CleanTechnica written up by Carolyn Fortuna provides an overview of the specific situation of the struggle against climate change in the developed world via building better-adapted codes. So is it time to stop relying on Outdated Building Codes? Instead of adopting the same process in the MENA region, it was decided to opt for solar/renewable Building Codes instead, quickly labelled Green Buildings. These are at this conjecture, a popular demand-side support scheme by the industry. Green buildings contribute to sustainable construction and environment and benefit building owners and users with increased comfort, healthier indoor environment quality, and enhanced durability and fewer maintenance costs. The impact of such green building codes on solar thermal technology is relatively small. And despite that, several countries in the MENA region have shown keen interest in adopting a unified green building code. So, what to do?
It’s Time To Stop Relying On Outdated Building Codes
Building codes and referenced standards need to be updated to replace historical weather data with future-focused climate data.
Outdated building codes are a real problem. Today’s changing global weather and other unexpected events such as high winds, flooding, wildfires, and heatwaves makes it imperative for international collaboration to design updated, practical, and appropriate codes. Building codes rely on climate data, and that data is generally updated on a 10-year cycle. The requirements related to structural/ atmospheric loads for wind and snow/ ice, energy use/heat stress, flooding, and wildfire/ bushfire protection have changed tremendously in the last 10 years due to the climate crisis.
It’s time for countries around the world to step up and assess the way they review building codes.
As the weather becomes more severe from year to year, the underlying historical data simply does not accurately reflect the risk to buildings as a result of these extreme weather-related events. The building codes in some countries, particularly in Europe and the US, do reference design standards and dictate the energy performance and structural standards that impact wind loads and snow/ice loads. The issue is that the underlying data is updated on an “as needed” basis, which can exceed the 10 year average.
So a new struggle has emerged in the building industry. Relying on historical climate and weather data no longer provides the same level of safety and resilience for future extreme weather events as they have in past years and decades.
The Global Resiliency Dialogue
Building code developers/ researchers from Australia, Canada, New Zealand, and the US have launched the Global Resiliency Dialogue as a joint initiative to inform the development of building codes that draw on both building science and climate science. Their goal is to improve the resilience of buildings and communities to intensifying risks from weather-related natural hazards.
The following “Findings on Changing Risk and Building Codes” statement outlines the work by the members of the Global Resiliency Dialogue, including:
Identifying strategies for the identification of future risks and the development of building code solutions that support adaptation to those risks
Cooperating on the development of international building resilience guidelines and further exploration of the relationship with land use planning instruments that help determine the location of buildings
Supporting research initiatives to better understand climate science, to assist in aligning expectations for building durability and resilience with the projection of future hazards
Developing and deploying messages and resources that enhance understanding of building codes, support a common understanding of risk and communicate the importance of up-to-date building codes
Advancing risk and impact analysis to recognize the multiple economic and social benefits provided by resilience investments and the desirability of alternative approaches that fully capture the benefits and costs provided by the building codes
The primary function of building codes universally is to protect life/human safety. Often this requires structural durability, resistance to fire, adequate means of egress, and other related functions to ensure that lives are protected. However, in discussions of natural hazard mitigation and community resilience, particularly as risks continue to become more severe and impact different geographic locations, the question of greater levels of property protection and bounce back recovery of function following an event is increasingly debated by key decision makers.
Survey findings from the Global Resiliency Dialogue describe the status of international building codes today. Currently, none of the building codes in use in the surveyed countries addresses future climate risk – all are focused on addressing risk based on past weather experiences and extreme events. However, — and this is a really good thing — discussions are underway about how to include future-focused risk in outdated building codes. As is to be expected, some countries are farther along than others.
Integrating Climate Data & Building Codes
Most building code development and research organizations rely on outside organizations with expertise in natural environmental sciences to develop the climactic and hazard maps that are included in the codes. The climate data used to inform provisions of building codes is generally not limited to the building safety industry and has the potential to impact other sectors of society. That’s important, particularly because the key science agencies are often national bodies that service the diverse needs of state, provincial, tribal/indigenous, and local jurisdictions.
