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Fostering environmentally sustainable electronic commerce

UNCTAD Policy Brief No. 117

Electronic commerce (e-commerce) is reshaping the global economy, transforming consumption patterns while driving economic growth. The value of the sector rivals that of global trade in goods and services, and keeps expanding.

E-commerce platforms help millions of businesses, many of which are small and medium-sized enterprises, sell online, overcoming barriers such as physical market access, infrastructure gaps and social constraints. However, the benefits of e-commerce remain uneven, with most developing countries lagging in the adoption of online shopping. It is also critical to ensure that this global transformation does not compromise environmental sustainability.

The environmental impact of e-commerce depends on the type; business-to-consumer e-commerce implies a growing number of smaller packages, deliveries and returns, while business-to-business e-commerce may be more efficient, with bulk orders requiring less packaging and allowing for streamlined delivery.

The different stages of the business-to-consumer e-commerce logistics chain for goods (warehousing, packaging, transport, returns) are examined in this policy brief, along with changing consumer behaviour. In addition, the need to rethink these elements is highlighted, to reduce the environmental footprint of e-commerce, while creating a regulatory framework that balances environmental sustainability with economic growth.

Key points:

  • Developing countries can leverage e-commerce to boost economic growth and development.
  • The e-commerce logistics chain (warehousing, packaging, transport, returns) needs to be rethought, to limit the environmental impacts of this growing sector, particularly of emissions and waste.
  • Governments, businesses and consumers need to work together to reduce environmental impacts, by regulating environmental impacts, promoting eco-friendly practices, encouraging informed consumer behaviour and improving the evidence base for informed policymaking.
  • Global international e-commerce and digital trade discussions need to explicitly integrate environmental sustainability concerns and make use of international cooperation and technical assistance to address such concerns.

This policy brief builds on the findings in Chapter 5 of the Digital Economy Report 2024: Shaping an environmentally sustainable and inclusive digital future.

Fostering environmentally sustainable electronic commerce - UNCTAD Policy Brief No. 117  (UNCTAD/PRESS/PB/2024/3)
22 Jan 2025