The European Environment Agency calls for AI guidance to support the green transition
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The European Environment Agency warns that artificial intelligence and digitalization can bring benefits for the climate, sustainable consumption, and green public procurement, but they can also increase pressure on energy, water, and critical raw materials.
The European Environment Agency warns that AI and digitalization can support Europe's green transition only if governed by policies that limit resource consumption.
In short
The European Environment Agency has published two briefings on the role of AI and digitalization in the green transition.
AI can support more sustainable decisions in consumption, public procurement, industry, energy, transport, and supply chains.
The Agency warns that digitalization can increase demand for energy, water, and critical raw materials, especially through the expansion of data centers.
Online consumption is becoming increasingly important, with 75% of Europeans having purchased or ordered goods or services for personal use online in 2024.
The Agency calls for cautious governance, with clear sustainability objectives, so that digitalization does not reinforce resource-intensive economic models.
The European Environment Agency has published two briefings analyzing how artificial intelligence and digitalization can influence Europe's green transition, sustainable consumption, and economic competitiveness.
The first briefing analyzes the link between artificial intelligence and sustainable consumption in Europe. The second examines the opportunities and risks of the twin transition, i.e., the interaction between the green and digital transitions.
The Agency shows that AI and digitalization can bring environmental benefits if directed towards explicit sustainability objectives. These technologies can improve the collection and analysis of environmental data, support more efficient industrial processes, help energy and transport systems become smarter, and influence consumption and procurement towards lower-emission and resource-efficient options.
At the same time, the Agency warns that the benefits are not automatic. Without policy direction, AI and digitalization can increase energy, water, and critical raw material consumption, reinforce resource-intensive business models, deepen strategic dependencies, and exacerbate social inequalities.
The Agency emphasizes that technological efficiency is not enough to reduce environmental pressures. Efficiency gains can be offset by rebound effects when cheaper, faster, or more convenient services lead to increased overall consumption.
In the area of consumption, the AI briefing shows that changes in behavior and public or private procurement can play an important role in reducing greenhouse gas emissions. According to the Agency, lifestyle and consumption transformations can reduce emissions by 40% to 70% by 2050.
The Agency notes, however, that the consumption footprint of EU citizens is projected to rise again by 2030, following a 6.3% increase between 2020 and 2022. At the same time, online consumption is becoming dominant: 75% of Europeans have purchased or ordered goods or services for personal use online in 2024.
In this context, AI becomes relevant for environmental policies as it influences commercial recommendations, product searches, interactions with shopping chatbots, prices, and how consumers access goods and services. The Agency shows that AI can promote more sustainable choices if it provides clear, relevant, and reliable information, but it can also encourage excessive consumption if designed solely to maximize sales.
The briefing also mentions the role of the digital product passport, which aims to provide consumers and companies with information about material composition, carbon footprint, environmental impact, durability, reparability, and the end-of-life of products.
The Agency highlights the impact of AI on corporate procurement. Corporate purchases are responsible for 92% to 96% of an organization's total emissions, making the integration of sustainability criteria in this area important for combating climate change.
AI can help companies analyze suppliers, identify circular or lower-emission options, anticipate climate and geopolitical risks in supply chains, and optimize logistics.
For public procurement, the Agency reminds that EU governments spend nearly 2 trillion euros annually, about 15% of the Union's GDP, and public procurement is associated with about 10% of the EU's greenhouse gas emissions. AI could help authorities apply environmental and social criteria in tenders and better monitor the impact of contracts over time.
The most direct risks come from digital infrastructure. The Agency shows that data centers accounted for about 1.5% of global electricity consumption in 2024 and about 3% of Europe's. In some states, the pressure is much higher: in Ireland, data centers exceed 20% of total electricity consumption.
The electricity consumption of data centers is estimated to reach 1,050 terawatt-hours by 2026. Compared to the consumption of some states, this level would place data centers fifth globally, between Japan and Russia.
The Agency shows that Europe already accounts for 15% of global electricity consumption by data centers, while the United States accounts for 45% and China 25%. The rapid growth of data centers, largely driven by AI, is expected to nearly double the sector's electricity needs in Europe by 2030.
