UNITEDNATIONSCONFERENCEONTRADEANDDEVELOPMENT

2024

Digital

economy

report

Shapingan

environmentallysustainableandinclusivedigitalfuture

OVERVIEW

UNITEDNATIONSCONFERENCEONTRADEANDDEVELOPMENT

2024

Digital

economy

report

Shapingan

environmentallysustainableandinclusivedigitalfuture

OVERVIEW

Geneva,2024

DigitalEconomyReport2024IOVERVIEW

Shapinganenvironmentallysustainableandinclusivedigitalfuture

?2024,UnitedNations

Thisworkisavailablethroughopenaccess,bycomplyingwiththeCreativeCommonslicencecreatedforintergovernmentalorganizations,at

/licenses/

by/3.0/igo/.

ThedesignationsemployedandthepresentationofmaterialonanymapinthisworkdonotimplytheexpressionofanyopinionwhatsoeveronthepartoftheUnitedNationsconcerningthelegalstatusofanycountry,territory,cityorareaorofitsauthorities,orconcerningthedelimitationofitsfrontiersorboundaries.

MentionofanyfirmorlicensedprocessdoesnotimplytheendorsementoftheUnitedNations.

Photocopiesandreproductionsofexcerptsareallowedwithpropercredits.

Thispublicationhasbeeneditedexternally.

UnitedNationspublicationissuedbytheUnitedNationsConferenceonTradeandDevelopment

UNCTAD/DER/2024(Overview)

ii

DigitalEconomyReport2024IOVERVIEW

Shapinganenvironmentallysustainableandinclusivedigitalfuture

Note

WithintheUNCTADDivisiononTechnologyandLogistics,theE-commerceandDigitalEconomyBranchcarriesoutpolicy-orientedanalyticalworkonthedevelopmentimplicationsofinformationandcommunicationstechnologies(ICTs)andelectroniccommerce(e-commerce).ThebranchisresponsibleforthepreparationoftheDigitalEconomyReport,previouslyknownastheInformationEconomyReport.TheE-commerceandDigitalEconomyBranchpromotesinternationaldialogueonissuesrelatedtoICTsfordevelopmentandcontributestobuildingdevelopingcountries’capacitiestomeasuree-commerceandthedigitaleconomyandtodesignandimplementrelevantpoliciesandlegalframeworks.ThebranchalsomanagestheeTradeforallinitiative.

Inthisreport,thetermscountry/economyrefer,asappropriate,toterritoriesorareas.Thedesignationsofcountrygroupsareintendedsolelyforstatisticaloranalyticalconvenience,anddonotnecessarilyexpressajudgementaboutthestageofdevelopmentreachedbyaparticularcountryorareainthedevelopmentprocess.Unlessotherwiseindicated,themajorcountrygroupingsusedinthisreportfollowtheclassificationoftheUnitedNationsStatisticsDivision.Theseare:

Developedeconomies:membercountriesoftheOrganisationforEconomicCo-operationandDevelopment(OECD)(excludingChile,Colombia,CostaRica,MexicoandTürkiye),EuropeanUnionmembercountriesthatarenotOECDmembers(Bulgaria,Croatia,Cyprus,Lithuania,MaltaandRomania),aswellasAlbania,Andorra,Belarus,Bermuda,BosniaandHerzegovina,Liechtenstein,Monaco,Montenegro,NorthMacedonia,theRepublicofMoldova,theRussianFederation,SanMarino,SerbiaandUkraine,plustheterritoriesofFaroeIslands,Gibraltar,Greenland,GuernseyandJersey.

Developingeconomiesareallcountriesnotspecifiedabove.

AfilewiththemaincountrygroupingsusedcanbedownloadedfromUNCTADstatat

/EN/Classifications.html

.

ReferencestoChinadonotincludedataforHongKong(China),Macao(China)orTaiwanProvinceofChina.

ReferencestoLatinAmericaincludetheCaribbeancountries,unlessotherwiseindicated.Referencestosub-SaharanAfricaincludeSouthAfrica,unlessotherwiseindicated.

