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Identifying the impact of the circular economy on the Fast-Moving Consumer Goods Industry

Author(s): EESC

Mobile phones, particularly smartphones, have undergone a period of rapid growth to become virtually
indispensable to today's lifestyle. Yet their production, use and disposal can entail a significant
environmental burden. This study looks at the opportunities and challenges that arise from
implementing circular economy approaches in the mobile phone value chain. A review of the value
chain and different circular approaches is complemented by a scenario analysis that aims to quantify
the potential impacts of certain circular approaches such as recycling, refurbishment and lifetime
extension. The study finds that there is a large untapped potential for recovering materials from both
the annual flow of new mobile phones sold in Europe once they reach the end of their life and the
accumulated stock of unused, so-called hibernating devices in EU households. Achieving high recycling
rates for these devices can offer opportunities to reduce EU dependence on imported materials and make
secondary raw materials available on the EU market. As such, policy action would be required to close
the collection gap for mobile phone devices. Implementing circular approaches in the mobile phone
value chain can furthermore lead to job creation in the refurbishment sector. Extending the lifetime of
mobile phones can also provide CO2 mitigation benefits, particularly from displacing the production of
new devices.

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