilize them for environmental sustainability. Empower them to secure their place in the digital and green economy of now and the future. Promote environmental education in the curriculum to raise awareness about sustainability and green practices among the younger generations. Next please. Infrastructure, key number one challenge, number one concern for all developing countries and I totally understand. Also for most least developed countries. And for a simultaneous transition, we need simultaneous infrastructure projects in digital and green infrastructure. We need robust digital infrastructure, including affordable and reliable high-speed Internet access across urban and rural areas. We also need eco-friendly infrastructure such as renewable energy projects, transportation systems like Jane said, and sustainable urban planning to reduce carbon emissions and promote a greener economy. If we need both, why not start optimizing from now? Embed green in digital, and digital in green. Adopt green public procurement to prioritize green solutions and stimulate demand for green products and services that will drive later on the economy. Think about the many countries that have already infrastructure projects running now. What about we review those contracts to ensure that we are using materials, resources invested that are more green and sustainable for the future, rather than just blaming each other later on? Action five. So for action five, a major concern for developing countries and these developed countries is the impact on the livelihood and the workforce, of course. When we hear technology, digital, we hear also automation, we get scared. What are we going to do with our labor force? How can we ensure they will have the livelihood? And the answer is upskill and reskill and upskill and reskill now. Not today, not tomorrow, and if you could do it yesterday, please do it, and maximize, put it a priority for your investments, but also for any aid that is being requested right now from the many donors and international organizations. A Microsoft study estimates that the global workforce can absorb around 149 million new technology-oriented jobs between 2020 and 2025. Yeah, a Microsoft study, we can, of course, everyone can bring up its own numbers. But we have no doubt, particularly after COVID-19, that this is coming anyway. Upscaling initiatives needs to be ambitious, to touch the various sectors and promote gender equality. This lady is in manufacturing and she’s doing very well handling 3D printing and other technologies. So please empower ladies as well and empower farmers in their fields to be able to engage in the future of the economy. Collaborate with the private sector, of course. It maximizes the resources, can help leverage resources, expertise to implement and to target large-scale projects, provide investment incentives in renewable energy and technology sectors. And we often forget the role of private sector towards the community and the society. Empower or maximize the benefits from corporate social responsibility. Encourage, support and channel those corporate social responsibility to address your objectives, sustainability and digital skills, challenges of relevant digital businesses. Next, please. As Saeed said, we need SMEs access to the business. We need them to access finance. Now, this is the hardest one, maybe, from where can I finance all of these actions? I totally understand. It’s not easy, but we need funding mechanisms, we need to promote financial access for small and medium businesses, and we need to support financial mechanisms for green technology. Encourage international organizations and developed countries to provide financial aid and technical assistance to support this. We need innovative and inclusive funding mechanisms, and I think the World Investment Forum that will be held in October this year will have a track focusing on innovative financing. I’m looking forward to it. Next, please. Action eight, adopt enabling rulebook. Now, all of the previous actions can be transformed into an enabling rulebook, but let’s add a little bit to it. What we can add is to ensure that trade policies are enabling as well, to ensure access to the needed technologies, goods and services, and allow competitive and affordable prices of the needed technologies, goods and services, and to revitalize the economy. Remember, each country is the master of its transition. It’s a gradual process that requires prioritization. This is why we need national experts and best minds to tell us which technology to start with, what technology we need next, and in which sector and why. Next, please. Action nine and the last one. All of the previous – so the ninth and final one is the need for the twin and digital – the twin of digital and green to be mainstreamed in trade relations to be part of the countries negotiated bilateral trade. agreements, and regional agreements. We need innovation in technology transfer frameworks and agreements. We currently need to reinvigorate discussions in the WTO on making technology transfer an effective tool for green transition in developing countries and LDCs. We need proactive special and differential treatment provisions that considers in every field the digital and green divide which developing countries need to leap. Finally, also aid for trade need to make a transition itself. We cannot transition alone without aid and support being provided elsewhere. We need aid for trade to be also having its own leap and have digital and green capacities and skills mainstreamed in every aid for trade initiative. It needs to also channel more funds for this twin transition in line with the principle of common but differentiated responsibility and respective capacities of the UNFCCC, especially if these initiatives contribute to global mitigation objectives. A final word, I once said to myself, or I was speaking one day, and I said green transition would be painful for developing countries and LDCs, and then I just stopped and realized it just shouldn’t be. We are here in order to understand how to make it as much as possible less painful to politicians, policy makers, experts, farmers, manufacturers, businessmen, women, everyone. Thank you so much.
Moderator – AyÅŸegül ÅžahinoÄŸlu YerdeÅŸ:
Thank you very much. That was a very comprehensive evaluation of how to succeed in this twin transition. You gave us very important key messages that this twin transformation requires a proactive and integrated approach. These messages are very valuable, especially for those of us who are in the policymaking side of things. But what you have also said didn’t go unnoticed. You have just gave the green light to the Generation Alpha and Z, not to raise their heads from their iPhones and laptops, so that will be our secret, I won’t say to your son. And the last thing that you referred to in your Action 9, you said that you mentioned the importance of mainstreaming digital and green transition goals in trade relations and cooperation. This brings me to Antonia. Antonia, can you walk us through how things work out in the WTO in terms of digital things, both in the GSI and in the multilateral front? Thank you.