Most building codes that address extreme events do so as part of the design standard and based on the probability of the occurrence of the specific event, with the design requirements changing based on the potential severity of the event, location, or the importance of the building. Design events are frequently measured in probabilities, with the ratios varying greatly by country with no apparent international consistency. In some cases, certain extreme weather occurrences have been determined as difficult to address through building codes due to either the localization of an event or the severity of the natural forces involved. Two such examples are hailstorms and storm surge impacting coastal regions.
As countries consider modeling scenarios to incorporate future climate-related risk in building codes, one option under wide consideration are Representative Concentration Pathways (RCPs) – scenarios that consider the emissions and concentrations of the full suite of greenhouse gases, aerosols, and other chemically active gases, along with land use by the year 2100, based on the radiative forcing limit reached on earth before emissions begin to decline. If climate modeling is used, building codes and referenced standards will need to be updated with future-focused climate data. In most countries, this type of change will follow the standard code revision process.
Assuming that code provisions can be adjusted to address future climate risk assessments, countries will need to have a process in place to ensure that the changes are not only adequate but equally suitable and proportionate in scope. This work will fall primarily to the building code development and research organizations in each country, where they utilize their own internal processes. Some entities may develop new standards to assist with regulatory impact analysis.
In the US, a National Climate Assessment is conducted every 4 years by the US Global Change Research Program, a joint effort of 13 federal agencies. To date, the assessment has only focused on the built environment at a relatively high level. As the fifth assessment gets underway, there may be increased focus on the needs of the design and construction industry, which may result in a deeper dive into outdated building codes.
Final Thoughts About Outdated Building Codes
A whole bunch of job types are involved with the design and implementation of building codes:
Building safety professionals & industry associations
Conformity assessment bodies, such as product evaluation services
Consumers or consumer advocacy groups
Energy efficiency advocates
Fire safety professionals
Government entities: federal/national, state, provincial, tribal, territorial, local
Insurance industry representatives
Manufacturers of building products
Plumbing professionals & industry associations
Subject matter experts
As Forbesnotes, building codes must keep pace with technology advances in order to help tap much larger potential energy savings and cost reductions. By adapting to reflect the growing trend of fuel-switching and electrification to enable zero-emissions technologies like efficient electric heat pumps and electric vehicles, policymakers can cut consumer costs and harmful pollution while supporting the transition to a clean economy.
New International Code Council framework will drive energy efficiencies but climate change demands quicker implementation.
The International Code Council has released a new framework to assist governments and building industry stakeholders in meeting energy efficiency and greenhouse gas reduction goals.
The Code Council Board of Directors, which consists of 18 government code officials who were elected by their peers, adopted the framework, Leading the Way to Energy Efficiency: A Path Forward on Energy and Sustainability to Confront a Changing Climate.
This framework includes using the Code Council’s American National Standards Institute (ANSI) approved standards process to update the International Energy Conservation Code (IECC).
Future editions of the IECC will build on prior successes including an increase of efficiency requirements by about 40%, or an average of 8% a cycle from 2006 to 2021, allowing the IECC to remain a strong avenue for communities to reach their energy efficiency and sustainability goals globally.
With the base 2021 IECC efficiency requirements just 10% away from net zero for residential buildings, under the new framework future editions of the IECC will increase base efficiency using a balancing test proposed in bipartisan legislation that has cleared the US House and Senate and has been supported by energy efficiency advocates and the building industry.
The IECC will be developed under a revised scope and be part of a portfolio of greenhouse gas reduction solutions that could address electric vehicles, electrification and decarbonization, integration of renewable energy and energy storage, existing buildings performance standards and more.
The Code Council’s new framework will also provide optional requirements aimed at achieving net zero energy buildings presently and by 2030. Using a tiered approach, the framework offers adopting jurisdictions a menu of options, from a set of minimum requirements to pathways to net zero energy and additional greenhouse gas reduction policies.
The Code Council has also announced the establishment of an Energy and Carbon Advisory Council which will consist of governmental and industry leaders to inform the Code Council’s efforts.
