Circular economy in the Telecommunications sector

The GSMA and Connect Europe welcome the European Commission’s efforts to support the telecommunications sector’s transition towards a more circular economy, notably through the publication of the strategy of the Clean Industrial Deal and its reference to the New Circular Economy Act, the revision of the WEEE Directive and the Green VAT initiative. Increasing the circularity of the ICT sector benefits consumers and companies, the environment, and the region’s competitiveness and strategic autonomy. 

The amount of electrical and electronic equipment put on the market in the EU rose from 7.6 million tons in 2012 to 14.4 million tons in 2022 . At the same time, the volume of electronic waste generated has grown by 2% each year, while less than 40% of electronic waste is collected in the EU . 

For most European telecom operators, the majority of their total carbon emissions – across their operations and value chains – come from the manufacturing and the supply chain of electronic and electrical equipment (such as smartphones and network equipment) . Increasing the circularity of network equipment and devices can play a key role in reducing emissions and environmental impacts across the value chain . 

GSMA research shows that consumers increasingly want – and benefit from – circular devices and services . Companies providing more circular products and services are also seeing many business benefits, including revenue growth, supply chain resilience, and greater customer loyalty. 

At the same time, the current linear economy continues to increase demand for strategically important materials and minerals such as copper, lithium, cobalt, rare earth elements, and other critical minerals. These minerals are essential components of clean energy technologies and ICT hardware such as electric vehicles, batteries, wind turbines, data centres, and networking equipment. 

In a world marked by increasing geopolitical tensions and growing competition over the supply, processing, and access to critical raw materials, the EU is increasingly looking at how to ensure mineral and energy security through diversifying supply and securing domestic resources.

This is why the circular economy is essential: it serves as a key lever for telecom operators to tackle value chain emissions, while also offering a solution to the growing e-waste problem and strengthening the EU’s mineral security. Moving away from a “take-make-use-dispose” model and transitioning to a more circular model is essential to keep resource consumption within planetary boundaries. In a circular economy, the value of products, materials and resources is maintained in the economy for as long as possible, and the generation of waste is minimised. Using and consuming in a more circular way can substantially reduce the impacts of digital technologies on the environment, while also enhancing the EU’s competitiveness and security. 

Simplifying rules and obligations, alongside advancing digitalisation, is the right path forward—especially as many existing barriers stem from overlapping or conflicting requirements.

For these reasons, GSMA and Connect Europe welcome the New Circular Economy Act, the review of the WEEE directive and would welcome the Green VAT initiative which can serve as an effective incentive system.