Amid accelerating global trend of green transformation to address climate change and digital transformation driven by technological progress, this report proposes Korea’s development cooperation strategies to promote an integrated green digital transformation in developing countries. Digital technologies are powerful enablers of green transformation—enhancing climate early warning systems, improving energy efficiency, and advancing smart grids—yet they also create new environmental pressures, such as rising energy demand and electronic waste. This duality calls for an integrated approach – the “green digital transformation” - that simultaneously advances “climate response by digital technologies” and the “decarbonization and greening of digital transformation” itself.

Although middle- and high-income developing countries increasingly demand both green and digital transformation, strategies and support for green digital transformation remain limited. This study aims to identify Korea’s policy directions as a member of the international community by analyzing international discussions, other donors’ approaches, and developing countries’ demands and needs. The analysis draws on cross-country indices, correlation analysis, donor policy and case reviews, and field-based studies. Chapter 2 identifies global disparities in transformation levels through cross-analysis of international indices. Advanced economies—especially in Northern Europe—perform well in both green and digital dimensions, while many emerging and developing countries remain unbalanced or lag behind. Correlation analysis reveals that higher levels of digital transformation are associated with increased per capita greenhouse gas emissions, but this effect diminishes when green transformation progresses concurrently. This finding underscores the importance of pursuing both transformations together to offset the environmental costs of digitalization. Countries with strong policy momentum and institutional coherence achieve better green transformation outcomes, confirming that political will and institutional strength are decisive factors. These results reaffirm that green digital transformation is not only a technological or industrial policy but also a core development agenda for sustainable and inclusive growth, emphasizing the essential role of development cooperation in bridging transformation gaps.

Chapter 3 examines post-pandemic development cooperation strategies of major donor countries. Australia and the United Kingdom position climate as a central development priority and digital transformation as an implementation tool, embedding climate safeguards into digital infrastructure projects. Germany treats both dimensions with equal priorities, supporting the application of innovative digital technologies for climate action while addressing digital divides. Donors increasingly link renewable energy expansion with digital monitoring, promote circular e-waste management, and engage startups through public–private partnerships. For Korea, digital transformation is a comparative strength within its ODA portfolio, yet integration with green initiatives remains limited. There is significant potential to expand cooperation in private-sector engagement, energy management, circular economy, and digital-climate governance.

Chapter 4 analyzes developing countries’ needs and constraints. While green and digital initiatives are often pursued in parallel, integration remains weak due to infrastructure, institutional, and financial barriers. Nonetheless, common demands are evident in areas such as smart grids and AI-based energy forecasting for renewable energy management, satellite and drone applications for climate monitoring, and greening ICT infrastructure through green data centers. Smart cities are emerging as integrated platforms combining both transformations. Korea’s experience in digital government, data governance, energy management, and environmental data systems provides a strong comparative advantage for cooperation in climate data platforms, renewable energy monitoring, e-waste management, and green data centers.

Based on these insights, Chapter 5 proposes a three-phase cooperation strategy for Korea. In Phase 1, efforts should focus on creating an enabling environment and mobilizing resources through policy and legal reforms, institutional capacity-building, and market awareness initiatives. Korea should offer policy advisory support on renewable energy, data governance, and e-waste management, linking these with pilot projects. Introducing a “green filter” into digital ODA programs can ensure systematic assessment of decarbonization potential, energy efficiency, and sustainability. Financially, Korea should strengthen ties with global climate funds and establish a Korea-led Green Digital Initiative as a cooperation platform.

In Phase 2, pilot projects financed by public funds can demonstrate feasibility and then be scaled up through matching funds, concessional loans, or PPP models. This phased approach allows public institutions to absorb initial risks while fostering private-sector participation. Priority countries should be selected among Korea’s key ODA partners with adequate digital and energy infrastructure, active KOICA or EDCF offices, and strong political commitment. Priority areas include energy, circular economy, and climate adaptation, including smart grids, AI-based forecasting, green data centers, and e-waste management.

In Phase 3, sustainability should be ensured through localization of operations and maintenance, performance-based grants, and public–private co-management models. Technology transfer and joint development of AI-, IoT-, and blockchain-based green solutions should be promoted, supported by intellectual property protection and long-term education and training systems linking universities, vocational institutions, and industries. Promoting startup and SME participation will help establish local innovation ecosystems. Finally, performance indicators for green digital transformation should be developed to support monitoring, reinvestment, and knowledge sharing through South–South cooperation and toolkits.

In conclusion, digital transformation has the potential to increase emissions, but when combined with green transformation, emissions decline significantly—demonstrating the value of integration. Political will and institutional coherence are essential for success, and development cooperation is pivotal in narrowing transformation gaps. By mainstreaming climate into digital development, mobilizing blended finance, and institutionalizing long-term integrated programs, Korea can diversity its coooperation approachees and contribute to balanced and sustainable green digital transformation worldwide.