Antonia Kartzigana:
Thank you very much. Good afternoon, everyone, and let me thank first at the outset the organizers, the Mission of Turkey for inviting me to be part of this very distinguished and very compelling panel of speakers. So I’m going to, you know, we had some already very interesting information about activities that are taking place in the international community in different fora. I’m going to focus on what is going on in the WTO, and I’m going to focus on what is happening in the digital sphere in particular. Next slide, please. So there are many potentially relevant areas of work, but I will focus on three. I will focus on the WTO rules for services trade and work that’s going on in that framework. Then I will look at what is happening multilaterally in what is known in the WTO as a work program on electronic commerce. And finally, I will say a few words about what is going on in the Plurilateral Joint Statement Initiative on Electronic Commerce. So if I start with what is happening in with services rules and services work, why am I talking about this particular area? Why have I chosen this particular area to focus on? The reason is that a fair number of services sectors are actually forming the backbone of the digital ecosystem. Just think about telecommunication services or computer and related services. They really enable a lot of the digital transformation. And trade policies in this particular sectors and many other relevant ones have an impact on how the digital economy can and does develop. For instance, they may promote a more open and more contestable telecommunications market and thereby foster affordability and improved quality of these backbone services for the digital transformation. Now, when it comes to the WTO framework, the services agreement offers the opportunity to WTO members to undertake legally binding commitments that bind the access conditions in specific services sectors. And what does this binding do? It guarantees, it provides an insurance policy, if you want, against policy reversals in these sectors that may actually be costly for the entire digital ecosystem. The reality is that WTO members have taken, you know, have not made use of this possibility of binding their access conditions for these backbone services in an even manner. And here I’m just giving you some examples. For example, only around 70% of WTO members have opened up or have guaranteed… The opening up of at least one segment of the telecom market to foreign competition and a little over two-thirds of them have only a little over two-thirds have also taken on board additional pro-competitive principles for the telecommunication sector. On the right-hand side, what you see is the extent of access that has been guaranteed by for example African countries in the telecommunications services sector under the WTO and it’s about half. So you see that on the left-hand side, the first four columns, it’s about half of what has been done generally by WTO members. So different level of bindings in sectors that form the backbone. For example, another example is computer and related services and there it’s around just over 60% of members that have undertaken relevant binding commitments guaranteeing access conditions. So this is where we are in terms of the rules, what is happening in terms of the work that is going on in this area. So there is work that is taking place in terms of, for instance, sharing of experiences. WTO members have been sharing experience about how they built digital capabilities in the services area. So the WTO services bodies have provided a forum for an exchange of information, exchange of experiences. Furthermore, there is a negotiating body that deals with trade and services and in that context WTO members have had exploratory discussions, not full-blown negotiations, but exploratory discussions on market access where they discuss precisely some of these aspects. Now these particular services have not come up for discussion, but the possibility exists to further address these particular sectors. So, let me turn now to the second area of work which is the Multilateral Work Program on Electronic Commerce. So, the work program was initially developed in 1998. If you think about it, there was for once maybe some foresight on the part of WTO members to look at an area that in the mid-90s was still relatively nascent. And under the work program, members, you know, essentially launched this and set three main parameters. One, they agreed on a definition of what is electronic commerce. Now, it’s a definition, it’s a terminology that reflects the times. At the time, essentially what we were doing on the internet was ordering online but not necessarily delivering online because broadband was still, you know, under development. But it’s a very broad definition, so it’s a very broad scope of interest. And then what they did also is they set up a program of work where various bodies, various committees in the WTO were mandated with the task of examining all trade-related issues that were relevant and related to electronic commerce. And given the wide definition of electronic commerce which goes from the production to the delivery of goods and services by electronic means, that provides a wide area for examination. And finally, and in that particular context, the needs, the financial and economic and development needs of developing countries were underlined as an area of particular focus in those discussions. And then finally, members agreed on what we call in the WTO moratorium a standstill where they agreed to continue the practice of not imposing customs duties on electronic transmissions. So this was 1998, where are we now? good 25 years later, first out of those discussions, so members were told, you know, given the mandate by ministers to look at what was the relationship between the existing set of rules and electronic commerce. And the general understanding that emerged from that process was that trade that happens over electronic means, essentially e-commerce falls within the scope of existing WTO agreements because those agreements do not distinguish based on the way in which goods and services are delivered. And then since 1998, WTO members have periodically agreed to continue both this work program, this deliberative track of work, as well as the moratorium. The latest such extension of work, if you want, was agreed at the 12th Ministerial Conference, which took place in June last year, where the work program was this discussion of topics of relevance was intensified, particularly with a focus on the development dimension. And the moratorium for this agreement not to impose or this commitment not to impose customs duties on electronic transmissions was extended until the next Ministerial Conference, which is scheduled to be held in February and or at the latest by the end of March of next year. Now in the context of this deliberation and this reinvigoration of the work program, what members have been doing, they’ve been engaged in dedicated discussions. And these dedicated discussions have touched on a number of issues where there’s been very substantive engagement on the part of the various members of the WTO. And areas of particular focus have included the digital divide, digital industrialization, and the issue of technology transfer will actually be discussed in a session next week. And, of course, the question of the moratorium has also been addressed. So let me move to the last area, main area of work when it comes to the digital sphere in the WTO, and that’s the Joint Statement Initiative on Electronic Commerce, which was launched first in terms of exploratory work in 2017. In 2019, it turned into a full negotiation, which started then, and it’s co-convened by Australia, Japan, and Singapore, with the aim of concluding a high-standard outcome with maximum participation of WTO members, and an outcome that builds on existing WTO rules. Currently, the initiative has 89 participating members. The list is there, and I’m not sure you can read, but there it is. And it is, however, open to all members to join, and progressively more members have actually joined this initiative. Now, again, the importance of being inclusive and looking at the digital side of things and the digital development side of things was stressed, and the co-conveners, so Australia, Japan, and Singapore, as well as Switzerland, have launched an e-commerce capacity-building framework, which is aimed at providing training and assistance to strengthen the digital inclusion of developing countries and least-developed countries. So this is, very quickly, I’m not going to go through the details, this is where the initiative is now. It addresses a number of topics, some on which technical work has advanced and more or less been concluded, and others on which work is actually ongoing. And it addresses many of the areas that also Jane was referring to in her earlier presentation. The aim is to substantially conclude these negotiations by the end of this year. So let me conclude. Before I do that, let me draw your attention to another initiative that the WTO Secretariat has recently taken, which is to partner with the World Bank with the objective of helping initially African countries and helping them in their efforts to harness the opportunities of digital trade in order to drive growth and development, and a development that’s inclusive and sustainable. So this initiative was started with the launch of a note in July, and then there will be engagement at the country level with those countries that show an interest and a willingness to participate. So to then conclude, as I said, various services sectors are really key to the digital transformation and the WTO provides a platform both for deliberation, for discussion, as well as for possible negotiation. And then, as I said, work in the organisation is proceeding at the moment on two main tracks, the multilateral track, both under the work programme and in the various committees, and the plurilateral track under the JSI negotiations, where participating members are of the view that existing rules should be updated and potentially clarified. And the final point is that the digital divide remains a concern across all areas of work. Let me stop there. Thank you very much.
Moderator – AyÅŸegül ÅžahinoÄŸlu YerdeÅŸ:
Thank you very much, Antonia. You have put an excellent summary of what has been discussed so far in the work programme and the JSI. And what we see from your presentation as well, and we know that while in the work programme or the JSI, members are speaking about the sustainability in terms of the development perspective, there are not much… discussing sustainability in terms of environmental aspect. So this brings me to the motto maybe Yasmin has just spelled out. She said that we have to break the silos. This is the same for the environment discussions that are going under this roof, whether be it in the committee of trade and environment or in the TESTI which is a plurilateral discussion group which there is not much discussion and engagement about the interaction between digital transformation and the environmental one. So at this stage I can while concluding say that it’s on us members to break these silos and start to work across these silos and discuss more this issue in depth. So with that I will leave this at that and I thank you very much all for these thought provoking interventions, submissions. So now I would like to turn the floor. We have like 10 minutes for the questions and answers so we can begin this session. And for those that would like to raise a question I would kindly ask them to introduce themselves, their name and the institution that they are affiliated with. So please, who would like to go first? Yes, the gentleman in the back.
