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Press Release -- October 28th, 2021
Source: Ericsson
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5G connectivity is fundamental to Europe achieving climate targets, new analysis reveals

  • A new Europe-wide analysis[1] finds that using 5G technology across four high-emitting sectors could create annual emissions savings that equate to taking 1-in-7 cars (more than 35 million cars) off the EU’s roads[2]
  • Finding highlights the need for accelerated roll-out of 5G across Europe in meeting ambitious national and EU-wide 2030 goals for decarbonization
  • Ericsson’s forecast predicts a concerning picture for Europe, with 5G deployment lagging behind both North America and North East Asia
  • Ericsson’s 5G Smart Factory, in Lewisville, USA, highlights what can be achieved in emissions savings through a sustainability-led next-generation connectivity approach
A woman standing in a colorful forest

The accelerated roll-out of 5G connectivity across Europe and the UK will have an immediate and catalyzing impact in reducing CO2e emissions, according to a new study commissioned by Ericsson (NASDAQ:ERIC, news, filings).

As European nations ramp up efforts to address climate targets, a new Europe-wide analysis finds that implementing 5G technology across four high-emitting sectors - power, transport, manufacturing, and buildings - could create 55-170MtCO2e of emissions savings per year, the same saving that would be achieved by removing 35 million cars. That’s one in seven cars on Europe’s roads.

The study reports that at least 40 percent of the EU’s carbon reduction solutions, up until 2030, will rely on fixed-line and mobile connectivity.

These solutions, such as the development of renewable energy generators, could reduce EU emissions by 550 million tons of carbon dioxide equivalent (550MtCO2e), which is nearly half of the emissions created by the entire EU energy supply sector in 2017[3],  and 15 percent of the EU’s total annual emissions in 2017, the year chosen as a benchmark for the analysis.[4]

Adding in the savings from applying 5G to the four high-emitting sectors would bring the total emissions reduction to nearly 20 percent of the EU’s total annual emissions in 2017.[5] The equivalent of the total annual emissions of Spain and Italy combined.

Despite the potential at stake, new forecasting of 5G roll-out from the annual Ericsson Mobility Report paints a concerning picture for Europe.

At the end of 2020, 5G covered around 15 percent of the world’s population. In 2027, just three years before global emissions will need to have halved to stay on track to limit global warming to 1.5ºC[6], new forecasts predict that global roll-out will still only be at around 75 percent.

Significantly, North America and North East Asia are estimated to enjoy more than 95 percent population coverage by 2027. In contrast, Europe is estimated to be significantly behind its economic competitors with more than 80 percent population coverage.

Ericsson has invested heavily in energy-efficiency-led R&D - and product and solution development - across all technology portfolios to offer customers the most sustainable alternatives for their network modernization strategies.

Ericsson’s 5G Smart Factory manufacturing complex in Lewisville, Texas, USA, was built with end-to-end environmental sustainability best practice as a top priority. Ericsson’s own energy-efficiency 5G solutions are operational at the site.

The factory was designed to utilize 24 percent less energy and 75 percent less indoor water usage, avoiding 97 percent operational carbon emission, than comparable buildings.

The 5G Smart Factory has been awarded twice in 2021 by the World Economic Forum (WEF) for its global leadership in next-generation Fourth Industrial Revolution (4IR) manufacturing and sustainability achievements.

Börje Ekholm, President and CEO, Ericsson, says: “The EU and UK have set ambitious targets to reduce carbon emissions that will require transformational shifts across society. This new analysis demonstrates that connectivity, and specifically 5G, is vital to achieving these decarbonization targets. It is difficult to see how these targets will be met unless the roll-out of digital infrastructure across Europe accelerates to match that of other leading countries and regions in the developed world.

“At Ericsson we view sustainability as a vital responsibility, not an optional extra. This is why the role that limitless connectivity has to play in driving a sustainable future is a fundamental part of Ericsson’s company vision. We will continue to invest heavily, not just for our customers through energy-efficiency products and solutions, but in our own operations, just as we have done at our 5G Smart Factory in the US. It is a great example of the emission saving results that can be achieved through implementing 5G manufacturing.”

Ekholm adds: “At present, with 5G roll-out, Europe is strolling towards a more digital, low-carbon future, while other regions are sprinting in the same direction. Policymakers and regulators have a major role to play here by realizing the competitive economic, social and sustainable potential of 5G and working speedily together to clear practical, regulatory and financial obstacles so that people, businesses, industries and societies right across Europe can enjoy the benefits.”

Notes:

[1] Using McKinsey’s Net Zero Europe report as a baseline

[2] EPA (2021). Greenhouse Gas Equivalencies Calculator. Retried from: https://www.epa.gov/energy/greenhouse-gas-equivalencies-calculator; European Automobile Manufacturers’ Association (2021). Vehicles in use Europe, passenger cars, 2017. Retrieved from: https://www.acea.auto/files/report-vehicles-in-use-europe-january-2021-1.pdf. Please note that the EPA equivalencies calculator uses the average annual emissions of a US car.

[3] European Environment Agency (2021). EEA greenhouse gases – data viewer. Greenhouse gas emissions by aggregated sector, agriculture, international shipping and international aviation sectoral emissions, 2017. Retrieved from: https://www.eea.europa.eu/data-and-maps/data/data-viewers/greenhouse-gases-viewer

[4] European Environment Agency (2021). EEA greenhouse gases – data viewer. Greenhouse gas emissions by aggregated sector, agriculture, international shipping and international aviation sectoral emissions, 2017. Retrieved from: https://www.eea.europa.eu/data-and-maps/data/data-viewers/greenhouse-gases-viewer

[5] European Environment Agency (2021). EEA greenhouse gases – data viewer. Greenhouse gas emissions by aggregated sector, agriculture, international shipping and international aviation sectoral emissions, 2017. Retrieved from: https://www.eea.europa.eu/data-and-maps/data/data-viewers/greenhouse-gases-viewer

[6] Exponential Roadmap (2020). Scaling 36 solutions to halve emissions by 2030. Retrieved from: https://exponentialroadmap.org/wp-content/uploads/2020/03/ExponentialRoadmap_1.5.1_216x279_08_AW_Download_Singles_Small.pdf

NOTES TO EDITORS:

The new analysis published by Ericsson in its report, Connectivity and Climate Change, draws on data sources and methodologies from our prior research on 5G use cases, our joint research with operators on the environmental footprint of telecommunications networks and the McKinsey Net-Zero Europe report.

Estimated carbon savings made possible through illustrative 5G technology use-cases, in four high-emitting sectors:

Sector Example of a sector-specific carbon abatement solution Estimated carbon abatement by 2030
Power Sensor-driven improvements in renewable energy generation and deployment Up to 75MtCO2e
Transport Improved truck utilization Up to 55MtCO2e
Manufacturing Sensor-driven efficiency improvements in factories Up to 35MtCO2e
Building Flexible and remote working enabled by 5G connectivity Up to 5MtCO2e

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ABOUT ERICSSON:
Ericsson enables communications service providers to capture the full value of connectivity. The company’s portfolio spans Networks, Digital Services, Managed Services, and Emerging Business and is designed to help our customers go digital, increase efficiency, and find new revenue streams. Ericsson’s investments in innovation have delivered the benefits of telephony and mobile broadband to billions of people around the world. The Ericsson stock is listed on Nasdaq Stockholm and on Nasdaq New York. www.ericsson.com

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