The circular economy has evolved from an environmental concept to a real investment opportunity. We analyse Spain's circular technology sector and the trends driving its growth.
When we started investing in circular technology years ago, the concept was marginal. Today, the European refurbished electronics market exceeds 10 billion euros and grows at 15-20% annually. EU regulation — the Ecodesign Regulation and Right to Repair Directive — is accelerating the transition. And consumers, driven by environmental awareness and price sensitivity, have overcome most resistance toward refurbished products.
The regulatory framework as catalyst: the Ecodesign Regulation (durability, repairability, recyclability requirements for electronics), Right to Repair Directive (consumer right to repair devices, obliging manufacturers to facilitate information, tools, and parts), Extended Producer Responsibility (making manufacturers responsible for end-of-life product management), and Repairability Index (France pioneered, now extending across the EU).
The circular technology value chain: collection and reverse logistics, evaluation and classification, refurbishment (data cleaning, component repair, battery/screen replacement, software update, quality control), distribution and sale (B2C and growing B2B channels), and component recycling (recovering precious metals and critical materials).
Spain is particularly interesting: large installed smartphone base, price-sensitive consumers, favourable regulatory framework, and geographic position providing access to North Africa and Latin America where demand for affordable devices is enormous.
Our investment thesis: we invest through Certus from a dual conviction — it is a sector with solid and growing economic fundamentals, and it generates quantifiable positive environmental impact. Each refurbished device avoids 40-80 kg of CO2 emissions. We do not invest for fashion or ESG compliance — we invest because the numbers make sense, regulation favours the trend, and consumer demand is real and growing. One of those opportunities where doing right and doing profitable fully coincide.
The intersection of traditional business and technology represents one of the most compelling investment opportunities in the Spanish middle-market. While the narrative around technology investment is dominated by venture capital and startups, the reality is that the greatest value creation potential lies in applying technology to established businesses with proven economics.
The typical middle-market company in Spain has been operating for two or three decades. It has a loyal client base, experienced employees, and established market positions. What it often lacks is the technological infrastructure to compete effectively in the coming decade. This gap between established business fundamentals and technology capability is precisely where we see the opportunity.
Our approach is pragmatic rather than ideological. We do not pursue technology for its own sake. Every technology investment must demonstrate a clear return — reduced costs, improved margins, better decision-making, or enhanced competitive positioning. The projects that generate the most value are typically not the most technologically sophisticated but the most operationally relevant: replacing manual processes with automated ones, providing managers with real-time data instead of month-old reports, or enabling pricing decisions based on market analytics rather than intuition.
Implementing technology in traditional businesses requires patience and cultural sensitivity. The resistance to change is real — employees who have done their jobs successfully for years are understandably sceptical of systems that promise to do it differently. The key is involving people in the process, demonstrating quick wins that build confidence, and being honest about what technology can and cannot do.
Data quality remains the single biggest barrier. Companies that have operated with rudimentary information systems for decades cannot implement sophisticated analytics overnight. The preparatory work of cleaning, structuring, and standardising data is unglamorous but essential. We have learned to allocate adequate time and resources to this phase, even when it means delaying the implementation of more visible solutions.
The talent challenge is equally real. Finding professionals who understand both technology and business — who can translate between the language of algorithms and the language of the warehouse floor — is extraordinarily difficult. Building this capability internally, through targeted training and strategic hires, is a long-term investment that pays extraordinary dividends.
By Blue Mountain Capital
By Blue Mountain Capital
By Blue Mountain Capital
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