Audience:
Yes, thank you very much. My name is Tilman Kupfer. I’m an independent consultant from Brussels but with a background in the telecoms industry. I just want to make a few points to complement things which have been said already. The one that’s been about… Thank you. the carbon abating potential of the ICT industry. So, and Jane Rockman already lined out very well what the effectiveness is here in this area. But I just want to stress also, it’s also the ICT sector itself, I mean at least those companies which are responsible are very active also in trying to or in mitigating their own emissions and there are various areas which, how they can do that. One is to source renewable energy through long-lasting contracts with suppliers of renewable energies. But then the other one is also in the data center space, for instance, building them in such an efficient way that they run on renewable energies themselves, solar power, but also cooling systems and so on. But then also replacing legacy networks, so the old copper networks and then replacing them with fiber also have tremendous efficiency on the energy consumption and efficiency of what the sector itself can perform. And I mean also this very exponential growth of what the ICT sector can deliver. I mean this is one area. The other one is about access and the question about digital divide and I think that brings us also back to the list of two points which are discussed in the e-commerce negotiations that Antonio mentioned. And here it’s probably also useful to point out that the review of the WTO telecoms agreement which dates from the 90s is on the table and that will also make that agreement maybe more efficient and enhance the effectiveness of regulators, for instance, and the better the markets are regulated in telecommunications also prices will go down and there’s more choice and affordability for users, whether those users are from business or from… the end consumers. And the final point is about the openness of the Internet. I think we also need to make sure that the Internet remains a global Internet as a public good. I think it’s an important public good that also the Internet is very open and that also I think only some figures say that 51% of the population in the world are connected yet, but still a big part of the population which is not connected. And so continue keeping an eye on that, that the Internet doesn’t become fragmented, whether through new technologies or through government measures, censorship and so on. Thank you.
Moderator – AyÅŸegül ÅžahinoÄŸlu YerdeÅŸ:
Thank you very much for these comments. First, the lady on the right and then the lady on the back. Yes.
Audience:
Thank you. My name is Helena Bank. I come from the Norwegian Trade Campaign. Thank you for the presentations. I do have a question to Jasmin Ismail and to Antonia Karasaga. I do as good as I can. Yes, because they are very much, you know, what is happening or what should happen on the ground domestically in order to prepare for that transition, which Jasmin explained, and then what’s happening on the top in WTO in terms of binding government to some sort of policies. And Jasmin, if you would please just for me assess how does this agenda that’s happening now with GIs and so on in the WTO apply to what you have been saying? And opposite to Antonia, how does this need on the ground correspond with what is pushed forward by some interested countries in the WTO? in the WTO. Thank you.
Moderator – AyÅŸegül ÅžahinoÄŸlu YerdeÅŸ:
Thank you very much. We will take two questions and then I think we can make a tour of replies.
Audience:
Thank you. Thank you so much to the panel. My questions are particularly for the WTO understanding the Secretariat as supposed to be a neutral body to facilitate for members to discuss. So I’m interested in each of the three areas. I just have a tiny question. If countries want market access, if they want to open their markets to the participation of foreign corporations in their sectors, they can do that now without binding and making a commitment. So if you see as a country that if you open up to telecoms and then you allow foreign producers in, if you keep that policy space, you can decide at a future time that you don’t want them in anymore, that maybe you want to give a boost to your local producers or you can use that as is according to the needs of your economy. But if you commit to it, then you can end up in a situation like Bolivia did with their hospital services where they committed the sector. They had a changing government that responds to what’s called democracy. They had a new constitution, but yet the WTO rules have made it so that they cannot extract that sector from the commitment, and it’s been over a decade now that they have not been able to take that commitment out. So it just seems like I don’t understand that. I thought the Secretary’s role was sort of to facilitate but not to advocate that countries make commitments. On the second thing with the moratorium, we understand that this was a gift to the United States that was really against the interests of most developing countries, and most countries actually didn’t understand it very well. If you understood what happened and know a lot of negotiators back from 1998, it was very clear that it was not something that a majority of members were in favor of. But we look at it now, all these years later, and I was just surprised that it wasn’t mentioned how much tariff revenue we’re talking about losing for developing countries. So as we know, UNCTAD and the South Center have done studies on this and if we just look at the period from 2017 to 2020, it’s estimated that developing countries and LDCs lost about 56 billion US dollars in tariff revenue. Imagine all of the amazing digital and green transformations they could have done with that tariff revenue and instead we have some of the biggest corporations in the history of the world, Apple and Google and Amazon and Netflix not having to pay taxes on their profits that they made in those countries, right? I mean it’s a tariff but it’s like for the right to make a profit in those countries they don’t have to pay taxes. So that is a big net transfer of wealth that could have happened to developing countries that instead is just lining the pockets of the biggest, most profitable corporations in the history of the world that happen to be American. And on the third issue of the plurilateral JSI, I’m still really, really confused by this because there was a rejection of multilateral discussions on e-commerce at the Buenos Aires Ministerial. Maybe many of you were there. We saw the negotiators. We saw them debate it and there was a rejection of that, okay? So to actually have a joint statement initiative, a plurilateral being negotiated in the WTO is not compatible with multilateralism and it’s not compatible with the Marrakesh Agreement. It’s something that Secretariat should absolutely not be supporting and using WTO multilateral resources for. Now I remember the time when it was being discussed and there was a whole discussion of e-commerce for development and a lot of developing countries put forth what their demands were that they wanted. They wanted electrification. They wanted resources. They wanted financing for roads, postal delivery, skills. You know that none of these things can be delivered in WTO rules.
Moderator – AyÅŸegül ÅžahinoÄŸlu YerdeÅŸ:
Sorry for interrupting you, but we are running out of time and we have another question and our reply. So could you please?
Audience:
Okay. So the comment or the question I mean is to say, you know, UNCTAD does capacity building on e-commerce. This is a house for negotiating rules. And the membership overall rejected negotiating e-commerce binding rules in the WTO. And if you want to have a development angle, it should be the things that developing countries have asked for, for the need for digital industrialization. And those rules are not in what we see in the text at this point that has been leaked. And so how can the Secretary justify its continued advocacy of things that are interesting for big tech, for rich countries, when it’s supposed to be a neutral arbiter and it’s not even supposed to be facilitating an illegal JSI to begin with?
Moderator – AyÅŸegül ÅžahinoÄŸlu YerdeÅŸ:
Thank you. Please.