Theterm“dollars”($)referstoUnitedStatesdollars,unlessotherwiseindicated.Theterm“billion”signifies1,000million.

Thefollowingsymbolsmayhavebeenusedinthetables:

Twodots(..)indicatethatdataarenotavailableorarenotseparatelyreported.

Aslash(/)betweendatesrepresentingyears,e.g.1994/95,indicatesafinancialyear.

Useofanendash(–)betweendatesrepresentingyears,e.g.1994–1995,signifiesthefullperiodinvolved,includingthebeginningandendyears.

Annualratesofgrowthorchange,unlessotherwisestated,refertoannualcompoundrates.

Detailsandpercentagesintablesdonotnecessarilyadduptothetotalsbecauseofrounding.

iii

DigitalEconomyReport2024IOVERVIEW

Shapinganenvironmentallysustainableandinclusivedigitalfuture

?UNPhoto/MarkGarten

Preface

Digitalizationcontinuestomoveatwarpspeed,transforminglivesandlivelihoods.Atthesametime,unregulateddigitalizationrisksleavingpeoplebehindandexacerbatingenvironmentalandclimatechallenges.

TheDigitalEconomyReport2024highlightsthedirectenvironmentalimpactofourincreasedrelianceondigitaltools–fromrawmaterialdepletion,waterandenergyuse,airquality,pollution,andwastegeneration.TheseareaccentuatedbyemergingtechnologiessuchasartificialintelligenceandtheInternetofthings.

Ajustandsustainabledigitaleconomyrequiresjustandsustainablepolicies.

Yetmanydevelopingcountriescontinuetofaceobstaclesinaccessingdigitaltechnologiesfortheirdevelopmentneeds,whilebearingthebruntofenvironmentaldepletion,wasteandclimatechange.

Wecannotaddressdigitalizationandenvironmentalsustainabilityinsilos.Thisreportcallsformorecomprehensivedataontheenvironmentalimpactofdigitalization,anddigitalpolicyframeworksthatadvancetheSustainableDevelopmentGoalsandhonourclimatecommitments.

AswepreparefortheSummitoftheFutureandtheGlobalDigitalCompact,theUnitedNationsoffersanaturalplatformtobringtogetherstakeholdersfromthedigitalandenvironmentalcommunities.

Together,wecanharnessthebenefitsofdigitalizationwhileclosingthedigitaldivideandprotectingourplanet.Thisreportisanimportantresourceaswestrivetobuildajustandsustainabledigitalfutureforall.

AntónioGuterres

Secretary-GeneraloftheUnitedNations

v

DigitalEconomyReport2024IOVERVIEW

Shapinganenvironmentallysustainableandinclusivedigitalfuture

?2024_UNCTAD

Foreword

Thedigitaleconomy,oftenpraisedforitsvirtualandintangiblenature,hascreatedtheillusionofaworldunburdenedbymaterialwaste.However,thisDigitalEconomyReport2024starklyrevealsthefallacyofthisperception.Theinformationandcommunicationstechnologysector’scarbonfootprintin2020,estimatedatbetween0.69and1.6gigatonsofcarbondioxide(CO2)equivalentemissions,accountedfor1.5to3.2percentofglobalgreenhousegasemissions–attheupperrange,slightlybelowtheentireshippingindustry’scontributiontoCO2emissions.Theproductionofasingle2kgcomputerrequirestheextractionofastaggering800kgofrawmaterials.

Thesefiguresareonlysettorise,withtheproductionofmineralsessentialforthedigitaltransition,suchasgraphite,lithiumandcobalt,projectedtosurgeby500percentby2050tomeetthegrowingdemandfordigitalandlow-carbontechnologies.Datacentres,thebackboneofthedigitalworld,consumedanestimated460TWhofelectricityin2022,afigureprojectedtodoubleby2026.Thenumberofsemiconductorunitsquadrupledfrom2001to2022andcontinuestogrow.Fifth-generationmobilebroadbandcoverageisexpectedtoincreasefrom25percentofthepopulationin2021to85percentby2028,whilethenumberofInternetofthingsdevicesisprojectedtogrowfrom16billionin2023to39billionin2029.Thisexpansion,coupledwiththegrowingpopularityofe-commerce,whichsawbusinesssalesrisefrom$17trillionin2016to$27trillionin2022in43countries,paintsacomplexpictureofthedigitaleconomy’senvironmentalimpact.

