Shaping Digital Transformation for Climate Action

The Innovator: Interview Of The Week with: Bjorn-Soren Gigler

Q: The GIZ is working closely with other partners on the topic of Twin Transition, which focuses on developing a coherent, holistic approach to digital and green transformations.? Can you tell us more about that work??

Soren Gigler: ?While digital technologies are an important and rapidly growing sector in terms of their greenhouse gas emissions, they also provide unprecedented opportunities as key enablers for sustainability and climate action. In particular, the convergence of digital technologies, such as IoT, blockchain and AI offer important opportunities to support the decarbonization of the economy. The combination of these technologies enables the near-real time collection, sharing, and verification of climate change data in support of policy making. It is estimated that digital technologies can contribute to reduce global GHG emission by up to 20%. The important thing is to acknowledge there is a problem and it concerns all businesses, not just tech companies.?

Thus, an important issue to be concerned about is the level of greenhouse gas emissions of the digital sector, which today emits approximately 2% to 4% of greenhouse gas emissions, the same as global air traffic. What is concerning to us is that predictions are that within the next ten years digital could increase to 8%- 10% of global greenhouse gas emissions. According to one study today in France digital already represents 8% of the country’s emissions so this is a huge issue.??

Therefore, our first goal is to enhance the sustainability of the digital sector by greening data centers and the telecom networks that power mobile phones as they require high energy usage. For this reason, we are working closely with the World Bank on the development of investment guidelines for investment programs in green and sustainable data centers. ?

Another example is our effort to leverage Artificial Intelligence (AI) to better understand, mitigate and adapt to climate change – we focus on empowering communities in the Global South most affected by it. Specifically, we support innovators and researchers to collect open training datasets for local AI innovations. From understanding impacts of climate change on agriculture and forestry, to strengthening electrification planning, filling data gaps in the climate domain allows communities around the world to better mitigate and adapt to climate change. We do this through our “FAIR Forward – Artificial Intelligence for All” project with the global Lacuna Fund .

Digital technologies can be a powerful enabler to support the socio-ecological transformation, but digital technologies need to be shaped to fit the needs of people and the planet and should not be seen as a panacea. Sustainability should not be an afterthought.? It is central to the transformation of the economy and should not be seen not as a burden for business but rather as a way to provide them with new opportunities for highly innovative business models and social innovations.?

Q: In many ways digital is a two-edged sword. Technology is responsible for a certain percentage of greenhouse gas emissions, but it can also help companies go green. Should companies see this as an opportunity???

Soren Gigler:? While digital technologies are an important and rapidly growing sector in terms of their greenhouse gas (GHG) emissions, they also provide unprecedented opportunities as key enablers for sustainability and climate action.

It is important to highlight that sustainability should not be an afterthought but to be central to the transformation of the economy and be seen not as a burden for business but provide them with new opportunities for highly innovative business models and social innovations.?

What is however key is that digital technologies are not a panacea but can be a powerful enabler to support the socio-ecological transformation. Digital technologies have to be shaped to fit the needs of people and the planet.?Businesses play hereby a critical role as key engines of innovations and the adoption of digital innovations in support of the environment and a long-term sustainable development.

Q: What do you see as the key challenges for the digital and green transformation??

Soren Gigler: is important to enhance the awareness of all stakeholders, including governments, companies, research organizations and civil society about both the opportunities and challenges of the digital and green twin transition. The digital and green transformation are taking place simultaneously and there are critical linkages. These linkages are however so far very much underutilized. Too often digital and sustainability programs work in parallel to each other. What is needed are innovative and holistic approaches that bring both transformations together. With the?support from the BMZ we at the GIZ are currently implementing for 15 Mill EUR pilot programs that mainstream the use of digital innovations for sustainability and climate action within our digital transformation flagship programs. Here is a brief presentation on our Digital for Climate action programs .

We are also working together with our partner countries through our network of 19 Digital Transformation Centers (DTCs) to support a human-centered digital transformation. The DTCs in in Vietnam, Indonesia and Mexico have a special focus on providing policy advice to governments and support the development of local innovation ecosystems in support of the digital twin transition. A good example is our program in Indonesia, where we are working closely with the GSMA Mobile Innovation Hub on supporting cleantech, sustainable energy and the digitalisation of waste management by leveraging digital innovations.?