Audience:
Yeah. Thank you. I’m part of the Pakistan delegation here, or to attend IPU-WTO public debate. It’s really mind-boggling. And my question or my comments are addressed to Antonia. If she looks at the record of 1998, the ministerial meeting in which President Clinton and U.K. Prime Minister Blair both were present, and they were hell-bent to convince everybody to declare the new millennium e-commerce duty-free. I happened to be the commerce minister of Pakistan at that time. And your record will witness that I objected to this thing, and I blocked it, because the developing world could not be guaranteed that if they become part of that idea in the new millennium, how their budget would be run, where the income would come from if the e-commerce is free, and whatever the imports are, which is the main source of revenue. I’m surprised. I didn’t have a prophecy at that time. In post-1998, I’d been finance minister of Pakistan for a time, but today I get very shocked and surprised that this forum has not been able to find a solution in the last 25 years. So, you know, let me assure you, unless you see and watch the interests of the developing world and the developing countries, how they would manage, how much would they suffer, how can that be compensated, today we are talking of e-transactions. At that time it was e-commerce. It was much bigger and, you know, overall imports. So I think if there is any, you know, solid solution, report, I’m talking 25 years ago when I intervened in the ministerial meeting. And it is a coincidence that I’m leading, you know, this delegation as leader of the House of the Senate of Pakistan. And in 25 years, this forum has been unable to find a solution. So can somebody guide me, share with me, where do we stand after 25 years, which I predicted that it is not an easy issue. And I blocked it. The record will speak out. And that’s why it could not be carried in 1998. Thank you.
Moderator – AyÅŸegül ÅžahinoÄŸlu YerdeÅŸ:
Thank you very much. We can now pass our responses. Jane, would you like to? Yeah.
Jane Drake Bruckman:
There are a lot of questions there, so I’ll have a go and we’ll all have a go, I suppose. The first thing is I want to say there is some evidence out there that the silos are being broken down in the way governments plan domestically to meet both the green and the digital challenges. And it’s not only the developed economies that are managing to break the silos down. I’ll just throw in the example of the Philippines, which is actually emphasizing in its ICT ecosystem, the National ICT Ecosystem Framework, specifically working on how ICT and internet connectivity can play a positive role in the world. in climate action and energy improvement, which is exactly a breaking down of the silos as Jasmine’s recommended. I wanted to, perhaps the best way of dealing with this is to say that I would add one to Jasmine’s list of nine and I’d make it 10, and I would urge, I would really urge more focus on openness, not less, but more. We’re talking here about cross-border challenges. When we talk about the environment, we are talking about global challenges and we’re not going to deal with them in a closed manner. We’re not going to deal with them in domestic industrialization policies. We’re going to have to deal with them at a global level. And from a trade perspective, what that means is that more developing countries should be participating in the initiatives that are going on here in the WTO. There are many developing countries already participating in the JSI on e-commerce and many more should be sitting in and learning from the process of observing it and understanding how these new trade issues and how new technologies might be useful in meeting these global challenges. I think Saeed was very right when he said that access to the internet alone is not going to bridge the digital divide. To bridge the digital divide and grow one’s own digital economy, it takes digital skills, digital infrastructure, much more focus on national innovation ecosystems and entrepreneurial activity, and it also takes a domestic regulatory framework which is conducive to getting on with it. And at the end of the day, when we’re talking about… The regulatory issues and the regulatory cooperation around them, that brings us back very thoroughly to this building here and the need to sit down together to work out how we should be going about ensuring we don’t have a fragmented digital economy. So, in my view, and I don’t feel that the Secretariat should need to defend themselves Interpreters, I apologize, but we have to stop interpreting because we have to go to another room for another assignment. I feel that we are missing a major opportunity to solve some major global problems. If we don’t let get on with it, those who want to start getting on with some of these problem solving.
Moderator – AyÅŸegül ÅžahinoÄŸlu YerdeÅŸ:
Thank you, Jane. Yasmin, the floor is yours.
Yasmin Ismail:
Thank you so much. I’m going to focus on Helena’s question, which was a very good question. Thank you so much. A very fact-based answer. We have two tracks. We have the work program on electronic commerce, which I can say is back on the right track in my opinion and perspective. It has been reinvigorated. Development is now at the core. Issues that are being discussed are topics that it’s been a very long time we haven’t been discussing, like technology transfer. I think if we reinvigorate it and empower it a little bit more, then better results will come soon, I hope. So, for a work program, development is at the core now and this is one step towards it. Sustainability can be one of the topics to be discussed as well and here we’ll be more on track also for the green transition. For the JSIs, I’d say, of course, the JSI does not include all developing countries, so I cannot… say that it is on the, let’s say, 100% full track towards the results to support developing countries just for the fact based that at least the African continent is almost absent. So this is a fact that we need to face. However, to give some also good facts, the discussions have been tackling special and differential treatment which is a proposal that has been put forward by an African country which is Cote d’Ivoire. And there are discussions about flexibilities and a model of SDT that resembles to the trade facilitation agreement. We have also the co-conveners that established a capacity building program that what I hear as well is that this is supposed to be transformed into a mechanism when the agreement and if the agreement is taken through. So there are some elements that could be promising. But what I see missing, if we want to get put green in the equation, I don’t see a proposal in this text that tackles the environmental impact of e-commerce at all. I don’t know about everyone in the room but I’ve been counting the boxes that I’ve been receiving from online platforms without mentioning who and I have tons at home and it’s been very tough to get rid of. So I think this is one impact that is very flagrant and I think the relation between e-commerce and the environment needs to be investigated more and attacked. And tomorrow we have a session with the Colombian mission at 2.15 that will actually tackle this exact nexus. Thank you so much, Helena, for the question. Thank you, everyone. Thank you, Aysegul, for this opportunity.
Moderator – AyÅŸegül ÅžahinoÄŸlu YerdeÅŸ:
Thank you very much. We are exceeding our time, like 10 minutes now, and our other panelists have other sessions to attend. So just final words.
Antonia Kartzigana:
Thank you. And I’m not sure it’s going to be the final word, but unfortunately I have another session to go to. No, maybe I’m just picking up in terms of the question that Elena raised on what Yasmin said because I think that’s exactly the same points that I would make, which is that in the context of the JSI, the needs on the ground are precisely reflected in the development dimension that’s being brought into the discussion. There’s a lot of topics that are, you know, of concern to developing countries in that context. In the JSI, yes, participation is by some developing countries, many developing countries and some LDCs with lower participation by African countries, but it’s based on a self-selection. So, I mean, the best way to bring the concerns and to bring that element into the discussion, although, as was said, there is a proposal to have special and differential treatment, there is a development dimension in those discussions, is to sit at the table. Otherwise, the rules will be discussed with no input. So, I think it’s participating in those discussions is a way of bringing an additional perspective. And I think, you know, there is no advocacy on the part of the secretariat as such. There is a description of what is happening in this house because I think it’s important for the wider community, including civil society, to know what is happening. At the end of the day, this is a choice in terms of whether members want to join or don’t want to join. So, there is not a wholesale rejection on the part of the membership of the JSI. There are different views as to their legality, this is acknowledged, but a majority of WTO members is engaging in this type of discussion. When it comes to the question about commitments and the value of bindings, I think bindings are valuable because they give certainty and predictability to traders, their way of attracting investment, and they also are guaranteed to the smallest player in the multilateral trading system. We always tend to look at what the bindings are in terms of bindings done by developing countries, but developed countries have undertaken far more bindings and they are valuable in guaranteeing market access to the smallest players. players, which maybe wouldn’t be able to get this access if they were engaging bilaterally on these aspects. And then when it comes to the issue of Bolivia, well, there is a possibility of renegotiating members’ commitments, but of course there is a need to offer some compensatory access in other areas, and this is indeed where the discussions took place when Bolivia wanted to renegotiate commitments on hospital services. And finally, when it comes to the moratorium, I think, yes, it is true that there is a loss of customs revenue. This is one of the issues that is being discussed under the work programme, because the non-imposition of customs duties on electronic transmissions implies a loss of customs revenue. There’s many different studies out there with many different numbers. Most point to relatively limited impacts, but in except for specific countries that would have consequence of lost revenue, but I think one element that also doesn’t need to be lost sight of is the fact that some digital inputs, for instance, consumer services, are inputs that are essential not only to the development of the digital economy, but also to the development of the green economy. And therefore, putting duties on those might actually render the development, both of the digital and the green ecosystem, more challenging. Thank you.
