Twin Transition

adelphi (2022) - Unfolding in parallel, digitalisation and decarbonisation bring about substantive and often disruptive changes across societies. A variety of economic, social and political factors will influence these transitions in key sectors such as energy, industry, transportation, buildings or agriculture and biodiversity protection – all crucial to inclusive, climate responsive development. In the course of this twin transition, it is important to avoid trade-offs and lost opportunities for transformation. Development cooperation has significant levers to make digitalisation trends climate-compatible and fully use digital trends to advance climate action. The Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) is actively scoping its portfolio for good practice to build on and for entry points to enable and accelerate mutually beneficial twin transitions in its partner countries.

On behalf of GIZ, adelphi wrote a study on the interface of digitalisation and climate action in the context of development cooperation. The analysis is based on a comprehensive review of literature, of existing cooperation efforts and on interviews with development cooperation practitioners. The paper recommends action to promote digital entrepreneurship, easy access to finance, adequate institutional capacities and a conducive regulatory environment.