Latin America witnessed a convergence of climate action this summer, notably in Mexico. The GSMA M360 in Mexico City saw the launch of our regional ‘Mobile Net Zero Report for Latin America’ on World Environment Day. This coincided with the election of Mexico’s first female president, a climate scientist with an impressive former career in energy, heralding a potentially transformative era in climate policy.
This occurred against the backdrop of an intense heatwave in Mexico, serving as a stark reminder of the increasingly tangible impacts of climate change. This follows closely on the heels of last October’s devastating hurricane, the strongest ever recorded on Mexico’s Pacific coast, which inflicted billions in damages, particularly in Acapulco.
With new climate-conscious leadership in major economies like Brazil and Mexico, there may be more opportunity now than ever for the corporate sector to engage on regulatory change which is crucial to unlocking the mechanisms required to achieve net zero.
Demonstrating leadership on net zero efforts
Certainly, the region’s mobile network operators are showing clear leadership in transitioning to net zero. Operators representing 85% of mobile connections in Latin America have set science-based targets to rapidly reduce their emissions in the next decade, in line with the Paris Agreement. This compares with around 50% of connections at the global level.
The commitments made are not just aspirational but are already yielding remarkable results. Operational emissions, known as Scope 1 and 2, have decreased by approximately 30% from 2019 to 2022, through energy efficiency and renewable energy measures.
Shifting to renewable energy
The substantial emission reductions have been achieved through improved energy efficiency of the networks and a significant shift to using clean, low carbon energy generated by renewables. In 2022 alone, mobile operators in the region purchased over 5 TWh of renewable electricity (equivalent to the annual electricity demand of Nicaragua), a jump of almost 50% since 2019. This shift saw renewable energy accounting for over 40% of their total electricity use, surpassing the global average. These are purchases in addition to renewables already on national grids.
A few leading operators – Algar Telecom, Vivo (Telefónica in Brazil, Chile and Peru), and TIM Brazil – generated and purchased enough renewable energy to meet 100% of their electricity use, an impressive feat.
One example of success is Vivo (Telefónica Brazil), which since 2018 has been generating a portion of its energy through a variety of distributed sources including hydro, solar and biogas. Vivo now has 67 of its own small power plants in operation, with a goal to reach 86 units by the end of 2024. Similarly, the use of renewable energy and biofuels, coupled with rigorous control measures and resource efficiency, has enabled Vivo to achieve a 90% reduction in its emissions (Scope 1 and 2) over the past eight years.
Operator commitment and progress towards their corporate targets certainly highlight the art of the possible. But operators cannot get to net zero all on their own.
Supporting a circular economy through policy and innovation
The potential for reducing emissions extends beyond direct operational changes. Policymakers in Latin America can catalyse further reductions by implementing ambitious national climate, energy, and industrial policies. In particular, the mobile sector can benefit from policies that encourage increased circularity of network equipment and mobile devices, as about 70% of operator emissions originate from their value chains. With significant critical mineral resources in the region, countries in Latin America also have an incredible opportunity to deliver economic growth, while supporting the global energy transition.
For the mobile ecosystem, new industrial policies such as the implementation of laws and regulations which enhance the refurbishment, recovery and responsible recycling of network equipment and mobile devices, will be particularly important for supporting operators to reduce emissions from their value chain.
Electronic waste is an important challenge in the region, including for the mobile industry. Small IT and telecommunications equipment – including mobile phones – account for 8% of overall global e-waste, or around 1.2 kg per person in Latin America in 2022. Increasing the circularity of mobile phones can play a key role in reducing e-waste. Maximising the longevity of mobile devices through take back schemes, repair and refurbishment, as well as the responsible recycling of mobile devices that can no longer be used will help reduce e-waste.
In Columbia, Tigo has been delivering significant environmental benefits through its ‘Return to Tigo and Protect the Planet Campaign’, while also supporting a just transition. Working with the Bogotá Ministry of Social Inclusion and the Best Buddies Foundation, Tigo hires people with a physical or learning disability to refurbish their devices, providing them with a job and educational opportunities.
Combined with Tigo’s distributed network of nationwide collection points and the support of its environmental volunteers who educate consumers on how to look after devices and run local collection days, these programmes have helped to collect 4.3 million devices in just two years. Of the equipment taken back, 3.8 million devices have been refurbished and sent out for reuse in customers’ homes, avoiding 870 tonnes of potential waste electrical and electronic devices.
Device manufacturers have a key role to play
Device manufacturers have the biggest role to play in increasing the circularity of mobile phones. They can increase the lifespan of devices through design choices, improved repairability, and the use of recycled materials and renewable energy in manufacturing. In Latin America, Samsung, Lenovo (Motorola), Xiaomi, and Transsion collectively hold over 70% of the market share for new devices, making their actions particularly critical in increasing device circularity in the region.
However, it remains to be seen to what extent manufacturers’ business will models change without regulatory interventions, such as the EU’s Right to Repair Directive and the EcoDesign Directive. It is also important to explore how operators and manufacturers can collaborate on initiatives which support circularity in the region.
Full circle to a sustainable future
Reflecting on the efforts detailed at the beginning of our discussion, it’s clear that the synergistic actions of this summer—from pivotal elections to strategic corporate commitments—demonstrate that Latin America is making progress in its pursuit of sustainability. As the region continues to face environmental challenges, the coordinated efforts of policymakers, operators, and manufacturers will be essential in ensuring that climate progress comes full circle, securing a sustainable future for all.