This paper assesses to what extent digitalization of activities throughout the economy may make other sectors more efficient in terms of CO2 emissions. We address this question using inter-country input-output (IO) tables across 76 developed and emerging countries across 45 sectors between 1995-2020, matched with sector-level GHG emissions. We use IO tables from the OECD to document stylized facts on the size and centrality of the digital sector between 1995-2020 and exploit country-sector variation in the intensity of digital inputs used within downstream sectors to gauge impacts on total emissions, output and emissions per unit of output.  Following logic of endogenous production networks, we further generate a shift-share instrument for input diffusion. We find limited evidence that adoption of digital inputs decreases emissions per unit of output in downstream sectors. We identify a small decrease in total sectors output as a result of increased digital intensity, but an average null effect on total emissions or emissions per unit of output. We do also show heterogeneity across countries and sectors. When instrumenting digitization, we find that output and total emissions increase, so do emissions per unit of output. The “digital enablement” effect cannot be assumed from movement towards greater digitization.