GOVERNANCE GOVERNANCE EQUITABLE GROWTH, FINANCE & INSTITUTIONS INSIGHT Greening Public Administration with GovTech Embracing a Green Digital Transition Guidance Note - Volume 1 Supported by the GovTech Global Partnership - www.worldbank.org/govtech EQUITABLE GROWTH, FINANCE & INSTITUTIONS INSIGHT <<< 1 © 2023 International Bank for Reconstruction and Development / The World Bank 1818 H Street NW Washington DC 20433 Telephone: 202-473-1000 Internet: www.worldbank.org This work is a product of the staff of The World Bank with external contributions. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of The World Bank, its Board of Executive Directors, or the governments they represent. The World Bank does not guarantee the accuracy, completeness, or currency of the data included in this work and does not assume responsibility for any errors, omissions, or discrepancies in the information, or liability with respect to the use of or failure to use the information, methods, processes, or conclusions set forth. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. Nothing herein shall constitute or be construed or considered to be a limitation upon or waiver of the privileges and immunities of The World Bank, all of which are specifically reserved. Rights and Permissions The material in this work is subject to copyright. Because The World Bank encourages dissemination of its knowledge, this work may be reproduced, in whole or in part, for noncommercial purposes as long as full attribution to this work is given. Any queries on rights and licenses, including subsidiary rights, should be addressed to World Bank Publications, The World Bank Group, 1818 H Street NW, Washington, DC 20433, USA; fax: 202-522-2625; e-mail: pubrights@worldbank.org. >>> Contents Acknowledgments vi Abbreviations and Acronyms vii Executive Summary 1 1. Introduction 5 1.1. The Role of the World Bank 7 1.2 A Framework of Analysis for Greening GovTech 8 2. Greenhacking the Bureaucracy and Service Delivery Using GovTech Solutions 11 2.1 Introduction 11 2.2 Modernization of Government Processes 12 2.2.1 Paperless Public Administration 13 2.2.2 A Synergized Public Sector 14 2.3 Green Digital Service Delivery 21 2.3.1 From Unichannel to Omnichannel Service Design and Delivery 21 2.3.2 From Siloed to Integrated Service Design and Delivery 24 2.3.3 Towards a Green Digital Service Delivery 26 2.4 GovTech Resilience to Climate Change Risks 28 2.4.1 Resilience to Weather Transformation and Emergencies 29 2.4.2 Data Recovery and Redundancy 29 2.4.3 Critical Digital Services 30 3. Governing a Green and Digital Transformation of the Public Sector 33 3.1 Introduction 33 3.2 Strategy 34 3.2.1 Example: Denmark 35 3.2.2 Example: Korea 35 3.2.3 Example: European Commission 36 3.3 Institutional Leadership and Coordination 37 3.3.1 Political Sponsorship and Support 38 3.3.2 Public Sector Organization Leading GovTech Policy 38 3.3.3 Coordination Mechanisms 39 3.4 Legal and Regulatory Frameworks 41 3.4.1 Policy Initiatives and Legal Actions 41 3.4.2 Interoperability Frameworks 42 3.4.3 E-Waste Regulations 43 3.4.4 Participatory Governance 43 3.5 Policy Levers 44 3.5.1 Budgeting Practices 44 3.5.2 Pre-evaluation of Digital Investments 45 3.5.3 Public Procurement 45 3.5.4 Monitoring and Evaluation 48 3.6 Green Digital Competencies 51 3.6.1 Mainstreaming Green Digital Culture across the Public Sector 51 3.6.2 Key Priorities for the Public Sector to Secure Green Digital Talent 51 3.6.3 Enablers to Build Green Digital Competencies 53 3.6.4 Green Digital Leadership: The Public Sector and the Role of Stakeholders 54 4. Conclusion 56 Notes 59 References 66 Annex 1: Definitions 73 Figures Figure ES.1. Greening of GovTech: Framework of Analysis 2 Figure 1. Greening of GovTech: Framework of Analysis 9 Figure 2. Highlighted Trends that Support Greening Government Processes 13 Figure 3. Key Steps and Data Inputs for the Calculations 14 Figure 4: Total Energy Consumption of Federal IT 2008–21 18 Figure 5. Exploring the Green Impact – From Unichannel to Omnichannel Service Design and Delivery 22 Figure 6. Exploring the Green Impact: From Siloed to Integrated Service Delivery 25 Figure 7. Green Digital Service Delivery 27 Figure 8. Korea’s Green IT Policy Milestones 36 Figure 9. Institutional Leadership and Coordination for Green and Digital Government 37 Figure 10. Institutional Leadership and Coordination for Green and Digital Government 57 Tables Table 1. GHG Accounting for the Procurement and Contract Management Processes 23 Table 2. The Existence of a Government Entity Focused on GovTech 39 Table 3. Institutional Responsibility for GovTech 39 Table 4. Coordination in the GovTech Maturity Index 40 Table 5. Snapshot of Data Governance and Data Management Worldwide 49 Boxes Box 1. Assessing the Reduced Paper Consumption of Digital Public Financial Management in Bangladesh 14 Box 2. Transportation Reduction through Inter-Operable M-Government Solutions 15 Box 3. Reducing Energy Consumption and GHG Emissions: The Green IT Initiative of the German Federal Government 17 Box 4. Example: Cold Aisle Design of Data Center Reduces Energy Consumption 19 Box 5. Green Impact of Digital Public Financial Management in Bangladesh 23 Box 6. The Green Impact Integrated Service Delivery in Portugal 26 Box 7. Costa Rica ICT infrastructure for Data Recovery 30 Box 8. Critical Digital Services are Moving to the Cloud in the Caribbean 31 Box 9. Leadership in Nationally Determined Contributions 38 Box 10. Korea’s Green Digital Transformation Journey 42 Box 11. EC-Developed LCC Calculation Tools and Standardized EU GPP Criteria 46 Box 12. Green Public Procurement Indicators 50 Box 13. United States and Canada Launch GGI 52 Box 14. Sweden: Investigating Long-Term Strategies for Reducing Greenhouse Gas Emissions 53 Box 15. Green Digital Leadership 54 >>> Acknowledgments This guidance note was developed under the World Bank GovTech initiative by a team led by João Ricardo Vasconcelos, Senior Governance Specialist, and Hunt La Cascia, Senior Public Sector Specialist, both from the Governance Global Practice. The note was co-authored by Serena Cocciolo (Economist), Youngseok Kim (Senior Governance Specialist), Diana Annandsingh (Program Assistant), Till Hartmann (Junior Professional Officer), Abdulaziz Almuzaini (Consultant), and Achim Blume (Senior Governance Specialist). Additional contributors include Sara Balan (Senior Digital Development Specialist), Aidan Coville (Research Manager), Jia Li (Senior Economist), Ishtiak Siddique (Senior Procurement Specialist), and Richard Anthony Sutherland (Senior Governance Specialist). Overall guidance for the report was provided by Arturo Herrera Gutierrez (Director, Governance Global Practice) and Roby Senderowitsch (Practice Manager). Editorial services were provided by Patricia Carley. This report was made possible by the World Bank’s GovTech Initiative and the GovTech Global Partnership trust fund, building on the support of financial and in-kind partners, including the Ministry of Finance of Austria, the State Secretariat for Economic Affairs (SECO) of Switzerland, the Ministry of Economy and Finance (MOEF) of the Republic of Korea, the Ministry of Economic Development of the Russian Federation, the Ministry of Interior and Safety (MOIS) of the Republic of Korea, the Government of Japan, and the Federal Ministry for Economic Cooperation and Development (BMZ) of Germany. EQUITABLE GROWTH, FINANCE & INSTITUTIONS INSIGHT <<< vi >>> Abbreviations and Acronyms ADB Asian Development Bank AI Artificial Intelligence CAF Development Bank of Latin America CCIA Climate Change Institute Assessment (World Bank) CIO Chief Information Officer CO2 Carbon Dioxide CODES The Coalition for Digital Environmental Sustainability CPB Central Procurement Body DESI European Digital Economy and Society Index DIGIT Directorate-General for Informatics (European Commission) DINSIC French Digital Directorate EC European Commission EIA Environmental Impact Assessment eLAC2020 Digital Agenda for Latin America and the Caribbean EU European Union GDP Gross Domestic Product GHG Greenhouse Gas GIZ Deutsche Gesellschaft für Internationale Zusammenarbeit GPP Green Public Procurement GTMI GovTech Maturity Index GWh Gigawatt Hour ICT Information and Communications Technology IEA International Energy Agency IPPC Intergovernmental Panel on Climate Change IT Information Technology ITU International Telecommunications Union LCC Life-Cycle Costing M&E Monitoring & Evaluation EQUITABLE GROWTH, FINANCE & INSTITUTIONS INSIGHT <<< vii Mt Metric Ton NGO Nongovernmental Organization NDC Nationally Determined Contribution OECD Organisation for Economic Co-operation and Development PFM Public Financial Management R&D Research and Development SDG Sustainable Development Goal SPP Sustainable Public Procurement TCO Total Cost of Ownership TRE Transport, Resources, and Energy TTL Task Team Leader (World Bank) TWh Terawatt Hour UN United Nations VfM Value for Money WEF World Economic Forum EQUITABLE GROWTH, FINANCE & INSTITUTIONS INSIGHT <<< viii >>> Executive Summary Governments are increasingly seeking opportunities to leverage digital technologies to build a greener future. This guidance note provides useful advice to policy makers underlining adequate leadership and commitment are crucial to implement coordinated GovTech and Green policies. The climate change impacts of digitalization can provide the benefits of green digital service delivery, paperless administration, and the efficiency of integrated services for a reduction of the carbon footprint. The guidance note will focus on “greening Public Administration through GovTech” defined as GovTech policies, initiatives, and/or solutions that embrace environmental considerations by design, maximizing the green benefits and considering the potential negative impacts, for example through digitalization of government processes. This guidance note is centered around three main topics: (i) the green government process through digital solutions (e.g., greening through GovTech), (ii) greening digital service delivery (making GovTech greener and more environmentally sustainable through the adoption of new technologies) and (iii) identifying policy mechanisms to mainstream green digital approaches throughout government systems. The paper makes use of country and project examples to show how GovTech policies can positively address climate change without contributing to the issue as result of the inherent rise of GHG emissions that comes from increased digitalization and the transformation of the public sector. This note does not cover the broader subject of GovTech for the green agenda (e.g., how digital technologies and data used by government can be embraced to support the broader economy and society to mitigate and adapt to climate change). Additionally, this note does not cover data analytics for informed decision making, open government, and CivicTech. The guidance note proposes a framework to support government efforts to go green and digital. Both of these agendas have garnered political support but have usually done so separately, and now the focus needs to be on both concurrently, hence the “greening GovTech” policy objective. The greening GovTech framework builds on previous efforts from different entities and stakeholders, focusing on the “what” and the “how” (see figure below). The framework provides a conceptual alignment in support of policy design, implementation, development, and monitoring in these areas, mapping and making sense of the relations between the various policy subjects. EQUITABLE GROWTH, FINANCE & INSTITUTIONS INSIGHT <<< 1 > > > F I G U R E E S . 1 - Greening of GovTech: Framework of Analysis GREENING GOVTECH FRAMEWORK Government Processes Public Service Delivery Paperless Administration Omnichannel Service Delivery Smart Synergized Public Sector Integrated Service Delivery WHAT? Green Digital Solutions Greenhacking the Bureaucracy and Service Delivery Risks and Resilience Resilience to Weather Transformation Data Recovery and Redundancy Critical Digital Services HOW? Strategy Leadership and Coordination Policy Levers Governing the Transformation Legal and Regulatory Framework Culture and Competencies Source: Authors. In line with the proposed framework, the environmental components, such as data centers, cloud solutions, and hard impact of digitalized government processes based and software. Successful approaches require a combination of on paperless, connected, automated, and data-driven digital innovations linked to change management prioritization systems can be significant. Three dimensions should be to improve the efficiency and effectiveness of public sector considered: a) the benefits brought by paperless processes operations across the board. They also offer green benefits, because of digitalization, b) efficiency, productivity, and “green” such as reductions in paper use as well as in transport needs gains through an increasingly interconnected, interoperable, for both public officials (due to home and remote work) and and data-driven public sector, and c) the available green individuals (who require fewer personal visits to public entities). digital solutions and management levers focusing on key IT EQUITABLE GROWTH, FINANCE & INSTITUTIONS INSIGHT <<< 2 Green digital service delivery is another dimension to These GovTech solutions, such as digitalized early warning be considered, focusing on how advanced features systems, financial transactions, wage systems, identification of digitalization, including automation, data-driven methods, contracts, and supply chain management, can boost decision making, proactive functions, ubiquity, citizen government resilience and help public agencies to maintain centricity and inclusiveness, can contribute to a more links with the population during natural and other disasters. environmentally friendly public sector. These are sustained By proactively addressing these issues prior to an emergency, by the expected efficiency gains from digitalization in terms of governments can improve their response. reduced transport, resource, and energy consumption in the provision of services, thus avoiding waste and diminishing To disseminate the identified green digital approaches the carbon footprint. Sound solutions include an omnichannel throughout the different government sectors and levels, service delivery that can improve efficiency and also address an adequate whole-of-government institutional setting the climate emergency. Moreover, a green GovTech policy is critical for coherent and sustained implementation. for public services brings significant inclusion benefits, Institutional leadership, a dedicated organization, and contributing to the “leave no one behind” objective through specific coordination mechanisms are necessary to ensure a plain, personalized, and proactive services. At the same time, coordinated cross-government approach to both the GovTech respect for citizens’ digital rights, such as privacy and security, and the green agendas. The existence of a public sector must be a fundamental requisite to sound green digital service organization to lead GovTech policy is one of the first steps delivery that assumes data exchange and reuse as the in facilitating the sector’s digital transformation. But to ensure cornerstone of public sector transformation. the greening component, the government agency in charge of GovTech should embrace a green mindset. When there is a The resilience of GovTech solutions can also contribute different ministry or department responsible for GovTech and significantly to climate change mitigation and adaptation for climate change, which is often the case, establishing strong policies. In order to address the current climate emergency, collaboration mechanisms between the two entities is critical. GovTech solutions should be able to resist extreme weather Governments thus need to consider assigning a position in events and other emergencies, prevent data loss namely the organization handling GovTech to oversee internal and through redundancy and guarantee that critical digital services external communication and coordination on the country’s support the population’s resilience to climate catastrophes and greening objectives. emergencies. To this end, governments need to take measures to, for example, protect financial transactions in the aftermath of Legal and regulatory frameworks need to be robust, a disaster. Governments can also develop a risk management forward looking, and inclusive to promote a whole-of- strategy for GovTech solutions to programs that identify risks, government approach to the coordinated green and reduce vulnerability, and strengthen emergency services. digital transitions. Existing laws, policies, and standards, EQUITABLE GROWTH, FINANCE & INSTITUTIONS INSIGHT <<< 3 including green public procurement (GPP) purchasing Although skills and competences are a fundamental requirements and digital strategies, should set up a strong building block for sound change management, there is foundation while simultaneously enhancing resilience to no one pathway that governments can use to start the climate change and promoting the achievement of Nationally uptake of green digital talent. Countries can choose their Determined Contributions. Embedding interoperability into own pathway by examining their culture’s disposition to legal and regulatory frameworks also leads to more efficient change, their level of education and awareness on the topic, digitalized service delivery that includes the green benefits of and their market’s readiness for change. Enabling public sector less paper use and fewer of the greenhouse gas emissions leadership to develop a value-driven culture and to create associated with travel. Moreover, recognizing that e-waste responsive and adaptive public service systems. An emphasis from electronic equipment will rise as countries digitalize the should be placed on innovation (incorporating green digital public sector, it is important that policy makers put in place competencies into awareness-raising efforts), data-driven e-waste management regulations. Incorporating all of these decision making, and strategic leadership to design a future considerations into existing legal and regulatory frameworks public sector workforce that is environmentally conscious. helps to create an enabling environment that promotes an Green digital literacy should be a policy priority considering effective green digital transformation. that green digital competencies will act as fundamental enablers for the successful implementation of green digital In order to support effective greening GovTech transformation policies. implementation, policy levers are also important institutional mechanisms to ensure that the digital Building on the framework presented above, the ultimate transformation of the public sector threads a green path goal of the current guidance note is to support policy by default. The budgeting process should play a critical makers and implementers leveraging digital technologies role in coordinating resources and identifying synergies to build a greener public sector, providing useful advice for the green and digital transitions. The pre-evaluation of on the importance of leadership and commitment to investments should explicitly consider the environmental implement coordinated GovTech and Green policies. impact of ICT/digital government projects to ensure their As the digital transformation accelerates and the climate alignment with the green digital agenda. Government Public emergency poses severe threats to countries across the Procurement should also be another important tool to promote globe, the importance of greening GovTech policies increases. the use of greener products and services, including ICT. An Considering the climate emergency already underway, the effective monitoring and evaluation system should also be increasingly omnipresent nature of digital technologies, and strategic way to systematically combine GovTech with climate government’s fundamental role in the economy and society, change considerations and further highlight how GovTech can greening GovTech is a critical priority that needs to be contribute to the green agenda. embraced across all sectors and levels of government. EQUITABLE GROWTH, FINANCE & INSTITUTIONS INSIGHT <<< 4 1. >>> Introduction As the world goes digital and the planet faces a climate emergency, the potential of technology to solve the climate change problem is gaining currency. Efforts to reduce carbon emissions and improve resiliency to climate change are underway, but they require substantial economic, social, and technological transformations. The digital transition has the capacity to be part of the solution—but also part of the problem if not implemented sustainably. Digital technologies are on the front line of strategies to reduce the carbon footprint, given their capacity to improve efficiency and optimize resource consumption. According to the World Economic Forum (WEF), digital solutions can reduce greenhouse gas (GHG) emissions by 15–20 percent,1 thereby limiting the impacts of climate change. The 2015 Paris Agreement on Climate Change highlights “…the importance of fully realizing technology development and transfer in order to improve resilience to climate change and to reduce greenhouse gas emissions.”2 The World Bank’s Climate Change Action Plan emphasizes that “…digital technologies offer significant opportunities to improve efficiency; reduce congestion, air pollution, and GHG emissions; and transform how people and goods move around the world.” Nevertheless, the increased demand for digital infrastructure and devices is also generating concerns about energy consumption and e-waste. EQUITABLE GROWTH, FINANCE & INSTITUTIONS INSIGHT <<< 5 Grasping the enormity of this moment, governments supporting whole-of-government6 mechanisms are therefore worldwide are prioritizing and mobilizing resources to critical to ensuring that digitally enabled public sectors can support both green and digital transitions in the public contribute to long-term strategies that promote individual sector and to spur innovations in the private sector to well-being and a healthy business environment and are also help countries meet their climate change targets and environmentally sustainable. commitments. Digitalization allows for more paperless and interconnected public administration, in which complex The public sector plays a strategic role in embracing and and agile administrative procedures can be developed with enhancing a green digital transition in the way it provides rationalized resource consumption. The digital transformation services, creates economic opportunities, and runs the also enables public services to be provided remotely, bureaucracy. Digital technologies have a critical role in seamlessly, and around the clock, thereby reducing the fostering efficiency and responsiveness in public services. carbon footprint from transport, resources, and energy. In Given the substantial weight of public sectors in national and fact, a higher digital adoption by government is correlated local economies, their green digitalization can contribute to with lower CO2 emissions and lower energy intensity (World reducing the carbon footprint. Public sectors also have an Bank, forthcoming(b)). For example, the Estonian government important role in influencing nongovernment stakeholders and estimates that its e-Estonia systems save the equivalent of spheres by shaping attitudes and behaviors and demonstrating one working week for the working population,3 and its digital how to embrace a green and digital transformation. Public identity system saves 2 percent of Gross Domestic Product sector reforms in these areas thus have an outreach beyond (GDP) per year, with a discernable carbon footprint reduction the government. However, since digitalization can sometimes (Burke 2018). The Serbian government estimates that by exacerbate existing socioeconomic inequalities (World Bank going digital, the country has saved 180 million sheets of 2016b), public sectors have a strong responsibility to address paper (almost 18,000 trees, a whole forest) and 76 million the resulting digital divide by facilitating social inclusion and liters of water, over the past four years.4 In fact, digital equitable access and development. A green digital transition in adoption within government builds socioeconomic resilience the public sector is required to be just and inclusive by default, and is associated with lower costs for firms and households guaranteeing that no one is left behind and that benefits are stemming from climate change, suggesting that the public shared equitably. sector has a positive role in reducing societal vulnerability by adopting GovTech (World Bank, forthcoming(b)). These are Green and digital transitions are often implemented in clear examples of how green and digital transitions in the a siloed way, missing the opportunity to coordinate the public sector can reinforce each other. two efforts. The experience of a small number of countries indicates that connecting both policy agendas is an increasing However, GovTech reforms can also contribute to priority. For instance, Denmark’s recently approved digital increased carbon emissions if the potential environmental strategy embraces different green objectives as a priority impact is not assessed and adequately addressed at the (Denmark 2022). Korea also has different initiatives underway planning and design stages. For instance, the increase in to green its GovTech (Khoury and Lee 2022), and the digital infrastructure can easily lead to increases in energy European Commission’s (EC) new Digital Strategy assigns consumption or ICT waste, generating adverse environmental substantial relevance to sustaining a green infrastructure impacts and indicating that the green and digital transitions (EC 2022a). However, looking at the experience of digital can undermine each other if not implemented coherently. government/GovTech agendas worldwide, the link with green The UK’s Government Digital Service, for example, the goals is clearly still a secondary priority, rarely or even never public sector organization responsible for digital government mentioned. Since the green and digital transitions are globally policy, estimates that the electricity consumption of its recognized as high priorities, governments should ensure that hosting providers required to operate its digital services the two agendas are not implemented separately. Successfully is equivalent to the CO2 produced by the energy use of managing the alignment of these two transitions is critical to a 400 homes every year or the fuel burned by 770 cars on sustainable, cohesive, and just future. average in a year.5 Additionally, digitalization can generate a significant rebound effect. For instance, although the However, adopting green GovTech approaches generates efficiency gains from digital public services seem to be clear, challenges that depend on a country’s level of digital they can be outweighed by the increased availability and maturity. More digitally mature public sectors might struggle consequent rising consumption of those services (Santarius to update existing and well-entrenched digital systems and 2017). Adopting a green and system-thinking approach and require substantial technical effort and sunk costs. Less EQUITABLE GROWTH, FINANCE & INSTITUTIONS INSIGHT <<< 6 digitally mature public sectors might benefit by leapfrogging Agreement, such as the benefits of digital communication and over outdated technology and avoiding the legacy challenges data exchange in terms of efficiency and reduced paper and faced by their more mature peers, though the challenges transport use. It also highlights other aspects of GovTech with in terms of change management, behavioral change, and clear similarities, such as