Another risk is water consumption. AI generates demand for water through cooling data centers, electricity production, and semiconductor manufacturing. According to the briefing, AI-powered data centers could increase annual water consumption for cooling and electricity production to approximately 1,068 billion liters by 2028, in a baseline scenario, eleven times more than estimates for 2024.
The Agency warns that this increase could intensify competition among industrial, agricultural, and domestic water users, especially in regions already affected by water stress. Therefore, digital policies must be more closely aligned with rules regarding water, energy, and the environment.
The briefings also draw attention to critical raw materials. AI infrastructure depends on materials such as gallium, germanium, indium, palladium, and tantalum, used in advanced semiconductors, microelectronics, and fiber optic communications. Europe's high dependence on imports and the global concentration of mining and refining increase geopolitical and supply risks.
The Agency shows that the extraction and processing of these materials have environmental and social impacts, including high energy consumption, pollution, biodiversity loss, and human rights risks.
In the area of governance, the Agency links its findings to the EU AI Act, the AI continent action plan, the future cloud and AI development act, and the objectives of the European Green Deal. The AI Act introduces transparency obligations for general-purpose models, including documenting and reporting energy consumption, but the Agency notes that the energy used in the inference phase of models remains only partially covered.
The briefings call for a cautious approach, based on clear sustainability objectives, integrated assessments, and coherence between digital, climate, energy, consumption, and circular economy policies. The Agency shows that decisions made now will determine whether AI contributes to a more sustainable, competitive, and secure Europe or whether it amplifies the pressures that should be reduced.
The European Environment Agency places these analyses within the framework of Europe's twin transition, i.e., the simultaneous transformation of the economy through decarbonization and digitalization. This transition is linked to competitiveness, resilience, and strategic autonomy, in a context of geopolitical competition, high energy costs, and external dependencies in energy, technologies, and critical raw materials.
EU policies aim to use digitalization to support the European Green Deal, climate neutrality, biodiversity protection, pollution reduction, and the circular economy. However, the Agency warns that digitalization is not automatically green and must be guided by standards, transparency rules, sustainable public procurement, ecodesign criteria, and consumer protection.
For the EU, the stakes are double: to use AI and digitalization for innovation, competitiveness, and better decisions, but to avoid having digital infrastructure and online consumption models increase pressures on the environment. The Agency recommends that digital policy and environmental policy be treated together, not separately.
Latest news
The European Environment Agency warns that AI and digitalization can support Europe's green transition only if governed by policies that limit resource consumption.
In short
The European Environment Agency has published two briefings on the role of AI and digitalization in the green transition.
AI can support more sustainable decisions in consumption, public procurement, industry, energy, transport, and supply chains.
The Agency warns that digitalization can increase demand for energy, water, and critical raw materials, especially through the expansion of data centers.
Online consumption is becoming increasingly important, with 75% of Europeans having purchased or ordered goods or services for personal use online in 2024.
The Agency calls for cautious governance, with clear sustainability objectives, so that digitalization does not reinforce resource-intensive economic models.
The European Environment Agency has published two briefings analyzing how artificial intelligence and digitalization can influence Europe's green transition, sustainable consumption, and economic competitiveness.
The first briefing analyzes the link between artificial intelligence and sustainable consumption in Europe. The second examines the opportunities and risks of the twin transition, i.e., the interaction between the green and digital transitions.
The Agency shows that AI and digitalization can bring environmental benefits if directed towards explicit sustainability objectives. These technologies can improve the collection and analysis of environmental data, support more efficient industrial processes, help energy and transport systems become smarter, and influence consumption and procurement towards lower-emission and resource-efficient options.
At the same time, the Agency warns that the benefits are not automatic. Without policy direction, AI and digitalization can increase energy, water, and critical raw material consumption, reinforce resource-intensive business models, deepen strategic dependencies, and exacerbate social inequalities.
The Agency emphasizes that technological efficiency is not enough to reduce environmental pressures. Efficiency gains can be offset by rebound effects when cheaper, faster, or more convenient services lead to increased overall consumption.
In the area of consumption, the AI briefing shows that changes in behavior and public or private procurement can play an important role in reducing greenhouse gas emissions. According to the Agency, lifestyle and consumption transformations can reduce emissions by 40% to 70% by 2050.
