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National Circular Economy Framework

Roadmap for a Sustainable & Resilient India

First Edition | November 2023


Acknowledgement

The Confederation of Indian Industry (CII) extends heartfelt gratitude to all its esteemed members, industry
leaders, academic and research professionals, and every stakeholder who played a pivotal role in the formulation
of this study and the subsequent development of this comprehensive framework. The completion of this report
owes much to the invaluable insights and thoughtful contributions generously shared by these stakeholders, as
well as the dedicated efforts of the Waste to Worth Task Force community.

We extend our gratitude to Prof Ajay Kumar Sood, the Principal Scientific Advisor to the Govt. of India for the
invaluable advice and leadership throughout the development of National Circularity Framework.

We are grateful to Dr Monoranjan Mohanty, Mission Director, The Office of PSA, Govt of India for his guidance.
The richness of ideas, recommendations, and suggestions encapsulated in the book are testament to the quality
of the extensive deliberations held with Dr Mohanty and the CII team.

The vision behind this framework originated with Mr. Masood Mallick, Chairman of CII’s Task Force on Waste
to Worth 2023 and CEO of Re Sustainability Limited. We express our sincere appreciation for his outstanding
thought leadership. Special recognition is extended to Mr. Hrishit Shroff, Co-chair of the CII Task Force on
Waste to Worth 2023 and Executive Director of Excel Industries Ltd, whose guidance and encouragement were
instrumental in shaping this publication.

As this marks the inaugural edition of the framework, it attains its final published form after a series of meticulous
internal reviews and discussions. CII would like to acknowledge the significant contributions of its members,
including Mr. Varun Boralkar, VP- Strategic Business Group, Blue Planet Environment; Mr. Saurabh Shah, MD,
Land Bell Green Forest Solutions; Mr. Ulhas Parlikar, Global Consultant, Waste Management, Circular Economy,
Policy Advocacy, AFR & Co-processing; Mr. Prasanth Singh, co-founder & CEO, Blue Planet Environment;
Mr. Vishal Patel, Vice President, Abellon Clean Energy Ltd; Mr. Haaresh Kumar, Director, Re Sustainability Reldan
Refining Limited; Mr. Sanjiv Kumar, Strategic Business Development Head, Re Sustainability; Mr. Subash Koduri,
Assistant General Manager, Re Sustainability and Mr. Ramesh Bitra, Head of Corporate Communications, Re
Sustainability.
Copyright © 2023 Confederation of Indian Industry (CII). All rights reserved.

It is hoped that this framework will serve as a valuable resource for the Indian Environmental Sector, contributing
No part of this publication may be reproduced, stored in, or introduced into a retrieval system, or transmitted in any form or by any means
significantly to the promotion of a Circular Economy in India.
(electronic, mechanical, photocopying, recording or otherwise), in part or full in any manner whatsoever, or translated into any language,

without the prior written permission of the copyright owner. CII has made every effort to ensure the accuracy of the information and

material presented in this document. Nonetheless, all information, estimates and opinions contained in this publication are subject to

change without notice, and do not constitute professional advice in any manner. Neither CII nor any of its office bearers or analysts or

employees accept or assume any responsibility or liability in respect of the information provided herein. However, any discrepancy, error,

etc. found in this publication may please be brought to the notice of CII for appropriate correction.

Published by Confederation of Indian Industry (CII), The Mantosh Sondhi Centre; 23, Institutional Area, Lodi Road,
New Delhi 110003, India, Tel: +91-11-24629994-7, Fax: +91-11-24626149; Email: info@cii.in; Web: www.cii.in
Foreword from the
Chairman and Co-Chair

Masood Mallick Mr. Hrishit Shroff


Chairman – CII Task Force on Co-chair – CII Task Force on
Waste to Worth Waste to Worth

Dear Members and Stakeholders,

We are delighted to share with you this expression of our shared commitment to fostering a Circular Economy
in India, leveraging the nation’s vast potential and rich cultural heritage of reduce, reuse, recycle, and recover.
As a resource-intensive economy with a rapidly growing population, India can lead the way in decoupling
economic growth from resource consumption and environmental harm by mainstreaming these principles.

The Circular Economy, emphasizing the efficient use and reuse of resources, aligns with our goals for a
prosperous and equitable society while safeguarding the environment. This concept goes beyond mere
recycling, contributing to waste reduction, resource security, and climate change mitigation.

The recent G20 declaration further underscores the critical role of the Circular Economy in achieving sustainable
development, launching the Resource Efficiency and Circular Economy Industry Coalition (RECEIC). To propel
this momentum, as a part of this framework, we recommend the establishment of the National Circular Economy
Framework (NCEF), aligning with the vision set forth by the Hon’ble Prime Minister and the G20 declaration.

This framework focuses on sustainable green growth, transitioning from a linear economy to one that extends
product life and minimizes waste, presenting opportunities for economic and industrial renewal. We are
dedicated to supporting innovative Circular Economy projects that design out waste throughout the value
chain; and contribute to environmental, social, and economic benefits.