data center efficiency and green personnel capacity are often considerable. At an infrastructure digital procurement. Combining both of these angles is one level, countries with more mature electricity grids are better of the features of the greening GovTech framework outlined positioned to reap the benefits of digitalization, while many below (see section 1.2). developing countries with chronic grid unreliability and poor- performing electricity utilities face additional obstacles. For conceptual clarity, “green GovTech” can be defined as GovTech policies, initiatives, and/or solutions that embrace environmental considerations by design, 1.1 Scope, Objective and Method maximizing the green benefits and considering the potential negative impacts. This concept is naturally linked of the Guidance Note to the World Bank definition of GovTech that “emphasizes three aspects of public sector modernization: citizen-centric public services that are universally accessible, a whole-of- Several questions have emerged on the desirable government approach to digital government transformation, synergies between the green and digital agendas: (i) How and simple, efficient and transparent government systems” can the digitalization of governments contribute to mitigation (World Bank 2020a). The green GovTech definition should and adaptation goals? (ii) What is the role of digital solutions also be understood in relation to other important concepts, in public sector adaptation and resilience? (iii) How can the such as decarbonizaton, adaptation, mitigation, and resilience adoption of digital approaches that do not increase the carbon (see Annex 1). footprint be secured? Although digital technologies have a fundamental role in tackling climate change, there is limited The note’s overall objective is to map and articulate how experience or shared strategic orientation on how GovTech the digital transformation of government can contribute can embrace this goal and on the building blocks needed to to the cross-cutting policy effort toward net-zero carbon achieve it, such as: (1) What are the costs and opportunities emissions. The note should also serve as an important of embracing these transitions? (2) How can a shift from knowledge piece for other GovTech stakeholders, including the declining to emerging jobs in the public sector be managed? private sector, academia, and civil society. The target audience Although new questions continually arise, a consensus is senior GovTech officials of both developed and developing has nevertheless emerged on the need for a proactive countries, as well as managers of public governance projects and integrated management of the twin transitions that are in different geographic areas. The note will focus on greening already underway.7 GovTech in line with the conceptual definition presented above. The note will not cover the broader subject of GovTech Against the backdrop of a global climate emergency, the for the green agenda, that is, how digital technologies and data objective of this Greening Public Administration with used by government can be embraced to support the broader GovTech Guidance Note is to provide useful advice to economy and society to mitigate and adapt to climate change. policy makers and practitioners underlining adequate Given the Bank’s considerable work on data analytics for leadership and commitment are crucial to implement informed decision making, open government, and CivicTech, coordinated GovTech and Green policies. It responds to this note does not cover those topics. the demand from government officials in client countries on how to green GovTech projects and unlock the potential of The project team combined different research methods to technology to green the public sector. The note analyzes properly identify the trends and practices in connecting how governments can address the environmental emergency the green and digital transitions of the public sector. An by considering climate concerns in the design of GovTech extensive literature review was done, dedicating particular approaches to public sector modernization and service attention to the relevant work already developed or forthcoming delivery. It discusses the importance of a stronger link at the World Bank, namely from the Digital Development between GovTech reforms and climate change strategies/ Practice and the Climate Change Group. The work of commitments and simultaneously explores how GovTech other international organizations, as well as academia, IT policies and initiatives can themselves be reformed to be consultancy firms, and think tanks, was also considered, and more responsive to climate change. The note underlines that an analysis of the World Bank’s Climate Change Institutional some aspects of GovTech have connections with the Paris EQUITABLE GROWTH, FINANCE & INSTITUTIONS INSIGHT <<< 7 Assessments (CCIAs) and the GovTech project database was and sustainable application by national and subnational carried out. Interviews with TTLs were conducted to further governments in both digitally mature and digitally less- understand the dynamics and complexity of including climate developed countries. change mitigation and adaptation in GovTech project design and implementation, and with senior government officials and Different entities and stakeholders have been increasingly IT providers to ascertain the existing supply of and demand for working to bridge the gap between digital and green. Within carbon-reduced/free GovTech solutions and the challenge of the World Bank, the Digital Development Global Practice is reconciling development and environmental policy concerns. working to operationalize and support digital development Data analysis based on GovTech international measurement opportunities for climate change. Priority is being directed instruments, such as the World Bank GovTech Maturity Index to (i) climate-resilient digital infrastructure; (ii) the reduction (GTMI), the UN e-Government Survey, and the OECD Digital of GHG emissions from digital technologies; and (iii) the Government Index, was carried out to identify the maturity of leveraging of digital technologies for climate change adaptation governments’ green digital transitions. This note also considers and mitigation. However, the focus there is on digital economy additional primary data on the green costs and benefits of and digital society issues, not specifically GovTech. The same different types of administrative procedures and a wider range is true for the work of several other international organizations, of qualitative information beyond World Bank projects. such as the UN, ITU, and OECD. Digital and green are the two main priorities of the European Union’s (EU) Recovery and Resilience Facility, which is committed to mitigating the 1.2 A Framework of Analysis for negative economic and social impact of COVID-19 and will also contribute to the EU’s green and digital transition.8 Still, Greening GovTech the topic of greening GovTech is not generally covered. The greening GovTech framework illustrated in Figure Connecting the digital and green transformations of the 1 builds on previous efforts and focuses on the various public sector requires a framework that can support dimensions, particularly on the “what” and the “how.” policy makers in navigating the different dimensions. A It reflects the difference between what can be considered framework able to connect different pieces of the policy puzzle policies, initiatives, or solutions that have a relevant impact to determine which green and digital efforts are managed in on greening GovTech (the “what”), and how to implement parallel and which result in lost synergies is required. The them by supporting a whole-of-government approach (the framework should support strategic and coordinated efforts, “how”). The framework provides a conceptual alignment for enabling governments to secure the public interest while policy design, implementation, development, and monitoring navigating the fast pace of green and digital innovation. A in these areas, mapping and making sense of the relations greening GovTech framework should also focus on a coherent between the various policy subjects. EQUITABLE GROWTH, FINANCE & INSTITUTIONS INSIGHT <<< 8 The first dimension of the framework starts by improved administrative efficiency and productivity from more demonstrating the need to increasingly greenhack the interconnected, interoperable, and data-driven systems. This bureaucracy to guarantee that government processes latter subdimension also includes the effects of working from (back-office) properly link the green and digital transitions home. The third topic covered in this back-office dimension (see section 2.2). One subdimension is dedicated to the benefits is the role of acquiring and using green GovTech solutions, of paperless procedures due to the progressive digitalization such as the adoption of cloud computing or the reduction of most back-office activities, and another is devoted to the of e-waste. > > > F I G U R E 1 - Greening of GovTech: Framework of Analysis GREENING GOVTECH FRAMEWORK Government Processes Public Service Delivery Paperless Administration Omnichannel Service Delivery Smart Synergized Public Sector Integrated Service Delivery WHAT? Green Digital Solutions Greenhacking the Bureaucracy and Service Delivery Risks and Resilience Resilience to Weather Transformation Data Recovery and Redundancy Critical Digital Services HOW? Strategy Leadership and Coordination Policy Levers Governing the Transformation Legal and Regulatory Framework Culture and Competencies Source: Authors. EQUITABLE GROWTH, FINANCE & INSTITUTIONS INSIGHT <<< 9 The second dimension concentrates on the front- as it provides the required formal pillars of policies to office part of policy action: service design and delivery be implemented. Its materialization can differ substantially (see section 2.3). It focuses on the impact of digital service depending on contextual factors that are country specific, and delivery, which enables citizens and companies to access the existence of a more legalistic or consensus-based culture services remotely and around the clock, thus avoiding the in a country can determine the regulatory range or depth. At transportation involved in physical visits to public service the same time, the legal and regulatory framework must be entities and promoting efficiency through the resulting continuously adapted and improved (see section 3.4). energy and resource savings. It will also cover the benefits of integrated digital services, bringing efficient and proactive A particularly relevant subdimension in the framework service delivery through automated and data-driven systems. focuses on policy levers, the concrete institutional A refined alignment between supply and demand can be mechanisms necessary to enforce green and digital achieved, avoiding the waste of effort and resources when policy implementation across different sectors and levels several public sector organizations run service life cycles of government. Whether through budgeting coordination, in parallel. strategic procurement frameworks, centralized pre-evaluations of investments, or sound monitoring and evaluation (M&E) The third dimension is dedicated to the important mechanisms, governments use policy levers to guarantee contribution digital technologies can make to managing that the standards and guidelines in place lead to transversely risks and improving resilience to climate change (see coherent and sustainable policy implementation. Although section 2.4). Digital infrastructures should be resilient to these policy levers are not exclusively used to push for a weather transformation (e.g., higher temperatures, floods, green digital transformation, their applicability in these specific storms), hence the need for climate change adaptation.9 areas can be a strong asset for public sectors in tackling the This dimension also underlines the relevance of data fast-paced transformations underway (see section 3.5). recovery and redundancy mechanisms that can enable public administrations to safeguard their information, documentation, Last but not least, a green digital culture and competencies and data in the event of natural catastrophes (e.g., cloud in the public sector are foundational pillars of any green computing is particularly relevant in these scenarios). Finally, digital transformation. This subdimension underlines this third dimension will also identify and reinforce the critical that consistent efforts are required to guarantee that green services that should be kept operational in case of natural or GovTech is not viewed as a technically specialized issue, other catastrophes. but as a priority that needs to be embedded in all processes, services, and operations. This cultural shift needs to be In addition to identifying the key factors involved recognized and supported across the civil service. Additionally, in designing and mapping GovTech, it is prudent to since competencies are the backbone of the ongoing reforms, consider the institutional mechanisms enabling effective public sectors should prioritize the development of professional implementation (“the how”). Five subdimensions are digital skills with a green angle to proactively manage any outlined for governing the green digital transformation in the observed and expected skill gaps (see section 3.6). public sector and securing a whole-of-government approach in line with the World Bank’s “Tech Savvy” report (World The framework represented in Figure 1 should be Bank 2022d) and the OECD’s “E-Leaders Handbook on the responsive to the fast-paced innovations and changes in Governance of Digital Government” (OECD 2021b). It starts these areas. It is not meant to be a definitive approach to by underlining the importance of a strategy that connects the greening GovTech, but first and foremost a conceptual effort vision, goals, and initiatives of digital government with the to support policy development and analysis. Its application objectives and requirements of a green transition, overcoming will determine future iterations in order to capture the evolving possible siloed scenarios where these two policy priorities needs of policy makers and practitioners and the emerging are managed in parallel (see section 3.2). It then emphasizes green digital trends. Following the methodological choices the relevance of institutional leadership and coordination to mentioned in this Introduction, the framework does not, as ensure that these objectives can be carried out by national noted, individually highlight such topics as open government, public sector institutions and by the committees/councils data analytics, and CivicTech, which have been well detailed of senior government officials that typically coordinate an in other Bank reports. Nevertheless, as these are cross- effective whole-of-government process (see section 3.3). cutting elements in a whole-of-government approach, they are mentioned in various sections of Chapter 3. An updated legal and regulatory framework is another critical policy requirement for the green digital transition, EQUITABLE GROWTH, FINANCE & INSTITUTIONS INSIGHT <<< 10 2. >>> Greenhacking the Bureaucracy and Service Delivery Using GovTech Solutions 2.1 Introduction This chapter helps to identify green friendly GovTech policy approaches through the development of a framework of analysis. The green impacts of the integration of digital technologies into the economy and society have been highlighted in recent decades, and the public sector has been a part of this focus. The green benefits brought by digital and data have been persistently emphasized by both policy makers and IT producers and practitioners. However, in the absence of explicitly measured outcomes, this positive link between GovTech and decarbonization is not always clear. Although specific examples can be easily flagged— less paper consumption, lower energy and transportation costs, fewer resources mobilized per public service delivered—there is still a considerable need to substantiate the connections and causality between digitalization and the added benefits of climate action.10 Additionally, the negative impacts of digitalization in terms of energy consumption or increased production of IT waste due to the limited life cycle and constant innovation that surrounds IT products raise legitimate concerns about the carbonization effects of the digital revolution underway. This guidance note understands greenhacking the bureaucracy as the development of innovative and disruptive GovTech prototypes to address clime change challenges, as well as finding new ways in bureaucracy to develop environmentally responsible GovTech solutions envisaging large impact with modest investments and changes in behavior. EQUITABLE GROWTH, FINANCE & INSTITUTIONS INSIGHT <<< 11 In this sense, the current chapter is structured around 2.2 Modernization of three areas of analysis: Government Processes 1. Modernization of Government Processes. The digitalization of internal government processes and operations might reduce the consumption of paper, energy, The twin goals of increasing both the efficiency and and transport. A paperless and interconnected public effectiveness of the public sector have been at the center sector should respond more efficiently and with fewer of modernization efforts over time. The sector’s digital resources to citizen and business demands. Automation, transformation, which began in most countries more than interoperability, and data-driven approaches in public 25 years ago, is part of this process. There is a wide consensus sector management should also determine increasing on and overwhelming evidence of the fact that a digital rates of efficiency and effectiveness, allowing the public transformation can be pivotal in modernizing the public sector, sector to do more with less. The adoption of remote both its front-end services and back-office operations,11 which working and cloud computing can also help reduce the include public financial management (PFM), human resource public sector’s carbon footprint. However, digitalization management, tax administration, public procurement, and can lead to the need for more IT equipment and higher public investment management. Nevertheless, government energy consumption, pointing to its environmental modernization efforts have not always given adequate impacts. Which GovTech approaches most favor a green attention to environmental goals in their public sector reform friendly government bureaucracy? strategies. Political and administrative pressures often overemphasize efficiency and cost-effectiveness, in part 2. Citizen-Centered Service Delivery. Digitalization allows because of the difficulties in formally assessing and monitoring for the remote delivery of services, which can generate the environmental and climate impacts. substantial efficiency gains for government, businesses, and individuals. Public services provided remotely through This section will look at three trends of current the internet can be available around the clock and in every modernization efforts and highlight where there is potential geographic location, minimizing the need for physical to improve and accelerate the greening of ongoing public service centers and transportation. Digital technologies sector digital transformations. The first trend emphasizes and data can also enable customized service. However, the benefits of less paper consumption and the move poorly designed citizen services can lead to wasted toward a paperless public sector. The second describes the resources that contribute to increased carbon emissions. potential to increase the overall efficiency and effectiveness Which service designs and delivery approaches properly of public operations through an increasingly interoperable adapt to climate change and decarbonization and and whole-of-government modernization approach that has effectively meet citizen needs? positive spillover effects on key green evaluation variables, such as the reduced need for transportation. The third trend 3. GovTech Resilience to Climate Change Risks. involves the latest innovations in green digitalization that GovTech solutions should be able to resist extreme are often developed through a collaboration between the weather events, and recovery functions should prevent private and public sectors with the primary goal of reducing data loss and prepare information systems for redundancy the government’s energy consumption, particularly in its to climate change. Digital services also increase individual ICT services. and community resilience to natural catastrophes and other weather-related emergencies. How can sound GovTech adaptation approaches to vulnerability contexts increasingly driven by climate change be secured? EQUITABLE GROWTH, FINANCE & INSTITUTIONS INSIGHT <<< 12 > > > F I G U R E 2 - Highlighted Trends that Support Greening Government Processes Synergized Public Administration Paperless Green Digital Solution Administration Green Government Processes Source: Authors. 2.2.1 Paperless Public Administration Paperless operations are an environmental goal because paper has a considerable carbon footprint. First, carbon- Although paper consumption during the first phase of absorbing trees are eliminated from the ecosystem, and the automatization process often remains constant—and second, the paper manufacturing process requires large in some cases might even increase due to excessive amounts of water and energy. Moving from a paper-based printing—it is safe to assume that paper use will analog bureaucracy to a modern digital one would thus have decrease significantly with increased digitalization.12 a significant environmental impact. The example from Serbia In the transition’s early phase, paper use is often still driven was cited above: by going digital, the country has saved 180 by legacy paper-based business procedures, while digital million sheets of paper (almost 18,000 trees), over the past solutions tend to support the administrative functions. These four years.13 Box 1 describes the approach taken to assess legacy procedures might rely, for example, on traditional reductions in paper consumption in a World Bank–funded paper-based application forms, receipts, signatures, approval project in Bangladesh. The digitalization interventions have certifications, filing, record keeping, and audit standards. already contributed to a savings of 1.1 billion pieces of paper. More advanced forms of digitalization, on the other hand, The total number of pages to be saved under the original can be based on redesigned or newly designed interoperable project with additional financing is 10.3 billion.14 digital business procedures that require no or only minimal paper consumption. EQUITABLE GROWTH, FINANCE & INSTITUTIONS INSIGHT <<< 13 > > > B O X 1 - Assessing the Reduced Paper Consumption of Digital Public Financial Management in Bangladesh To assess the reduced paper consumption through digital procurement in a World Bank project in Bangladesh, the Task Teams used transaction data and procurement indicators. The image below briefly illustrates the key steps and data inputs for the calculations made. > > > F I G U R E 3 - Key Steps and Data Inputs for the Calculations Paper saved Paper saved in Paper saved from online Paper saved from digital administrative functions bid submission tender documents # tenders # tenders x # bid documents sold # tenders x # bids per tender per tender x # pages per tender x # copies submitted x # pages per bid x # pages per bid document Source: Inputs shared by the World Bank Procurement team in Bangladesh. At the same time, the transformation from paper-based but continually moves toward whole-of-government analog to e-government systems also entails offsetting and integrated systems. Interoperability frameworks are a environmental and climate effects, as ICT-enabled key enabler of GovTech as they reduce system boundaries administrative procedures use increasingly higher amounts between government agencies by setting standards and of energy and ICT hardware.15 ICT hardware production also guidelines across government for the seamless exchange of uses a successively growing quantity of natural resources, like information and communication. Instead of each government rare minerals. However, obtaining robust data that can help entity working in isolation, departments across government quantify the overall effects is very challenging, especially on levels and sectors can work together to achieve their joint the country and global levels. A forthcoming volume of this goals. Interoperable systems enable data sharing at a much guidance note will discuss in detail the envisioned approach to larger scale and in a much faster and easier way, leading to measuring the net GovTech contributions to climate change. significant efficiency gains. Estonia’s interoperable e-Estonia systems, as noted above, have saved the equivalent of one 2.2.2 A Synergized Public Sector work week and 2 percent of GDP per year (Burke 2018). Reduced back-office processing and handling times, in The ongoing digital transformation does not stop at combination with fewer errors, lead to greater cost efficiency the deployment of silo-based e-government solutions EQUITABLE GROWTH, FINANCE & INSTITUTIONS INSIGHT <<< 14 and potentially reduced carbon emissions with each way to overcome these challenges by utilizing existing bureaucratic operation or service case.16 mobile networks and mobile devices, such as mobile phones and tablets. Through interoperable mobile applications with Mobile government (M-Government) solutions, which are fixed centralized ICT operations, back-office government-to- often closely linked to interoperability frameworks, also government operations, as well as service delivery and citizen contain a significant potential for greening GovTech.17 engagement, can be improved. As demonstrated through a Especially in the rural areas of less-developed countries, project supported by the German government in Tanzania, government entities can face challenges in accessing fixed and these M-Government solutions can also help diminish the reliable IT networks to conduct government-to-government carbon footprint by reducing road travel while at the same but also government-to-citizen business procedures. time improving taxpayer compliance and local government M-Government solutions offer a cost-effective and efficient revenues (see Box 2). > > > B O X 2 - Transportation Reduction through Inter-Operable M-Government Solutions Digital tax payments have eliminated the need for tiresome journeys and given Tanzanian municipalities greater revenue for education, health, and infrastructure. A day trip to the tax office? Until recently, this was a reality for people living in rural areas in Tanzania, as they had to travel to a local government office to pay their taxes. Depending on where they lived, this meant traveling up to 100 kilometers, a full day’s journey. In the Longido and Ngorongoro districts, this is now a thing of the past. A mobile payment system— similar to electronic payment by card—has been introduced that has significantly reduced the effort and costs involved in paying taxes. Citizens can now conveniently pay their taxes close to home—and to people they trust, as local employees are responsible for collecting the payments. This makes people more willing to pay taxes, and the tax revenue of the municipalities has increased as a result. Digital Administration: More Money for Education, Water, and Health On behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ), the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH worked closely with nine local governments to implement the system. GIZ provided them with 103 mobile devices and trained staff on how to use the technology. Revenues from local taxes and market