Thisreportservesasawake-upcall,urgingustoconfronttheenvironmentalconsequencesofourdigitallifestyles.

Theenvironmentalimpactofdigitalizationisaglobalissue,butitseffectsarenotevenlydistributed.Developingcountries,oftenrichintheresourcesneededfordigitaltechnologies,bearadisproportionateburdenofitscostswhilereapinglimitedbenefits.Forexample,discardedsmartphones,laptops,screensandotherelectronicdevicesgrewby30percentbetween2010and2022,reaching10.5milliontonsglobally.Developedcountries

vi

DigitalEconomyReport2024IOVERVIEW

Shapinganenvironmentallysustainableandinclusivedigitalfuture

generatedanaverageof3.25kgofe-wasteperperson,comparedtolessthan1kgindevelopingcountriesand0.21kginleastdevelopedcountries.Shockingly,only24percentofthiswastewasformallycollectedgloballyin2022,withamere7.5percentcollectedindevelopingcountries.

Anotherpointtoconsideristheimpactoftheextractionofmineralsessentialfordigitaltechnologiesonenvironmentalandsocialsustainability.Suchextractionisoftensourcedthroughartisanalandsmall-scalemining,whichisoftenassociatedwithunsafeworkingconditions,environmentaldegradationandexploitationofvulnerablecommunities,includingchildren.Thesecircumstanceshighlighttheurgentneedforgreatertransparencyandresponsiblesourcingpracticeswithinthedigitalsupplychain,ensuringthatthepursuitoftechnologicalprogressdoesnotcomeattheexpenseofvulnerablecommunitiesortheenvironment.

Yet,despitethesechallenges,digitalizationalsoholdsimmensepotentialforenvironmentalgood.Digitaltechnologiescandriveenergyefficiency,optimizeresourceuseandenableinnovativesolutionsforclimatechangemitigationandadaptation.

Thisreportemphasizestheneedforabalancedapproach.Wemustharnessthepowerofdigitalizationtoadvanceinclusiveandsustainabledevelopment,whilemitigatingitsnegativeenvironmentalimpacts.Thisrequiresashifttowardsacirculardigitaleconomy,characterizedbyresponsibleconsumptionandproduction,renewableenergyuseandcomprehensivee-wastemanagement.

Aswenavigatethiscomplexlandscape,internationalcooperationisparamount.Wemuststriveforequitabledistributionofthebenefitsandcostsofdigitalization,ensuringthatnooneisleftbehindinthedigitalage.Wemustworktogethertoestablishcomprehensiveglobalgovernanceframeworksthatpromotesustainabledigitalpracticesandempowerdevelopingcountriestoparticipatefullyinthedigitaleconomy.

TheDigitalEconomyReport2024drawsattentiontoanimportantarea.Itunderscorestheurgentneedforactionatalllevels–fromGovernmentsandbusinessestointernationalorganizationsandcivilsociety.Wemustembraceanewmindsetthatconsiderssustainabilityateverystageofthedigitallifecycle.

Iamconfidentthatthisreportwillprovidevaluableinsightsandrecommendationsforpolicymakers,industryleadersandallstakeholderscommittedtobuildingasustainabledigitalfuture.Thechoiceswemaketodaywilldeterminethekindofworldweleaveforgenerationstocome.Letusseizethisopportunitytocreateadigitaleconomythatthrivesinharmonywithourplanet.