Closing the Climate Action Implementation Gap:

It is critical that we scale-up the implementation of concrete programs that support the socio-ecological transformation of the economy, provide new opportunities for sustainable development, climate action and enhance the well-being of local communities in particular women and marginalized groups. Digital technologies are a powerful force for empowerment and can become a key engine for the socio-ecological transformation. It is however critical to support a truly paeople-centered digital transformation, that finds a balance between innovations, new business models enabled through the use of data and the protection of digital citizen rights, data privacy and enables a pathway for poor community and marginalized communities out of poverty and enhanced individual and collective human development.??

This BMZ-supported Data Economy program works closely with the African Union, the EU to support our partner countries across Africa in the following key areas:

1. the development of data governance frameworks that foster an enabling environment for the data economy while protecting people’s digital citizen rights
2. the implementation of regional data use case across sectors and regions, including in rural development & food security, climate change, financial inclusion, the empowerment of women and marginalized groups and open finance/banking. The showcase projects aim to demonstrate the the economic, social and ecological value creation through data at the national and regional level.
3. the preparation of sustainable digital and data infrastructure programs that are bankable and scalable. A special emphasis is being given on the development of green data infrastructure programs, including green data centers. For this purpose, the program is establishing a dedicated Digital Investment Facility (DIF) with regional representation in Western Africa (Senegal); Eastern Africa (Kenya) and Southern Africa (South Africa).
4. the strengthening of the capacity of policy makers government institutions, the private sector and civil society across Africa in issues focused on Data Governance, Data Sovereignty and Data Capabilities.

Based on the success of the first phase of the program it is now being scale-up through the regional Data Governance for Africa Team Europe Initiative (with a budget of 60 Mio EUR) supported by the European Commission, Belgium, Estonia, Finland, France and Germany.

Q: How can companies do a better job in using their digital transformation to shape climate goals????

Soren Gigler: First, it is critical to acknowledge that technology both provides important opportunities but also risks in terms of sustainability and the environment.? Second, accept that innovation involves both opportunities and risks. It is key for businesses to take the risk of changing business model. Develop a long-term strategy to enhance the sustainability of your business, looking at clearly defined needs and how digital?can support those needs.?Third, it is important to promote innovative approaches. Think outside the box. Develop a long-term strategy, looking at clearly defined needs and how digital can support those needs. The solutions depend on your local, political, social, and economic context. And finally remember that tech is not neutral. It needs to be given a purpose. If sustainability is your purpose, then you need to shape your digital transformation to reflect that, otherwise it will not automatically lead to that goal.?

To further strengthen the collaboration focused on a sustainable digital transformation, the Federal Ministry for Economic Cooperation and Development has also launched the digital.global network.

This interview was first published in the “Innovator” in December 2022. A very special thanks to Jennifer L. Schenker The Innovator’s Founder and Editor-in-Chief, for conducting and publishing the interview. I highly recommend The Innovator - a great journal.

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Bj?rn-S?ren Gigler? is the Head of the Data Economy Program of the Digital Transformation Center at the GIZ, a German government agency focused on international cooperation for sustainable development and digital transformation. ?Gigler is currently coordinating the Data Economy and Blockchain flagship programs at the GIZ and is working closely with partner countries in Africa, Latin America, and Asia and EU-member states on programs that integrate the Digital and Green Twin Transition into development programs.

Previously, he was the European Commission’s Senior Digital Innovation Specialist at the Digital Innovation and Blockchain Unit in DG Connect (2018-2021). Gigler also previously held the position of Senior Innovation and Digital Economy Policy Advisor at the European Investment Bank (2016-18) providing advice on enhancing access to finance for disruptive technologies investment programs. From 1997-2016, Gigler worked at the World Bank at the Innovation Labs and as the Governance Global Practice as Digital Innovation Program Coordinator, Senior Governance Specialist and Economist.

He holds a Ph.D. in International Development from the London School of Economics, a M.S. in Economics from the University of Munich, and a M.A. in International Affairs from George Washington University. Gigler is the author of Development as Freedom in a Digital Age (World Bank 2015) and editor of Closing the Feedback Loop: Can Technology address the Accountability Gap? ’ books.