What Net-Zero means for the mobile communications sector?
The mobile industry is one of the first sectors to have committed to the UN Sustainable Development Goals with a focus on SDG 13: Climate Action. Moreover, by committing to the Paris Agreement, the entire sector is showcasing its leadership and seriousness to this matter.
The sector has experienced the effects of climate change as have other economic activities, through floods and droughts, as well as rising temperatures impacting its infrastructure and the lifetime of assets. Mobile operators must ensure that they provide connectivity to millions of people across the world, accordingly, business continuity is a material aspect. With digital transformation taking place across the world through the development of digital highways, mobile operators continue to respond to the needs and growing demand of stakeholders. The continuous investment in technology such as the roll out of 5G, showcases the challenges that operators face with decarbonization. It is then extremely important to leverage data analytics and artificial intelligence to power down equipment during quiet times and retirement of legacy equipment.
Drivers to become
more efficient
Throughout time, the focus of the mobile industry has been to upgrade services from 2G to 3G, LTE and now 5G in addition to increasing access to coverage. However, with the rise and increased awareness of the impact of climate change in addition to investor interest in mitigating global warming, operators are now not only assessing their environmental footprint and methods of reducing it but also focusing on efficiency and the sustainability of their networks.
The rise of fuel and electricity prices is considered one of the main drivers of network efficiency as the industry seeks alternatives. Additionally, telecom operators’ shift to non-core services and expansion of B2B services has led to a dependency on data centers that consume significant amounts of power. Environmental regulations also contribute to systemic changes for further efficiencies across the sector. Companies are now being impacted by specific regulations, encouraging greater transparency in disclosures on Net-Zero plans. Taxes have also played a role in encouraging companies to invest in green solutions.
Increased Regulatory and Policy reform
The European Union (EU) is considered one of the most advanced markets in climate control efforts. Taxation initiatives have been imposed on companies to reduce their emissions to achieve a 55% reduction in greenhouse gases by 2030 and to become a carbon-neutral continent by 2050. The EU has placed energy taxes on products that use petrol and diesel for transportation, for example. To achieve its objectives, the EU recognized that deep societal change must take place, driving waste management initiatives and mitigating environmental degradation.
The MENA region is considered far behind in terms of climate change-related policy and regulatory practices. According to the World Bank, the MENA region is considered the most vulnerable region to climate change with direct implications on food and water security, given the already extremely high temperatures, desertification, degraded marine and coastal life and high levels of air pollution. In addition, the World Bank also emphasizes how climate change is considered a ‘threat multiplier’ in the region based on the following:
High dependency on fossil fuels
Compromising water and food security
Depletion of natural resources that leads to migration
Highly urbanized cities
Considered the region to receive the least international climate financing support
Due to the high risk of climate change in the MENA region, the lack of regulations and policy reform places the region at significant environmental risk. However, some governments in the region have begun pushing for the implementation of more sound environmental policies. Developments in various Zain markets include:
Bahrain
The Supreme Council for Environment in Bahrain recognizes the country’s vulnerability to sea-level rise due to it being a small island nation. As such, the Council has set national legislation to ensure the optimum use of natural resources whilst guaranteeing that it does not cause any harm to the environment. The legislation set on a national level also takes into consideration international and global trends in addressing climate change.
Iraq
Iraq is already experiencing the consequences of climate change that has resulted in food and water shortages due to extreme temperatures. The Ministries of Agriculture and Water have already imposed regulations, prohibiting farming activities on land where water is already scarce. The Iraqi government expressed interest in accessing the Green Climate Fund, having ratified the Paris Agreement in 2021 and the country continues to make progress in responding to the negative impact of climate change. The government also worked closely with the UNDP to finalize its Nationally Determined Contributions to showcase the direction and plans to reduce its emissions.
Jordan
Under the Ministry of Environment, Jordan established the National Climate Change Policy of the Hashemite Kingdom of Jordan (2013-2020) – Sector Strategic Guide Framework. Through this plan the country identified clear action points, with one of the objectives being to “Complete the policy and legal framework for renewable energy and energy efficiency and strengthen the development, implementation, and enforcement of existing regulations”.
As such, Jordan subsequently updated its Environment Law to establish regulations to ensure they are more energy efficient.
Kuwait
In 2019, Kuwait launched its national adaptation plan in collaboration with the UN Environment, New Kuwait, General Secretariat of the Supreme Council for Planning and Development, Environment Public Authority, and the UNDP. This adaptation plan is set to be completed by 2030 in response to international environmental agreements. Through this initiative, the country aims to align all policies and regulations. Under the Environmental Protection Agency (EPA) in Kuwait, the Environmental Protection Law was passed and then amended in 2015. The aim of the legislation is to:
High dependency on fossil fuels
Preserve natural resources
Address environmental challenges
Achieve permanent development and introduce environmental components into organizational structures
In October 2021, Kuwait published an update to its Nationally Determined Contributions in order to provide details on the progress it had made with regards implementing the principles of the circular carbon economy. The intention is to offer clarity on the importance of collaboration between government and private sector players, leading to more impactful results in reducing greenhouse gas emissions.
Saudi Arabia
According to the Climate Change Laws of the World, Saudi Arabia has adopted seven laws and policies on climate change.
- Circular Carbon Economy National Program: This program follows the four Rs Logic: reduce, reuse, recycle, and remove aiming to enable the circular economy.
- Saudi Green Initiative: The objective of this initiative is to generate 50% of the Kingdom’s energy from renewables and plant 10 billion trees by 2030.
- Saudi National Water Strategy: Guides the country and provides a framework on how to build a sustainable water sector and safeguard national resources.
- National Renewable Energy Program: Aims to set the government’s vision to diversify energy sources, stimulate sustainable growth, and reduce greenhouse gas emissions.
- Saudi Arabia’s Vision 2030 and its delivery plan: Under this vision, there is a target in place to generate 9.5 gigawatts of renewable energy by 2023.
- Royal Decree establishing King Abdullah City for Atomic and Renewable Energy (KACARE) 2010: KACARE is responsible for conducting research and implementing the country’s atomic and renewable energy policies.
- National Energy Efficiency Program (NEEP) 2008: The NEEP launched eight policy objectives which includes: introduction to energy audits; energy efficiency labels; standards for appliances; and a construction code.
Sudan
Sudan provided an interim submission for its Nationally Determined Contribution for the Paris Agreement. Through this submission, Sudan states its commitment to pursue a low emissions and resilient sustainable development in the energy, forestry, and land use sectors. It set clear mitigation plans that are to be embedded in policy reform.