The Agency notes, however, that the consumption footprint of EU citizens is projected to rise again by 2030, following a 6.3% increase between 2020 and 2022. At the same time, online consumption is becoming dominant: 75% of Europeans have purchased or ordered goods or services for personal use online in 2024.
In this context, AI becomes relevant for environmental policies as it influences commercial recommendations, product searches, interactions with shopping chatbots, prices, and how consumers access goods and services. The Agency shows that AI can promote more sustainable choices if it provides clear, relevant, and reliable information, but it can also encourage excessive consumption if designed solely to maximize sales.
The briefing also mentions the role of the digital product passport, which aims to provide consumers and companies with information about material composition, carbon footprint, environmental impact, durability, reparability, and the end-of-life of products.
The Agency highlights the impact of AI on corporate procurement. Corporate purchases are responsible for 92% to 96% of an organization's total emissions, making the integration of sustainability criteria in this area important for combating climate change.
AI can help companies analyze suppliers, identify circular or lower-emission options, anticipate climate and geopolitical risks in supply chains, and optimize logistics.
For public procurement, the Agency reminds that EU governments spend nearly 2 trillion euros annually, about 15% of the Union's GDP, and public procurement is associated with about 10% of the EU's greenhouse gas emissions. AI could help authorities apply environmental and social criteria in tenders and better monitor the impact of contracts over time.
The most direct risks come from digital infrastructure. The Agency shows that data centers accounted for about 1.5% of global electricity consumption in 2024 and about 3% of Europe's. In some states, the pressure is much higher: in Ireland, data centers exceed 20% of total electricity consumption.
The electricity consumption of data centers is estimated to reach 1,050 terawatt-hours by 2026. Compared to the consumption of some states, this level would place data centers fifth globally, between Japan and Russia.
The Agency shows that Europe already accounts for 15% of global electricity consumption by data centers, while the United States accounts for 45% and China 25%. The rapid growth of data centers, largely driven by AI, is expected to nearly double the sector's electricity needs in Europe by 2030.
Another risk is water consumption. AI generates demand for water through cooling data centers, electricity production, and semiconductor manufacturing. According to the briefing, AI-powered data centers could increase annual water consumption for cooling and electricity production to approximately 1,068 billion liters by 2028, in a baseline scenario, eleven times more than estimates for 2024.
The Agency warns that this increase could intensify competition among industrial, agricultural, and domestic water users, especially in regions already affected by water stress. Therefore, digital policies must be more closely aligned with rules regarding water, energy, and the environment.
The briefings also draw attention to critical raw materials. AI infrastructure depends on materials such as gallium, germanium, indium, palladium, and tantalum, used in advanced semiconductors, microelectronics, and fiber optic communications. Europe's high dependence on imports and the global concentration of mining and refining increase geopolitical and supply risks.
The Agency shows that the extraction and processing of these materials have environmental and social impacts, including high energy consumption, pollution, biodiversity loss, and human rights risks.
In the area of governance, the Agency links its findings to the EU AI Act, the AI continent action plan, the future cloud and AI development act, and the objectives of the European Green Deal. The AI Act introduces transparency obligations for general-purpose models, including documenting and reporting energy consumption, but the Agency notes that the energy used in the inference phase of models remains only partially covered.
The briefings call for a cautious approach, based on clear sustainability objectives, integrated assessments, and coherence between digital, climate, energy, consumption, and circular economy policies. The Agency shows that decisions made now will determine whether AI contributes to a more sustainable, competitive, and secure Europe or whether it amplifies the pressures that should be reduced.
The European Environment Agency places these analyses within the framework of Europe's twin transition, i.e., the simultaneous transformation of the economy through decarbonization and digitalization. This transition is linked to competitiveness, resilience, and strategic autonomy, in a context of geopolitical competition, high energy costs, and external dependencies in energy, technologies, and critical raw materials.
EU policies aim to use digitalization to support the European Green Deal, climate neutrality, biodiversity protection, pollution reduction, and the circular economy. However, the Agency warns that digitalization is not automatically green and must be guided by standards, transparency rules, sustainable public procurement, ecodesign criteria, and consumer protection.
For the EU, the stakes are double: to use AI and digitalization for innovation, competitiveness, and better decisions, but to avoid having digital infrastructure and online consumption models increase pressures on the environment. The Agency recommends that digital policy and environmental policy be treated together, not separately.
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