In the race to build a more sustainable world, digitalization and the green transition are evolving in parallel. Both are often framed as complementary forces—with digital tools helping reduce emissions and accelerate innovation. But beneath the surface, this relationship is more complex.
While Information and Communication Technology (ICT) can play a key role in decarbonization, it also has a growing environmental footprint of its own. So is ICT a driver of sustainability—or a barrier to it?
In this article, we explore how ICT impacts the green transition across sectors, what trade-offs exist, and how companies can navigate this evolving landscape.
According to the European Commission, ICT has the potential to reduce global greenhouse gas emissions by 15% to 20%, notably through efficiencies in energy systems, transportation, and resource management.
It also helps unlock new business models and green jobs, especially in emerging sectors. For example, digital finance platforms and data-driven impact reporting tools make it easier for sustainable startups to access capital and grow. ICT is, in this sense, a key enabler of innovation and transparency.
These benefits come with a cost. The ICT sector is estimated to produce between 2.1% and 3.9% of global emissions—a share expected to grow with expanding internet use, streaming services, and artificial intelligence applications.
Two major contributors are:
Together, they account for about 1% of global electricity demand—and that figure is rising.
In the energy sector, ICT is a catalyst for transformation. Smart grids, for example, use real-time data to balance energy supply and demand. This is especially important as more renewable energy sources come online, which are variable and require digital systems to manage flows effectively.
Decentralized energy production—like solar installations in rural areas—can also benefit from digital tools, helping local communities manage power generation and distribution independently.
Digital technologies in agriculture—like IoT sensors, drones, and AI—can optimize water use, reduce pesticide application, and improve crop yields.
However, without support frameworks, these innovations risk exacerbating the digital divide, displacing workers, and increasing inequalities. Automation, for instance, can reduce jobs in rural areas if not coupled with policies that foster inclusive development.
Manufacturing represents about 25% of global CO₂ emissions. ICT can support this sector through more efficient processes, predictive maintenance, and the circular economy.
For example, AI can identify ways to reuse industrial byproducts, or optimize resource flows in real-time. Yet, these benefits may be offset by increased e-waste or poorly managed digital infrastructure, especially in regions without adequate recycling systems.
The outcome depends on how well companies integrate ICT into a broader sustainability strategy.
Research shows that the impact of ICT on sustainability follows an inverted U-curve:
• In developing countries, rapid digitalization can initially increase emissions due to reliance on fossil-based infrastructure and higher energy needs.
• In advanced economies, where cleaner grids and efficiency standards are in place, ICT tends to support decarbonization in the long run.
This highlights the need for context-specific strategies and policy frameworks to guide digital transformation in alignment with climate goals.
• ICT can reduce emissions—but it also generates a non-negligible carbon footprint.
• Its net impact depends on how it’s applied, by whom, and in what sector.
• For ICT to be a true ally of the green transition, we need better infrastructure, stronger governance, and inclusive design.
• Businesses must think beyond efficiency gains: the integration of ICT must be part of a decarbonization strategy, not a substitute for it.