RebecaGrynspan

Secretary-GeneralofUNCTAD

vii

DigitalEconomyReport2024IOVERVIEW

Shapinganenvironmentallysustainableandinclusivedigitalfuture

Acknowledgements

TheDigitalEconomyReport2024:ShapinganEnvironmentallySustainableandInclusiveDigitalFuturewasprepared,undertheoverallguidanceofShamikaN.Sirimanne,DirectoroftheUNCTADDivisiononTechnologyandLogistics,byateamcomprisingTorbj?rnFredriksson(teamleader),NadiraBayat,LauraCyron,DanielKer,SmitaLakhe,MarcinSkrzypczyk,ThomasvanGiffenandWeiZhang.

ThereportbenefitedfrommajorsubstantiveinputsprovidedbyPabloGámezCersosimo,GeorgeKamiya,DavidSouter,AliciaValeroandKeesBaldéonbehalfoftheUnitedNationsInstituteforTrainingandResearch.

ValuablecommentswerereceivedfromexpertswhoattendedabrainstormingmeetinginOctober2022andapeerreviewmeetinginNovember2023,bothinGeneva.ParticipatingexpertsincludedJerryAhadjie,AnastasiaAkhigbe,UmaRaniAmara,RachidAmui,KeesBaldé,HeleenBuldeoRai,HelenBurdett,BrunoCasella,FrancescaCenni,VladC.Coroam?,HanaDaoudi,PapaDaoudaAmadDiene,LorrainedeMontenay,SofiaDominguez,ScarlettFondeurGil,ClovisFreire,ViridianaGarcia-Quiles,PabloGámezCersosimo,EbruGokce-Dessemond,CarlosA.HernandezS.,SeokGeunIn,ArnauIzaguerriVila,DavidJensen,GeorgeKamiya,PazPe?a,NicolasMazzucchi,GerryMcGovern,StevenGonzalezMonserrate,GrahamMott,MireiaRoura,ArantxaSanchez,DeepaliSinhaKhetriwal,DavidSouter,AliciaValero,ZarjaVojta,AndrewWilliamsonandAnidaYupariAguado.WrittencommentswerealsoreceivedfromYingTungChan,HonghuiHe,GuoyongLiangandZongguoWen.

UNCTADgreatlyappreciatesadditionalinputsfromtheResearchCentreforEnergyResourcesandConsumption,theEconomicCommissionforEurope,theEconomicCommissionforLatinAmericaandtheCaribbeanandtheUnitedNationsInstituteforTrainingandResearch.

Thecover,graphicsandlayoutwereundertakenbyNadègeHadjémianandGillesMaury.The2024reportwaseditedbyRomillyGolding.DianaQuirosprovidedadministrativesupport.

FinancialsupportfromthecoredonorsoftheE-commerceandDigitalEconomyprogramme,namelyAustralia,Germany,theKingdomoftheNetherlands,SwedenandSwitzerland,isgratefullyacknowledged.

viii

DigitalEconomyReport2024IOVERVIEW

Shapinganenvironmentallysustainableandinclusivedigitalfuture

Contents

PageiiiINote

PagevIPreface

PageviIForeword

PageviiiIAcknowledgements

Page7I

3

Page4I

2

1

Page1I

Page12I

5

Page14I

6

Page10I

4

Page19IPolicyrecommendations

ix

DigitalEconomyReport2024IOVERVIEW

Shapinganenvironmentallysustainableandinclusivedigitalfuture

TheDigitalEconomyReport2024:

ShapinganEnvironmentallySustainableandInclusiveDigitalFuture

highlightstheurgentneedforsustainablestrategiesthroughoutthelifecycleofdigitalization.Fromrawmaterialextractionandusageofdigitaltechnologiestowastegeneration,thereportexploresthenatureandscaleofthesector’senvironmentalfootprint,whichremainslargelyunassessed.Whatisapparentisthatdevelopingcountriesaresufferingdisproportionatelyfromdigitalization’snegativeenvironmentaleffects,aswellasmissingoutoneconomicdevelopmentalopportunitiesduetodigitaldivides.UNCTADcallsforglobalpoliciesinvolvingallstakeholderstoenableamorecirculardigitaleconomyandreducedenvironmentalfootprintsfromdigitalization,whileensuringinclusivedevelopmentoutcomes.