Moderator – AyÅŸegül ÅžahinoÄŸlu YerdeÅŸ:
Thank you very much.
Mehmed Sait Akman:
We have limited time, let me be very brief. What I learned from trade policy studies is that trade policy is actually starting at home, domestic policy. This is the case for green economy and digitalisation. If we come back to our topic, yes, we have the GSIs, everything, but it does not cover everything we discussed here with respect to how digital improvements can help us. achieve our objectives for SDGs and environmental issues. I think what we need all the countries, all societies, is to have, as I proposed before in the UNEP report, that such transformation requires deliberate decisions and actions. And these decisions and actions should also be at the domestic level, referring to regulations. What we can do at the international level, we should work more on how to regulate new technologies like AI, for example, which may have some negative externalities, as you said. But before coming to trade, I think we should start from the very beginning on how to regulate and how to make people more aware and improve their skills in terms of using and harnessing digital technologies. My last point is that you referred to your son, yes, the Generation Alpha now they call, they learn, but we should not leave them only problems and challenges. We should teach them what to do and what not to do. I think this is one important point that we should also say, just to conclude.
Moderator – AyÅŸegül ÅžahinoÄŸlu YerdeÅŸ:
Thank you very much. Now we have reached the end of this session. I would like to extend my heartfelt thanks to our panellists and for their insightful comments. I also would like to thank the floor for making this discussion much richer. And special thanks goes to our Member of Parliament, Zia Altunyal, which has honoured us today. And likewise, we have some senators from Pakistan, we also welcome them here in Geneva. And it’s also an honour for us to host you in today’s session. So with that, I close this session and I wish you all a very good afternoon. Thank you.
Speakers
Antonia Kartzigana
Speech speed
156 words per minute
Speech length
2536 words
Speech time
977 secs
Arguments
WTO rules for services trade, work program on electronic commerce, & Joint Statement Initiative on electronic commerce are central to WTO’s efforts in the digital sphere.
Supporting facts:
- WTO’s services agreement offers an insurance policy against policy reversals in key digital sectors.
- Work program on electronic commerce was developed in 1998, enabling WTO members to continue the practice of not imposing customs duties on electronic transmissions.
- The Joint Statement Initiative includes 89 participating members aiming for a high-standard outcome that builds on existing WTO rules.
Topics: Electronic commerce, WTO, Digitalization, Telecommunication services, Computer services
The needs on the ground reflected in the development dimension in the discussion of the Joint Statement Initiative (JSI)
Supporting facts:
- Topics of concern to developing countries are part of the JSI discussion
- Participation in the JSI is self-selected, with many developing countries and some Least Developed Countries (LDCs) taking part
Topics: JSI, Trade, Development
Bindings in trade agreements are valuable
Supporting facts:
- Bindings give certainty and predictability to traders
- They are a way of attracting investment
- Developed countries have undertaken more bindings, providing smaller players with guaranteed market access
Topics: Trade Agreements, Bindings
Loss of customs revenue due to the moratorium on electronic transmissions is a part of the discussion
Supporting facts:
- Non-imposition of customs duties on electronic transmissions implies a loss of customs revenue
- There are studies pointing to limited impacts, with exceptions for specific countries
Topics: Customs Revenue, Electronic Transmissions, Digital Economy
Report
The World Trade Organization (WTO) plays a central role in digital trade discussions, focusing on areas such as electronic commerce and inclusivity. The WTO’s services agreement provides insurance against policy reversals in digital sectors, ensuring stability for businesses. The work program on electronic commerce, established in 1998, allows WTO members to avoid imposing customs duties on electronic transmissions.
This promotes the free flow of information, bridging the digital divide and supporting developing countries. The Joint Statement Initiative (JSI) on electronic commerce involves 89 participating members working to build upon existing WTO rules and ensuring inclusivity for developing countries. Participating in global trade discussions allows developing countries to have their concerns represented and contribute to the rules that impact them.
Bindings in trade agreements offer certainty and predictability, attracting investment and providing market access. Developed countries have undertaken more bindings, supporting smaller players. The moratorium on electronic transmissions exempting them from customs duties has been a topic of discussion, with studies highlighting limited impacts that vary across specific countries.
Recognizing the importance of digital inputs, the WTO acknowledges their role in the development of digital and green economies. Duties on digital inputs can hinder growth in these sectors. Overall, the WTO’s efforts in the digital sphere, including services agreement, work program on electronic commerce, and JSI, shape global digital trade policies.
They prioritize inclusivity, address concerns of developing countries, and promote certainty in trade agreements. The impact of the moratorium on electronic transmissions and the role of digital inputs are also recognized. The WTO works towards a digital future that promotes growth, reduces inequalities, and fosters partnerships for sustainable development.
Audience
Speech speed
174 words per minute
Speech length
1895 words
Speech time
654 secs
Arguments
The ICT sector is taking initiatives to mitigate their own emissions
Supporting facts:
- ICT sector is sourcing renewable energy through long-lasting contracts with suppliers
- Efficient building of data centers that run on renewable energies
- Replacing old networks with fiber for energy efficiency
Topics: ICT sector, carbon emissions, renewable energy
The Internet should stay a global public good
Supporting facts:
- 51% of the world population is currently connected to the Internet
Topics: Internet, global public good, Internet access, population connection
The impact of WTO policies on local transitions
Topics: WTO, Trade policies, Transition
Countries should have the flexibility to control participation of foreign corporations in their sectors without permanent commitments
Supporting facts:
- Reference to Bolivia’s hospital services commitment under WTO rules, resulting in decreased autonomy due to inability to withdraw commitment
Topics: WTO, Foreign corporations, Trade commitments
Continuation of the moratorium on electronic transmission tariffs has led to loss of revenue for developing countries
Supporting facts:
- Developing countries and LDCs lost about 56 billion US dollars in tariff revenue from 2017 to 2020
- Major corporations do not have to pay taxes on their profits made in developing countries due to the moratorium
Topics: Tariffs, e-Commerce, Developing countries
Developing countries need resources and financing for infrastructure and for enhancing skills related to e-commerce
Topics: WTO, Developing countries, E-commerce, Infrastructure, Skills development
UNCTAD’s role in capacity building on e-commerce vs advocating for rules beneficial to big tech/rich countries
Supporting facts:
- UNCTAD does capacity building on e-commerce
- Membership rejected negotiating e-commerce binding rules in the WTO
- Contention on whether a development angle for digital industrialization is being considered
- Alleged discrepancy in UNCTAD’s roles as neutral arbiter and facilitator of an ‘illegal JSI’
Topics: UNCTAD, e-commerce, big tech, industrialization
The speaker disapproves the e-commerce duty-free policy proposed by Clinton and Blair in 1998
Supporting facts:
- The speaker was the commerce minister of Pakistan in 1998 and blocked the proposal due to concerns about budget and income for developing countries
- He questions how developing countries can compensate for lost revenue if e-commerce becomes tax-free
Topics: E-commerce, Duty-free policy
Report
The discussions revolved around several key topics, including the initiatives taken by the ICT sector to reduce carbon emissions and mitigate their environmental impact. The sector has been sourcing renewable energy through long-lasting contracts with suppliers, building efficient data centres that run on renewable energies, and replacing old networks with fibre for increased energy efficiency.