and license fees now give the municipalities an important financial basis from which to invest in education, water supply, and health care. Around 40 percent of the revenues are used for these purposes. “Our infrastructure and safety have improved,” says local shop owner Tyson Huho from the Ngorongoro district. The concept has caught on and is now being expanded. In 2019, the Tanzanian government procured more than 7,000 mobile devices. A total of 185 local government authorities in Tanzania are now using these devices with the help of an accompanying guide developed by GIZ. Source: GIZ website: https://www.giz.de/en/mediacenter/98255.html EQUITABLE GROWTH, FINANCE & INSTITUTIONS INSIGHT <<< 15 Remote work is another important feature. More home and significant reduction in the energy consumption of individual remote work, in combination with more videoconferencing, devices, projections suggest a growing consumption of should translate into reduced transport needs and thus increasingly resource-intensive hardware production, clouds reduced fossil fuel consumption and GHG emissions by cars, (data centers), and data transfer systems.23 It is expected trains, busses, and planes. These benefits became very that newer and fast accelerating digitalization trends, such visible during the COVID-19 pandemic when, for example, in as blockchain and artificial intelligence (AI), coupled with the United Kingdom, almost 47 percent of people with a job increasing numbers of digitalized business processes and reported that they had done at least some work from home. data centers, will push the demand for energy up even further. Most UK residents (70 percent) think that workers will never go back to the office at rates before the pandemic, and 60 GHG emissions from the ITC sector are also expected percent continue to prefer working from home at least some of to increase in the coming years if effective mitigation the time.18 This trend can lead to significant reductions in the actions are not taken. Currently, roughly 1.5–4 percent carbon footprint though reduced transport emissions. A study of global emissions are related to digital infrastructure by the International Energy Agency (IEA) highlights that 80 and applications, a level on par with the airline industry.24 million tons of carbon emissions (an amount comparable to Some studies have forecasted that the ICT sector’s share the entire annual CO2 emissions of Chile) could be saved if in overall GHG emissions could double to up to 8 percent a fifth of all jobs globally could be done from home for three in 2025, though others predict a more moderate increase days a week.19 Governments can develop their own home, of about 6–7 percent by 2040.25 In absolute terms, some remote, or hybrid work policies. allowing for their respective studies suggest an increase in GHG emissions from ICT digitalization status and specific needs for an office presence. from 730 MtCO2 equivalent in 2020 to 800 MtCO2 equivalent The EC, which plans to retain remote working as a standard in 2030.26 Although there is no consensus on estimates, it practice, is one example.20 Another is Malta, which launched a is evident that government and private sector initiatives are new remote working policy for public servants in 2021.21 needed to change this emissions trend to reduce ICT’s carbon footprint.27 Actions are therefore needed to a) expand the use 2.2.3 Green Digital Solutions of renewable energy to generate electricity and b) promote the utilization of more energy-efficient green digital solutions 2.2.3.1 ELECTRICITY CONSUMPTION AND (data centers, ICT hard and software, etc.). Although policies GHG EMISSIONS to expand the use of renewable energy sources should be a centerpiece of any green public energy strategy, this note Various studies show increased electricity consumption focuses on what public sectors can do to reduce the electricity and GHG emissions by the world’s ICT sectors and consumption of their ICT operations by greening their underline the possibility of an ever more dramatic increase GovTech.28 In some cases, governments are a key driving globally, indicating that adequate mitigation measures are force behind the digitalization drive and consequently its required.22 The share of ICT in global electricity consumption accelerating consumption of energy and natural resources. currently stands at about 10 percent. Even if there is a EQUITABLE GROWTH, FINANCE & INSTITUTIONS INSIGHT <<< 16 Several governments and private sector actors decided but paved the way for experimentation and innovation. In early on to mitigate against adverse environmental cooperation with private sector green IT initiatives, these public and climate impacts by launching green IT initiatives. sector systems developed promising ways to optimize the Examples of early public sector green IT initiatives can be energy performance of data centers, devices, architectures, found in Germany in 2008 and the United Kingdom in 2011.29 applications, and digital services in general. These programs were somewhat limited in scope and reach > > > B O X 3 - Reducing Energy Consumption and GHG Emissions: The Green IT Initiative of the German Federal Government The German federal government’s Green IT Initiative started in 2008 and has just been extended to the end of 2027. The main aim of the initiative is to reduce energy consumption and GHG emissions in the German federal administration. Some states in Germany run similar initiatives, like Baden-Wuertemberg. The annual energy consumption of the entire ICT sector in Germany reached 58.4 TWh (terawatt hours) in 2019, which is equivalent to the annual electricity consumption of the whole of Switzerland. The German government estimates that the use of new technologies, such as blockchain, cloud computing, and 5G, will lead to a continued rise in electricity consumption and emissions if not mitigated early on. For this reason, the federal administration is trying to design and operate its own IT infrastructure so that it contributes to climate protection as much as possible. The federal government is convinced that if used correctly, digitization can help to reduce the consumption of energy and natural resources. The Green IT Initiative at the federal level has the following three objectives: • Despite further performance improvements, energy consumption of IT operations should not exceed the target value of 350 GWh/year. • Sustainable procurement (meaning also green) of IT hardware and services is to be implemented. • For all major new IT investments, including data centers, the inclusion of energy consumption over the entire life cycle is to be included in the procurement criteria. As part of its operations, the Green IT Initiative set up a system of regular monitoring and reporting and the results are very convincing: • Since the initiative was founded, energy consumption has fallen by around 49 percent, from 649.65 GWh in 2008 to 334.54 GWh in 2021. • Based on its monitoring system, the German government estimates a reduction in energy consumption between 2008 and 2020 of 3.6 TWh of energy and 1.8 Mt of GHG emissions. An additional benefit is an estimated budgetary saving of €546 million. EQUITABLE GROWTH, FINANCE & INSTITUTIONS INSIGHT <<< 17 > > > F I G U R E 4 - Total Energy Consumption of Federal IT 2008–21 700 GWh 600 GWh -14,2% -20,6% -25,3% -31,4% -36,2% -37,4% -41,5% -45,7% -47,1% -48,2% -48,0% -49,5% -48,5% 500 GWh 400 GWh 350 GWh* 300 GWh 380 GWh 650 GWh 486 GWh 338 GWh 328 GWh 355 GWh 335 GWh 445 GWh 344 GWh 407 GWh 337 GWh 557 GWh 516 GWh 414 GWh 200 GWh 100 GWh GWh hr 09 10 11 12 13 14 15 16 17 18 19 20 21 20 sja 20 20 20 20 20 20 20 20 20 20 20 20 si Ba Source: Germany, Government of, “Green-IT-Initiative des Bundes,” Federal Ministry for the Environment, Nature Conservation, Nuclear Safety and Consumer Protection (BMUV); German Federal IT Rat, “Beschluss 5/22 Green-IT-Initiative des Bundes,” 2022; BMUV, “Green-IT-Initiative des Bundes: Green-IT in Zeiten des digitalen Wandels,” 2020 (bmuv.de); and Ministry of the Environment, Climate and Energy Baden-Württemberg website: Startseite Green IT (baden-wuerttemberg.de). 2.2.3.2 THE GOVTECH APPROACH PROMOTES to improve the energy efficiency and reduce the environmental GREEN DIGITAL SOLUTIONS impact of data centers are: Although Green IT initiatives often differ in reach, focus, • Location of the data centers (outside temperature, and organizational approach, several solutions and proximity to networks) instruments have already been developed and tested • Energy source for the operation (green/renewable energy) and are available for integration and application as part a • Degree of use of certified green hardware (green labels green GovTech strategy. A selection of possible green digital Korea/Germany) solutions and instruments is discussed below: green data • Server virtualization and server load center, cloud solutions and IT architecture, hardware, green • Utilization of heat given off by servers (waste heat), software solutions and dark data management. and so on • Material Recycling Rule 2.2.3.2.1 Green Data Centers • Cooling system optimization through AI Data centers are becoming an increasingly important part In line with political priorities, same countries, for example of government modernization efforts. Data centers host all Germany, Malaysia, and Denmark, have already focused the elements of ICT, including server and data storage. Given on the carbon emissions and electricity savings potential of their increasing importance in the digitalization process, they the green data center used by the public sector31 and have also represent an already high and fast-growing share of IT’s issued mandatory standards or specifications for their use. overall energy consumption and carbon footprint. The good Hong Kong has issued a comprehensive Green Data Centres news is that increasingly greener data centers have recently Practice Guide.32 been developed and put into use.30 Critical and proven levers EQUITABLE GROWTH, FINANCE & INSTITUTIONS INSIGHT <<< 18 > > > B O X 4 - Example: Cold Aisle Design of Data Center Reduces Energy Consumption As part of the Green IT Initiative of the state of Baden-Wuertemberg in Germany, the central IT service provider for the state administration, BITBW, improved the energy efficiency of its data centers by introducing a cold aisle design in its server rooms in 2018. The impact was substantial, as an estimated 10 percent less energy is required for cooling. With a consumption of 1,120 megawatt hours in 2017, the energy savings amount to 100 megawatt hours per year. Source: State of Baden-Wuertemberg - BITBW spart Energie durch Kaltgangeinhausung - BITBW spart Energie durch Kaltgangeinhausung - Green IT (baden-wuerttemberg.de). 2.2.3.2.2 Cloud Solutions and IT Architecture publication, “Institutional and Procurement Practice Note on Cloud solutions offer great potential for the increased Cloud Computing,” offers deep guidance on the issue. energy efficiency of IT systems as they can bundle IT services and operations away from less efficient on- 2.2.3.2.3 Hardware: Energy Efficiency, Longevity, side or smaller data centers to more efficiently designed Repairability, Environmental Impact and managed larger data centers.33 Cloud solutions can The policy and strategic commitment to procure, use, significantly reduce energy consumption, waste, and GHG and recycle certified green IT hardware is another way to emissions. According to Microsoft Corporation and WSP greater decarbonization and better resource utilization. Global Inc., cloud computing on the Microsoft cloud services Depending on the manufacturer and specifications, devices, can be 93 percent more energy efficient and can result in such as personal computers, laptops, tablets, smartphones, up to 98 percent lower GHG emissions than on-premises servers, and other hardware, can have very different data centers.34 production inputs, from energy to rare metals to transportation needs and social production conditions. Comparable products Microsoft and WSP attribute those savings to four can also vary significantly in energy consumption while in use, key factors: as well as in longevity, repairability, and recyclability. • IT operational efficiency: Larger cloud services can Time comparisons of key IT hardware devices such as operate with greater efficiency than smaller, on-premise smart phones (an important part of all M-Government deployments thanks to large-scale dynamic provisioning initiatives) demonstrate the importance of hardware’s and multi-tenancy, which allow for more efficient use of IT longevity, repairability, and recyclability. The carbon resources. footprint of key hardware has changed over time and continues to do so. For example, the share of carbon emissions during • IT equipment efficiency: Large-scale hardware the production process of iPhones keeps rising dramatically components can be tailored to find the most efficient ways (from 45 percent with the iPhone 3 to 78 percent with the to power the specific needs of its services. iPhone 7), while the share of emissions during the use phase of the product’s life cycle declines (from 49 to just 18 percent). • Data center infrastructure efficiency: Advanced For hardware in general, the equipment production phase technologies significantly reduce electricity requirements occupies a very significant share, around 45 percent in 2020, for lighting, cooling, and power conditioning. of the total energy consumption of digital technologies and the resulting GHG emissions (Monnin 2019). Hence, the longer • Renewable electricity: Consolidated electricity demand the hardware is used, the more the potential to reduce the creates the potential for large-scale purchases of green carbon footprint. power that would not be otherwise viable. Policy notes and updated guidelines on green public Depending on market conditions, governments have the procurement (GPP) offer opportunities to help governments choice of a spectrum of commercially available cloud solutions to purchase greener IT hardware.35 Specifically designed or they can develop their own. The forthcoming World Bank procurement systems can make it mandatory to take energy EQUITABLE GROWTH, FINANCE & INSTITUTIONS INSIGHT <<< 19 and environmental hardware differences into account and also software. Although there are no robust studies yet on how provide grounds for preferential selection that can help reduce much operational energy can be saved, energy efficient or energy consumption and improve resource use.36 Levers that green software will become an important element of green can help in these processes are: IT solutions. Key software developers are currently driving the progress in this area. Accenture, GitHub, Microsoft, and • Life-cycle analysis and comparisons during or before ThoughtWorks launched the Green Software Foundation in the procurement 2021 with the aim of developing standards and best practices.38 • Introduction or use of green labeling/certifications in the Governments can develop criteria and certification IT sector standards for software products that save energy and natural resources. As with hardware efficiency standards, • Capacity development of key personnel on green IT in updated software standards and specifications can inform and procurement and drafting of technical specifications be utilized in the public procurement system. • Creation and involvement of green IT expertise in the 2.2.3.2.5 Dark Data Management procurement process Data that have been generated, acquired, and stored but not utilized and analyzed to draw conclusions or • Capacity for internal and external audit for green insights for decision making are classified as dark data.39 IT hardware Organizations, including governments, retain dark data for a variety of reasons, such as initially limited analytical • Extension of the standard lifetimes of hardware capacity, regulatory compliance, record keeping, and so on. (i.e., laptop from three to five years, smart phone from two Storage of dark data is simple and cheap, which is driving to three years) its high growth rate. Veritas, a major international data management company, estimates that 52 percent all data • Recycling of hardware (laptops and smartphones) stored by organizations globally is dark data and that the absolute amount is growing rapidly from 33 zettabytes in 2018 2.2.3.2.4 Energy Efficient or Green Software to an estimated 175 zettabytes in 2025. Veritas’ research Energy-efficient software is a relatively new focus also indicates that dark data contributed significantly to the area in the search for greener IT solutions, but it could global carbon emissions of the ICT sector (5.8 million tons) have a potentially substantial impact.37 Experience and in 2019.40 Dark data management should therefore become research show that the energy consumption of IT systems an important element of any green IT solution and of any (i.e., processor utilization) and even the lifetime expectation of greening GovTech approach. Dark data should be managed IT hardware (keyword: hardware preconditions/specifications through clear guidelines and practices, including data filters, of the utilized software) are significantly dependent on the data deletion, and improved data utilization. Key Takeaways • GovTech solutions have the significant potential to reduce resource consumption, in particular paper use, in the public sector. Successful approaches require a combination of digital innovations, the utilization of digital solutions, and significant management and cultural changes. • E-Governance, interoperability, and M-Governance approaches can improve efficiency and effectiveness in public sector operations at large, including in the delivery of public services. They offer additional green benefits, such as reductions in transport needs for public officials (due to remote work), the private sector, and citizens (due to fewer personal visits to public entities). • Taking advantage of innovative green digital solutions (green data center, procurement of energy-efficient hard and software as well as green energy sources, etc.) within an overall green GovTech approach can successfully mitigate against the potentially increasing energy/electricity demand from a digitalized public sector. EQUITABLE GROWTH, FINANCE & INSTITUTIONS INSIGHT <<< 20 2.3 Greening Digital Service Delivery How services are designed and delivered determines (TRE). Although the benefits of remote delivery are clear, citizens’ experience of government and influences trust in concrete models of analysis are necessary to synthesize public sector institutions. Government agencies increasingly these different variables. The reduction in emissions prioritize efficiency, transparency, and inclusiveness, as well as associated with avoided transportation is evident, but other the user experience, and the digitalization of service delivery variables should also be examined. Should the user’s energy reflects these objectives. The shift from an analog, siloed, and consumption be considered as well as the provider’s? administration-based service delivery to a GovTech system Moreover, although the potential for carbon footprint savings involves redesigning processes and automating decision appears to be substantial, any arguments that digital service making—but always with the user in mind (World Bank delivery is good for the environment also needs to confront the 2021g). Since climate change mitigation and adaptation is “greenwashing”44 critique that might emerge if the assertion today also a cross-cutting priority, it is critical to determine the here is not sufficiently grounded in evidence. digital service design and delivery approaches that can also properly respond to the decarbonization emergency. Omnichannel service delivery ensures that the digital transition is people centered. There has been an evolution This section explores how well-designed public services in recent decades from a unichannel experience of public can both diminish the carbon footprint and improve the service delivery, where citizens had to go physically to a quality of public service delivery to citizens. Securing public office to request a (typically paper-based) service, to effective green digital services would help countries to meet a multichannel service delivery paradigm, where citizens can several of the UN’s Sustainable Development Goals (SDGs), opt for different channels (e.g., portal, app, phone) to manage namely, SDG 13, focused on “taking urgent action to combat or experience their service (see Figure 5). Nevertheless, climate change and its impacts,”41 and SDG 16 on the need to despite the improvements involved, the procedures involved “promote just, peaceful and inclusive societies.”42 The section in, and the user experience of, the multichannel system are builds on the work of the World Bank report, “Service Upgrade: typically isolated, as they were developed in an incremental The GovTech Approach to Citizen Centered Services” (World way, following various steps toward digitalization, and not Bank 2021g), namely, the four stages of public service integrated from the start. An omnichannel service design modernization.43 It assumes that greening GovTech for and delivery approach, on the other hand, allows citizens service delivery should be mainstreamed in the public service to take the full benefit of digital-by-design practices, where modernization life cycle. The following two dimensions will processes and services are embedded from the start with be considered: all the benefits of efficiency and interchangeability brought by digital technologies and data (see Figure 5). Under • From unichannel to omnichannel service design this approach, citizens can navigate seamlessly across and delivery: Focused on the green impact brought different channels, benefiting from advanced data exchange by omnichannel service delivery, as well as on the that generates full responsiveness, customization, and importance of digital inclusion and the requisite of leaving proactiveness in the delivery of services by the public sector no one behind (for more information on the different channels, see Annex 1) (World Bank 2021g). • From siloed to integrated service design and delivery: Centered on the green impact of personalized and An omnichannel service delivery policy is also an proactive service delivery, provided that data rights and important inclusion tool that brings the digital transition privacy are fundamental requisites to different segments of society. Citizens with more mature digital skills can manage their service needs through a portal or 2.3.1 From Unichannel to Omnichannel app, while more vulnerable segments of the population, such Service Design and Delivery as seniors or other sometimes less digitally literate groups, might feel more comfortable using face-to-face, telephone, or To better understand the green impact of service mediated service delivery.45 Omnichannel service delivery can digitalization, the three cross-cutting variables described also help to reduce the typical gap between urban and rural above will be analyzed: transport, resources, and energy EQUITABLE GROWTH, FINANCE & INSTITUTIONS INSIGHT <<< 21 regions since the latter can more easily benefit from remote access to services (e.g., portal, kiosk, mediated service delivery). Additionally, omnichannel service delivery can allow people with different life conditions, such as immigrants, citizens with specials needs, or caregivers of small children, to choose the most convenient channel through which to access services. > > > F I G U R E 5 - Exploring the Green Impact – From Unichannel to Omnichannel Service Design and Delivery Omnichannel Multichannel Unichannel Portal Face- to-Face Face- to-Face Portal Mediated Face-to-Face App Services Telephone Kiosk Citizens App SMS Citizens Kiosk Telephone Citizens Mediated SMS From a model that requires the citizen to commute to a public service center/counter towards Transport models where practically no commuting is needed From a model where the equipment and its consumables are centered in the service provider Resources to a model where the efforts are shared between the provider and the citizen. From a model where the energy consumption effort is concentrated on the provider towards Energy a model where this effort is shared between the provider and the citizen. Source: World Bank (2021g). In addition to the focus on the user, an omnichannel already been described. Whether through an online services service delivery policy can also help to reduce the carbon website, an app, or a telephone contact center, remote footprint. Although it is challenging to demonstrate the service delivery has the potential to substantially reduce benefits explicitly, and there is a lack of published work on carbon emissions originating from transport needs. As an the positive green effects of digital service delivery, as noted example of the positive impact of digitalization with regard to above, the previously mentioned TRE variables can be used the transport variable, Box 5 describes the approach taken to to explore the possible shift from unichannel to omnichannel reduce carbon emission through a World Bank–funded project service design and delivery. The transport savings have in Bangladesh.46 EQUITABLE GROWTH, FINANCE & INSTITUTIONS INSIGHT <<< 22 > > > B O X 5 - Green Impact of Digital Public Financial Management in Bangladesh To demonstrate the green impact of implementing digital procurement in a World Bank project in Bangladesh, TTLs used transaction data and indicators from the procurement system to estimate the reduction in distance traveled due to the implementation of the digital system. In other words, using transaction data, the following were estimated: 1) average number of participants per tender and 2) the average distance in kilometers between bidder and tender location. TTLs were able to estimate the average number of kilometers saved per tender thanks to the electronic government procurement (eGP) system, aggregated over the total number of tenders per year. The same approach was taken to demonstrate the benefits of the introduction of a contract management process. The image below briefly illustrates the calculations made. > > > T A B L E 1 - GHG Accounting for the Procurement and Contract Management Processes GHG Accounting for Procurement Process Total CO2 emission avoided due to less Number of Distance less travelled due travel because of e-GP procurement Year tenders to e-GP (in million km) process (in tonnes of CO2) 2017-2018 86816 345 49147 2018-2019 110130 615 86728 2019-2020 99779 725 102022 2020-2021 122144 768 108477 2021-2022 168558 1060 149698 2022-2023 215380 1355 191281 GHG Accounting for Contract Management Process Distance less travelled Total CO2 emissions due to travel Number of during contract management during contract implementation Year tenders phase (in million km) (in tonnes of CO2) 2019-2020 99779 307 50420 2020-2021 122144 376 61722 2021-2022 168558 518 85176 2022-2023 215380 662 108836 Source: Estimates shared by the World Bank Procurement team in Bangladesh. EQUITABLE GROWTH, FINANCE & INSTITUTIONS INSIGHT <<< 23 The impact of omnichannel service delivery on resource limited levels of integration and sophistication. In this and energy consumption also promises to be substantial. concentration phase, the citizen could access various services The digitalization of government requires significant changes from different ministries in a single office or portal organized in to the public sector’s back-office resources, including sizable a relatively intuitive way by policy area or even by life event, investment in new equipment and consumables. The energy but the effective service development and provision would be consumption in the public sector that results from this digital made in a sectoral portal or specific physical counter