The Energy and Carbon Advisory Council will advise on which additional greenhouse gas reduction policies the IECC should integrate, the pace that the IECC’s baseline efficiency requirements should advance, plus needs and gaps that the Code Council should work to address. The Code Council will begin outreach to fill the Energy and Carbon Advisory Council in March.
Climate data is frequently only updated on a 10-year cycle on average, so as weather becomes more severe from year to year, the underlying data simply does not accurately reflect the risk to the building of these extreme weather-related events. International Codes are updated on a three-year cycle.
Climate change, coupled with net zero emission targets, is focusing minds to act faster.
From the end of this year, all new buildings in Singapore will face higher minimum energy performance requirements, according to the Building and Construction Authority (BCA). It will raise the minimum energy performance requirements for new buildings and existing buildings that undergo major retrofit, to be 50% and 40% more energy efficient respectively, compared with 2005 levels. The city state aims to ‘green’ 80% of buildings by 2030.
The Net Zero Home standard developed by CCG (Scotland) is intended to deliver a standard of specification that reduces greenhouse gas emissions arising from regulated operational energy use to a rate less than or equal to 0kg C02/m2/year.
A new construction products national regulator is imminent in the UK, in a bid to bolster standards following the Grenfell inquiry.
Rich Miller writes in DATACENTERFrontier that Beyond Green Power: New Frontiers in Data Center Sustainability can easily be envisioned as these are increasingly populating planet earth.
Above picture is of Large pipes sporting Google’s logo colors move water throughout the cooling plant at the Google’ data center in Douglas County, Georgia. (Photo: Google)
February 3, 2021
Sustainable Construction Strategies
More data center projects will integrate sustainability into design and construction, with early collaboration between teams to minimize the environmental impact of the construction process and create a building with low operational carbon impact, enabling more effective and cost-efficient offset strategies. Design collaboration is essential in seeking to integrate cleaner technologies into the power chain and cooling systems.
Several data center providers are working with CarbonCure, which makes a low-carbon “greener” concrete material for the tile-up walls that frame data centers. Concrete’s durability and strength are ideal for industrial construction, but the production of cement requires the use of massive kilns, which require large amounts of energy, and the actual chemical process emits staggeringly high levels of CO2. CarbonCure takes CO2 produced by large emitters like refineries and chemically mineralizes it during the concrete manufacturing process to make greener and stronger concrete. The process reduces the volume of cement required in the mixing of concrete, while also permanently removing CO2 from the atmosphere.
Waste Stream Accountability and the ‘Circular Economy’
A key priority is tracking the environmental impact of construction components, including a “reverse logistics” process to track the waste stream and disposition of debris. Asset recovery and recycling specialists will become key partners, and the most successful projects will communicate goals and best practices across the contractors and trades participating in each project. The goal is a “circular economy” that reuses and repurposes materials.
Managing packaging for equipment that is shipped to a data center facility is an important and often underlooked facet of waste stream accountability. There are also opportunities in reuse of components and equipment that that can still be productive (although this must be closely managed in a mission-critical environment).
The ability to document a net-zero waste stream impact has the potential to emerge as an additional metric for data center service providers, as customers consider the entirety of their supplier’s sustainability programs.
As customers ask tougher questions about a providers’ environmental practices and corporate social responsibility policies, certifications may emerge as another avenue for service providers to differentiate themselves.
Several ISO certifications, including ISO 50001 and ISO 14001, which Iron Mountain is certified for across its global data center portfolio, focus on energy management and provide frameworks that can assure stakeholders that the provider is considering energy impact and environmental goals in audits, communications, labeling and equipment life cycle analysis.
Water Conservation and Management
Amid changing weather patterns, many areas of the world are facing drought conditions and water is becoming a scarcer and more valuable resource. Data center operators are stepping up their efforts to reduce their reliance on potable water supplies.
Sustainable water strategies include both sourcing and design. On the sourcing front, several Google facilities include water treatment plants that allow it to cool its servers using local bodies of water or waste water from municipal water systems. Data center districts in Ashburn (Va.), Quincy (Washington) and San Antonio offer “grey water” feeds that provide recycled waste water to industrial customers.