These efforts have been praised and are seen as positive steps towards addressing climate change. Another area of focus was the ongoing and more efficient review of the WTO telecoms agreement. It was argued that enhancing the effectiveness of regulators can lead to well-regulated markets and lower prices, ultimately benefiting users in terms of affordability and choice.
The sentiment towards this topic was positive, highlighting the potential positive impact of such a review. The discussion also touched upon the importance of the Internet as a global public good. It was highlighted that 51% of the world population is currently connected to the Internet, demonstrating its widespread reach and impact.
There was a consensus that the Internet should remain globally accessible and not be fragmented, as this is seen as vital for fostering innovation, enabling connectivity, and promoting economic growth. However, there was opposition expressed towards the fragmentation of the Internet, with concerns raised about the potential negative consequences of such a development.
When it came to WTO policies, the impact on local transitions was deemed a neutral topic, with a desire to understand the correlation between WTO’s policies and local/domestic initiatives. This reflects a need for further exploration and analysis of the effects of such policies on local economies.
Furthermore, there was a negative sentiment towards the control of foreign corporations in sectors without permanent commitments. The argument put forth was that countries should have the flexibility to control the participation of foreign corporations in their sectors without being bound by permanent commitments.
Bolivian hospital services’ commitment under WTO rules was mentioned as an example, resulting in decreased autonomy due to the inability to withdraw commitment. The continuation of the moratorium on electronic transmission tariffs also received criticism, as it has led to significant revenue losses for developing countries.
It was noted that developing countries and least developed countries (LDCs) lost approximately 56 billion US dollars in tariff revenue from 2017 to 2020. Moreover, major corporations not having to pay taxes on their profits made in developing countries further compounded the issue.
This negative sentiment underscores the need to reassess the impact of the moratorium on developing economies. The discussions also revealed opposition to the plurilateral Joint Statement Initiative on E-commerce being negotiated in the WTO. It was highlighted that multilateral discussions on e-commerce were rejected at the Buenos Aires Ministerial, and there was a concern that multilateral resources of the WTO were being directed towards plurilateral discussions instead.
This negative sentiment towards the initiative reflected a desire for a more inclusive approach and a focus on reducing inequalities. Developing countries’ needs for resources and financing for infrastructure and skills development related to e-commerce were considered a neutral topic.
This highlighted the recognition of the importance of supporting developing countries in their efforts to leverage e-commerce for economic growth and development. There was also a negative sentiment expressed towards the role of UNCTAD (United Nations Conference on Trade and Development) in capacity building on e-commerce.
It was argued that UNCTAD, as a neutral arbiter, should focus on advocating for rules beneficial to developing countries instead of favouring big tech and rich countries. This reflects a concern that the needs of developing countries might not be adequately represented or prioritised in the current discourse.
Overall, the discussions provided a comprehensive overview of the various perspectives and concerns surrounding the ICT sector, internet access, WTO policies, and e-commerce. The sentiments expressed highlighted a mix of positive, negative, and neutral views, underscoring the complexity and diverse range of opinions on these important topics.
Jane Drake Bruckman
Speech speed
132 words per minute
Speech length
1834 words
Speech time
837 secs
Arguments
Digital technologies can contribute significantly towards achieving sustainability goals
Supporting facts:
- The Global Enabling Sustainability Initiative shows that across the 169 sustainable development goals, 103 of them are directly influenced by digital technologies
- The expected deployment of existing digital technologies will on average accelerate progress in sustainability by 22% and mitigate the downward trends by 23%.
- Digital tools help monitor energy efficiency, facilitate the reuse of components and materials for the circular economy, manage traffic, help the agricultural sector to reduce water and fertilizer consumption, monitor the climate and carbon emission reduction process.
Topics: Digital transformation, Green economy, Sustainability, Decarbonization
Evidence shows that the silos are breaking down in how governments plan to meet green and digital challenges
Supporting facts:
- Philippines is emphasizing in its ICT Ecosystem on how ICT and internet connectivity can positively affect climate action and energy improvement
Topics: Government Policies, Environment, Digitalization
More focus should be put on openness to deal with global challenges
Supporting facts:
- We have to deal with environmental challenges at a global level
- More developing countries should participate in WTO’s initiatives
Topics: Global Challenges, Trade Policies
Bridging the digital divide requires more than just internet access
Supporting facts:
- It takes digital skills, digital infrastructure, focus on national innovation system & entrepreneurial activity and suitable domestic regulatory framework
Topics: Digital Divide, Education, Innovation
Report
Digital technologies have the potential to significantly contribute to achieving sustainability goals. According to the Global Enabling Sustainability Initiative, 103 out of the 169 sustainable development goals can be directly influenced by digital technologies. The deployment of existing digital technologies is projected to accelerate progress in sustainability by 22% and mitigate downward trends by 23%.
Digital tools have a wide range of applications in various sectors, such as monitoring energy efficiency, facilitating the reuse of components and materials for the circular economy, and managing traffic. These tools also play a significant role in the agricultural sector by helping farmers reduce water and fertilizer consumption.
Governments are recognising the positive impact of information and communication technology (ICT) and internet connectivity on climate action and energy improvement. For instance, the Philippines is emphasising the role of ICT in its efforts to address climate change and improve energy efficiency.
Additionally, digital technologies improve efficiency and productivity across diverse sectors, including manufacturing, construction, and agriculture. Bridging the digital divide requires the development of digital skills, infrastructure, and suitable regulatory frameworks. It is crucial not to miss opportunities to utilise digital technologies in solving global problems.
In conclusion, digital technologies offer immense potential for achieving sustainability goals. They can drive progress in sustainability, promote efficient resource use, and facilitate the transition to a circular economy. It is important for governments to recognise the importance of ICT and internet connectivity in addressing climate action and energy improvement.