to which shift is also likely to increase, although paperless procedures the citizen was directed. and services can bring positive green impacts. This effort on resource and energy consumption becomes shared since the An integrated stage of service delivery makes services citizen also needs to have the right equipment and electric available in different channels in a totally citizen-driven power to properly access digital services (see Figure 5 above). way. As illustrated in Figure 6, through data integration across ministries based on common standards, the public sector acts In order to accurately calculate the impact of digitalization, as a unique service provider, making its different sectors and an empirical model of carbon emissions per service ministries transparent to citizens. Services, such as banking, provided needs to be developed to analyze the shift energy, or telecommunications, can also be perfectly integrated, from a unichannel to an omnichannel service delivery. reflecting multistakeholder collaboration on service delivery. For example, in obtaining a civil certificate, the model should Citizens can navigate seamlessly across services based on calculate the carbon emissions of this service in a face-to-face life event approaches or through quick queries and intuitive approach using the average number of kilometers a citizen searches. More than informative services, transactional fully must travel to obtain the service and the average CO2 emitted integrated services are able to anticipate and respond to based on the transport used (see the example provided in Box citizens’ needs based on interoperable information available 5). It should also consider the resources used and the energy in different administrative sectors. consumption of the service and how that is reflected in terms of carbon emissions. A similar calculation should be made for An integrated service delivery approach is also likely to the same service provided through an omnichannel approach. contribute to tackling the climate emergency through The comparison should indicate the climate benefits for the the reduction of carbon emissions. Demonstrating this public sectors that embrace this shift.47 hypothesis is challenging, as noted above, and there is a lack of studies that disclose the green impact of efficiency 2.3.2 From Siloed to Integrated Service gains brought by data-driven, life event–based, and proactive Design and Delivery services. Figure 6 reflects how the TRE variables are impacted by this advanced stage of service delivery. From The provision of integrated service delivery is a lengthy a transport perspective, the citizen is no longer required to process, requiring coordination across different sectors travel for different services to different entities, as the services and administrative levels to overcome siloed approaches are delivered in one spot and in an integrated way. As for the and to provide an end-to-end cohesive user experience. resource and energy consumption involved, the reengineering Services have traditionally been delivered in a siloed way, and integration efforts in the provision of public services usually provided independently by each ministry or agency typically lead to the optimization of processes, avoiding in their service delivery office. With the initial implementation overlaps and enhancing synergies. In this sense, instead of of digital technologies in government operations, this siloed siloed, duplicated, and/or parallel efforts for service delivery approach has been reproduced in the digital space, giving across different public sector entities, the collaboration rise to different portals from the various policy streams (e.g., necessary for a unified delivery of services favors simplification separate portals from each ministry or agency) (see Figure 6). and rationalization. This typically leads to carbon efficiency per service delivered, although the rebound effect should not To overcome this siloed structure, governments began be minimized.48 to concentrate services in one single portal, physical one-stop shops, or even contact centers, but with EQUITABLE GROWTH, FINANCE & INSTITUTIONS INSIGHT <<< 24 > > > F I G U R E 6 - Exploring the Green Impact: From Siloed to Integrated Service Delivery Siloed Concentrated Integrated Services from ministries Services from different policy Data-driven services following available with a gov-centered sectors available in a one- a life-events approach, approach. The citizen supports stop-shop format, but with anticipating and proactively the burden of integration limited integration responding to citizens needs “Min. Finance” “Creating a “Finance” company” “Min. Health” “Health” “Buying a “Getting “Min. Education” “Education” house” married” “Justice” “Changing “Min. Justice” “Studying” address” “Interior” “Birth” “Min. Interior” Citizens Citizens Citizens From a model where the citizen has to be the courier of the government, jumping from service Transport provider to service provider, to a model where the service is obtained in one single spot. From a model where each public sector organization supports the entire service lifecycle Resources towards synergies in the design, development, delivery, and monitoring of the service. From a model where the energy consumption is multiplied across different public sector Energy organizations towards a model where there is inegration of efforts. Source: Authors. Taking as an example a life event such as a birth, the also to significant TRE efforts from the new parents, certainly benefits of integrated service delivery can be easily increasing the carbon footprint. In contrast, in an integrated demonstrated. In the siloed scenario, the parents of a service delivery scenario, once a child is born, the parents need newborn need to register their child with different government to proceed with the registration only once, and the information agencies. For instance, with the Ministry of Interior or Justice will be disseminated automatically across the different sectors for the child to be part of the civil register; the Ministry of and ministries. Based on data-driven approaches, public Health to be part of the national health care system; the administration will be able to immediately reflect the existence Ministry of Finance for fiscal purposes; the Ministry of Social of a newborn in the fiscal file of the household, create a new Security for social benefits purposes; and the Ministry of health file, proactively attribute the social benefits to the family, Education or the local government for a potential vacancy in and register the child in a local nursery. Key enablers, such as a nursery. This multiplication of interactions and procedures digital identity and interoperability frameworks, are critical to leads to considerable inefficiencies on the supplier side and support this seamless scenario of service delivery (see Box 6). EQUITABLE GROWTH, FINANCE & INSTITUTIONS INSIGHT <<< 25 > > > B O X 6 - The Green Impact Integrated Service Delivery in Portugal In the past two decades, the Portuguese public sector has prioritized the development of a progressively omnichannel and integrated service delivery to its constituents. The national network of physical one-stop shops called Citizen Shops and Citizen Spots, as well as the ePortugal website and the telephone contact center, reflect this ambition. Life event–oriented and proactive service delivery approaches have been developed, supported by the national digital identity system called Citizen Card and the Interoperability Platform for the Public Sector (iAP). The iAP currently connects more than 120 entities, mostly from the public sector but also from private sector utility providers. It registered more than 250 million transactions in 2021. As an accountability mechanism, the platform makes available an online dashboard with real-time data on various indicators, including estimates for spared trees, tons of neutralized carbon, and tons of CO2 emissions saved per kilometer not traveled. The platform’s green accountability helps justify the benefits of an interoperable public sector and an integrated service delivery approach. Source: Estevez et al. (2021); and AMA, “A IAP em Números,” https://www.iap.gov.pt/web/iap/iAP-em-numeros. EQUITABLE GROWTH, FINANCE & INSTITUTIONS INSIGHT <<< 26 However, the benefits of integrated service delivery also 2.3.3 Towards a Green Digital bring new risks related to inclusion and privacy. Since Service Delivery large data exchange and reuse is the cornerstone of cohesive As demonstrated in previous sections, omnichannel service delivery, governments should guarantee that citizens’ and integrated service delivery can indeed contribute to data are safe, their privacy is secured, and that inclusive a more decarbonized public sector. Green digital service models will frame policy action in this area. In line with the delivery is able to enhance the most advanced features of World Bank’s World Development Report 2021 (World Bank digitalization, such as data-driven approaches, automation, 2021h), a social contract around data is fundamental, based proactive models, ubiquity, citizen centricity, and inclusiveness, on an agreement among all participants in the process to build a more environmentally friendly public sector. This is of creating, reusing, and sharing the data, affirming that reinforced by the expected efficiency gains that digitalization the data will not be harmed and that the value created will brings in terms of the TRE variables. Figure 7 summarizes the accrue equitably.49 Moreover, updated legal and regulatory different features and variables presented and discussed in frameworks are fundamental to ensure that citizens’ digital the sections above. rights are properly respected, including the right to know how their data is being used and to authorize its reuse (or not) across different sectors and levels of government. > > > F I G U R E 7 - Green Digital Service Delivery Green Digital Service Delivery Omnichannel & Integrated Data-driven Inclusive Citizen-centered Efficient Proactive Responsive Ubiquitous 24/7 availability Transport Resources Energy Practically no commuting is Equipment and consumables effort Consumption is shared needed. Service is obtained in are shared between the provider between the provider and the one single spot. and the citizen. Synergies in the citizen, but with integration of service delivery lifecycle. efforts from the provider side. Source: Authors. Nevertheless, green digital service delivery is only part of the broader effort to green GovTech. Prioritizing the public sector’s digital front office—services, in other words—should be done in coordination with the green digitalization of behind-the- scenes government processes (the back-office) (see section 2.2) and should align with policies to tackle climate change risks and improve government resilience (see section 2.4). But to go beyond successful but limited policy interventions, whole-of- government approaches are necessary to engage the different sectors and levels of government. EQUITABLE GROWTH, FINANCE & INSTITUTIONS INSIGHT <<< 27 Key Takeaways • Omnichannel service delivery can potentially reduce the carbon footprint of digital services by eliminating the need to travel to and from public service offices. • An integrated service delivery approach is likely to help to tackle the climate emergency due to the efficiency gains on the part of both the administration and the user. • A green GovTech policy for the design and delivery of public services also brings significant inclusion benefits, contributing to “leave no one behind” objectives through plain, personalized, and proactive services. • Respect for citizen’s digital rights, such as privacy and security, is a fundamental requisite for a sound green digital service delivery that assumes data exchange and reuse to be the cornerstone of public sector transformation. 2.4 GovTech Resilience to Climate Change Risks GovTech plays a critical role when considering climate business continuity plans governments can mitigate the change risks and the resilience of government operations. effects of crises and disasters. For example, countries that are By digitalizing the business processes associated with susceptible to seasonal weather patterns, such as hurricanes core public service delivery, governments can eliminate the or typhoons, can safeguard against them by either hosting inefficiencies of paper-based systems (see section 2.2.1), their core government systems and associated data in a cloud which are easily exposed to natural disasters, such as floods, offshore or, at a minimum, ensuring that the backups are storms, and fires, that can quickly destroy entire paper- readily accessible in other locations. based archives of information. Outdated IT infrastructure, such as server rooms and data centers without business GovTech resilience requires concerted planning and continuity plans, can also pose a grave risk if not mitigated actions that address challenges at multiple levels and correctly. Disasters can provide the opportunity to strengthen different phases of disasters. Actions to strengthen the digital infrastructure through “build back better” initiatives resilience of GovTech against climate and disaster risks and to adapt to long-term climate change and disaster risks can be guided by the following four-phased process: i) an (World Bank 2020b). understanding of the range of disaster and climate change risks that can affect critical digital services; ii) risk-informed Climate change adaptation is a shared responsibility of planning of national strategies and prioritization of investments government ministries and agencies, and a long-term and actions to mitigate and avoid impacts; iii) disaster commitment will be required to ensure that GovTech mitigation and preparedness actions through GovTech policy, solutions fight climate change effectively. Adaptation ICT infrastructure, and finance-based approaches; and seeks both to reduce the risks and vulnerabilities from climate iv) response and recovery to facilitate a rapid and sustainable change and to increase the resilience of GovTech, which in return to functioning government operations. A resilient turn provides resilience to public service delivery and core GovTech framework is proposed to guide governments, ICT government systems. For example, inland areas that are practitioners (including firms and government agencies), harshly affected by flooding, or small island nations that are financial institutions, and development partners on affected by rising seas, will need to adapt to the new normal mainstreaming resilience into GovTech (World Bank 2020b). guaranteeing that day-to-day GovTech solutions are fully utilizable by users. The resilience of GovTech has a number of important dimensions to be considered. The first is resilience to Mitigation helps to reduce the severity of extreme weather weather transformation: GovTech solutions should be able to events and other emergencies, such as epidemics resist extreme weather events and other emergencies. The and pandemics. By ensuring that GovTech systems have second is data recovery and redundancy: recovery functions EQUITABLE GROWTH, FINANCE & INSTITUTIONS INSIGHT <<< 28 should prevent data loss and prepare information systems’ predictable. Additionally, it would be important to conduct ex redundancy for climate change. And the third involves ante market research and spend analyses to assess markets. critical digital services, which increase the resilience of a Regular reviews of spending, including current and historical beneficiary population in natural catastrophes and weather- spending, can identify opportunities where governments can related emergencies. reduce transaction costs, improve strategic sourcing, and ensure continuity of supply in emergencies. 2.4.1 Resilience to Weather Transformation and Emergencies 2.4.2 Data Recovery and Redundancy GovTech solutions need to be able to resist extreme For many governments in less-developed countries, weather events and emergencies. GovTech solutions need the impact of climate change can be severe, and data to respond effectively to increasingly frequent natural disasters recovery and redundancy are therefore crucial. Recovery that are associated with climate change, such as storms, floods, functions should prevent data loss and prepare information and rising sea levels. These solutions must also be resilient to systems’ redundancy in case of an intense climate change emergencies, such as pandemics, wars, and armed conflicts. event. The concentration of ICT infrastructure, complemented When few strategic measures are in place, emergencies and by distributed cloud computing approaches, can provide disasters may reduce government readiness to respond and the best secure data recovery and redundancy in terms of then impose extra costs. Governments therefore need to put resilience. Having all infrastructure co-located can increase together early warning systems to help mitigate these kinds the chance of catastrophic risk if, for example, a hurricane of emergencies. Public sectors can implement strategies destroys the entire system. However, a distributed cloud to expedite emergency procedures that can improve the system that cannot be affected by a single extreme weather government’s response capacity by decentralizing emergency event can help to ensure resilience, as there is only a marginal operations. Furthermore, by developing a risk management chance that the entire system will be compromised. strategy for GovTech solutions, governments can create programs that identify risks, reduce vulnerability, and Cloud solutions provide shared computing resources, strengthen emergency services. By proactively addressing such as servers, storage, and services. Cloud solutions these issues prior to an emergency, governments can improve enable ever-present, convenient, and on-demand network their response. access to a shared pool of configurable computing resources (i.e., networks, servers, storage, applications, and services) Once a disaster has occurred, it is important to decide that can be rapidly provisioned and released with minimal whether it warrants an emergency response. It must be management effort or service provider interaction (Mell and clear that the situation meets the criteria for treatment as an Grance 2011). The benefits include resource pooling, on- emergency and that a flexible approach addressing GovTech- demand self-service, rapid elasticity, broad network access, related issues can be fully justified. Second, the immediate and measured service (World Bank 2016a). GovTech-related activities that can bring relief should be identified and prioritized. Third, the operating environment The cost-efficiencies of cloud services and public cloud and conditions on the ground should be assessed and solutions offer numerous benefits for GovTech. Although a determination made of what other regional countries, many countries acknowledge the benefits of cloud services government agencies, and nongovernmental organization for the public sector, their adoption in developing countries (NGOs) are doing to explore potential collaboration. has been very slow due to concerns about cybersecurity, data sovereignty, and privacy (World Bank 2023a). Due to To ensure resilience, it is important to plan before inadequate assessment frameworks to identify and assess the disasters occur. Governments can conduct systematic risks of cloud solutions, governments in developing countries data analysis of prior emergency requirements, develop and typically set up a government cloud. A government cloud, or implement annual or multi-year plans that consider disaster- “G-Cloud,” hosts a government-wide data center shared by related needs, and ensure readiness to implement flexibility all government ministries (World Bank 2023b), which seems measures during a crisis. From the public sector perspective, logical for more sensitive or mission-critical data. Adopting it would be important to gather data and conduct spend a hybrid cloud model that leverages the cloud services from analyses to extrapolate future requirements from historical the private sector to work in conjunction with the G-Cloud can disaster response purchases. This makes analyzing previous offer immense opportunities to save costs, improve security, revenues and spend for future preparedness possible and enhance performance, and strengthen resilience. However, EQUITABLE GROWTH, FINANCE & INSTITUTIONS INSIGHT <<< 29 client governments need guidance to change their policy response on cloud computing from one of risk avoidance to one of risk management. This involves developing a decision framework using a data classification methodology to determine what data is more appropriate for hosting on a private cloud (World Bank 2023b). > > > B O X 7 - Costa Rica ICT Infrastructure for Data Recovery Costa Rica has implemented a data center and data recovery solution. It procured core GovTech government systems, such as an integrated financial management information system (IFMIS), tax administration, and customs administration, which are all supported by common operating systems and databases. Costa Rica decided not to procure hardware and instead procured such services as infrastructure-as-a-service (IaaS) or sharing ICT infrastructure in the cloud. They allocated US$80 million for the systems using commercial-off-the-shelf (COTS) implementations, all of which were hosted in the cloud. The Constitution of Costa Rica limits the amount of government data that can be hosted outside of the country. This is a trend in Latin American and Caribbean countries—the laws and constitution require that data be hosted inside the country. But in Costa Rica, a small country with a limited private sector, lawyers were able gain approval for the data and core government information systems to be hosted outside the country. Source: World Bank, “Costa Rica : Fiscal Management Improvement Project,” https://documents.worldbank.org/en/publication/ documents-reports/documentdetail/873761583868077662/costa-rica-fiscal-management-improvement-project 2.4.3 Critical Digital Services authentication, digital payment processing, online forms, digital document management and storage, digital customer The strategic use of GovTech solutions, combined with service and support, and online government services. By digital skill sets, an institutional framework, digital leveraging critical digital services, governments can drastically capacity, and good policy and regulatory environments reduce the cost of providing services and significantly improve in ICT, can help to facilitate fast and efficient delivery the overall quality of service delivery. Furthermore, digital of the most critical digital services (ADB 2021). Critical services increase the resilience of the beneficiary population digital services are a technology-based service offered by during and after natural catastrophes and weather-related governments to their citizens. They are designed to provide a emergencies. GovTech solutions, such as digitized early more efficient, secure, and cost-effective way for governments warning systems, financial transactions, wage systems, to deliver essential public services. They allow governments identity cards, contracts, and supply chain management, can to better manage and respond to their citizens’ needs and boost government resilience, helping agencies to maintain concerns, while providing better value for money. Examples links with the population during disasters (World Bank 2020b). of critical digital services include digital ID verification and EQUITABLE GROWTH, FINANCE & INSTITUTIONS INSIGHT <<< 30 To realize the full potential of GovTech for resilience during emergencies, governments in emerging economies still need to promote the digitalization of the most critical government services. Gaps in digital infrastructure, capacity, and policies and procedures explain much of the lag in the adoption of core government systems and public service delivery by developing countries. These countries also have weak basic ICT infrastructure, low computer use, and low levels of digital literacy. Such issues further inhibit innovation and the uptake of critical digital services, which in turn constrains adoption, especially during disasters that disrupt the flow of resources and information (World Bank 2020b). > > > B O X 8 - Critical Digital Services are Moving to the Cloud in the Caribbean In the Caribbean countries, critical digital services are moving to the cloud to provide resilience. For example, there is a strong government commitment to the digitalization agenda in Grenada, where digital services, such as the civil registry and tax administration, are moving to the cloud. The government currently struggles with change management, as many signatures are needed to move a digital initiative forward, so the country has considered hiring a consulting firm to help resolve these issues. The digital transformation office has been working for three years to strengthen critical digital services. The tax and civil registry have started to digitize all records and to move all documents to a cloud-based system. This includes the scanning and uploading of probates, land, and other related documents using a cloud-based archiving system. Crucial to the resilience of digital services in GovTech and systems, establishing a hierarchy of operational are the core government systems that run the day-to- importance, pre-identifying a list of critical applications, day functions of government. How resilient are PFM and carrying out impact assessments of system failure. information systems and vital records to threats from natural disasters? Governments need to institute safeguard b. A disaster recovery plan needs to be in place that includes measures to protect and ensure the continuation of financial a comprehensive and up-to-date IT disaster recovery plan transactions in the aftermath of a disaster. The following covering the computer room environment, hardware, recommendations are suggested for PFM adaption and connectivity, software applications, and data protection mitigation (World Bank 2019a): and restoration, including for hardcopy files. a. Finance agencies need to be prepared to handle c. A recovery point and time objectives for all priority PFM disasters, including by defining mission-critical functions applications should be created. EQUITABLE GROWTH, FINANCE & INSTITUTIONS INSIGHT <<< 31 d. Known vulnerabilities in critical PFM systems should be secured servers and storage; multiple high-speed network identified to prevent their collapse. links entering and exiting at different points; and smoke, fire, humidity, and flood detection. e. Data backup routines, technology, and locations should be identified and in place. When considering the criticality of digital services, the adoption of common frameworks is important. f. Data center resiliency should be ensured, including through Governments need to ensure common interoperability fire and flood barriers and robust building architecture; frameworks, shared ICT infrastructure, base registry multiple connections; uninterruptible power supply with frameworks, shared services, common data architecture, and battery backup and generators; redundant and physically the use of open-source software (OECD 2019a). Key Takeaways • Governments need to safeguard measures that protect and maintain financial transactions in the aftermath of a disaster. • GovTech resilience requires concerted planning and actions that address the challenges of disasters and other emergencies. Efforts to strengthen the resilience of GovTech against climate and disaster risks can be guided by a resilient GovTech framework. • Governments can develop a risk management strategy for GovTech solutions, involving programs that identify risks, reduce vulnerability, and strengthen emergency services. By proactively addressing these issues prior to an emergency, governments can improve their response. • GovTech solutions, such as digitalized early warning systems, financial transactions, wage schemes, identity cards, contracts, and supply chain management, can boost government resilience, helping government entities to maintain links with the population during disasters. EQUITABLE GROWTH, FINANCE & INSTITUTIONS INSIGHT <<< 32 3. >>> Governing a Green and Digital Transformation of the Public Sector 3.1 Introduction This chapter examines how to govern the digital and green transitions of the public sector. Implementing any kind of policy change in a coherent way across different sectors and levels of government over the long term is a central challenge faced by bureaucracies, and green GovTech is no exception. The capacity of the public sector to shift from numerous siloed approaches to one integrated systems thinking is critical to this process. Following Chapter 2 on the “what,” or what practices to focus on, this third chapter is centered on the “how”: how to disseminate the identified policy mechanisms to mainstream green digital approaches throughout government systems. Building on country examples, the following five whole-of- government areas of analysis will be prioritized: 1. Strategy. Considering the priority attributed to the green and digital transitions, most countries have policy strategies and action plans, frequently running in parallel. Synergies for delivering both of these transformations concurrently are commonly missed. Key question: How can an improved green and digital policy alignment be secured? EQUITABLE GROWTH, FINANCE & INSTITUTIONS INSIGHT <<< 33 2. Institutional Leadership and Coordination. Since technology leapfrogging, though they will still need to focus on 2015, dedicated central government GovTech units change management and institutional cultural shifts to secure have been established in 80 countries.50 SDG 13 and the progressive digital transformation desired. the Paris Agreement have laid out more explicit goals for governments in coordinating cross-cutting public efforts in decarbonization and adaptation. 