On the design front, more providers are choosing cooling systems with minimal need for water, while others are incorporating rainwater recovery strategies that capture rain from huge roofs or parking lots and store it on site, reducing potential burden on local water systems.
Matching Workloads to Renewable Energy
Google has been a leader in the use of artificial intelligence and sophisticated energy provisioning to match its operations to carbon-free energy sources. The company recently said it will power its entire global information empire entirely with carbon-free energy by 2030, matching every hour of its data center operations to carbon-free energy sources. This marks an ambitious step forward in using technology to create exceptional sustainability.
Google can currently account for all its operations with energy purchases. But the intermittent nature of renewable energy creates challenges in matching green power to IT operations around the clock. Solar power is only available during daylight hours. Wind energy can be used at night, but not when the wind dies down. Google created a “carbon-intelligent computing platform” that optimizes for green energy by rescheduling workloads that are not time-sensitive, matching workloads to solar power during the day, and wind energy in the evening, for example. The company also hopes to move workloads between data centers to boost its use of renewables, a strategy that offers even greater potential gains by shifting data center capacity to locations where green energy is more plentiful, routing around utilities that are slow to adopt renewables.
Google has pledged to share its advances with the broader data center industry, providing others with the tools to reduce carbon impact. Continued instrumentation of older data centers is a key step in this direction.
Eliminating Diesel Generators
Microsoft recently announced plans to eliminate its reliance on diesel fuel by the year 2030, which has major implications for the company’s data centers, many of which use diesel-powered generators for emergency backup power. With its new deadline, Microsoft sets in motion a push to either replace its generators with cleaner technologies, or perhaps eliminate them altogether by managing resiliency through software.
Eliminating expensive generators and UPS systems has been a goal for some hyperscale providers. Facebook chose Lulea, Sweden for a data center because the robust local power grid allowed it to operate with fewer generators. In the U.S., providers have experimented with “data stations” that operate with no generators on highly-reliable locations on the power grid.
There are four primary options companies have pursued as alternatives to generators — fuel cells, lithium-ion batteries, shifting capacity to smaller edge data centers that can more easily run on batteries, and shifting to cloud-based resiliency.
Fuel Cells and On-Site Power
Microsoft has successfully tested the use of hydrogen fuel cells to power its data center servers. The company called the test “a worldwide first that could jump-start a long-forecast clean energy economy built around the most abundant element in the universe.”
Microsoft said it recently ran a row of 10 racks of Microsoft Azure cloud servers for 48 hours using a 250-kilowatt hydrogen-powered fuel cell system at a facility near Salt Lake City, Utah. Since most data center power outages last less than 48 hours, the test offered a strong case that fuel cells could be used in place of diesel generators to keep a data center operating through a utility outage.
Some companies, like Equinix and eBay, have deployed Bloom Energy fuel cells to improve reliability and cut energy costs, but have powered them with natural gas. The use of biofuels looms as another potential avenue to pair fuel cells with renewable sourcing.
Utility-scale energy storage has long been the missing link in the data center industry’s effort to power the cloud with renewable energy. Energy storage could overcome the intermittent generation patterns of leading renewable sources. Solar panels only generate power when the sun is shining, and wind turbines are idle in calm weather. Energy storage could address that gap, allowing renewable power to be stored for use overnight and on windless days.
A new project in Nevada will showcase a potential solution from Tesla, the electric car company led by tech visionary Elon Musk. Data center technology company Switch will use new large-scale energy storage technology from Tesla to boost its use of solar energy for its massive data center campuses in Las Vegas and Reno. It is a promising project in pioneering a holistic integration of renewable power, energy storage and Internet-scale data centers.
Talking Sustainability With Experts
Don’t miss the last installment of this series that features a conversation on the future of sustainable data centers. Data Center Frontier Editor Rich Miller discusses the topic with Kevin Hagen, Director, Corporate Responsibility at Iron Mountain, and Alex Sharp, Global Head of Design & Construction — Data Centers at Iron Mountain.