Bridging the digital divide and promoting cooperation are key to maximising the benefits of digital technologies and addressing global challenges.
Mehmed Sait Akman
Speech speed
126 words per minute
Speech length
2228 words
Speech time
1059 secs
Arguments
A digital divide exists between developed and developing countries
Supporting facts:
- Only Internet access isn’t enough to bridge digital divide
- More developed parts of countries have better Internet connectivity than lesser ones
- Digital divide leads to income inequality and poverty
Topics: Internet connectivity, Demographics, Sustainable Development Goals
Both digital and green transformations are necessary and interconnected
Supporting facts:
- Digital technologies can help reduce greenhouse gas emissions
- Digital markets can provide platforms for sale and purchase of renewable energy credits
- Engagement of SMEs is important in the green production process
- Digital technologies can help optimize energy use
Topics: Greenhouse gas emissions, Energy use, Renewable energy, Supply Chain, SMEs
Trade policy starts at home, and this applies to the digital economy and green economy
Supporting facts:
- Trade policy is actually starting at home, domestic policy.
- This is the case for green economy and digitalisation.
Topics: Trade policy, Digitalisation, Green economy
The transformation to green and digital economy requires deliberate decisions and actions at the domestic level
Supporting facts:
- As proposed in the UNEP report such transformation requires deliberate decisions and actions.
- And these decisions and actions should also be at the domestic level, referring to regulations.
Topics: Green economy, Digitalisation, Policy regulation
Importance of educating the newer generations about the challenges and solutions of green and digital economy
Supporting facts:
- You referred to your son, yes, The Generation Alpha, they learn, but we should not leave them with only problems and challenges.
- We should teach them what to do and what not to do
Topics: Education, Green economy, Digitalisation
Report
The analysis explores the complex relationship between digital transformation and sustainability, highlighting several key points. Firstly, it reveals the existence of a digital divide between developed and developing countries. The study emphasizes that although internet access is crucial, it alone is insufficient to bridge this divide.
More developed regions within countries tend to have better connectivity than less developed areas. This digital divide contributes to income inequality and poverty as individuals in less connected areas miss out on economic opportunities provided by digital technologies. Another important aspect is the interconnectedness of digital and green transformations.
The analysis underscores the role of digital technologies in reducing greenhouse gas emissions and optimizing energy use. These technologies can aid in the transition to renewable energy sources and provide platforms for the trading of renewable energy credits. Engagement of small and medium-sized enterprises (SMEs) is essential for sustainable practices in the green production process.
The analysis emphasizes that both digital and green transformations are vital and mutually dependent for a sustainable future. Additionally, the study notes that improvements in digital technology alone do not guarantee the achievement of sustainability goals. Deliberate decisions and actions are required to ensure that digital transformation aligns with sustainability objectives.
This deliberate approach highlights the need to consider the impact of digitalization on climate and work towards climate-beneficial digitalization. Furthermore, the analysis stresses the importance of establishing a regulatory framework and robust infrastructure to enable access to digital technologies. It suggests that reliable infrastructure is necessary for effective digital transformation.
Moreover, the low percentage of financing for information and communication technology (ICT) by multilateral development banks highlights the need for increased investment in this area. The analysis emphasizes the concept of global digital public goods, which are seen as crucial for bridging the digital divide.
Digital public infrastructure plays a critical role in achieving this goal. Additionally, it underscores the importance of empowering individuals through digital skills and knowledge, with a focus on integrating these skills into education and training programs. The analysis also highlights the significance of domestic policies and regulations in trade, particularly in the context of the digital and green economies.
It argues that trade policy should begin at home, suggesting that domestic-level decisions and actions play a significant role in shaping these economies. Finally, the analysis suggests that international efforts should prioritize the regulation of emerging technologies like artificial intelligence (AI), which may have negative externalities.
It advocates for a thorough examination of the potential risks and consequences associated with AI, and the implementation of regulatory measures to mitigate these effects. In conclusion, the analysis focuses on the existence of a digital divide and its impact on income inequality and poverty.
It underscores the interconnectedness of digital and green transformations, emphasizing the importance of deliberate decisions and actions to align digital transformation with sustainability objectives. The analysis also highlights the significance of establishing a regulatory framework and infrastructure for digital access, along with the role of global digital public goods.
Additionally, it addresses the importance of equipping future generations with the necessary knowledge and skills to navigate the challenges and opportunities of the green and digital economies. Finally, it highlights the need for international regulation of emerging technologies to effectively manage potential risks.
Moderator – AyÅŸegül ÅžahinoÄŸlu YerdeÅŸ
Speech speed
139 words per minute
Speech length
2079 words
Speech time
897 secs
Arguments
Digital revolution acts as an important driver of decarbonization
Supporting facts:
- The WTO’s 2022 World Trade Report, titled Climate Change and International Trade, acknowledged that digitalization acts as an important driver of decarbonization
Topics: Green Economy, Digital Transition
Significant challenges lie ahead, especially the digital divide between developed and developing countries
Topics: Digital Divide, Policy
Digital and green are interconnected
Supporting facts:
- Existing digital technologies are contributing to reduce the carbon footprint of major greenhouse gas emitting sectors such as energy, transport, manufacturing, construction and agriculture
- Investments in digital technologies facilitating green transitions have significantly increased
Topics: Green transitions, Digital transitions
Digital technologies have the potential to balance negative environmental externalities
Supporting facts:
- ICT accounts for only 1.4% of global carbon emissions and contributes to reducing greenhouse gas intensity across the economy
- Growth in emissions from the ICT sector are expected to be balanced out by energy efficiencies and greater use of renewables
Topics: Digital technologies, Environmental sustainability
The importance of reducing vulnerabilities of those that are falling behind
Supporting facts:
- Digital ecosystem is crucial for small and medium-sized enterprises (SMEs) to thrive
- Global value chains are getting ever greener each day
Topics: digital divide, SMEs, global value chains
The need for a fair, just and inclusive twin transformation
Topics: digitalization agenda, environmental agenda
There is lack of discussion related to interaction between digital transformation and the environmental one in WTO
Supporting facts:
- Currently, in the work programme or in the Joint Statement Initiative, members discuss more about sustainability in terms of development perspective rather than environmental aspect.
- This lack of discussion is also seen in the committee of trade and environment or in the plurilateral discussion group TESTI.
Topics: Digital Transformation, Environmental Impact, WTO
Report
The analysis highlights the pivotal role of digitalization in driving decarbonization efforts and promoting a green transformation. According to the World Trade Organization (WTO)’s 2022 World Trade Report titled “Climate Change and International Trade,” digitalization is recognized as a significant driver of decarbonization.
This acknowledgement underscores the positive impact of digital technologies in reducing greenhouse gas emissions. Moreover, the analysis reveals that existing digital technologies are contributing to shrinking the carbon footprint in key sectors, including energy, transport, manufacturing, construction, and agriculture. Investments in digital technologies facilitating green transitions have also seen substantial growth.
