What is the eco-digital economy, and why could it reach $33 trillion by 2028?

While this concept may seem abstract or complex, it essentially refers to the dual transition that companies worldwide are currently undergoing. On one front, businesses are shifting to increasingly digital and connected models, modernizing their operations to leverage the benefits of technologies like Big Data, cloud computing, and artificial intelligence. 

On the other, they are working to meet stricter sustainability standards to comply with targets set by government authorities. For example, in Europe, many companies are now required to comply with regulations such as producing a corporate sustainability report.

These dual processes, aimed at a more digital and sustainable world, are closely interwoven in the corporate sphere. As a result, there is growing recognition of the critical role digital technologies play in achieving sustainability goals —giving rise to the concept of the eco-digital economy.

According to the report, nearly half (48%) of organizations are either in the planning stages or actively developing strategies to leverage the potential of emerging technologies like edge computing and the much-publicized generative AI. ,So significant is this trend that the benefits from this technological forefront are projected to grow from 4% to 14% by 2028.

In terms of the eco-digital economy itself, it reached a value of $16.6 trillion in 2023 and is set to reach $33 trillion by 2028. Its share of global GDP is also expected to increase from 15.8% to 26.2%, , underscoring the power of this transition and its impact on global economic growth.

Within this context, the question may arise: how does this translate into practice? In practical terms, applying this dual transition to a company’s day-to-day operations leads to resource optimization through technology. For example, combining big data and artificial intelligence streamlines processes, saving both time and energy. A notable example is in the real estate sector, where buildings are responsible for 39% of global CO2 emissions. As such, advancements in energy efficiency through technology are another major trend within the eco-digital economy.

According to Planet Mark, companies can follow seven steps to reduce their carbon footprint. The first step is to measure the company’s carbon footprint to identify key areas for improvement. Second, renewable energy sources can be adopted to power company operations, and similarly, web hosting services that run on renewable energy can be chosen.

The fourth step focuses on implementing waste-reduction strategies and promoting recycling and reuse across all areas of company operations, from office supplies to packaging. Additionally, it is advisable to select suppliers with environmentally friendly practices and certifications, such as ISO 14001 and CarbonNeutral®. As a sixth option, online platforms can be used to reduce the need for travel by limiting meetings and events, thereby lowering carbon emissions associated with transportation. Finally, investing in energy-efficient office equipment, such as LED lighting and high-rated energy-efficient appliances, is also an option.

Investment in the eco-digital economy can be approached from multiple angles: from non-polluting new technologies, to companies using technology to capture CO2 from the atmosphere, to those focused on building more efficient structures or reducing carbon emissions through advances in AI, big data, and other innovations. In the energy sector alone, according to IMF data, global renewable energy production must rise from today’s 25% to 100% by 2050 —a significant shift that opens up new investment opportunities.

Overall, the annual financing needed for global sustainable development has grown from $2.5 trillion to $4 trillion to achieve net-zero emissions by 2050. While current figures fall short, companies and countries must increase their investments to meet this target.