How to drive the circular economy | Huawei European Talks | Kaj Embrén

[ANGELIKI] Hello and welcome to another Huawei European Talk.

Today our guest is Mr Kaj Embrén, an expert and advisor in the field of sustainability with over 25 years of experience. Today's discussion will be about the EU's effort towards the circular economy and towards a successful European Green Deal.

According to Global enabling Sustainability Initiatives SMARTer2030 report, ICT emissions as a percentage of global carbon emissions will decrease over time due to the expected improvements in the energy efficiency of ICT products. ICTs on carbon footprint is expected to reach 1.25 Gt in 2030 or 1.97% of global emissions.

The report also found that by rolling out ICT solutions across the global economy, the total global carbon emissions could be cut by 12 Gt by 2030, nearly 10 times higher than ICT’s expected footprint. ICT is playing an increasingly important role in addressing global environmental issues and at the same time is helping make progress in achieving the Sustainable Development Goals. In this context, could you please tell us, Kaj, the importance of ICT in addressing global environmental issues, but also how ICT can help us for a successful circular economy and European Green Deal?

[KAJ] Thank you very much. Let's see, uh, look at the planet Earth, because that's what we have in common: to try to save the planet and we play different roles uh when we thought… think about the emissions, where we talk about the production and materials we produce from the planet.

And when we look at the circular economy, we reflect on how we use the sources from the planet, and up till today, we have taken out a lot of material from the planet and made things from it and used it and then disposed of it, and we need to break that sort of linear model to go into much more of a circular model.

And, you know, that circular economy and recycling, it's… Everything is together when we talk also about the Green Deal and the emissions from climate change. Of course, we have only one planet and yet, by 2050, the world will be consuming as if we are three planets and we can't go on like that. And we need to look at our material we use for businesses for how to produce things and how much we take from planet Earth, and then when we design for new products, and also how the consumer can take part in this in a circular economy. So, everything is connected from the raw material to the product in the market or the services in the market. And, of course, the European Union need to accelerate this transition from a linear model to a circular model. The circular model that gives back to the planet more than it takes. So, let's start with that.

[ANGELIKI] Thank you very much, Kaj, for these interesting insights. For my part, I would like also to share with you Huawei’s perspective on the circular economy by saying that to maximise resource usage, Huawei effectively processes recycled cell phones, tablets and batteries in an eco-friendly way. To use also less raw materials and make the most of resources, we're taking also steps from the very beginning, even from the design stage, and this includes, of course, using more eco-friendly materials, reducing the raw materials needed, making products more durable and easier to dissemble, improving at the same time the product recycling system.

And I would like also to ask you what your perspective is on that: what do you think? What role you think that ICT should play on not only on the circular economy but also on the whole process of recycling, let's say, of raw materials? Can I have your saying on this, please?

[KAJ] Well, we look at the circular economy as a whole. The EU, the Commission, has done some reports and it's also connected to how we can save costs. The figure, they say it's about 8% percent of annual turnover for businesses in the EU to reduce the total annual greenhouse gases also by 2 to 4%, and it also, if we are working more in the circular economy, we also can create 700,000 new jobs by 2030.

That's a pretty big opportunity, but the thing is that we need to get control over the whole process from the beginning, when we started to find the raw material from the Earth, and then when we decide how we should design things and how we produce things. And I think that the ICT sector plays a very important role when we look at electronics as a whole, then it's a growing industry, but it's also that it has an impact on packaging and also on other parts of the process. So, I think the ICT sector can play an important role for this transition from a linear principle to a more circular economy, and it will take some time, but we are not on track yet and I think the European Commission has a role to play when it comes to smart regulation that stimulates and gives incentives to businesses to change the way they produce things.

And I think also when we look at electronics, the raw material for electronics is also something that we have to think about: how could we be recycling more of the things we already have taken up from the Earth and put that into a circular perspective? So, we can re-use the material which we have already taken out from the Earth and that needs also new types of recycling system; that we can take out from the tablets and from mobile phones and make sources from that. I think we see also other industries that show how they can use old material once again when they produce new products.

And I think steel industry is one of them; they are recycling much more of old steels and use that in the process of creation of new sources. So, everyone has to play their role in the business society.

[ANGELIKI] This is very important, Kaj, indeed. So, companies should really hold on high standards for greener operations and constantly look also for opportunities to reduce carbon emissions. At the same time, I think that indeed they should perhaps also be part of green partner programmes in which, for example, they can work with other suppliers together to reduce power consumption and emissions, and also to build eventually a greener ecosystem. So, if we summarise this, what will be, let's say, your three suggestions to EU policymakers towards a successful circular economy and European Green Deal?

[KAJ] Well, it's more than three, but I think we have to look at all partners involved in the process when we produce things, and it's everything from production to consuming. So, we also have to increase the numbers of how people in the municipality, how they’re recycling waste. So, it has everything from production of materials and production and processes to the consuming of products. So, I think, when we look at the electronic industry, for example, they can also provide with smart solutions on how to, in the digital economy, bring people together and partners together to find smarter ways for how to solve a problem. And, for example, a city that needs to save sources, digital solutions bring people and partners together, and I think that the electronic industry and also everything that's connected to digitalisation have a huge role to play to save sources with smart connections and have to bring people together.

And as you see that mobile phones and other tablets are bringing people together, that's this important part of how you communicate with people who need to be involved in the whole process of recycling and also how you consume things. So, first, the advice, then then I think that the ICT sector needs to go through their chain from how much material they use and how they can sharpen and also find the transition to use more recycled materials, but also offer cities and other businesses solutions that digitalisation can help people to collaborate much more. So, it is sort of both look into your own businesses, but also how to be a part of a solution for a city, for example. 

[ANGELIKI] Indeed, actually, ICT is playing an increasingly important role in addressing global environmental issues and it’s helping make progress in also achieving the Sustainable Development Goals. At the same time, as you also mentioned, it helps reduce power consumption and emissions in in every industry by using more new renewable energy recycling, and at the same time mitigating the impacts of climate change.

[KAJ] I would like to add one more important issue which is related to that we all have been looking into production systems; when the legislature is taking their decisions, they make laws, but all the laws have been made from a perspective of the linear process, and we are to go to the circular, so most of the laws in every country have to be reviewed and to be a part of a circular thinking. And that is a huge work for all countries, to change their opportunities to find and stimulate the circular economy. So, that is one of the most important parts, that the decision-making legislator are also involved in the process to stimulate and give incentives to the circular process, as the law is an important part of that.

[ANGELIKI] Well, it's been great having you as a guest on our Huawei European talks today, Kaj. Thank you so much for joining us. That's all for now.

I hope you'll join us next time for a new edition of Huawei European talks. [KAJ] Thank you very much.