Ecostani: India’s e-waste rules through EPR certificate trade and its challenges | Latest News India

India in 2022 introduced a new e-waste regulation, replacing the E-Waste (Management and Handling) Rules in 2011, introducing a trading mechanism where the producer could buy certificates from a recycler to meet its annual e-waste management targets under the regulation.

PREMIUM Only about one-third of e-waste is formally collected and processed and rest is managed by the informal sector. (Representative file photo)

In 2022, India generated 1.6 million metric tonnes of e-waste, which corresponds to an increase of approximately 126% compared to the year 2018. Projections estimate that this figure could soar to around 14 million tonnes by 2030.

While recycling rates have increased from 22% in 2019-20 to 43% in 2023-24, a significant portion goes unprocessed. Only about one-third of e-waste is formally collected and processed and rest is managed by the informal sector.

Globally, the amount of e-waste produced in 2022 was 62 million metric tonnes, which is predicted to rise to 82 million metric tonnes by 2030, when India is projected to be second largest e-waste producer in the world after China.

Unsafe recycling practices in the informal sector has led to severe environmental and health hazards such as air pollution and water contamination. To deal with e-waste, India came out with a regulation in 2005, which was basically focused on structured approach to e-waste management through the polluter-pay principle meaning the producers have to mandatorily take back e-waste.

Also Read: Ecostani: India walking out of the Indus Waters Treaty and its hydrological impact

As the 2005 rules failed to deal with the problem with producers not willing to abide by their responsibility fully, the rules were replaced by more comprehensive 2011 regulation, which brought in recycling.

Still there were several regulatory bottlenecks and to remove them, the government brought a fresh set of rules in 2022 rules, which provided clear mandates for every stakeholder in dealing with the e-waste.

As compared to 22 categories of e-waste in the 2011 framework, the 2022 covered 130 categories including the unbranded ones. The revision introduced phased collection targets for e-waste, initially requiring 60% collection rate in the first year and increasing it to over 80% over five years. The new rules for the first time covered solar panels, medical devices and toys, and brought in separate rules for Battery Waste Management to address battery disposal. Primarily, the 2022 revision focused on digitalising e-waste processes, limiting hazardous materials, and enhancing transparency.

The new rules enhanced the extended producer responsibility (EPR) with clear mandate for manufacturers, producers, recyclers and refurbishers. The Extended Producer Responsibility meant responsibility of any producer of electrical or electronic equipment.

The rules regulated by the Central Pollution Control Board (CPCB) set up a separate portal for registration of manufacturers, producers, recyclers and refurbishers with mandatory submission of quarterly and annual reports.

The CPCB also had annual targets for each of the stakeholders to enable trade of EPR certificates, which was being done for the first time in waste management.

To be sure, the EPR certificate trade is similar to emission certificate trading except that the price for EPR certificate is fixed by the CPCB. Under the new regime, producers were allowed to purchase EPR certificates to meet its extended producer responsibility liability of the current year plus any leftover liability of preceding years.

The registered recyclers could sell the certificates generated on the CPCB portal on EPR portal to the producers. As per CPCB, this was done to provide financial incentive to the recyclers to treat e-waste in an environment friendly manner and incorporate them into the e-waste management system.

The certificates are, however, subject to environmental audit by the CPCB, conducted by third party auditors. In reality, whether it happens is a question mark. In July 2024, around 600,000 fake EPR certificates generated by recyclers from Gujarat and Karnataka for plastic sector were found.

The rules provided for penalty, which the CPCB called compensation for producers not able to meet their targets. With EPR certificate trade regime, not meeting the targets would appear a remote possibility.

Although the impact of EPR certificate trade in the e-waste sector it difficult to gauge as it started only in mid-2024, the electronic industry is sceptical about the trade regime. Their first concern is that it would add cost to the already-highly price competitive electronic and electrical market. Second is the huge incentive given to recyclers with very less accountability. And third is the arbitrary fixing of certificate price by CPCB instead of the market dynamics allowing price fixation. The industry leaders also claimed that the new rules have added compliance burden.

The stakeholders claim that even the new rules have not provided the necessary impetus needed to push the customer to give back the electronic waste to registered recycler or producer.

A primary reason for this is that retailers don’t take back e-waste and the informal sector provides better price than the formal sector. Also, the registered recyclers don’t have a network of agents to take back e-waste even in big cities such as Delhi and Mumbai, which account for more than half of the e-waste generated.

Many countries in the world such as United States and Canada has system which marries the best of EPR certificate trade and mandatory take back at retailor level, which has increased the e-waste management to over 80% as compared to just 33% for India. In the western world, companies have to pay a heavy price for not meeting the regulations.

Moving forward, India’s e-waste strategy should emphasise transitioning toward a circular economy, promoting product reuse, repair, and refurbishing to extend product lifespans and minimise waste.

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