3.2 Strategy Key question: How can the institutional coordination needed to implement digital and green priorities An increasing number of countries have formulated be improved? GovTech and digital government strategies, but only a few have included green objectives in these plans. According 3. Legal and Regulatory Framework. Adapting the to the latest iteration of the World Bank’s GTMI, almost 90 legal and regulatory frameworks to the public sector’s percent of countries (176 out of 198) have or will soon have a priorities is a common challenge. Both digitalization GovTech or digital transformation strategy.51 At the same time, and decarbonization plans typically require substantial governments are stepping up efforts to promote the green legal foundations. agenda. However, the two agendas are seldom aligned. Given the potential for reducing carbon emissions both by using Key question: What synergies between digital and GovTech for green and by greening GovTech, a strategy that green policies can be further explored in the legal and synergizes digital and green objectives would more effectively regulatory fields? advance both digital and sustainable development. 4. Policy Levers. Budgeting, pre-evaluation of public A whole-of-government orientation in green digital expenses, public procurement, and M&E systems are strategies fosters government-wide reform buy-in some of the policy levers frequently used by governments and policy coherence. Advancing the digital and green to guarantee coherent policy implementation across the transitions requires broad reform ownership involving all parts public sector. of government and all seniority levels (World Bank 2022d, 16). As an example, the Scottish government adopted a whole- Key question: What is the best way to mobilize and of-government approach in its 2021 Digital Strategy and calibrate these policy mechanisms to promote a green incorporated green thinking into the digital solutions planned.52 digital transition? The strategy proposes establishing Scotland as an attractive location for green data centers and links this action to the 5. Green Digital Competencies. Skills and talent are country’s National Environment Outcome of the National a central pillar of the twin transitions underway. The Performance Framework. In fact, the OECD recommends lack of and gaps in digital competencies is a significant linking digital government strategies to broader agendas, hindrance to the coherent and sustainable transformation such as sustainability, as it is beneficial for coherence and of government administrations. collaboration within the public sector (OECD 2021b, 77). Key question: How can a green digital culture be Embedding interoperability in GovTech and digital mainstreamed in the public sector? Which key policies government strategies will enhance the efficiency and would best help the public sector to embrace green sustainability of public administration and service digital talent? delivery. As highlighted previously (section 2.3.2), GovTech and digital government strategies should aim to overcome Each country’s level of GovTech maturity determines public sector silos that result in isolated and often inefficient the differentiated approaches to sound policy solutions that are not user friendly. Therefore, strategic implementation. There is no one-size-fits-all approach documents should emphasize interoperability to ensure to a whole-of-government digital transformation. As noted that digital government can share and reuse data efficiently above, although more digitally developed countries will face and sustainably. Interoperability objectives may focus on the challenge of adapting existing information systems to the technical, organizational, cultural, or legal aspects and more green standards, potentially dealing with sunk costs, prioritize the adoption of common data exchange standards less digitally developed countries can benefit from some EQUITABLE GROWTH, FINANCE & INSTITUTIONS INSIGHT <<< 34 and the use of an interoperability hub or platform (World Bank 3.2.2 Example: Korea 2022f, 19). For example, data gathered on GHG emissions or Korea was among the first adopters of a strategy aimed mobility in readable formats may help to track goals related to at mitigating and reducing the environmental impact of the green transition. its digital transition. In 2009, Korea announced a Green IT National Strategy to address the ICT sector’s carbon footprint. Several countries have adopted strategies that explicitly Since then, the government has introduced several initiatives seek to green GovTech or to leverage GovTech for green to support a sustainable digital transition, including a green goals. These countries are aligning their policies on the digital certification program (2010), the standardization of green data and green agendas to ensure that progress on one does not center guidelines (2012), and the Carbon Neutral Technology come at the expense of the other. Oftentimes, combining Innovation Strategy (2021). digital with green objectives can help secure the political backing necessary for delivery. For example, in Ireland, the The Carbon Neutral Technology Innovation Strategy reform of a data center received ministerial approval after its seeks to promote innovation in energy efficiency in the contributions to the green agenda were highlighted.53 The ICT sector through digitalization. Six months after the cases of Denmark, South Korea, and the EC are discussed Strategy was released, the government complemented it with below as examples of strategies that combine both digital and 10 Core Technology Development Directions that it regards green objectives. as fundamental to achieving carbon neutrality by 2050. Digitalization is listed as a core area, and concrete actions 3.2.1 Example: Denmark are being proposed related to (i) greening of ICT infrastructure Denmark has recently released a new digital strategy that and devices, (ii) energy data utilization, (3) management of envisions the acceleration of the green transition through distributed energy resources, and (iv) smart grid technologies digital solutions (Denmark 2022). In addition to highlighting (World Bank 2022b, 23). the green benefits of digitalization, the strategy also acknowledges the need to reduce the impact of digitalization Korea leverages GPP as a key policy tool to promote itself on the environment and proposes concrete actions to this decarbonization of the ICT sector. In 2011, the government end through the introduction of climate-efficient technologies. expanded the Act on the Encouragement of Purchase of Environment-Friendly Products, which required public Denmark has already achieved significant efficiency entities to procure green products, including electronic and gains by digitizing administrative processes and data ICT devices. The previously released Green Growth Act had sharing through interoperability. Holistic back-office and defined green products as those that have received eco- administrative reforms have rendered high-level decision- label, low-carbon product, and recycled content certification making processes, as well as citizens’ interactions with the (World Bank 2022b, 25). state, more efficient. For example, ministers can sign important documents on their tablets and citizens have around-the-clock Korea offers valuable lessons for other countries seeking access to a wide range of digital services. to green their digital transition and foster innovation for climate action. Leadership and early government commitment Denmark also has a national strategy for GPP to ensure to a green digital transition have led to strategies with clear that its climate goals are factored into public procurement goals and time frames as well as an enabling legislative decisions.54 Denmark has committed to reducing its GHG framework. Korea has adopted a whole-of-government emissions by 70 percent by 2030 compared to the level in approach, with all 18 ministries and local governments involved 1990, and to reaching climate neutrality by no later than 2050. in leveraging digital to advance the green agenda. Moreover, The strategy includes a comprehensive assessment of the public awareness building led to broad citizen support for climate footprint of public procurement in the country and plans environmental policies, and clear incentive structures for the to set a specific reduction target. Denmark is also actively private sector fostered technology innovation for increased incorporating the EU’s GPP criteria for public procurement of sustainability (Khoury and Lee 2022). data processing and storage. EQUITABLE GROWTH, FINANCE & INSTITUTIONS INSIGHT <<< 35 > > > F I G U R E 8 - Korea’s Green IT Policy Milestones Paving the way for green future Evolving green emphasis 2020-2021 Early commitment 2014 2015 2016 2010 • The Korean 2009 New Deal • Established • K-ETS • Ratified • 2050 Carbon roadmap launch the Paris Neutral to achieve • INDC Agreement Strategy • Enacted the national submitted to • Carbon “Green • Green IT GHG UNFCCC Neutral Tech Growth Act” National reduction Innovation • Launched Strategy target Strategy Green Certification • Carbon Program Neutrality Act Source: World Bank (2022b). 3.2.3 Example: European Commission In addition to highlighting the potential of adopting digital technologies to reduce emissions, the Commission has The EC assigns a central role to digital technologies also addressed the negative externalities of digitalization. in its efforts to reach corporate climate neutrality by Emissions related to IT equipment represented around 2030. The recently published European Commission Digital 5 percent of the EC’s carbon footprint in 2019. Despite the Strategy (June 2022) (EC 2022a) and Communication to envisioned expansion of digital technologies in the coming the Commission: Greening the Commission (April 2022) years, the EC plans to reduce the GHG emissions emanating (EC 2022c) set out the way that the EC will meet its climate- from its digital operations by at least 30 percent between 2019 neutral objective. The strategic documents promote a vision and 2030 (EC 2022c, 14). in which embracing digital solutions and operating in a green manner become part of the institution’s work culture The EC has proposed several measures to mitigate the going forward. environmental impact of its increasing use of digital technologies. Concrete measures include (i) consolidating Upgrading digital technologies may help to significantly digital infrastructure into a smaller number of green reduce emissions related to commuting. Staff business data centers, (ii) accelerating the shift to more energy- travel accounted for 28 percent of the EC’s GHG emissions efficient IT devices, (iii) strengthening green procurement, in 2019. The upgrading of web and videoconferencing tools (iv) decommissioning obsolete systems, (v) maximizing should allow staff to shift all non-essential missions to an paperless workflows and the digitalization of archives, online format and help reduce travel-related emissions. The and (iv) promoting green digital behavior among staff Commission expects that increased telecommuting and the (EC 2022c, 14f). Although the EC is a unique institution in use of greener methods of transport will reduce emissions by many ways, its digital transformation journey does provide at least 50 percent between 2019 and 2024 (EC 2022c, 10). relevant lessons to other institutions and countries on how to engineer a principles-driven digital transformation. EQUITABLE GROWTH, FINANCE & INSTITUTIONS INSIGHT <<< 36 Key Takeaways • Although most countries have announced a digital government strategy, only a few have included green objectives in it. Synergizing digital and green objectives in GovTech strategies has significant potential both to leverage digital technology for green purposes and to green the use of that technology. • Embedding a whole-of-government approach in green digital strategies broadens reform ownership and increases policy coherence, augmenting the likelihood of achieving strategic objectives. • GovTech and digital government strategies that promote interoperability are more likely to achieve efficiency and sustainability gains. 3.3 Institutional Leadership and Coordination To encourage the participation of all government ministries and coordinate these two policy areas. This section explains and agencies despite their different priorities, institutional how political support, public sector organizations leading leadership, political support, a dedicated organization, GovTech, and coordination mechanisms can promote a green and coordination mechanisms are all necessary. The digital transition and how institutional coordination can be government agencies and coordination mechanisms for improved to implement both priorities. Figure 9 shows how GovTech are usually different than those for green policies, so institutional leadership and coordination mechanisms could it is important to establish close communication to collaborate work internally toward these goals. > > > F I G U R E 9 - Institutional Leadership and Coordination for Green and Digital Government GovTech Policy Green Policy Organization Collaboration Organization leading GovTech leading Green Policy Coordination Coordination mechanism Coordination mechanism Political sponsorship and support Source: Authors. EQUITABLE GROWTH, FINANCE & INSTITUTIONS INSIGHT <<< 37 3.3.1 Political Sponsorship and Support awareness among many relevant sector officials about the country’s Nationally Determined Contribution (NDC) and the The experience of several digitally advanced countries need for mitigation measures is mentioned as one of the indicates that adequate leadership is a critical asset to main implementation barriers (Bangladesh 2021). High-level implementing coordinated GovTech and green policies. leadership could help to overcome this challenge. Many other In Korea, one of the GovTech leaders according to the World countries also highlight the role of leadership in addressing Bank’s GTMI, former presidents adopted e-Government as a climate change in their NDCs.55 fundamental policy priority, providing continuous attention and financial and institutional support (Republic of Korea 2021). How can leadership awareness of the need to align the The absence of political leadership and support can lead to digital and green policy agendas be improved? Government significant difficulties in securing the financial and human leaders could participate in international collaboration resources needed. In fact, many World Bank task teams have activities, providing them with opportunities to communicate said that leadership is one of the main challenges to designing with other leaders. Many international organizations, including and implementing GovTech projects in client countries, the UN, World Bank, and OECD, have already highlighted and the Bank’s “Tech Savvy” report identified leadership, both GovTech and green policy. Management may need to be management, and culture as of key importance to change incentivized to develop a performance-oriented bureaucracy management strategies (World Bank 2022d). Leadership that encourages innovation and the use of GovTech can support successful design and implementation of the (World Bank 2022d). The presence of a government chief change management plan that is one of key GovTech information officer (CIO) contributes to the co-work across enablers. Change management strategies help public government to embed digital reforms, drive the strategic sector organizations overcome complaints and reluctance to planning, establish standards and frameworks, and report on innovations. Leadership is also critical to raising awareness progress (World Bank 2022d). of green GovTech. In Bangladesh, lack of knowledge and > > > B O X 9 - Leadership in Nationally Determined Contributions • In Bangladesh, the prime minister, as chair of the 48-nation Climate Vulnerable Forum (CVF), has launched a program to develop a “Mujib Climate Prosperity Plan” for Bangladesh with a strategic investment framework to mobilize financing, especially through international cooperation, for renewable energy and climate resilience initiatives. • EU leaders agreed that: the EU budget will be the main tool for the climate action effort; EU expenditure should be consistent with the principles of the European Green Deal; and a Just Transition Mechanism, including a fund, will be created. • In Pakistan, the Prime Minister’s Committee on Climate Change oversees progress on implementation as well as regional and international partnerships to ensure that Pakistan continues to be an active member of the global community in the implementation of the Paris Agreement. Source: NDC Registry, https://unfccc.int/NDCREG. 3.3.2 Public Sector Organization Leading GovTech Policy The first step is to identify which organization will lead the GovTech and green agendas in the public sector. Since both agendas have been highlighted globally, many countries have already established an institutional structure assigned to promote them. According to the 2022 GTMI, among 198 economies, more than 70 percent (154) have already set up a government entity focused on GovTech, and only 33 economies have not. As can be seen in Table 2, all the economies of Group A and B except one have a committed organization.56 Countries in Group C and D need to consider establishing a government entity focused on GovTech. EQUITABLE GROWTH, FINANCE & INSTITUTIONS INSIGHT <<< 38 > > > T A B L E 2 - The Existence of a Government Entity Focused on GovTech Economies Group A Group B Group C Group D Yes (Established) 154 69 45 33 7 Planned/In Progress 11 - 1 6 4 No 33 - - 14 19 Source: GTMI 2022 data. Also, of the 165 countries in Table 1 that have designated or plan to designate an organization to implement GovTech, more than half (96) have delegated the responsibility to ministries, such as the Ministry of Information and Communications Technologies, Ministry of Finance, Ministry of Interior, or Ministry of Public Service. The president’s or prime minister’s office has institutional responsibility for GovTech in 41 countries (see Table 3).57 There is no one size fits all to institutional responsibility, so governments will need to consider their own country context and governance structure. > > > T A B L E 3 - Institutional Responsibility for GovTech Autonomous President’s/ Entity PM’s Office MoICT MoF/MoE MoI/MoHA MoPS/Pub Adm Other 11 41 76 6 2 12 17 Source: GTMI 2022 data. Note: MoICT = Ministry of Information and Communications Technologies; MoF = Ministry of Finance; MoE = Ministry of Economy; MoI = Ministry of Interior; MoHA = Ministry of Home Affairs; MoPS = Ministry of Public Service. Similarly, as the importance of green policy is growing, practices could be considered to improve the green mindset. some countries have established a government entity In the United Kingdom, the government has developed various dedicated to climate change, which is a requirement for useful guidelines to embed a green perspective in the public adaptation planning and implementation (UNFCCC 2014). sector, such as the Green ICT Maturity Model, Green ICT In Australia, the Department of Climate Change, Energy, the Workbook, and Green government ICT case studies. Environment and Water was established to address climate mitigation and adaptation holistically.58 In Indonesia, the State 3.3.3 Coordination Mechanisms Ministry for National Development Planning and the National Establishing strong and effective coordination Development Planning Agency (BAPPENAS) are responsible mechanisms for GovTech ensures a whole-of-government for implementation and M&E of the National Action Plan approach. The absence of such mechanisms results in the for Climate Change Adaptation (RAN-API), including development of siloed systems, fragmented public services, dissemination to provincial governments (UNFCCC 2014). inefficient financial investment, and unnecessary competition between organizations. According to the 2022 GTMI, 105 As described above, it is not common to find a GovTech countries out of 198 have a coordination body leading their strategy that already includes green policy, so governments GovTech initiatives. Less than half (97) of countries have an need to set up an institutional arrangement inside the entity to monitor and report on GovTech spending for the entire leading GovTech entity to reflect a green perspective government, and only 70 publish the GovTech institution’s in its initiatives. Developing a specific guideline, providing annual progress report.59 This indicates that many countries capacity-building programs, and creating a community of still have room to improve their coordination mechanisms. EQUITABLE GROWTH, FINANCE & INSTITUTIONS INSIGHT <<< 39 > > > T A B L E 4 - Coordination in the GovTech Maturity Index Index No Yes Is there a coordination body (steering committee, council) 93 105 leading GovTech initiatives? Is there an entity to monitor and report on digital/GovTech 101 97 spending for the whole government? No Yes Yes (Internal) (Published) Is the GovTech institution’s annual progress report published 128 8 62 (results/spending)? Source: Since climate change impacts all sectors of the economy Even if each coordination mechanism of the GovTech and society, actions to address it also require coordination and green agendas is well established, the next important among multiple government and nongovernment actors step is to strengthen the collaboration between the two. (World Bank 2021d). Many countries have developed or Governments may consider an institutional arrangement to revised their NDCs based on a strong coordination mechanism establish formal processes that enable both policy agendas encouraging various stakeholders’ participation. For example, to collaborate. A GovTech organization should have a well- Brazil’s National Adaptation Plan (NAP) includes 55 types organized structure of a unit or position to help green GovTech of federal government policies, plans, and programs for strategy and implementation. For example, in the EC, the different sectors, with a view to broadening the coherence, Directorate-General for Informatics (DIGIT) has a unit for efficiency, and synergies of the adaptation strategies in Digital Transformation and Coordination. The position of the light of the SDGs.60 In Nigeria, the country updated its NDC Internal Control of Institutional Matters in this unit plays a through a collaborative and inclusive approach, such as coordinating role with related agencies and other internal units close consultation with all relevant stakeholders, including the to ensure that a greening policy is part of the digital strategy.63 states, private sector, and civil society organizations, through Also, it is encouraged that each coordination mechanism has a validation workshops.61 The revision process of Pakistan’s process to communicate with the other side to discuss possible NDC blended bottom-up and top-down approaches that cooperation. For example, when the Steering Committee for ensure active engagement by a wide range of stakeholders the GovTech invites participants from green agendas to their aimed at consensus. A National Steering Committee chaired regular meetings, it can contribute to effective coordination by the Special Assistant to the Prime Minister on Climate between two policy agendas. Both coordination mechanisms Change, as well as technical working groups consisting of can use policy levers, such as budgeting practices, pre- federal and provincial-level policy makers, scientists, experts, evaluation of digital investments, public procurement, and and other stakeholders, is playing a critical role in revising monitoring and evaluation to facilitate GovTech strategies to the NDC.62 As we can see above country cases of NDCs, be aligned with green perspectives. organizing effective coordination mechanisms for Greening Govtech is one of key elements of NDCs and well aligned with the development process of NDCs. EQUITABLE GROWTH, FINANCE & INSTITUTIONS INSIGHT <<< 40 Key Takeaways • When senior leaders in the GovTech domain have a deep understanding of the importance of green policy, green perspectives are more likely to be reflected in the GovTech initiatives. • Participating in international collaboration activities, teaching the core attributes, and incentivizing better management can help ensure political support for the green digital agenda, as can the presence of a government chief information officer. • Delegating a public sector agency to lead GovTech policy is an important way to facilitate the public sector’s digital transformation. To ensure the greening of GovTech, leading government entities should have a green mindset within their organizations. • An effective coordination mechanism between the GovTech and the green policy agencies can facilitate close cooperation between the two agendas even though they may pursue different priorities. 