It’s a preview of the upcoming webinar where these experts will discuss sustainability strategies for greener data centers.
Michael Young in an interview, with David Linfield who argues that international donors are benefiting existing power structures in the Middle East. It is all about Colluding With the Corrupters.
Corruption spread deep and for some time in the MENA region with social, political, and economic implications, but with differing penetrations rates. All because the area can divide into two types of governance. The autocratic monarchies live with side by side with the so-called republics. Few of these latter countries know a higher degree of corruption than the first-mentioned countries. In any case, all have made the fight against corruption a priority by passing laws and adopting strategies to combat crime. But in vain. Colluding with the Corrupters could quickly summarise a situation where such deviant behavioural attitudes originators can be traced back out of the region.
January 29, 2021
David Linfield is a visiting scholar in Carnegie’s Middle East Program. He is on sabbatical from the U.S. Department of State, where he is a career foreign service officer. Linfield recently wrote a commentary for Carnegie, titled “International Donors Are Complicit in Middle Eastern Elites’ Game.” In mid-January, Diwan interviewed him to discuss his article, and more generally to examine the anti-elite feeling that has permeated protests throughout the Middle East in the past year, notably in Iraq, Jordan, and Lebanon. The views expressed by Linfield are his own and not necessarily those of the U.S. government.
Michael Young (MY): You’ve just written a commentary for Carnegie, titled “International Donors Are Complicit in Middle Eastern Elites’ Game.” What is your argument in the piece?
David Linfield (DL): My argument is that the United States and other international donors have put significant clout and resources behind promoting economic liberalization in the Middle East, while they have been hesitant to put similar emphasis on political reforms. By political reforms I mean boosting transparency, combating corruption, and empowering elected officials. International actors have partly justified this approach by suggesting that economic reforms are a better way of promoting stability and less risky than political changes. But I contend that recent events in the region suggest that these policies are making violent, sudden change in the region more likely, not less so.
When adopted in the context of authoritarian political systems, economic reforms such as privatization have tended to benefit existing power structures, exacerbating economic inequality and citizen-state tensions. The World Inequality Database now ranks the Middle East as the most unequal region in the world. While economic inequality has decreased worldwide since the 1990s, it has remained constant in the Middle East.
By supporting policies that have inadvertently led to such entrenched inequality, while neglecting political reforms, international donors have contributed to citizens’ frustrations with their relative economic status while leaving them without peaceful institutional means of expressing their grievances. This is all a recipe for instability, which is the opposite of what donors want.
MY: You write that “[e]merging solidarity among previously competing groups, grounded in [economic inequality]” is a feature of the growing resentment of elites in the Middle East. Are you suggesting, to borrow from Marxist jargon, that we are seeing the emergence of a sort of class consciousness in certain countries that may have revolutionary potential?
DL: Most of the protests in the Middle East since 2018 have focused on economic inequality and corruption. Whereas previous demonstrations in the region tended to consist of a homogeneous ethnic group—whether from a particular religious sect, region, or group of tribes—these recent protests have been more diverse.
Common frustrations with inequality appear to have led people from lower-income communities to demonstrate in common cause—albeit sporadically and tentatively—against what they see as a corrupt and multisectarian elite that has failed them. We have seen this happen most explicitly in Iraq, Jordan, and Lebanon.
Some of the slogans used in recent protests in these countries do indicate the emergence of class consciousness. When the Jordanian Teachers Union threatened to strike in summer 2020, they framed their plight as a class struggle against those who had “looted the country.” The 2019 Lebanese protests included slogans like “down with the rule of the thieves.” Iraqi protestors in 2019 and 2020 told media outlets that their struggle was about taking the country back from “thieves.”
MY: In light of your assessment, how have the traditional fault lines among Middle Eastern populations that regimes have manipulated to retain power—things such as sectarian, tribal, or regional divisions—fared in what you describe as a changing environment?
DL: The traditional fault lines in Middle Eastern societies are still very much present. Emerging class-based tensions have not fully supplanted preexisting divisions based on ethnicity, religion, and tribalism, but rather now coexist alongside them more than before. That said, the trendlines I described earlier suggest that class-based divisions will continue to grow in relative importance and have the potential to reshape existing political alliances and divisions.
