The EU’s largest telecom operators are taking up sustainability as part of their call for more investments in their industry, according to a policy agenda published by lobby Connect Europe on Wednesday (25 September).
The lobby’s goal is for the Commission to include telecom networks, such as 5G and fibre, in the list of sustainable industries, making it more attractive as investors are certified that their investment aligns with upcoming regulatory requirements.
Telecom operators have long called for more investments in their sector, arguing that their returns on investment are lower than in the US and China. However, this is the first time they are officially including environmental goals in their agenda for the next Commission.
“The Commission still has no comprehensive sectoral plan for decarbonising the connectivity ecosystem,” Connect Europe’s Director General Designate Alessandro Gropelli told Euractiv.
Connect Europe calls on EU institutions to support the bloc’s green and digital transitions “by promoting the deployment of next-generation infrastructures.”
The lobby suggests that telecoms be included in the next review of the Climate Delegated Act, which implements the EU’s taxonomy regulation, specifying which economic activities are considered crucial for the green transition.
Including the sector within the EU, taxonomy would be a way for telecom operators to benefit from increased access to private investments. Investors are keen to invest in EU taxonomy activities, as it reduces their exposure to future regulatory requirements and penalties, has better access to public incentives and aligns with sustainability goals, reducing the risk of “greenwashing.”
Telecom operators have been calling for better access to investment, arguing that competition artificially induced by the European Electronic Communications Code (EECC) has hindered the industry’s ability to achieve a return on investment comparable to that of competitors in China and the US.
“The connectivity sector has an enabling potential,” said Gropelli, exemplifying that a factory using 5G sensors can minimise its energy waste by automatically shutting down machines or adjusting its production processes to reduce material waste.
“The EU taxonomy would send a clear signal to the market that [the telecom sector] can favour companies to reduce their own emissions,” stated Gropelli.
Indirect emissions
The document states that “around 80% of the emissions ” in the telecoms sector are due to indirect activities. This means that they are due to indirect emissions induced by the purchase of goods, including network routers, antennas, base stations, or emissions related to the manufacturing, use, and waste of customer devices.
Similarly, 80% of the digital sector’s carbon footprint is due to device manufacturing, according to a study by the French telecommunications regulator Arcep in March 2023.
This 80% figure was also mentioned in a study commissioned by Connect Europe in January, which recommended that “operators use their influence to promote more environmentally friendly and energy-efficient methods” of manufacturing.
Other priorities
Connect Europe repeated previous arguments, such as deregulating the telecoms market, levelling the regulatory playing field with Big Tech, harmonising spectrum management and simplifying reporting obligations.
Connect Europe’s policy agenda will be sent to the new EU Commissioners, Members of the European Parliament, and member states’ Permanent Representations.
[Edited by Alice Taylor-Braçe]