3.4 Legal and Regulatory Frameworks Legal and regulatory frameworks play a fundamental decarbonization and adaptation goals. As showcased role in establishing a whole-of-government approach in Box 10, countries can update existing climate change to embracing the green digital transition. These and digital laws and policies to keep up with the green frameworks encompass the “laws, codes, regulations, and digital transformation. Leveraging existing laws, policies, practices that govern and support” the green digital agenda standards, and procedures enables countries to green the (World Bank 2017). They create the binding and non-binding digital transition, enhances resilience to climate change, rules that govern the process and also provide the grounds and accelerates the achievement of targets set in the NDCs. for the adoption of green digital technologies to ensure a Digitalization, as illustrated in Korea’s digital transformation long-term, decarbonized, inclusive, and resilient public sector journey, can drive energy efficiency gains and bring countries modernization (OECD 2021b). The digital agenda’s full closer to achieving their NDCs and long-term climate targets. alignment with climate change commitments should also be Increasing investments in digital access, cloud capabilities, part of the legal framework. and smart buildings with energy efficiency measures contribute to a reduction in GHG emissions and facilitate the transition to 3.4.1 Policy Initiatives and Legal Actions 2050 carbon neutral economies. Green policy initiatives can lay the foundation for a digital transition while also contributing to countries’ EQUITABLE GROWTH, FINANCE & INSTITUTIONS INSIGHT <<< 41 > > > B O X 1 0 - Korea’s Green Digital Transformation Journey As mentioned in section 3.2, Korea was among the first countries to adopt a green policy initiative. In 2010, Korea introduced the Framework Act on Low Carbon Green Growth, or the Green Growth Act, to combine fragmented laws and provide the legal framework for implementing national green growth action plans and strategies. The Act clarified the main principles of a green economy, outlined the government’s plans to create green industries while transforming traditional ones, and called for mandatory GHG emissions reporting by the government, among other requirements. The Green Growth Act was superseded by the Framework Act on Carbon Neutrality and Green Growth, also known as the Carbon Neutrality Act, in 2021. It outlined policy instruments and legal processes to achieve the country’s 2050 carbon neutrality goal. It is Korea’s highest legal framework for tackling climate change and enables the country’s green digital transformation. More specifically, Article 3 stipulates that green growth and the transition to a carbon-neutral society will be promoted according to various criteria, including by strengthening investment and support for green technologies and industries. To further accelerate Korea’s implementation of its NDC, the country formulated the Korean New Deal, which encompasses the Digital New Deal, the Green New Deal, and the Stronger Safety Net. It highlights 10 projects, four of which are green and digital convergence projects. They include the installation of energy-efficient facilities to promote energy savings and environmentally friendly classrooms, and investments in smart and green industrial complexes. Source: World Bank (2022b). In the EU, public entities spend approximately US$2 exchange information, especially at critical times, such as trillion annually in procurement purchases.64 This creates before, during, and after climate-induced events. For example, a large opportunity for the public sector to promote a green Argentina mandated the “Once Only Principle,” making the digital transition through the purchase of specific goods and government responsible for implementing an integrated services. Mandatory GPP purchasing requirements or criteria data system for public administration that reduces the need can enable countries to set new standards to promote a for citizens to provide the same data to the government green digital transition and stimulate the expansion of climate- numerous times. It also promotes paperless administration readiness markets. GPP policies can also enable a circular by preventing receiving agencies from requiring citizens economy and promote greater transparency across supply to present paper documents. The mandate ensures that chains and procurement decisions. In 2021, France passed government agencies are digitizing all paper records received green laws on digital technology, outlining guidelines on eco- by citizens, thereby protecting records in case of floods and designs for products and requiring consumer disclosures other destructive climate-induced disasters. As part of Chile’s on environmental impact (France 2021). And in Japan, digital transformation, the country established a law requiring digital policies continue to be updated to enhance disaster the digitalization of all government procedures and eliminating resilience and recovery. The country introduced “L-Alert,” paper-based communication between government institutions an information-sharing platform for early warning systems (World Bank 2022d). and evacuation instructions that enables the country to disseminate information digitally through various channels. To fully embrace interoperability, there should be The use of the platform, among other digital solutions, is clear incentives and a collective understanding of the enabled through various disaster risk management policies expected benefits. Embedding interoperability into the legal and procedures, allowing the country to leverage technology and regulatory frameworks means that privacy and security for climate resilience (World Bank 2019b). laws should also be updated to include (i) limitations on data use; (ii) limitations on the longevity of data storage; and 3.4.2 Interoperability Frameworks (iii) enhanced specificity on the lawfulness of data collection. For example, the European Data Governance Act, enacted The use of interoperability frameworks supports a whole- in June 2022, aims to increase trust and facilitate data of-government approach and promotes a more efficient sharing and use across EU countries in important economic way for government systems to communicate and EQUITABLE GROWTH, FINANCE & INSTITUTIONS INSIGHT <<< 42 sectors, including agriculture, energy, environment, finance, To mitigate the issue, countries must enforce regulations and health.65 Interoperability frameworks will need to comply to monitor the import of all electronic equipment to ensure with these laws to gain buy-in from all stakeholders. A strong that it meets minimum safety and technical requirements. interoperability framework that is supported by clear and up-to- The Zambia Information and Communications Technologies date laws, guidelines, and standards will allow governments to Authority (ZICTA) works closely with the Zambia Revenue fully embrace the green digital transition (World Bank 2002f). Authority (ZRA) to ensure that all electronic equipment meets certain standards (Bogdan-Martin 2022). 3.4.3 E-Waste Regulations E-waste results from discarded electronic equipment. 3.4.4 Participatory Governance E-waste that is toxic and not biodegradable poses serious Government institutions, the private sector, academia, environmental risks and contributes to an increase in GHG and civil society play an important role in the green emissions when burned. As countries digitalize and shift digital transition. Engaging these relevant stakeholders in to a more digital public sector, e-waste is expected to rise. policy dialogues supports a smoother process. Stakeholder In fact, experts predict that 74.7 million Mt of e-waste will engagement can ensure that the legal and regulatory be generated by 2030, an increase from 53.6 million Mt in frameworks associated with the digital transition are aligned 2019 (Bogdan-Martin 2022). To fully embrace a green digital with sustainable development priorities such as climate transition, countries will need to put in place regulations related change. They can also, for example, put pressure on policy to e-waste management. For example, Extended Producer makers to take the needs of vulnerable groups into account. Responsibility (EPR) schemes require manufacturers, distributors, or importers to be responsible for the end-of- The Coalition for Digital Environmental Sustainability life management of electronics sold, which includes proper (CODES) is a UN-supported coalition consisting of disposal and recycling. Regulations can help clearly define 1,000 stakeholders from more than 100 countries. It e-waste stakeholders to help countries designate responsibility was formed in 2021 to promote collective action, address for end-of-life management to specific parties for efficient the need for new regulations, and steer the digital transition e-waste management. toward greener and more socially sustainable development (CODES 2022). Similarly, the Digital Agenda for Latin America Countries can also put regulations in place to ensure and the Caribbean (eLAC2020) serves as a driver of regional that the cost of e-waste management is financed and cooperation to promote political dialogue, capacity building, sustainable. For example, the Customs Division of the Ghana and policy design on digital matters. It further outlines 39 goals Revenue Authority introduced an e-waste eco-levy on end-of- for implementation, of which goal 23 focuses on “Promoting life cycle or used electronic equipment to promote a longer- the use of digital technologies to prevent, mitigate and term and economically sustainable approach to e-waste adapt to the effects of climate change and natural disasters, management. Another concern is counterfeit electronic reduce greenhouse gas emissions and promote sustainable equipment, which can mean almost immediate e-waste. development” (ECLAC 2021). Key Takeaways • Countries need to ensure that legal and regulatory frameworks are responsive, forward looking, and inclusive to encourage a green digital transition. • Countries should leverage existing green laws, policies, and standards to green the digital transition, enhance resilience to climate change, and accelerate the achievement of NDCs. • Strong interoperability frameworks, supported by clear data and privacy laws, will allow governments to fully embrace the green digital transition and make service delivery more resilient to climate change impacts. • E-waste regulations can help reduce adverse environmental and climate change impacts. • Engaging relevant stakeholders in policy dialogues ensures a more inclusive green and digital transformation. EQUITABLE GROWTH, FINANCE & INSTITUTIONS INSIGHT <<< 43 3.5 Policy Levers An effective digital transition requires that budget and identify and monitor climate change–related spending and is planning are aligned with green digital priorities, that expected to lead to additional investments in climate change climate change considerations are embedded in the pre- mitigation and adaptation measures (World Bank 2022c). evaluation of digital investments and in public procurement, and that there are appropriate M&E systems in place. This Green budgeting and climate budget tagging are also section elaborates on how to mobilize and calibrate these essential to generating data on the number of public policy mechanisms to promote a green digital transition. expenditures invested in climate change mitigation and adaptation measures. For example, Argentina’s 2019 Law 3.5.1 Budgeting Practices on Minimum Budgets for Adaptation and Mitigation to Global Climate Change (Law 27520) establishes the minimum The budgeting process can play a critical role in budgets for environmental protection to guarantee the coordinating resources for greening GovTech. Budgets adequate actions, instruments, and strategies for adaptation are one of the main expressions of how a government intends and mitigation to climate change.68 With the objective of to implement its political ambitions, and they play a core role monitoring climate change measures across different levels in prioritizing and resourcing government actions.66 Countries of government, the law also creates the National Information have identified the budget as a key element to use in tackling System on Climate Change. It is evident that data and higher-level objectives, such as gender equality, citizen well- monitoring systems are critical to assessing compliance with being, and the green transition (OECD 2021d). In the same and the impact of climate change policies, and green budgeting way, the budgeting process can also be a critical tool to support and climate budget tagging are among the tools for doing it. and strengthen efforts in the green and digital agendas. There is wide variation in green budgeting practices The emergence of “green budgeting” in recent years across several dimensions: definition of climate-relevant reflects the importance that countries have placed on activities and expenditures; coverage; estimates; using the budget process to support the achievement institutional roles and quality assurance; and timing of environmental and climate objectives (OECD 2021c).67 within the budget process (World Bank 2021c). For example, Governments and international organizations are increasingly the majority of OECD countries—12 out of the 14 that practice focusing on green budgeting practices, and climate change green budgeting—employ more than one tool or method considerations have consistently been at the center of in its implementation (OECD 2021c). Among European recovery programs from the COVID-19 pandemic. In 2020, countries that practice it, five use environmental impact 14 out of 35 OECD countries (40 percent) reported practicing assessments and six use green budget tagging (EC 2022b). some form of green budgeting (OECD 2021c), as did 11 out A key distinction in green budgeting practices is whether the of 27 European countries in 2021 (EC 2022b). As of 2020, at environmental impact assessments or the environmental least 19 national and subnational governments had introduced cost-benefit analysis is done ex ante or ex post, since this a green budget tagging system, and several countries were in timing crucially determines whether green budgeting is used the process of adopting them. Developing countries in Asia for informing budget decisions or only for reporting purposes. were the frontrunners, with some of the earliest systems set up Another key distinction is whether the estimation methodology in Nepal, the Philippines, and Indonesia (World Bank 2021c). focuses only on identifying activities that positively contribute to climate change mitigation (e.g., green tagging) or also on Countries have similar objectives in introducing green estimating the environmental impact of a given investment, budgeting: to help them align their budget to climate including an adverse impact.69 change policy priorities, identify financing gaps, mobilize domestic and international finance, raise awareness, and International experience highlights that green budgeting make improvements in transparency and accountability practices could be used more extensively, including in (World Bank 2021c). It is believed that a greater use of the ICT/digital sector and in efforts to align the green green budgeting tools will help to redirect public investment, and digital transitions. Green budgeting practices should consumption, and taxation to green priorities and away from be conducted ex ante to inform budget decisions, rather harmful subsidies (EC 2019). Grenada is a recent example of than ex post (see below). They should consider, identify, and a government, with World Bank support, currently developing tag activities and expenditures that have adverse climate and rolling out a climate budget tagging approach that will help EQUITABLE GROWTH, FINANCE & INSTITUTIONS INSIGHT <<< 44 impacts, not only those with a positive contribution. Policy Although there is a long tradition of cost-benefit analyses makers should set budget targets against which results based on monetary or economic terms, there is an should be measured and use results-based approaches in increasing tendency to include social and economic budgeting to show the achievements from a specified budged considerations in the pre-evaluation of investments. Ex allocation in terms of climate and environmental objectives ante environmental impact assessments (or environmental (OECD 2022). Specifically with respect to the ICT/digital pre-evaluations) are a specific tool of green budgeting whose sector, some countries focus green budgeting practices only goal is to measure ex ante the expected environmental on sectors or entities considered most relevant to climate benefits and costs of a given investment. For example, the change action, such as energy, transport, and water supply. EC’s Environmental Impact Assessment Directive, adopted The ICT/digital sector risks being overlooked, and it is therefore in 1985, ensures that environmental considerations are essential that there is sufficient awareness of the potential properly taken into account when project decisions are made (positive or adverse) climate impact of ICT and other digital (EC 2021). As another example, the government of Ethiopia, investments (see section 3.6) and that these investments are with the support of the World Bank, has recently developed included in the green budgeting exercise. a PIM guideline on mainstreaming climate and disaster risk in project planning and decision processes, and adopted a 3.5.2 Pre-evaluation of Climate and Disaster Risk Screening (CDRS) tool as a key Digital Investments instrument for project appraisal.71 The pre-evaluation of investments can contribute The pre-evaluation of investments, incorporating social to greening GovTech by explicitly considering the and environmental concerns, should become a standard environmental impact of ICT/digital government projects practice, including in the ICT/digital sector, at least for and ensuring coordination of green and digital policies. investments over a given budget threshold. The existence Across all sectors, the pre-evaluation of investments is a of a pre-evaluation mechanism for ICT/digital investments necessary step for ensuring that expected costs and benefits applicable to different sectors of government would facilitate of a given investment are considered during the planning alignment across investments on national development stage, and that necessary risk mitigation measures are objectives, including on the green transition. However, designed in advance. The pre-evaluation of investments is the lack of standard methodologies for these estimations also fundamental to avoid overlaps in investments, promote is currently a barrier, as calculating the expected impact of reuse, and ensure that relevant standards and guidelines are investments along social and environmental dimensions followed. For example, ICT investments can be pre-evaluated is a difficult exercise. For example, although most OECD to ensure that they follow interoperability standards and a countries (78 percent) have a methodology in place to cloud-first approach, or to encourage the reuse of data centers monitor or report the costs and benefits of business cases, or software across ministries. only 11 percent with a standardized model stated that those business cases must highlight social and financial gains Methodologies for ex ante measurement of benefits (OECD 2019a). As for all sectors, the pre-evaluation of and costs of ICT/digital government projects exist and investments can provide some estimations to guide policy- are considered a best practice for many countries, but making, but it is important to consider that these estimations globally, they are not yet used regularly or consistently are indicative, especially when the evidence base is limited, (OECD 2019a). In 2019, the use of standardized models/ there are data gaps, the impact of investments is driven by a methods to develop and present business cases for the myriad of different factors, and dimensions difficult to quantify ex ante measurement of the benefits and costs of digital (e.g., social and environmental) are taken into account. Still, government projects was compulsory for all ICT projects in some methodological advancements have been made, such 15 percent of OECD countries, and required only for ICT as the life-cycle cost approach for public procurement and projects that meet specific criteria (e.g., budget threshold) in other GPP policies (see Section 3.5.3). 39 percent (OECD 2019a).70 For example, in Portugal, ICT and digital projects with a budget of €10,000 or more must be pre-approved by the Administrative Modernization Agency, 3.5.3 Public Procurement which verifies compliance with guidelines and the non- GPP is “a process whereby public authorities seek duplication of efforts and compares the prices and budgets with to procure goods, services and works with a reduced previous projects in order to ensure the best value for money environmental impact throughout their life cycle when (VfM) (OECD 2021b). compared with goods, services and works with the same EQUITABLE GROWTH, FINANCE & INSTITUTIONS INSIGHT <<< 45 primary function that would otherwise be procured” (EC 2008). benefits that GPP can deliver in the domestic context, as well It is an important tool to promote the use of greener products as the likely challenges that will be faced in implementation. and services by public authorities to achieve environmental The uptake of GPP requires buy-in not only from procurers policy goals relating to pollution reduction, resource efficiency, but also the markets they buy from and the public they sustainable production and consumption, biodiversity loss, serve. Efforts to identify champions and raise awareness climate change, and disaster resilience. GPP is part of a across society can significantly accelerate the adoption of broader sustainable public procurement (SPP) agenda that green procurement. Effective communication campaigns addresses economic, social, and environmental concerns can help governments to design an implementation strategy (World Bank 2021f). Many governments have focused first that prioritizes the most promising opportunities for success, on building up technical knowledge and implementation avoids pitfalls, and scales up with experience. tools for ICT procurement but have missed the opportunity to communicate a compelling business case for GPP. Introducing An enabling framework provides the strategic direction GPP into the ICT procurement process can help countries and credibility needed to drive green purchasing at scale. reduce their environmental impact and GHG emissions while An enabling framework for GPP consists of laws, policies, promoting sustainable development. and internal regulations that set out a pathway for GPP implementation with a clear scope, priorities, and targets. Such Shifting procurement from a compliance-based process frameworks should be developed through wide consultations to a strategic function that delivers on environmental and and aligned with national priorities. They are most effective climate goals requires that authorities not only build up when backed by high-level and inter-ministerial political new technical knowledge but also commit to a change commitment and have support from GPP stakeholders across management process. This calls for understanding the the private sector, including NGOs and citizens. > > > B O X 1 1 - EC-Developed LCC Calculation Tools and Standardized EU GPP Criteria The EC developed five sector-specific LCC calculation tools aimed at facilitating consistent LCC calculations across member states on vending machines, imaging equipment, computers and monitors, and indoor and outdoor lighting. The EU Smart SPP Project developed a tool spreadsheet and user guide to calculate the life-cycle costs and CO2 emissions of energy-efficient technologies. The EC has developed standardized EU GPP Criteria for 21 product groups. The criteria, whose application is voluntary, include selection criteria, technical specifications, award criteria, and contract performance criteria. The guidance distinguishes core criteria, which focus on key environmental impacts with minimum administrative costs, from comprehensive criteria, which encompass a wider range of environmental impacts and higher standards. The product categories cover many ICT-related categories, including data centers, server rooms, cloud services, imaging equipment, consumables, print services and computers, monitors, tablets, and smartphones. EQUITABLE GROWTH, FINANCE & INSTITUTIONS INSIGHT <<< 46 SPP, also called “smart” or “strategic” procurement, is to ensure that participating bidders have the fundamental a core element of modern procurement systems. Closely technical capabilities, ethics, and management procedures related to GPP, SPP is defined as: “a process whereby public in place to deliver on the desired environmental outcome. organizations meet their needs for goods, services, works and Technical specifications prescribe core environmental criteria utilities in a way that achieves value for money on a whole that bidders must meet to satisfy the requirements of the tender life-cycle basis in terms of generating benefits not only to (e.g., minimum recycled content, bans on toxic chemicals). the organization, but also to society and the economy, whilst Award criteria can include more comprehensive (optional) significantly reducing negative impacts on the environment.”72 environmental criteria that encourage, challenge, and award SPP entails a range of modern approaches aimed at shifting bidders that propose solutions with improved environmental the procurement focus from lowest cost to achieving VfM. It performance (e.g., higher percentage of recycled content, uses the procurement function in a strategic way to achieve functional criteria that allow supplier innovation). Contract horizontal or secondary policy objectives linked to the three performance clauses can ensure that winning suppliers pillars of “sustainable development”: economic, environmental, deliver on the contract in an environmentally friendly way and social. The most common horizontal objectives of SPP and continuously improve their environmental performance systems are the promotion of sustainable green growth, the through the contract duration. development of small and medium-sized enterprises (SMEs) and women-owned businesses, innovation, standards for A common perception of GPP is that it is complex, responsible business conduct, and broader industrial policy requiring procurers to familiarize themselves with objectives (OECD 2019c). complicated environmental criteria and design tailor- made tenders for each ICT procurement need. In fact, GPP The life-cycle approach is an important concept to justify comprises a variety of procurement approaches that range the shift of the procurement focus from choosing lowest in complexity and scale. In countries where there are central cost tenders to achieving VfM. The purchase price of a procuring authorities, several options exist to reduce the good, service, or work represents only the proverbial tip of administrative and technical burden on individual contracting the iceberg of the total cost incurred by a purchaser over its authorities to buy green. Below is a list of procurement life cycle. The total cost of ownership (TCO) recognizes that approaches that governments can adopt to implement GPP purchases with a low initial price but high energy or water-use (World Bank 2021f). needs, maintenance requirements, and disposal costs can offer lower VfM. For example, the purchase price of a light • Needs assessment and stock management. Often the bulb is small compared to the cost of energy over its lifetime greenest option is not to buy at all. GPP in GovTech starts of use. Life-cycle costing (LCC) is another concept that goes with rethinking ICT procurement needs and exploring further than TCO by also considering the cost of environmental options to improve stock management, share and externalities that can be monetized (e.g., GHG emissions, repurpose supplies across units, and reduce unnecessary pollution fees) (World Bank 2021f). or surplus purchases. Such needs assessments can offer immediate and significant cost-savings, especially if Integrating environmental performance into technical coordinated from the central level. specifications can be seen as more of an art than a science. The right criteria will depend on the state of • Framework agreements. Central procurement bodies environmental technologies, local market realities, and scope (CPBs) have an important role to play in setting up of the tender. In selecting criteria for a tender, procurers framework agreements for commonly purchased green should keep in mind the need to select requirements that ICT goods and services. This reduces the administrative “push” the market toward greening while being achievable to burden on individual contracting authorities and makes it ensure a competitive response from bidders. Procurers will easy for procurers to gain experience in buying green. need to ensure that any criteria selected has a clear means for verification that is not overly burdensome to either the supplier • Green product lists and marketplaces. Governments or contract manager. can create lists or online databases of pre-approved green ICT goods, works, and services and make these available In general, procuring entities can integrate environmental to procurers across government. When created, online criteria at four stages of the procurement cycle, including monitoring of these green purchases and participating supplier selection, technical specifications, award criteria, authorities is simplified. and contract performance. Supplier selection criteria aim EQUITABLE GROWTH, FINANCE & INSTITUTIONS INSIGHT <<< 47 • Mandatory GPP requirements. Countries can set considerations and further highlight how GovTech can mandatory GPP requirements for priority spend categories, contribute to the green agenda. M&E is a continuous starting with the most important and realistic criteria, such management function to assess whether progress has been as Electronic Product Environmental Assessment Tool made in achiev¬ing expected results, to spot bottlenecks (EPEAT)-certified IT equipment. Doing so removes the in implementation, and to highlight whether there are any legal uncertainty and risk perceived by procurers, simplifies unintended effects (positive or negative), and it can refer to the design of green tenders for GovTech and ICT, and sets programs, projects, reforms, policies, or strategies.73 M&E a common practice for all contracting authorities. is necessary for project management, transparency, and accountability, as well as for building knowledge on which • Joint procurements. Joint procurements for ICT can be interventions work for a specific development objective and organized by CPBs or multiple government units that have therefore support the continuous improvement of the project common identified procurement needs. This approach design. M&E is also useful to generate evidence and data aggregates demand, improving the government’s ability on the realized impact of investments, and it is therefore a to negotiate lower prices and motivate suppliers to offer critical contributor to the continuous improvements and innovative solutions. refinements of the methodologies for the pre-evaluation of investments and, ultimately, to better decision-making in the • Product service systems. Contracting authorities can future (see Section 3.5.2). The quality of the M&E system is explore the potential to avoid outright purchases by renting one of the factors determining the success of an intervention, or leasing products or entering into service agreements. as demonstrated by Raimondo (2016) from an analysis of Doing so transfers purchase risks and maintenance and data from 1,300 World Bank projects evaluated between disposal costs to the suppliers and can be cost-effective. 