By Madhumitha P Ramanathan

Last week in New York, a landmark presentation was made by an India delegation, comprising the Permanent Mission of India to the UN, the ministry of electronics and information technology, and iSPIRT, at the United Nations. This collaborative effort unveiled the Citizen Stack: Digital Public Infrastructure (DPI) initiative, drawing inspiration from the pioneering India Stack. DPIs are more than mere technological frameworks; they are vital instruments for nations committed to achieving the Sustainable Development Goals (SDGs) and ensuring a trustworthy flow of data amid the rise of transformative technologies such as generative artificial intelligence.

DPIs and sustainability

The connection between DPIs and environmental sustainability is more direct and significant than it might initially appear. Billions of daily transactions are carried out using cash or plastic money — credit and debit cards composed largely of polyvinyl chloride (PVC). Despite the claims surrounding PVC, it can only be recycled a limited number of times (typically up to seven), after which it becomes a source of non-biodegradable waste that accumulates in landfills, rivers, and oceans. This extensive use of PVC in the production of financial cards contributes enormously to environmental degradation, showcasing a cycle of consumption and waste that ends in significant ecological damage.

To address concerns regarding PVC, some credit card manufacturers have switched to using polyethylene terephthalate glycol (PETG), a more sustainable polyester plastic. PETG offers similar strength and durability but can be chemically recycled to its original components, reducing its impact on aquatic ecosystems by preventing degradation into microplastics. However, the transition to PETG is not a panacea. While it represents a step forward in reducing the environmental footprint of plastic cards, it still carries potential drawbacks. It can take decades to decompose in landfills, and improper disposal continues to feed microplastics into the global marine ecosystem. The challenge of managing plastic waste effectively remains a formidable one, highlighting the persistent need for comprehensive solutions. The shift to DPIs proposes a sustainable alternative that drastically reduces our reliance on physical, plastic-based financial tools. By transitioning to digital-only transactions, we enhance financial systems’ accessibility and efficiency, while striking at one of the most persistent sources of plastic pollution.

Direct use case examples

Unified Payment Interface (UPI) has revolutionised payments in India with its convenience, security, and cost-effectiveness — most transactions incur no fees. The transition from traditional debit cards to UPI eliminates the need for physical cards, thereby reducing plastic waste. While debit cards often offer perks such as airport lounge access or retail discounts, banks can creatively adapt these benefits to UPI transactions. It could be achieved through exclusive offers within a bank’s app or through linked savings accounts, encouraging sustainable consumer behaviours while supporting SDG 9 on industry, innovation, and infrastructure.

Virtual credit cards also present a prime example of how digital innovation can mirror the functionality of physical credit cards while eliminating the need for plastic. Linked directly to one’s credit card account without the physical card, virtual credit cards offer enhanced security and convenience, particularly for online transactions. They retain all the traditional benefits of credit cards, including deferred payments, reward points, and the ability to build a positive credit history.

Global impact 

Consider the significant global environmental impact of the current use of physical cards. Approximately 22 billion are in circulation worldwide, each card adding about 5 grams of plastic, cumulatively contributing over 121,000 tonnes to the environment annually. Around 1 billion new cards produced each year add another 5,500 tonnes of plastic. The environmental toll of these physical cards is substantial — not only do they add to the plastic waste burden, but their production, primarily from PVC (a petrochemical product), also results in significant carbon emissions, with the production of PVC emitting about 7.83 kg of CO2-equivalent per kilogram of plastic. By shifting to digital wallets and payment systems, we can markedly reduce these emissions and make a direct contribution towards global carbon emission reduction efforts.

A blueprint for the future

The unveiling of the Citizen Stack DPI at the UN signifies a critical evolution in our approach to sustainable development. This initiative exemplifies a potent synergy between technology and policy designed to cultivate an inclusive, sustainable future. DPIs are fundamental not only in driving digital transformation but also in laying the groundwork for achieving a substantial majority of the UN SDGs. By impacting 12 of the 17 UN SDGs, Citizen Stack can contribute to the achievement of approximately 70% of these global objectives. As we continue to embrace DPIs, their role in global sustainability efforts becomes more evident, leading not just a digital but also a profound environmental revolution impacting all facets of human and planetary health.

The author is an advocate for Digital Public Infrastructure and an iSPIRT volunteer.

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