As the pandemic pushed the consumption of electronic goods even further in the work-from-home ecosystem in India, the volume of e-waste generated in the country is expected to grow exponentially in the coming times. Combined with the rising adoption of electric vehicles that is also likely to generate a massive amount of e-waste from Li-ion batteries, we have a real problem.
India is already the third-largest e-waste generator in the world after the US and China, and the volume growth is consistently rising. For instance, India generated 708,445-tonne e-waste in 2017-18, which rose by 32% to 1,014,961 tonnes in 2019-20, according to the Central Pollution Control Board (CPCB).
Computer equipment stands for almost 70% of e-waste in India, followed by telecom/phones (12%), electrical equipment (8%) and medical equipment (7%), according to a study by KPMG and ASSOCHAM.
In such a scenario, it is essential to understand the country’s readiness in the post-pandemic phase. Let us know the laws and regulations to help the sector grow faster.
Current scenario
If we talk about the Ghazipur landfill, considered to be the Asia largest dumpsite which is now running out of capacity making the situation much more alarming. There have been instances of fire breakouts. In such a scenario, it is essential to analyze the readiness of India to address the e-waste crisis post-pandemic, especially concerning the laws that have been created to govern the sector.
India is the only country in South Asia with a proper legal framework since 2011 to handle the rising e-waste in the country. While the regulation does not limit itself to e-waste recycling but also covers its transportation, storage and handling, the unorganized sector continues to thrive due to poor awareness and initiative from the various stakeholders.
Using non-scientific e-waste & li-ion battery recycling methods has a significant financial impact. For instance, it costs $20 billion in environment cost and $5 billion each in social impact and material loss costs. The concept of extended producer responsibility (EPR) was introduced in India in 2012, and the rules were amended in 2016 and in force since 2019. These have been very useful in ensuring shift from unscientific informal e-waste recycling to scientific e-waste recycling.
The Government has drafted a new regulation that is highly progressive and will help improve e-waste management. It is one of the most important steps in shift from the informal to formal recycling. The proposed framework removes standalone PROs which were only acting as an intermediary and not adding much value. In addition, it also increases the product coverage under EPR from current 30 products to 90 products, which is expected to expand the market size substantially.
These rules also talk about the E-Waste recycling licenses to be issued by CPCB, which is a positive step as the State pollution control boards did not possess the capacity of evaluation that that the Central Pollution control board has and grant E-Waste licenses. This will ensure that companies engaged in proper E-Waste recycling and having the infrastructure for scientific recycling, which will be licensed to recycle E-Waste and thus save India from harmful environmental and social aspects of non-scientific methods. Additionally, these will push OEMs starting to report ESG and EPR numbers in their Annual Reports, hence, it is expected that we would be able to make continuous progress. .
Road ahead
Several recent changes are expected to impact the sector positively, especially the new draft regulation. The Government needs to adequate focus on improving the EPR regulations further along with supporting industry with PLI Scheme and establish a circular economy to ensure that India is ready for the future:
EPR Regulations
There is a lot of anticipation as the industry is looking forward to implementing the new EPR regulation. The Policy aims at increasing the collection and recycling rates in the formal sector to achieve a transparent and well-optimized waste management system. If implemented correctly, the EPR regulation has the potential to guide various sectors toward attaining a circular economy.
However, to achieve its potential, India should ban exports of printed circuit boards (PCBs) for precious metal recovery. As the country is a net importer of precious metals like gold, the recycling of PCBs in India can help in recovery of these precious metals.
PLI Scheme
The production-linked incentive scheme from the Government of India has attracted prominent players in areas like electronics, engineering, and other sectors that generate a high amount of e-waste. As the PLI scheme will mature in the post-pandemic phase, a conscious effort must be made to educate all stakeholders about the importance of proper e-waste recycling.
The Government also needs to work towards increasing the awareness level of OEMs and large users. At the same time, the Government can extend incentives to players opting for scientific recycling and formal process.
The PLI scheme has played an integral role in giving the much-needed push to the manufacturing sector in the country in recent years. It can be a cornerstone in the country’s success in EVs and renewable energy sectors. This policy must cover essential aspects like materials and recycling Li-ion batteries.
Circular economy
The Government also needs to play an integral role in tracking e-waste from cradle to cradle and cradle to grave. It is critical to have a circular economy to manage e-waste efficiently by establishing technological solutions or providing incentives. Another vital intervention can be to ensure investments are made into the R&D or technological upgradation for recycling.
It would help reduce the amount of e-waste exported from the country without any social or economic benefit to India. Similarly, recycling licenses need to be extended to players with the right technology, equipment and processes to undertake recycling activities. It is important that India considers banning exports of critical metal waste. For instance, export for refining black mass from Lithium-ion batteries which contains cobalt, Lithium etc is counterproductive as India plans to acquire mines for these materials.
India has made good progress in e-waste recycling, and the policies have been created with the right intent. However, there is a need to have a faster implementation with a clear roadmap to improving the e-waste ecosystem in the country. These measures will help develop the formal sector in e-waste recycling in India.
The post-pandemic phase in the economy is proving to be critical for many sectors with improved performance and better results. The next few years can prove to be monumental in initiating the growth of e-waste recycling.
The author is the CEO & co-founder of Attero Recycling
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