2008 and 2014. From a whole-of-government perspective, This is an area of innovation, with many companies a comprehensive M&E system could also be an effective offering new state-of-the-art solutions in GovTech and ICT mechanism for improving policy coordination and coherence (e.g., energy service companies). across ministries and sectors, such as in the case of the green and digital transitions. • Innovation procurement. Governments can use public procurement as a tool to stimulate innovation in the Despite these benefits, the adoption of M&E systems and development of green GovTech and ICT goods, services, their quality vary across countries. For example, a report and works (e.g., competitive dialogues, design contests, from the Global Partnership for Effective Development Co- innovation partnerships, pre-commercial procurement). operation shows that only 35 percent of governments have This allows authorities to steer market innovation and data and systems to track implementation of national strategies research and development toward new solutions that (Global Partnership 2019). There are various challenges directly meet existing and emerging public needs. related to building an effective M&E system, which should include: the results framework and set of indicators, plans, When procuring ICT technology specifically, information and methods for data collection and analysis; a vision of how systems, such as core government systems and data and results will inform relevant decisions; coordination e-services that provide public service delivery adoption mechanisms across the appropriate actors; and strategies and change management, are important considerations. for communication and engagement with stakeholders. Procurement of new technology and existing technology Governments typically face challenges with respect to all upgrades will require clear functional and technical of these elements, in particular on institutionalizing and requirements, including change management. As noted above, coordinating M&E systems, aligning and coordinating them new technologies can have a leapfrogging effect and avoid across sectors, building internal staff capacity, defining the sunk costs, although adoption can be challenging, especially appropriate measurement framework, and using M&E data for in developing countries. decision making (Biscaye et al. 2015). As demonstrated by the GTMI 2022 indicators (Table 5), there are still gaps in data 3.5.4 Monitoring and Evaluation availability, quality, and integration for many countries, limiting An effective M&E system could be a useful tool to the construction of effective M&E systems. systematically combine GovTech with climate change EQUITABLE GROWTH, FINANCE & INSTITUTIONS INSIGHT <<< 48 > > > T A B L E 5 - Snapshot of Data Governance and Data Management Worldwide % of Countries Have a data quality framework (I-3.6) 31 Have an open data portal (I-29) 75 Have a dedicated government entity in charge of data governance or data management (I-34) 19 Is there an operational information system for the following: • Financial Management (I-5) 95 • Tax Management (I-7) 91 • Customs Management (I-8) 93 • Human Resource Management (I-9) 80 • Primary Management Information System / Pension Management Information System (I-11) 96 • e-Procurement Portal (I-12) 82 • Public Investment Management System (I-14) 35 Do the following exchange with other systems: • Financial Management Information System (I-5.13) 17 • Tax Management Information System (I-7.7) 21 • Customs Management Information System (I-8.8) 18 • Human Resource Management Information System (I-9.7) 18 • Primary Management Information System / Pension Management Information System (I-11.9) 20 • e-Procurement Portal (I-12.6) 18 • Public Investment Management System (I-14.6) 6 Source: World Bank GTMI at https://www.worldbank.org/en/programs/govtech/gtmi. Monitoring and evaluating the impact of GovTech on 2012). The most common GovTech interventions focus on climate change has additional specific challenges. The building the necessary legal and regulatory framework and first relates to the definition of the appropriate indicators the infrastructure for digitalizing government functions and and the availability of the necessary data. An M&E system services. Although it is straightforward to monitor the adoption for climate change adaptation or mitigation typically uses of policies and laws and the setup of e-Government systems, indicators on: risk reduction; policy and administrative the next step would be to monitor the take-up across ministries management; environmental education and training; and public entities at different levels of government. For research; and coordination (Lamhauge, Lanzi, and Agrawala example, the adoption of a GPP (see section 3.5.3) framework EQUITABLE GROWTH, FINANCE & INSTITUTIONS INSIGHT <<< 49 and the implementation of related capacity building do not support for enterprises to engage in more environmentally necessarily imply that contracting entities will start using GPP friendly actions.74 Green budgeting and green budget tools, and this aspect should be monitored separately (see tagging (see section 2.5.1) are also tools that help to create Box 12). As another example, the European Digital Economy the necessary data and information systems for monitoring and Society Index (DESI) includes an indicator on “ICT for the actual implementation of climate-related interventions, environmental sustainability” that measures ICT’s level of including GovTech. > > > B O X 1 2 - Green Public Procurement Indicators An increasing number of countries—36 percent in 2021—have adopted some sort of GPP institutional arrangement. However, many fewer countries currently monitor or report on the adoption of GPP approaches in their procurement operations. The widespread adoption of e-Procurement systems provides an opportunity to embed GPP indicators and thereby facilitate systematic data entry, collation, and reporting on GPP operations. The variety of GPP approaches complicates the definition of a global measurement framework. Nonetheless, the following is a list of relatively generic indicators that can be applied across different settings to monitor the take-up of GPP tools: • Indicators to identify green purchases, such as purchases that incorporate environmental considerations into award criteria and contracts with clauses that define sustainability standards; • Indicators to identify contracts with green suppliers, such as suppliers registered in certification programs and deemed responsible; • Indicators to identify purchases of green products, such as products with an ecolabel or certified as sustainable. Additionally, there is an increasing effort to measure the environmental impact of public procurement. Although this is methodologically challenging, standardized metrics have been developed to estimate the environmental impact of some product categories (such as computers and printers). These standardized metrics provide measures of CO2 emissions (or their equivalent) based on the exact product specifications, and they are becoming available for an increasingly large set of product categories. Source: World Bank (2021f). The second specific challenge relates to the difficulty events. These activities strengthen institutional capacity to in establishing definitive links between GovTech and manage climate change, but it would be difficult to measure environmental indicators, such as CO2 emissions. Although their direct contribution to the improvement of environmental for climate change adaptation and mitigation measures outcomes and reduction of CO2 emissions. This exercise (e.g., reforestation and construction of stormwater drainage could apply to specific GovTech interventions for which it is infrastructure in targeted areas) there are direct expected possible to map and measure all steps in a theory of change. environmental benefits, this might be less clear for GovTech For example, a World Bank–funded project in Bangladesh on interventions. For example, a GovTech action to address digital PFM (World Bank 2021a) provides estimates on the climate change and strengthen resilience might include the expected reductions in travel times and paper consumption creation of digital service centers to ensure continuity of associated with moving from paper-based to electronic public services in the event of climate-related shocks and the use of procurement, and therefore on the associated CO2 emissions data to enhance entities’ capacity to plan and respond to climate reductions (see sections 2.2.1 and 2.3.1 and Box 5). EQUITABLE GROWTH, FINANCE & INSTITUTIONS INSIGHT <<< 50 Key Takeaways • Green budgeting practices: are best conducted ex ante, should consider both the beneficial and the adverse climate impacts of investments, should be complemented with budget targets, and should be applied to all sectors. • The pre-evaluation of digital investments from an environmental perspective could become a more widely adopted practice if there were further advancements and developments in standard methodologies for estimations. • GPP of ICT and GovTech solutions does not have to be complex as there are a variety of procurement approaches. Options also exist to reduce the administrative and technical burden on contracting authorities. • Monitoring and evaluating the impact of GovTech on climate change requires data for the construction of relevant indicators and a precise theory of change to map and measure how GovTech interventions could have environmental consequences. 3.6 Green Digital Competencies This section outlines the importance of professionalizing a starting point, the OECD Recommendation on Public Service public officials in green digital competencies. It discusses Leadership and Capability (OECD 2019b, 28) gives insight on existing digital frameworks and the needed competencies how countries can ensure their public sector employees are and entry points to integrate green skills into the digital capable of carrying out the digital and green agendas. sector. Although this is a new topic, awareness of green digitalization has been at the forefront in recent years, as 3.6.2.1 ENABLING THE PUBLIC SECTOR TO BE workers increasingly appreciate the environmental impact of FIT FOR THE FUTURE their actions. The OECD Recommendation’s principles start with 3.6.1 Mainstreaming Green Digital Culture enabling public sector leadership to develop a value- across the Public Sector driven culture and responsive and adaptive public service systems. This includes incorporating green digital Training staff on greening digital skills involves competencies, data-driven decision making, and strategic enhancing their understanding of the potential benefits leadership to design a future public sector workforce that is and consequences of both action and inaction. Article environmentally conscious (OECD 2019b). The value added 11 of the Paris Agreement emphasizes that developing is a workforce that is resilient to changes in technology and countries and small island states, particularly those with low adaptive to innovation and sustainability in the global market. capacity, should have access to climate finance for education, training, and public awareness on the adverse effects of 3.6.2.2 TRAINING IN GREEN DIGITAL SKILLS AND climate change. Capacity building should be country-driven INTERNATIONAL ALLIANCES and respond to national, subnational, and local needs. A collaboration with developed countries is essential to enhance Training in green digital competencies can facilitate a support for capacity building actions in developing countries successful implementation. Training should highlight the with the initiatives included in the appropriate institutional importance of green digital competencies and the benefits arrangements under the Convention that serves the Paris and added value of having international alliances. The Agreement (UN 2015). OECD Framework for digital capacity in the public sector provides five layers of skills that are required to support digital 3.6.2 Key Priorities for the Public Sector to government maturity and can be adapted to incorporate a Secure Green Digital Talent green or environmentally friendly component in a framework There is no one path to engaging green digital talent, for future training programs (OECD 2020). No matter the role though the local culture should be taken into account. As or position, these can be a priority for governments: EQUITABLE GROWTH, FINANCE & INSTITUTIONS INSIGHT <<< 51 1. The starting point is a baseline for 21st century skills training plan as well as a training campaign for digital service in society center operators. 2. Digital government user skills 3. Digital government socio-emotional skills 3.6.2.3 TARGETED GREEN DIGITAL SKILLS, 4. Digital government professional skills CREATING AN AWARENESS FOR STAFF 5. Digital government leadership skills The EC’s DIGIT team stated that out of the 13,000 skills These priorities can help to develop a core understanding represented in their skills classification, environmentally of green digital thinking and practice throughout all levels conscious digital competencies are included in computing of the public sector (OECD 2020). Over time, individuals will skills and green digital services. The team mentioned that learn the skills needed to thrive in the green digital age. While some agricultural departments in the EU have targeted digital prioritizing capacity building, there should be ongoing efforts green skills, especially in water scarcity, ensuring that national to continuously upskill to ensure that employees remain fully policies are in line with the EU’s. To contribute to awareness equipped over the long term. As an example, in Argentina, the and knowledge sharing they have conducted staff trainings government’s plan is to share knowledge on digital skills and on reducing digital waste. The team also mentioned that lessons learned to gain experience on the implementation of employees are reminded to switch off lights and avoid printing digital systems and e-Services at the national and subnational and to use emails, messages, and video calls as necessary. levels. To strengthen the existing digital infrastructure, Seeing these reminders and taking action contribute to the government of Argentina plans to implement a federal emission reduction in a substantial way.75 > > > B O X 1 3 - United States and Canada Launch GGI In April 2021, the United States and Canada launched, as a global effort, the Greening Government Initiative (GGI) to engage and support governments around the world in greening national government operations. The objective of this international community of practice is to enable countries to share knowledge and lessons learned, promote innovation, and support the greening goals underway to help countries meet their Paris Agreement commitments. The collaborative effort includes bilateral work to leverage shared purchasing power to drive government operations to net-zero GHG emissions and increase the climate resilience of fixed assets. Both countries agreed to work together to identify a pathway to net-zero supply chains for buildings (renewable energy, concrete, steel), and fleets (zero-emission vehicles and clean fuels). Source: Greening Government Initiative at https://www.sustainability.gov/ggi/; and White House, “The Governments of the United States and Canada Announce New Greening Government Initiative,” Press Release, April 22, 2021. EQUITABLE GROWTH, FINANCE & INSTITUTIONS INSIGHT <<< 52 In line with the green digital agenda, the EC has developed • Good practice guidance, such as style guides, rights and principles for the digital decade to help member service manuals, and other documentation, on green states and companies to deal with new technologies. digital practices The green agenda promotes digital devices that can support sustainability and a green transition, raising awareness of • How to access capacity in terms of green talent and the impacts their devices have on energy consumption and skills to address recruitment, retention, training, and the environment. The Commission, through a governance working with the private sector. Including these skills in the framework, will work with member states to develop job descriptions and in training programs helps to develop objectives and targets for Europe’s digital transformation. an awareness of the new normal for staff. Trajectories for each target and a national strategic roadmap will also be developed. For these changes to take place at • A focus on green digital inclusion, prioritizing green the national and EU levels, a long-term plan of action and digital literacy, connectivity, and accessibility to ensure investments must be in place.76 Raising awareness on the that green digital government does not worsen any use of digital devices and equipment, studying how it impacts digital divides. the environment and documenting these in long term plans and strategies can aid development of future best practices of • Data-driven public sector approaches, in line with green digital competencies. the recommendations of the OECD’s framework (OECD 2020). 3.6.3 Enablers to Build Green Digital Competencies Although different countries are at different levels of digital maturity, especially in the greening digital competencies One of the greatest challenges to a green digital initiative, reaching a universal standard for green digital government is maintaining support between political literacy should be a policy priority distinct from the specific cycles. Most importantly, is embedding a deep understanding challenges of digital government. In many countries where of green GovTech among all those involved in policy and service private sector advantages and competition are strong, the design and delivery, regardless of their role. Standards should public sector struggles to attract and retain employees with be developed that emphasize capacity, talent, and skills, as these specific technical skills (World Bank 2022d). well as staff incentives to gain knowledge. The following are some guiding steps (OECD 2020). > > > B O X 1 4 - Sweden: Investigating Long-Term Strategies for Reducing Greenhouse Gas Emissions In January 2020, the Swedish government tasked the Swedish Environmental Protection Agency with investigating the possibility of incorporating Article 12 of the Paris Agreement into the country’s long-term strategies for reducing GHG emissions. Article 12 states “Parties shall cooperate in taking measures, as appropriate, to enhance climate change education, training, public awareness, public participation and public access to information, recognizing the importance of these steps with respect to enhancing actions under this Agreement.” The Agency has reported recommendations to the government on how the work on Article 12 can be strengthened and contribute to the achievement of national climate goals, an objective in which government authorities, civil organizations, and higher education institutions play an important role. Source: Sweden, Government of, “Sweden’s Long-Term Strategy for Reducing Greenhouse Gas Emissions” (Stockholm: Ministry of the Environment, 2020), https://unfccc.int/sites/default/files/resource/LTS1_Sweden.pdf. EQUITABLE GROWTH, FINANCE & INSTITUTIONS INSIGHT <<< 53 To reduce the expected employment challenges, professionalize staff to green digital skills, those lacking these incentives and awards should be included in the technical skills can feel pressured and opt out.77 competencies and selection criteria for jobs advertised. Green digital knowledge should also be a core element of the 3.6.4 Green Digital Leadership: The Public skills of public officials, regardless of their role in government. Sector and the Role of Stakeholders In many developing countries, the public sector workforce, Digital transformation, especially one that is particularly outside of the Office of the Chief Information environmentally conscious, is not the role of IT Officer, staff is not expected to have a strong understanding departments. It requires a multifaceted approach that goes of basic digital government. In those circumstances, private beyond the digitalization of government.78 As mentioned sector training in green digital skills will add value and should in section 3.3 on Institutional Leadership and Coordination, be a government priority. the main drivers in achieving and maintaining sustainable GovTech are political will and organizational and societal There are challenges that prevent modernization of public leadership. Although governments are at different stages of sector infrastructure like firstly, the lack of aligned incentives green maturity, an awareness of future green digital fluency as different parts of the public sector have differing values and and digital mindfulness tied to environmental goals should missions. Secondly, an aversion to risk and change, especially be communicated to ensure alignment across all levels since infrastructure modernization and professionalizing of government. skills can be complicated. Even if the decision is made to > > > B O X 1 5 - Green Digital Leadership The Moroccan Greening Government Program The Moroccan National Sustainable Development Strategy (NSDS) sets out 31 policy actions. The Strategy underscores a proactive policy for sustainable government operations supported at the highest levels, the important role of a dedicated agency, and shared lessons learned on financing this work. According to the Strategy, Morocco’s government needs to hire people who are aware of the new environmental policy changes and standards. In addition, environmental requirements and the promotion of sustainable development should be included in staff training. Finally, the results should be monitored and measured using indicators. Source: “National Sustainable Development Strategy (NSDS),” eng-sndd_resume executif-v24-d (1).pdf. French Digital Directorate (DINSIC) In France, the public service realized that senior leaders attended only short trainings on digital government that were superficial in nature, creating a challenge to promoting GovTech. The French Digital Directorate (DINSIC) stepped in and established a coaching program for senior leaders from digital professionals. This coaching helped senior managers to overcome traditional notions of public service leadership based on legal compliance or process management and to embrace and lead the digital transformation. Source: OECD, “The Future of Work in the Public Service: Preparing the Workforce for Change in a Context of Uncertainty,” Working Party on Public Employment and Management (Paris: Public Governance Directorate, 2020), https://www.oecd.org/gov/budgeting/ preparing-the-workforce-for-change-in-a-context-of-uncertainty.pdf. EQUITABLE GROWTH, FINANCE & INSTITUTIONS INSIGHT <<< 54 EC Volunteer Initiative As part of its corporate social responsibility measures, the EC is developing several initiatives to help groups of volunteers to include social activities alongside environmental ones and to introduce purely “green volunteering” actions as part of the “Volunteer for a Green Change” program. Source: EC (2022c). Mint: The Private Sector The firm Mint works with government entities to empower their staff to create change. Governments are increasingly realizing the importance of ensuring that their employees are digitally empowered to enable transformation. Mint has been implementing change management in the financial services industry to help full service providers to unlock the full potential of their people and technology. Through the Office 365 Enablement Offering, Mint aims to empower public sector organizations to deliver transformative client engagement experiences and services by ensuring that staff have the right technologies available that match their skills, coupled with the drive and focus to apply these systems for success. Source: https://us.mintgroup.net/solutions/public-sector/empower-your-staff-with-o365/ Key Takeaways • An investment in civil servants’ capabilities is needed to transform the public sector. • Capacity building should be country-driven and respond to national, subnational, and local needs. • Identifying green digital skills and competencies that deliver value to society and the environment must be continuously reviewed across