Environmental impacts of the metaverse: Two sides of the coin

• Author:
• Author name

  Quantumrun Foresight
• January 22, 2024

Insight highlights

The metaverse offers an opportunity to significantly decrease society's carbon footprint by replacing physical products with digital alternatives, thus reducing the need for material production and transportation. However, the metaverse also heavily relies on energy-consuming mixed and virtual reality technologies, and data centers. To mitigate these effects, developing and implementing sustainable energy solutions and strategies for the underlying technological infrastructure is crucial.

Environmental impacts of the metaverse context

In the metaverse, consumers may discover practical substitutes for resource-intensive physical goods. This transition could lead to substantial sustainability benefits and considerably decrease waste generated by industries notorious for overproduction and unsustainable practices, such as fast fashion. This change could also be transformative in fostering more environmentally conscious consumption habits. In the future, individuals might hold business meetings within the metaverse, providing the benefits of face-to-face interactions while significantly cutting carbon emissions associated with air travel. Before the COVID-19 pandemic, global aviation was responsible for 2.5 percent of all carbon emissions, as reported by the nonprofit organization Our World in Data.

However, the metaverse relies on sophisticated consumer electronics, data centers, and cutting-edge telecommunication infrastructure, potentially contributing to substantial environmental harm. Data Quest reports that the widespread adoption of the metaverse might lead to a sharp increase in greenhouse gas emissions, offsetting the potential carbon reduction benefits from its virtualization aspects. ERP Today highlights that data centers account for 3 percent of global electricity consumption and 2 percent of overall greenhouse gas emissions.

Artificial intelligence and cloud services, both integral to the metaverse, demand significant amounts of electricity to function in data centers. Consultancy firm ECS discovered that training just one AI model could generate 626,000 pounds of carbon dioxide, equivalent to five times the greenhouse gas emissions produced over a car's lifetime. Moreover, a single non-fungible token (NFT) transaction emits 48 kilograms of carbon dioxide gas, comparable to the emissions from burning 18 liters of diesel.

Disruptive impact

Retailers could increasingly opt to replace a portion of their physical storefronts with metaverse stores, bolstering their e-commerce capabilities while minimizing their physical expenses. In parallel, government agencies might develop digital twins of their public services and buildings, enabling citizens to access these services from the comfort of their homes without needing in-person visits. 

As the metaverse evolves, some companies may consider shifting to metaverse-based workplaces, alleviating employees' need to commute daily. Meanwhile, the potential widespread adoption of AR devices in homes and workplaces could eliminate the need to purchase most electronics and non-load-bearing objects. This change could ultimately reduce the demand for manufacturing physical goods.

However, the expansion of infrastructures required to support the metaverse, including data centers, telecom networks, towers, wiring, and other physical equipment, could result in increased global carbon emissions. Additionally, the multitude of servers, software, and hardware necessary to power metaverse platforms may contribute to a spike in energy consumption beyond the capacity of local utilities. 

To mitigate these environmental impacts, companies operating within the metaverse may invest in renewable energy sources, such as solar and wind power, to fulfill future carbon offset requirements. Younger, environmentally conscious users might also view these investments as essential. However, the growth of the metaverse may also lead to an increase in e-waste due to the rapid advancements in electronics and computer hardware, such as microchips and processors.

Implications of environmental impacts of the metaverse

Wider implications of environmental impacts of the metaverse may include: 

• Heightened political pressure to transition to renewable energy sources and increase investments in energy-efficient technologies.
• Increasing e-waste could lead to stronger regulation and recycling initiatives.
• A shift in the tourism industry to online experiences, with potential economic implications for countries dependent on tourism revenue.
• Reduced traffic congestion but also worsening urbanization as people move to cities for better internet connectivity, increasing pressures on urban infrastructure and resources.
• The metaverse becoming a powerful tool for environmental education, helping users visualize and understand the impacts of climate change and other environmental issues. 
• Innovative solutions for environmental conservation, such as tracking and monitoring wildlife populations or simulating ecological scenarios through digital twins. 
• Metaverse developers shifting to edge computing to bring data closer to users and reduce reliance on massive energy-consuming data centers.

Questions to consider

• What do you think is the ultimate environmental impact of the metaverse?
• How might companies and governments work together to ensure new technologies are not adding to carbon emissions?