?AdobeStock_Zaleman

SECTION1

Understandingthenexusofdigitalizationandenvironmentalsustainabilityis

increasinglyimportant

Digitalizationcontinuestotransformtheworldeconomyandsociety,creatingbothopportunitiesandchallengesforsustainabledevelopment.

PreviouseditionsoftheDigitalEconomyReporthavelargelyfocusedontheimplicationsofdigitalizationforinclusivedevelopment,theimportanceofbridgingdigitalanddata-relateddivides,enablingvaluecreationandcaptureindevelopingcountriesandfosteringbettergovernanceofdataanddigitalplatforms.

TheDigitalEconomyReport2024turnsattentiontotheenvironmentalfootprintofdigitalization.Thetopicistimely,nottosayoverdue.Digitaltransformationistakingplaceinparallelwithgrowingconcernsrelatedtothedepletionofrawmaterials,waterstress,climatechange,pollutionandwastegeneration,whicharealllinkedtoplanetaryboundaries.

Therapidpaceandexpandingscopeofdigitalizationmakeitincreasinglyimportanttounderstandtherelationshipbetweendigitalizationandenvironmentalsustainability.Howtheworld’songoingdigitaltransformationismanagedwillgreatlyinfluencethefutureofhumanityandthehealthoftheplanet.

1

DigitalEconomyReport2024IOVERVIEW

Shapinganenvironmentallysustainableandinclusivedigitalfuture

Internet usershave increasedfrom1billionin2005to

5.4billion

in2023

Internet- connected objectsare expectedtoincreasefrom 13billionin2022to

35billionin2028

Environmentalimpactsaregeneratedalongthewholedigitalizationlifecycle

Directenvironmentalimpactsfromdigitaldevicesandfrominformationandcommunicationstechnology(ICT)infrastructureoccuralongthelifecycle,takingplaceduringtheproductionphase(rawmaterialextractionandprocessing,manufacturing,distribution),theusephaseandtheend-of-lifephase.Thedirecteffectsonnaturalresources,includingontransitionminerals,energyandwater,aswellasgreenhousegas(GHG)emissionsandwaste-relatedpollution,constitutethe“environmentalfootprint”oftheICTsector.

Therearealsoindirectenvironmentaleffectsfromtheuseofdigitaltechnologiesandservicesindifferentsectorsoftheeconomy.Theseextendbeyonddigitalization’sdirectfootprintandcanbebothpositiveandnegative.Forexample,digitaltechnologiescanhelptoimproveenergyefficiency,reducingdemandacrossallsectors.DigitaltechnologiescanbeusedtocutGHGemissionsinthetransportation,construction,agricultureandenergysectors.However,thepotentialgainsmaybereducedorcounterbalancedby“reboundeffects”,inthatdigitalizationmayincreasetheconsumptionofgoodsandservices,withnegativeeffectsontheenvironmentasaresult.Policiescangreatlyinfluencethenetimpact.

Digitalizationisevolvingrapidly,leavingagrowingenvironmentalfootprint

Inthepasttwodecades,theworldhasexperiencedadigitalshiftfewwouldhaveanticipatedatthetimeoftheWorldSummitontheInformationSocietyin2005,creatingnewopportunitiesforeconomicandsocialdevelopment,aswellasnewchallenges.AccordingtotheInternationalTelecommunicationUnion,thenumberofInternetuserssurgedfrom1billionin2005to5.4billionin2023.Between2010and2023,estimatesofannualshipmentsofsmartphonesmorethandoubled,from500milliontoabout1.2billion.

From2001to2022,thenumberofsemiconductorunitssoldquadrupled,andthesenumberskeepexpanding.Networkinfrastructure,includingsubmarinecablesandcommunicationssatellites,offerseverfasterwaysofconnectingmorepeopleandmachines.Fifthgeneration(5G)mobilebroadbandpopulationcoverageisexpectedbysomemarketestimatestorisefrom25percentin2021to85percentin2028.