political cycles. • By reviewing and updating the skills requirements at all levels of government while keeping pace with changing technology needs and environmental demands, the public sector can attract and retain employees with the required competencies (OECD 2019b). EQUITABLE GROWTH, FINANCE & INSTITUTIONS INSIGHT <<< 55 4. >>> Conclusion Today across the globe, government efforts to go digital and go green are currently widespread, but these policy actions frequently happen in parallel, missing the opportunity to align the two. Most countries now prioritize the digital transformation of their public sectors, and the 2022 GTMI79 demonstrates this increasing trend. Nevertheless, an effective link between GovTech policies and climate change mitigation and adaptation is frequently still missing, even in highly developed countries. Considering the climate emergency underway, the increasingly omnipresent nature of digital technologies, and the fundamental influence of government in economies and societies, a policy alignment of the digital and green agendas—the greening of GovTech—should be a critical priority for all sectors and levels of government. Building on the work developed government and nongovernment stakeholders, this guidance note provides guidance on green GovTech policy approaches to help promote a sustainable, inclusive, and resilient public sector transformation. The note provides information and guidance on how governments can address the climate emergency when designing and implementing the digitalization of their public sectors. It also describes how the transformation of government through digital technologies and data can contribute to the cross- cutting policy effort toward net-zero carbon emissions. EQUITABLE GROWTH, FINANCE & INSTITUTIONS INSIGHT <<< 56 The note provides recommendations for solutions The note provides additional recommendation for to green the fabrics of government through digitally approaches and tools needed to secure green GovTech transformed processes and services. The contribution policies across different sectors and levels of government of an increasingly paperless, connected, and data-driven (see Figure 10). A whole-of-government approach is critical, administration is demonstrated, showing that the digital including an explicit policy strategy, committed institutional benefits of “doing more with less” can also help to reduce the leadership, and extensive inter-agency coordination. Policy public sector’s carbon footprint. In other words, the delivery of levers, such as budgeting, procurement, and monitoring, digitally integrated and omnichannel services can contribute are important mechanisms to enforce the greening GovTech to a greener administration, generating carbon savings on the policies in a coherent and sustainable way. Regular updates part of both the government and individual citizens. GovTech of the legal and regulatory frameworks will also be required, policies can also decisively make public sectors more resilient as will the existence of a widespread green digital culture and to natural disasters and other emergencies generated by sufficient staff competencies in these areas. climate change, creating redundancies, for instance, for data saving and service delivery. > > > F I G U R E 1 0 - Institutional Leadership and Coordination for Green and Digital Government Government Processes Strategy Paperless Administration Smart Synergized Public Sector Green Digital Solutions Leadership and Coordination Public Service Delivery Omnichannel Service Delivery HOW? Legal and Regulatory Governing the Framework Integrated Service Delivery Transformation Risks and Resilience Policy Levers Resilience to Weather Transformation Data Recovery and Redundancy Culture and Competencies Critical Digital Services Source: Authors. Considering the high demand from World Bank teams and clients for structured experience and knowledge on green GovTech, a second volume of the guidance note is planned. Based on a literature review, analysis of the World Bank database of GovTech projects, interviews with numerous stakeholders, and data analysis, this continuation of the greening GovTech work will complement the current analysis to better illustrate the implementation and management of the public sector’s green digital transformation. The focus will be three country case studies that illustrate some of the innovative practices currently in use, sharing knowledge and implementation-oriented insights. Particular attention will be paid to digitally advanced countries to determine if their existing practices can be spread globally, and if other World Bank client countries can replicate them. The selection of the three case studies will be based on their relevance and impact, innovative outreach, and also scalability and replicability in different contexts. EQUITABLE GROWTH, FINANCE & INSTITUTIONS INSIGHT <<< 57 The second volume will also explore how to measure the dissemination of good digital behavior practices in the public green dimensions of GovTech solutions and GovTech’s sector requires further consideration. Also to be explored is the contribution to a greener future, further developing creation of “how-to-notes” that can provide detailed guidance the topic of how to quantify the benefits. Identifying the on implementing specific green GovTech initiatives. This impacts of GovTech policies and solutions on the fight possible future work will be considered based on the demand against climate change is critical to sound policy coordination from senior GovTech officials in client countries, as well as and implementation. At the same time, it is one of the more from the Bank’s TTLs involved in GovTech activities. challenging tasks countries currently face, since data on the effective economic and social impacts of public sector As the digital transformation accelerates and the climate digitalization are still far from reaching the proper maturity. emergency poses severe threats to economies and GovTech policy makers and practitioners can easily plan societies across the globe, the importance of greening outputs, but identifying the outcomes—and particularly the GovTech policies also increases. Building on the diversity of impacts—of GovTech policies requires further research. GovTech stakeholders and bearing in mind that each country Building on the World Bank work on calculating climate will need to develop its own approach, governments should change co-benefits, the next volume will also add to the prioritize policies that can properly connect and synergize the practical knowledge on how to measure the benefits and risks most important objectives of today: going digital and going of GovTech as they relate to climate change. green. This policy note, “Greening Public Administration with GovTech,” in this current volume and the forthcoming More practical guidance on greening GovTech should also one, significantly contributes to these goals by providing be explored in future work. For instance, public servants are knowledge, frameworks, and practical examples on how to frequently reminded to switch off lights and reduce printing, structure policy action for efficient, inclusive, and coherent but other digital behaviors, such as emails or video calls, might green digital public sectors. be adding to emissions production. The identification and EQUITABLE GROWTH, FINANCE & INSTITUTIONS INSIGHT <<< 58 >>> Notes 1. Estimates vary online due to differences in assumptions and data sources. See Ekholm (2019). 2. Article 10 of the Paris Agreement includes several points critical role of technologies for climate change mitigation and adaptation. See UN (2015). 3. Thales, “Digital Dividends: The Positive Effects of Digital Identity” (Paris: Thales, 2021). 4. M. A. Tomovska, “The Future of Government: Serbia’s Growing Bet on Digital Transformation Pays Off,” Governance for Development (blog), November 23, 2021. 5. E. Labram and W. Pearson, “Measuring the Climate Impact of Our Digital Services at GDS,” Government Digital Service (blog), October 3, 2019. 6. The World Bank (2022d) defines the whole-of government approach as when a government utilizes a range of structural and organizational incentives to improve coordination across administrative boundaries to achieve an integrated response to the uptake of GovTech solutions or any other policies. 7. S. Muench and others, Towards a Green and Digital future: Key Requirements for Successful Twin Transitions in the European Union, Joint Research Centre (Brussels: European Union, 2022), https://joint-research-centre.ec.europa.eu/jrc-news/twin-green- digital-transition-how-sustainable-digital-technologies-could-enable-carbon-neutral- eu-2022-06-29_en. 8. See https://ec.europa.eu/info/business-economy-euro/recovery-coronavirus/recovery- and-resilience-facility_en. 9. Although resilience to weather transformation is fundamental, other phenomenon also require resilience, such as wars (e.g., Russia-Ukraine) or health-related disasters (e.g., COVID 19). 10. Initiatives, such as the European Green Digital Coalition (EGDC), aim to capture the emissions-reducing potential of digital solutions in all sectors of the economy. Pilots are underway to estimate both the reduction in GHG emissions and the direct footprint of digital technologies. EQUITABLE GROWTH, FINANCE & INSTITUTIONS INSIGHT <<< 59 11. See World Bank, “Service Upgrade: The GovTech Approach to Citizen Centered Services” (Washington, DC: World Bank, 2022g); World Bank, “GovTech: The New Frontier in Digital Government Transformation” (Washington DC: World Bank 2020a), and section 1.4 of this paper. 12. As discussed during the authors’ consultation with the EC, the reduction of paper consumption at more advanced stages of the digitalization process can be explained by two effects: a) reduced printing needs of integrated and interoperable IT systems and b) improved and innovative printer management. 13. Tomovska, 2021. “The Future of Government: Serbia’s Growing Bet on Digital Transformation Pays Off.” 14. Inputs shared by the World Bank procurement team in Bangladesh. 15. For a more detailed analysis of energy consumption in the ICT sector, see, for example, S. Lange, J. Pohl, and T. Santarius, “Digitalization and Energy Consumption. Does ICT Reduce Energy Demand?” Ecological Economics 176 (2020); and World Bank, “Catalyzing the Green Digital Transition” (Washington, DC: World Bank, 2022). 16. World Bank, “Interoperability: Towards a Data-Driven Public Sector. Equitable Growth, Finance and Institutions Insight – Governance.”, 2022 17. For details on GovTech and mobile government, World Bank. “Mobile Government How- To Note” (Washington, DC: World Bank, 2023). 18. J. Timperley, “Will Working from Home Help the Environment?” BBC Science Focus Magazine, February 4, 2022. 19. D. Crow and A. Millot, “Working from Home Can Save Energy and Reduce Emissions. But How Much?” International Energy Agency, June 12, 2020. 20. H. von der Burchard, “European Commission to Close Half of its Buildings as Telework is ‘New Norm’” POLITICO, May 25, 2021. 21. “Public Service Workers to Benefit from Remote Working from October 1,” Times of Malta, July 15, 2021; and Malta, Government of, “Remote Working: Policy and Guidelines on Its Implementation” (Valleta: Office of the Prime Minister, 2021). https://publicservicecms.gov. mt/en/Documents/Public Service Management Code/Remote_Working_Policy.pdf 22. See worst case scenario by Andrae and Edler (2015) and Monnin (2019). For a comprehensive discussion of the issue, see also: World Bank, “Catalyzing the Green Digital Transition” (Washington, DC: World Bank, 2022). 23. Examples are Andrae and Edler (2015); and S. Lange and T. Santarius, Smart Green World?: Making Digitalization Work for Sustainability (Milton Park, UK: Routledge, 2018). 24. World Bank (2022a). 25. Monnin (2019); and L. Belkhir and A. Elmeligli, “Assessing ICT Global Emissions Footprint: Trends till 2040 & Recommendations,” Journal of Cleaner Production 177 (2018): 448–63. EQUITABLE GROWTH, FINANCE & INSTITUTIONS INSIGHT <<< 60 26. World Bank (2022a). 27. Ibid. 28. For a comprehensive and more detailed review and analysis of the energy/electricity consumption and GHG emissions of the entire ICT sector, see World Bank (2022a). 29. United Kingdom, Government of, “Greening Government: ICT Strategy” (London: Government of the United Kingdom, 2020); and Germany, Government of, “Green- IT-Initiative des Bundes (Federal Green IT Initiative)” (Berlin: Federal Ministry for the Environment, Nature Conservation, Nuclear Safety and Consumer Protection, 2021). 30. World Bank (2022a); World Bank (2022b); Forschungsverbund Nachhaltige Rechenzentren Baden-Württemberg, “Nachhaltige Rechenzentren Leitfaden (Sustainable Data Centers Guidelines),” 2020; and BMUV, “Blauer Engel, Energieeffizienter Rechenzentrumsbetrieb (Energy Efficient Data Center Operations),” 2019. 31. IT Planungsrat, “Green IT Strategie des IT-Planungsrates,” 2022; and Bundesregierung, “Koalitionsvertrag zwischen SPD, Buendnis 90/Die Gruenen und FDP (Coalition Agreement 2021–2025 between the SPD Bündnis 90/DIE Grünen and FDP),” 2022. 32. See the Green Data Centres Practice Guide V1.0 (beamsociety.org.hk). 33. For more details on cloud computing, see also World Bank (World Bank 2023b). 34. Microsoft and WSP, “The Carbon Benefits of Cloud Computing” (Seattle, WA: Microsoft Corporation, 2020). 35. A comprehensive overview of green public procurement is provided by World Bank (2021f). 36. Procurement of energy-efficient IT hardware is often an important element in public and private sector green IT initiatives, such as in the example of the German Federal Administration in Box 3 above. 37. S. Podder, “Why We’re on the Cusp of a New Era of Carbon-Efficient Software,” LinkedIn, February 17, 2022; and S. Podder and others, “How Green Is Your Software?” Harvard Business Review, September 18, 2020. 38. More info can be found on the Green Software Foundation website: Green Software Foundation | GSF. 39. “Dark Data,” Gartner, https://www.gartner.com/en/information-technology/glossary/dark- data; and “Dark Data,” Wikipedia. 40. A. Tan, “Dark Data is Contributing to Carbon Emissions,” Computer Weekly, April 24, 2020. 41. Sustainable Development Goal 13 aims to “Integrate climate change measures into national policies, strategies and planning,” measured by indicator 13.2.2, Total greenhouse gas emissions per year. Additional information available at: https://unstats.un.org/sdgs/me tadata/?Text=&Goal=13&Target=. EQUITABLE GROWTH, FINANCE & INSTITUTIONS INSIGHT <<< 61 42. Sustainable Development Goal 16.6 aims to “develop effective, accountable and transparent institutions at all levels,” measured by indicator 16.6.2, the “proportion of the population satisfied with their last experience of public services.” Additional information available here: https://unstats.un.org/sdgs/metadata/?Text=&Goal=16#:~:text=Goal%20 16.,inclusive%20institutions%20at%20all%20levels. 43. The four stages of service modernization are Rationalization, Reengineering, Digitization, and Delivery. The four stages are underpinned by several cross-cutting activities: coordination and project management, mainstreaming citizen engagement and feedback, monitoring and control, and communication and training. See World Bank (2021g). 44. According to the Wikipedia, “Greenwashing (..) is a form of advertising or marketing spin in which green PR and green marketing are deceptively used to persuade the public that an organization’s products, aims and policies are environmentally friendly. Companies that intentionally take up greenwashing communication strategies often do so in order to distance themselves from the environmental lapses of themselves or their suppliers.” See https://en.wikipedia.org/wiki/Greenwashing. 45. The use of online services is supported by a mediator who helps the citizen to handle a service. This kind of service provision is frequently found in public internet access spaces where citizens can use the available computers connected to the internet to ask for a certificate or to submit their tax declaration, with the proper support of a technician that guides them step by step. 46. Since the development of a clear and consistent methodology on the impact of greening public digital services is still underway, the presented calculations should be considered an example and should not be understood as an official World Bank methodology or that of any Global Program on this topic. 47. The tentative methodological approach presented will be further explored in upcoming greening GovTech analytical work. A future piece on monitoring the greening of GovTech will focus on models for calculating the impact of omnichannel service delivery. 48. As mentioned in the Introduction of this policy note, the rebound effect of digitalization of services should not be minimized in the current analysis. Although integrated service delivery leads to substantial efficiency per service delivery, the gains in efficiency can be outweighed by the increase in consumption due to new public digital services made available. See Santarius (2017). 49. World Bank (2021h). 50. According to the 2021 GTMI at https://www.worldbank.org/en/programs/govtech/gtmi. 51. See the GTMI webpage at https://www.worldbank.org/en/programs/govtech/gtmi. 52. See https://www.gov.scot/policies/digital/. 53. S. Sikkut, Digital Government Excellence: Lessons from Effective Digital Leaders (New York: John Wiley and Sons, 2022), 226–27. EQUITABLE GROWTH, FINANCE & INSTITUTIONS INSIGHT <<< 62 54. Denmark, Government of, “Green Procurement for a Green Future - Strategy for Green Public Procurement” (Copenhagen: Ministry of Finance, 2020), https://oes.dk/media/39012/strategi-for-groenne-indkoeb-engelsk.pdf. 55. NDCs are specific targets set by countries (or parties) to the Paris Agreement to mitigate GHG emissions and adapt to climate change impacts. 56. See the GTMI at https://www.worldbank.org/en/programs/govtech/gtmi. 57. Ibid. 58. Australia’s NDC. Available at: https://unfccc.int/sites/default/files/NDC/2022-06/ Australias%20NDC%20June%202022%20Update%20%283%29.pdf 59. See the GTMI at https://www.worldbank.org/en/programs/govtech/gtmi. 60. Brazil’s NDC. Available at: https://unfccc.int/sites/default/files/NDC/2022-06/Updated%20 -%20First%20NDC%20-%20%20FINAL%20-%20PDF.pdf 61. Nigeria’s NDC. Available at: https://unfccc.int/sites/default/files/NDC/2022-06/NDC_ File%20Amended%20_11222.pdf 62. Pakistan’s NDC. Available at: https://unfccc.int/sites/default/files/NDC/2022-06/ Pakistan%20Updated%20NDC%202021.pdf 63. This information was shared through a bilateral meeting between the Greening GovTech team and DIGIT at the EC. Its positions are available at https://op.europa.eu/en/web/who- is-who/organization/-/organization/DIGIT. 64. EC, “Public Procurement,” https://single-market-economy.ec.europa.eu/single-market/ public-procurement_en. 65. EC, “European Data Governance Act,” https://digital-strategy.ec.europa.eu/en/policies/ data-governance-act. 66. A budget is “a comprehensive statement of government financial plans which include expenditures, revenues, deficit or surplus and financing. The budget is the government’s main economic policy document, demonstrating how the government plans to use public resources to meet policy goals” (OECD 2018). 67. “Green budgeting” means using the tools of budgetary policy making to help achieve climate and environmental goals. Green budgeting provides policy makers with a clearer understanding of the environmental and climate impacts of budgeting choices, with the objective of better aligning budgetary policies to environmental goals (OECD 2021d). The implementation of green budgeting involves having national climate change and environmental strategies, budgeting tools such as green budget tagging, the use of green budget statements to inform relevant stakeholders, and a modern budget framework linking strategic planning and budgeting (OECD 2021c). 68. The law (Ley de Presupuestos Mínimos de Adaptación y Mitigación al Cambio Climático Global) is available at: https://www.boletinoficial.gob.ar/detalleAviso/ primera/224006/20191220. EQUITABLE GROWTH, FINANCE & INSTITUTIONS INSIGHT <<< 63 69. France is currently the only country to tag expenditures on activities that have an adverse impact on the environment (World Bank 2021c). 70. A budget threshold is a management tool to streamline internal procedures, for example, setting fast-track procedures for implementing investments under a certain limit for ICT/ digital investments and thus boosting agility in implementing a digital government strategy (OECD 2021b). 71. The World Bank provided technical assistance to the Ethiopian Government with a series of PIM guidelines to implement the Public Project Administration and Management System Proclamation. The Proclamation obliges every project to use the tool and obtain approval from the Planning and Development Commission prior to submitting budget proposals to the Ministry of Finance during the annual budget process. It is expected that the impact of the PIM guidelines will cascades on all projects, from concept notes to feasibility studies, to appraisal processes. Further support to the implementation of the CDRS will be provided through (i) the MDTF project for Ethiopia Governance Advisory Support on PIM and IFRS (P179405) and (ii) ENB climate TA on Climate Resilient Green Economy (CRGE) Strategy and Facility (P171116). 72. Definition adopted by the Marrakech Task Force on Sustainable Public Procurement led by Switzerland (membership includes Switzerland, United States, United Kingdom, Norway, Philippines, Argentina, Ghana, Mexico, China, Czech Republic, State of Sao Paolo [Brazil], United Nations Environment Programme [UNEP], International Institute for Sustainable Development, International Labor Organization, EC [DG-Environment], and the International Council for Local Environmental Initiatives [ICLEI]) in the context of the Marrakech Process on Sustainable Production and Consumption led by the UNEP and UN Department of Economic and Social Affairs. Note, however, that this definition has raised recent critiques for focusing on “impact mitigation” and “reduction of negative impacts” while inherently supporting an expanding and harmful model of economic growth. 73. See Food and Agriculture Organization, “Monitoring and Evaluation for Learning and Performance Improvement,” https://www.fao.org/investment-learning-platform/themes- and-tasks/monitoring-and-evaluation/en/. 74. The indicator measures the number of environmental actions (maximum 10) reported by enterprises to have been facilitated using ICT. See “Digital Economy and Society Index (DESI),” https://digital-strategy.ec.europa.eu/en/policies/desi. 75. Bilateral peer consultation held on September 21, 2022 with Aldo Laudi and Silvia Corrado at DIGIT, EC. 76. EC, “Towards a Green, Digital and Resilient Economy: Our European Growth Model,” https:// ec.europa.eu/commission/presscorner/detail/en/ip_22_1467; and EC, “Europe’s Digital Decade: Digital Targets for 2030,” https://ec.europa.eu/info/strategy/priorities-2019-2024/ europe-fit-digital-age/europes-digital-decade-digital-targets-2030_en. 77. Capturing value from IT infrastructure modernization in the public sector. By Arnab Das, Ankur Ghia, Mike Joyce, and David Zhang. November 20,2019. McKinsey and Company. EQUITABLE GROWTH, FINANCE & INSTITUTIONS INSIGHT <<< 64 78. OECD, “The Future of Work in the Public Service: Preparing the Workforce for Change in a Context of Uncertainty,” Working Party on Public Employment and Management (Paris: Public Governance Directorate, 2020), https://www.oecd.org/gov/budgeting/preparing- the-workforce-for-change-in-a-context-of-uncertainty.pdf. 79. 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Forthcoming(b). “Digital Development and Climate Change.” World Bank, Washington, DC. EQUITABLE GROWTH, FINANCE & INSTITUTIONS INSIGHT <<< 72 >>> Annex 1. Definitions EQUITABLE GROWTH, FINANCE & INSTITUTIONS INSIGHT <<< 73 Adaptation and Resilience – Adjustments to ecological or Greenhacking the bureaucracy – Development of innovative socioeconomic systems in response to actual or expected and disruptive GovTech prototypes to address clime change climate change and its effects on human and natural systems, challenges, as well as finding new ways in bureaucracy to including steps to achieve climate change benefits. develop environmentally responsible GovTech solutions envisaging large impact with modest investments and changes Digitalization – The process of moving to a digital business in behavior. by transforming processes which leverage digital technologies making them more effective and efficient. Greenwashing – A form of advertising or marketing in which green public relations and green marketing are deceptively Digitization – Process which describes the analog-to-digital used to persuade the public that an organization’s products, conversion of existing data and documents. aims, or policies are environmentally friendly. Companies that intentionally take up greenwashing communication Decarbonization – Process of reducing net GHG emissions strategies often do so to distance themselves from their to zero. It is increasingly used in place of mitigation, the own environmental lapses or those of their suppliers term that appears in the Paris Agreement and many national (see https://en.wikipedia.org/wiki/Greenwashing). climate change strategies, because it better captures the key policy objective. Decarbonization requires more fundamental Multichannel service delivery – An approach in which the structural changes in economic activity along four fronts: administration provides services to citizens using different decarbonization of energy sources; electrification; increased channels, such as face-to-face, telephone, online portal, energy efficiency; and preservation and increased use of mobile apps, or SMS. In this system, the processes in the natural carbon sinks for carbon dioxide removal. different channels are not properly connected and typically do not benefit from a common user experience. This approach GovTech – In a whole-of-government approach, GovTech is often observed when public sector digitalization has been emphasizes three aspects of public sector modernization: prioritized but not in a fully coherent way. citizen-centric public services that are universally accessible, digital government transformation, and simple, efficient, and Omnichannel service delivery – An approach in which the transparent government systems (World Bank 2020a). user benefits from several possible channels of public service provision, such as face-to-face, telephone, online portal, GovTech whole-of-government approach – When a mobile apps, or SMS, which are all properly integrated and government utilizes a range of structural and organizational offer a common user experience. This allows the user to incentives to improve coordination across administrative navigate seamlessly between the different channels in the boundaries to achieve an integrated response to the uptake different stages of service delivery, thus benefiting from high- of GovTech or any other desired polices (World Bank 2020a). quality delivery. This approach is typically observed in mature stages of GovTech development. Green GovTech – GovTech policies, initiatives, or solutions that embrace environmental considerations by design. It Unichannel service delivery – The experience of user considers and addresses the environmental impacts of benefits from one or very few channels of interaction with GovTech, including negative pollution/waste, biodiversity loss, the public sector, such as face-to-face encounters and/or and climate change. conventional mail. This approach is typically used before public sectors become digitized. EQUITABLE GROWTH, FINANCE & INSTITUTIONS INSIGHT <<< 74 Supported by the GovTech Global Partnership - www.worldbank.org/govtech