In addition to the demonstrations I mentioned earlier, another indicator of the power of class solidarity is a 2019 experiment by researchers from the University of Pittsburgh and the Lebanese Center for Policy Studies. The study, which assigned hundreds of Lebanese people into different conversation groups having varying compositions based on sect and class, found that when Lebanese people gathered with other members of the same class, they exhibited markedly less support for sectarian politics.
It’s too early to craft a comprehensive assessment of how emerging class-based tensions will interact with longer-standing societal divisions in the Middle East. One reason that we’ll have to observe for a longer period is that Covid-19 shifted the focus dramatically from political and economic challenges to the health crisis. But given that the pandemic exacerbated economic inequality, with lower-income communities bearing the brunt of related economic disruptions, we probably won’t have to wait long before class discussions reemerge.
MY: If the problem is that economic liberalization has reinforced elites, what are you recommending as an alternative approach by Western donors? And what makes you think that such an approach would have any chance of working?
DL: The alternative approach I’m recommending is for international donors to incorporate measures to promote transparency and combat corruption into existing economic liberalization efforts. These political reforms are also good for business and economic growth—as noted by the International Monetary Fund (IMF) and World Bank reports I cite in my article. The IMF’s recent insistence that Lebanon address corruption before receiving additional loans is a positive step to putting teeth behind their analysis.
Other helpful steps would include pushing to empower the many weak legislatures across the region beyond their current rubber-stamp roles, which would provide an alternative to protests for frustrated publics. If international donors put the same clout behind good governance that they have behind economic liberalization, they’ll make peaceful and durable progress more likely in the Middle East.
MY: Are you not reading too much into anti-elite solidarity? Ultimately, states in the region have shown that they will resort to violence in order to survive and societies have often gone back to being silent. Why will this change?
DL: Ruling elites in the region have demonstrated that they are willing to go to extreme measures to maintain their benefits. I am not suggesting that elites will somehow decide that they should altruistically begin to share resources with the rest of society. Rather, as your question implies, I am arguing that the elite behavior of concentrating power and resources is an unsustainable strategy that will ultimately foment violence and harm everyone’s interests, including those of the elite.
Autocratic regimes tend to resort to violence when they feel they have run out of other options, but rely more often on nonviolent coercion and intimidation to maintain daily control. By the time regimes turn to violence, it tends to be a prelude to their loss of control—or a stage where they are nearing that.
The strategy of international donors focusing their influence and resources on economic liberalization instead of good governance has not succeeded in bolstering stability and strengthening citizen-state relations. Instead, the policy has exacerbated class-based tensions and increased the prospects of unrest.
These trends are not linear: demonstrations in the region against economic inequality and corruption have ebbed and flowed. Ruling elites remain intent on doing everything they can to outmaneuver these latest challenges to their vested interests. Longer-standing societal tensions based on sect, region, and tribe also continue to simmer and remain exploitable by elites. But the overall direction of the region is still toward economic liberalization in the midst of authoritarian entrenchment. As long as that remains the case anti-elite solidarity is likely to build. International donors are inadvertently contributing to these increasing citizen-state tensions. Instead, they could be fostering more durable change that would make the region more stable and prosperous for everyone.
China Daily Global in an article titled ‘If data are new gold, governance can safeguard society’, perhaps domestically, but says it all about what to expect in the future relationship of China with say countries of the MENA region.
If data are new gold, governance can safeguard society
By Liu Xiaochun | China Daily Global | Updated: 2021-01-18
It was clearly pointed out in the meeting statement that the collection, usage and management of data shall be improved.
With robust growth of the “new infrastructure” sector, particularly the application of 5G and the internet of things, digital technology will find applications in all walks of society and will bring significant change to people’s way of living.
While appreciating the positive effect that digital society may bring, it is important to fully acknowledge and evaluate the risks that interconnectivity of data may bring and pay attention to data governance.