Higherconnectionspeedsenablemoredatatobegenerated,collected,storedandanalysed,andthisiscentraltoemergingtechnologiessuchasbigdataanalytics,artificialintelligence(AI)andtheInternetofthings(IoT).ThenumberofInternet-connectedobjectsisexpectedtorisefrom13billionin2022to35billionin2028.

Whiledigitaltechnologiescanbeusedtomitigatevariousenvironmentalconcerns,thegrowingnumbersofend-userdevices,investmentsindatatransmissionnetworksanddata

2

DigitalEconomyReport2024IOVERVIEW

Shapinganenvironmentallysustainableandinclusivedigitalfuture

centresandmorecomputationallyintensivedigitalapplications,suchasAIandblockchaintechnology,arealsotranslatingintoagrowingenvironmentalfootprint.Inthecurrenthighlylineardigitaleconomyproductionmodel–basedontake/extract–make–use–waste–thisleadstomoredemandforrawmaterials,waterandenergy,greateremissionsofGHGsandmorewasteattheend-of-lifephase.

Itisdifficulttoassesstheimpactofdigitalizationontheenvironment

TheICTsectorisestimated

tohave

accounted

for1.5–

3.2percentofglobalGHGemissions

in2020

Thisreportpointstotheneedforbuildingastrongerevidencebasetoallowforcomprehensiveassessmentsoftheenvironmentaleffectsofdigitalization.Thereisalackoftimely,comparableandaccessibledataandtherearefewharmonizedreportingstandards.Analyticalstudiesrelyonavarietyofsourcesthatarequicklybecomingoutdatedduetothespeedofdigitaldevelopments;forexample,existingstudiesdonotadequatelycapturetheenvironmentalimpactofrecentdevelopmentsinAIortheshiftto5Gmobilenetworks.

Insomesectors,thereisalsolimiteddisclosureofimpacts.Resultsdivergeconsiderablyduetovariationsinmethodologies,assumptionsorthemodelsusedtoestimateenvironmentalimpacts.Forexample,estimatesoftheICTsector’slifecycleGHGemissionsfor2020varywidely,from0.69gigatonsto1.6gigatonsofCO2equivalent(CO2e)emissions,correspondingto1.5–3.2percentofglobalGHGemissionsinthatyear.

TheimpactoftheICTsectoronwateruseisoftenoverlooked,andthereisaneedformoretransparentandreliableinformationonthis.Wateruseatallstagesofthedigitalizationlifecyclecanseverelyimpactlocalbiodiversityandlivelihoods.Similarly,mining,anintegralcomponentoftheproductionphaseofdigitalization,ishighlywaterintensive.Thiscanleadtocompetitionforwaterresourcesbetweenminingoperations,agricultureandlocalhouseholds.

Likewise,semiconductorproductionrequireslargeamountsofextremelypurewater,anddatacentresconsumealotofwaterbothindirectly,togenerateelectricity,anddirectly,tocoolservers.Waterpollutioncanresultfromthefinalphasesofthedigitalizationlifecyclewhencontaminantsfromelectroniccomponentsleachintogroundwaterduetoimpropere-wastedisposalanddumping.Thistypeofpollutioncanadverselyaffectbiodiversityandhumanhealth.

3

DigitalEconomyReport2024IOVERVIEW

Shapinganenvironmentallysustainableandinclusivedigitalfuture

?AdobeStock_SouthernCreative

SECTION2

Digitalization’spromiseof

Theshiftto low-carbon anddigitaltechnologies isdriving thegrowing demandforkeyminerals

dematerializationhasnotyetmaterialized

Availableresearchsuggeststhattheproductionphaseofdigitalizationhasthegreatestcombinednegativeimpactontheenvironment.Thisisduetomineralandmetalproduction,thevolumeofGHGemissionsgeneratedandwater-relatedimpacts.Forexample,inthecaseofsmartphones,around80percentofGHGemissionsareattributedtotheproductionphase.

