The Indian government is taking significant steps to promote a circular economy and reduce waste through the implementation of policy instruments such as Extended Producer Responsibility (EPR). This approach aims to incentivize recycling and create a sustainable and resource-efficient society. With the Sustainable Development Goals (SDG) 2030 initiative as a guiding framework, the Ministry of Mines and the Ministry of Steel have issued recycling frameworks that leverage advanced technology to achieve resource efficiency and carbon neutrality.
The Significance of Extended Producer Responsibility (EPR): Extended Producer Responsibility (EPR) is a policy approach where producers are held accountable for the treatment and disposal of post-consumer products. By imposing this responsibility, producers are incentivized to minimize the environmental impact of their products, contribute to the funding of collection and recycling costs, and support the growth of the recycling industry. Discussions are underway to implement EPR policies in India, further promoting recycling and sustainable practices.
Benefits and Importance of Recycling and Circular Economy
1. Environmental Preservation: Recycling reduces the demand for raw materials, energy consumption, and greenhouse gas emissions. By embracing recycling and a circular economy, India can significantly contribute to global environmental preservation efforts and combat climate change.
2. Resource Efficiency: Recycling promotes efficient resource utilization by extracting maximum value from waste materials. This reduces the need for extraction of virgin resources, conserves natural resources, and supports a sustainable supply chain.
3. Waste Reduction and Management: Implementing EPR policies and incentivizing recycling will lead to better waste management practices. It will encourage producers to design products that are easier to recycle and minimize the generation of non-recyclable waste, thereby reducing the landfill burden.
4. Economic Growth and Job Creation: The recycling sector has substantial potential for growth in India. By investing in recycling infrastructure and technology, the country can create new employment opportunities and stimulate economic growth. Investment banking firm Avendus Capital estimates that recycling plastics, electronic waste, and batteries alone can create a market worth $20 billion by 2030.
5. Circular Economy Practices: Embracing a circular economy model allows for the efficient use of resources, reduces dependence on imports, and fosters domestic innovation and entrepreneurship. It creates a sustainable ecosystem where waste is considered a valuable resource and reused in various industries.
Government Initiatives and Recommendations
1. GST Review: Dhawal Shah, Senior Vice-President of the Material Recycling Association of India (MRAI), has urged the government to review the 18% Goods and Services Tax (GST) on metal scrap and reduce it to 5%. This reduction would encourage greater participation in the circular economy and promote the recycling industry.
2. Steel Production Targets: To achieve the target of 300 million tons of steel production by 2030, the government must implement favorable policies to attract investments in the recycling sector. Currently, scrap or recycled steel accounts for 22% of India’s steel production.
3. Import Duty Removal: Shah recommends that the government eliminate the import duty on non-ferrous scrap to align it with the duty on ferrous scrap. The current import duty on non-ferrous scrap ranges from 2.5% to 5%. This measure would promote a level playing field and encourage recycling across various metal sectors.
Conclusion
The Indian government’s focus on extended producer responsibility, recycling, and the circular economy is a crucial step toward sustainable development. By incentivizing recycling and promoting resource efficiency, India can contribute to global environmental preservation, waste reduction, and economic growth. Implementation of EPR policies, favorable tax structures, and removal of import duties will further support the growth of the recycling industry, creating a resilient and sustainable future for India.