As digital technology is highly penetrative and spreads widely, the risk of digital technology can be widely disruptive and can go beyond personal privacy. It thus requires precautionary regulatory measures to manage or pre-empt such risks.
There are key issues and risks in data connectivity, and it is important to strike a proper balance between breaking the information silo and data security.
On the one hand, it is important to clarify which part of the society will guide the connectivity of data, be it the government, technology firms or other institutions. For example, the building of smart cities will require data collection from a great number of sectors and departments. It is crucial to make clear who will be responsible for collecting and managing them.
On the other hand, how data can be categorized and managed is another emerging issue. In governing smart cities, new data of all kinds emerge every second. The idea of smart city construction, building industrial internet and digital China cannot be realized without data from all departments and organizations going online.
Yet, with all these key data openly accessible online, inadequate or improper management of these data may pose a possible threat to public security, the police, or even to social and national security.
Both governance and the internet of things across all industries should take the management of public data into account. At the same time, the arithmetic model, a key technology in artificial intelligence, may amplify potential risks in information spreading with no targeted audiences.
There is also the risk of giant internet and technology companies adopting a winner-takes-all approach in data collection. Conventional monopoly usually means taking monopoly of one particular type of products or at most, a certain industry. The new winner-takes-all approach would mean exclusive owning of all data on one particular platform by a certain enterprise.
Online platforms in fields such as e-commerce, digital payments, and delivery services may even gain access to huge amount of social data in the name of innovation or breaking up information silo. Such data may be related to personal, business or even government information.
Should such platforms or online behemoths land in major trouble, or face some unforeseen risks, massive systemic disruptions could unsettle or destabilize society. And with the growth of 5G, the number of such businesses is expected to grow.
A number of steps will likely be taken to strengthen data governance. Control of data risks should be raised as part of State governance efforts. Any arbitrary collection of personal information and data should be prohibited.
The issue of data categorization needs to be resolved through legislative efforts in this field. A number of suggestions have been made in legislation regarding personal information protection, which is very necessary.
Categorization should be made for data under digital economy.
First, special attention should be given to managing data regarding public security, finance and people’s livelihood, and how they can be made accessible on internet platforms and how such data can be used.
Second, the responsibility of data management should be specified, and ownership and usage rights to data clarified.
Third, legal liability in data use and transaction must be made clear.
Fourth, as data management is a new and emerging sector yet closely related to national security, social stability and a steady running of economic activities, a special regulatory department or mechanism should be set up with powers of oversight.
At the same time, a category-specific, more proper oversight on artificial intelligence is also needed, particularly a more targeted regulatory model for algorithms developed by various businesses.
An overhaul of personal data already collected once all the aforementioned systems are in place would be in order.
Mechanism for the oversight and management of super-giant data platforms should be set up. On the one hand, objective views are needed about the monopolies taken by super-giant digital platforms.
These platforms also bear public service functions, differentiating them from industrial or commercial monopolies. Concentration of platforms may also help add on commercial competitiveness and social efficiency.
Take third-party payments as an example. To ensure unimpeded payments, various market participants tend to gather on one payment platform. If communications across different telecom companies cannot be realized, only one telecom platform will eventually survive.
Such logic also applies to third-party transactions, which explains why even though the regulators concerned issued a number of licenses, only a few survived. And there are reasons behind why only those few did manage to survive.
First, the survivors are those that are supported by the banks’ unified payment services. Second, the companies specialized in integrated payment services has become a solution for third-party payment platforms banning one another.
Super-giant platforms will likely continue to increase as digital society grows. Concentration of multiple services in a single platform may make business sense for market share-minded companies. But it is debatable if this is the right path to digital transformation of society.
So, proper regulatory measures and oversights are needed in helping such platforms to grow with society in a responsible manner. This is why, oversight mechanisms are needed, as platform enterprises can’t achieve this on their own through self-regulation.
Meanwhile, all data collected by platform businesses are related to society’s various publics and therefore should not be treated as commercial assets.
The article is a translation of a comment from the Bund Summit by Liu Xiaochun, the deputy dean of the Shanghai Finance Institute.
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