These findings emphasize the interconnection between digital and green transitions, showcasing how digital technologies can contribute to achieving sustainability goals. However, the analysis also highlights a pressing challenge, the digital divide between developed and developing countries. Bridging this divide is crucial as it can impede progress towards sustainable development.
The report points out that the digital divide disproportionately affects certain groups, such as women, youth, farmers, and businesses in remote locations. Therefore, reducing this divide is essential for promoting inclusivity and ensuring equitable access to digital benefits for all.
The analysis emphasizes the importance of the WTO in discussions related to digital transformation and the green economy. However, it also reveals a dearth of in-depth discussions on the interaction between digital transformation and the environment within the organization. There is a need for more comprehensive dialogue and collaboration between the fields of digital transformation and environmental sustainability within the WTO to address this gap.
Additionally, the report highlights the potential of digital technologies to counterweigh negative environmental externalities. Despite accounting for only 1.4% of global carbon emissions, the ICT sector contributes to reducing greenhouse gas intensity across the entire economy. The growth in emissions from the sector is projected to be offset by energy efficiencies and increased use of renewables.
This underscores the positive role that digital technologies can play in promoting responsible consumption and production. In conclusion, the analysis underscores the significance of digitalization in driving decarbonization efforts and promoting green transformations. It emphasizes the need to address the digital divide, particularly in developing countries, and calls for the WTO to foster more comprehensive discussions and collaboration between the fields of digital transformation and environmental sustainability.
Digital technologies have the potential to mitigate negative environmental impacts and contribute to the achievement of sustainable development goals.
Yasmin Ismail
Speech speed
127 words per minute
Speech length
2059 words
Speech time
969 secs
Arguments
breaking the silos is important
Supporting facts:
- UNCTAD has called for a twin transition
- policy makers need to coordinate and collaborate for the transitions
Topics: digital transition, green transition, economy, policy makers
national expertise should be empowered
Supporting facts:
- domestic academia, researchers and tech experts understand the local context better
- investment should be made in local resources
Topics: digital transition, green transition
promote digital and environmental literacy
Supporting facts:
- generation Z and alpha are more aware of environmental challenges
- they need access to online resources and digital tools
Topics: education, youth empowerment
infrastructure needs simultaneous development
Supporting facts:
- we need robust digital and eco-friendly infrastructure
- adopting green public procurement could stimulate demand for green products/services
Topics: infrastructure, digital transformation, green transformation
reskilling is important to fit the future workforce
Supporting facts:
- Microsoft study estimates many new technology-oriented jobs by 2025
- Upskilling needs to be a priority
Topics: digital transformation, education, workforce
financial access for SMEs is crucial
Supporting facts:
- innovative and inclusive funding mechanisms are required
Topics: SMEs, finance, privatization
adoption of enabling rulebook is necessary
Supporting facts:
- trade policies should be enabling to access needed technologies, goods/services
- countries should prioritize their needs accordingly
Topics: trade policies, transitioning
inclusion of twin transition in trade relations is necessary
Supporting facts:
- bilateral and regional trade agreements should include the twin transition
- innovation in technology transfer frameworks is necessary
Topics: trade relations, digital transition, green transition
The work program on electronic commerce is on the right track with development at its core
Supporting facts:
- There has been a resurgence in discussion on topics like technology transfer which had not been discussed for a long time.
- Sustainability can also be discussed for the green transition.
- African continent is almost absent from JSIs.
Topics: Electronic Commerce, Development
The environmental impact of e-commerce needs to be investigated and addressed
Supporting facts:
- There’s currently no proposal that tackles the environmental impact of e-commerce in the text.
- The relation between e-commerce and the environment needs to be investigated more.
- Consumer’s experience of receiving many boxes from online platforms shows the environmental impact of e-commerce.
Topics: E-commerce, Environment
Report
The analysis highlights various key points related to achieving twin transitions and the importance of collaboration and coordination among policymakers. One key point raised by UNCTAD is the need for a twin transition, which involves both the digital and green transitions.
To successfully accomplish this, policymakers must work together and break down silos. This collaboration is essential to ensure a smooth transition that encompasses various sectors and areas, such as technology, economy, and policymaking. Another important aspect identified is the significance of empowering national expertise.
It is argued that domestic academia, researchers, and tech experts possess a better understanding of the local context. Therefore, investment should be made in leveraging local resources and knowledge to empower national expertise. This approach would enable countries to address challenges effectively and devise strategies that align with their specific circumstances.
The analysis also emphasizes the need to promote digital and environmental literacy, particularly among the younger generation known as Generation Z and Alpha. These young individuals are more aware of environmental issues and require access to online resources and digital tools to enhance their understanding and contribute towards sustainable development efforts.
Furthermore, the development of robust digital and eco-friendly infrastructure is deemed crucial. It is suggested that by investing in such infrastructure, countries can meet the demands of the twin transition effectively. Additionally, adopting green public procurement practices can stimulate demand for green products and services, thereby contributing to the overall sustainability agenda.
Reskilling the workforce is another important consideration highlighted in the analysis. A study by Microsoft estimates the emergence of numerous technology-oriented jobs by 2025, indicating the need for prioritising upskilling initiatives. By providing individuals with the necessary skills, they can enhance their employability and successfully adapt to the changing needs of the future workforce.
The analysis also underscores the importance of inclusive and innovative funding mechanisms for small and medium-sized enterprises (SMEs). These mechanisms can support the growth and development of SMEs, ensuring their financial access and reducing inequalities in the economic landscape. Trade policies also play a crucial role in facilitating the twin transition.
It is argued that trade policies should enable access to technologies, goods, and services required for the transition. Countries need to prioritise their specific needs and align their trade policies accordingly to effectively integrate into the twin transition process. The inclusion of the twin transition in bilateral and regional trade agreements is deemed necessary for successful implementation.
It is suggested that these agreements should incorporate provisions that address both digital and green transitions. Moreover, the innovation of technology transfer frameworks is seen as crucial in facilitating knowledge exchange and collaboration among countries. The analysis also examines the work programme on electronic commerce, recognising its focus on development.
However, it raises concern over the absence of the African continent from the Joint Statement Initiatives (JSIs). This observation signifies that not all developing countries are adequately represented, highlighting the need for more inclusive participation and collaboration. Lastly, the analysis draws attention to the environmental impact of e-commerce.
It is noted that the text lacks proposals addressing this environmental concern. The impacts of e-commerce on the environment should be investigated more thoroughly, and appropriate measures need to be implemented to mitigate negative effects. In conclusion, the analysis highlights the importance of breaking silos, leveraging national expertise, promoting digital and environmental literacy, developing robust infrastructure, reskilling the workforce, ensuring financial access for SMEs, enabling trade policies, and addressing the environmental impact of e-commerce to achieve twin transitions successfully.
By considering these factors and implementing appropriate strategies, countries can foster sustainable development and contribute to the attainment of relevant Sustainable Development Goals (SDGs).