Manyconsiderthedigitaleconomytobevirtual,intangibleorinthe“cloud”,butdigitalizationheavilyreliesonthephysicalworldandrawmaterials.Digitaldevices,hardwareandinfrastructurearecomposedofplastics,glassandceramics,aswellasdozensofmineralsandmetals.Ithasbeenestimatedthatmakinga2kgcomputerinvolvesextracting800kgofrawmaterials.

Thekeymineralsandmetalsusedfordigitalizationincludealuminium,cobalt,copper,gold,lithium,manganese,naturalgraphite,nickel,rareearthelementsandsiliconmetal,andthesearealmostidenticaltothoserequiredfortheshifttowardsalow-carboneconomy.Thegrowingdemandforthesematerialsisgreatlydrivenbytheshifttolow-carbonanddigitaltechnologies.

4

DigitalEconomyReport2024IOVERVIEW

Shapinganenvironmentallysustainableandinclusivedigitalfuture

AccordingtoanassessmentbytheWorldBank,productionofmineralssuchasgraphite,lithiumandcobaltcouldseeanincreaseof500percentby2050tomeetgrowingdemand.TheglobalenergyandclimatemodeloftheInternationalEnergyAgency(IEA)revealedthatconsumptionofplatinumgroupmineralscouldbe120timeshigherin2050thanin2022.

Suchtrendsriskmeetingthelimitsoftheavailabilityofmineralsonaplanetwithfiniteresources.

Geopoliticalconcernscouldexacerbatedigitalization’senvironmentalfootprint

Theglobalmineralsandmetalsmarketishighlyconcentratedgeographicallyintermsofreserves,extractionandprocessingactivities.Forexample,concerningextraction,in2022,theDemocraticRepublicoftheCongoproduced68percentoftheworld’scobalt.AustraliaandChileproduced77percentoftheworld’slithium,andGabonandSouthAfricaproduced59percentoftheworld’smanganese.

ForChina,sharesofworldproductionstoodat65percentfornaturalgraphite,78percentforsiliconmetaland70percentforrareearthelements.Chinaalsoplaysamajorroleintermsofmineralprocessing,accountingformorethanhalfofglobalmineralprocessingforaluminium,cobaltandlithium,about90percentformanganeseandrareearthelements,andcloseto100percentfornaturalgraphite.

Securingaccesstothesupplyofcriticalmineralshasbecomeastrategicpriority,particularlyfordevelopedanddevelopingcountriesthatareimportantproducersofgoodsneededforthetransitiontowardsalow-carbonanddigitalworld.Insomecountries,effortstosecuremineralandmetalsuppliesmayinadvertentlyencouragehoardingandleadtoovercapacityinproductionfacilities.Thismayresultinlessefficientprocessesandanunnecessarilylargeenvironmentalfootprintforthedigitaleconomy.

Changingindustrialpoliciesreflectthestrategicimportanceofcriticalminerals

Thestrategicimportanceofcertainrawmaterialshastriggerednewpolicymaking.

AsAsia,particularlyChina,emergedastheglobalelectronicsmanufacturinghub,proximitytomarketsofintermediaryproductsandcomponentshasbolsteredburgeoningmineralprocessingactivities.AsChinastrivestoimproveitsperformanceinstrategictechnologysectors,suchasAIandlow-carbontechnology,thereisanincreaseddemandformineralsthatareessentialtotheseindustries.Recentyearshavealsoseenarevivalofindustrialpoliciesinsomedevelopedcountriesrelatedtotransitionmineralsandassociatedindustries(includingelectronics).Thefocusinsomeglobalsupplychainshasshiftedfrom“justintime”to“justincase”approaches.

5

DigitalEconomyReport2024IOVERVIEW

Shapinganenvironmentallysustainableandinclusivedigitalfuture

IntheUnitedStatesofAmerica,forexample,thePresidenthascalledforsecuringamadeinAmericasupplychainforcriticalminerals,andthe2022InflationReductionActinthecountryestablishespercentagesofcriticalmineralsthatmustbemined,processedorrecycleddomestically.

TheEuropeanUnion,initsCriticalRawMaterialsActof2023,sets2030benchmarksforthestrategicrawmaterialsvaluechainandfordiversifyingitssupplies.