As we move forward, the formation of a Stakeholder Board by CII will play a pivotal role in providing advisory
services, facilitating networking, and connecting stakeholders for collaborative initiatives. Leveraging CII’s
unparalleled reach into India Inc, we have been able to bring together a group of eminent subject matter
experts and industry leaders to help guide and draft this framework.

The outlined objectives, including promoting a common understanding, raising awareness, and developing
mechanisms for progress evaluation, aim to ensure a robust policy framework that supports and harmonizes
Circular Economy projects. The policy will promote an integrated approach that will draw forth technological
and design innovations that will redirect the markets towards responsible consumption.

Together, let us advance on this transformative journey toward a Circular Economy, working collaboratively to
achieve our targets, reduce transition costs, and structure sustainable financing for a resilient and sustainable
India.
Foreword from the Executive Summary:
Director General, CII Advancing Circular Economy in India

India, a resource-intensive economy with a large and rapidly growing population, possesses immense potential
to be a leader in the Circular Economy, thereby fostering sustainable growth and a more prosperous and
equitable society. The Circular Economy goes beyond resource efficiency and recycling, and its adoption helps
Mr. Chandrajit Banerjee reduce waste, conserve resources, and mitigate climate change. Moving toward a Circular Economy helps
Director General, CII
meet India’s NDC targets, UNSDGs, LiFE goals etc.

The recent G20 declaration highlights its critical role, leading to the formation of Resource Efficiency and Circular
India is on a path of accelerated growth and Indian Industry has always been proponent of a philosophy of
Economy Industry Coalition (RECEIC). To propel this momentum, a National Circular Economy Framework (NCEF)
“Responsible Growth” where circularity, sustainability and mitigation of environmental challenges have been
is proposed as an industry intiative. NCEF strives to provide a framework for developing new business models
priority considerations.
that aim to increase the value, use, and life of materials, products, and assets, and to design out waste from
production and consumption.
The 1st edition of the CII National Circular Economy Framework (NCEF) reflects CII’s endeavour towards
promoting sustainability and circularity in waste management practices by industry. The CII National Task Force
The NCEF is divided into two parts. Part 1 establishes a comprehensive framework applicable to all focus
on Waste to Worth gives a special focus to waste management and handling, and the release of the NCEF
materials: outlining the objectives; presenting the selection criteria for focus materials based on the extent
represents one of its transformational initiatives under the “CII Waste to Worth Movement”.
of usage, environmental impact, and resource value potential; elaborating upon the enabling principles for
implementation of NCEF focusing on prevention, upcycling, recycling, and energy recovery; setting up of the
The NCEF a milestone, particularly in its comprehensive approach towards key materials critical to the Circular
targets; and presenting the key strategies for implementation including policies and measures for effective
Economy. The focused attention on (i) plastics, (ii) construction materials, (iii) electrical and electronic wastes,
implementation; and the processes for monitoring and evaluation.
and (iv) dry and wet fractions of mixed municipal waste highlights an understanding of the diverse challenges
associated with these materials in the Indian context. Plastics, given their widespread use and environmental
Part 2 of the NCEF provides material-specific Circular Economy action plan(s) built upon the principles and
impact, demand urgent and innovative solutions. The inclusion of construction materials acknowledges the
strategies outlined in Part 1. This initial edition of the NCEF concentrates on plastics, construction materials,
significant role this sector plays in resource consumption. Similarly, addressing the complexities of electrical and
electrical and electronic goods, and the dry and wet fractions of mixed municipal waste. These materials
electronic goods showcases a forward-looking approach, considering the rapid technological advancements
were selected due to their significant potential for waste reduction, resource conservation, and environmental
in our society. Lastly, the management of mixed municipal waste fractions, both dry and wet, underscores the
protection. As the NCEF matures and gains traction, material-specific action plans will be developed for a wider
need for a holistic waste management strategy.
range of focus materials.

CII’s commitment to these key materials aligns seamlessly with the broader goals of advancing sustainability and
The key objectives of the NCEF include:
resource efficiency in India. The CII National Circular Economy Framework, with its emphasis on these critical
• Champion the Circular Economy through a life cycle assessment approach.
areas, will undoubtedly serve as a foundational guide for enterprises and policymakers alike, fostering a Circular
• Promote a shared understanding of the Circular Economy’s principles, challenges, and opportunities
Economy that is both economically viable and environmentally sustainable.
to drive collaboration, innovation, and action.
• Promote circular solutions for focus materials across various industries and value chains.
As we navigate the challenges of environmental uncertainties and climate changes, the CII National Circular
• Develop targets for Circular Economy collaboration, including cost reduction strategies and sustainable
Economy Framework stands as a promising guideline for creating a sustainable and resilient future.
financing models, to empower partners and stakeholders.
• Establish a monitoring and evaluation mechanism to track progress and facilitate policy harmonization
for Circular Economy initiatives.

This document serves as a concise guide for India’s transition to a Circular Economy, emphasizing collaboration,
awareness, and targeted actions for a sustainable and prosperous future.
Table of
Contents
01
National
Circular Economy
Framework
1
Chapter

Significance of
Circular Economy for India

1.1. Introduction
India, a resource-intensive economy with a and the Mission Lifestyle for Environment to focus on sustainable green growth, moving
large and rapidly growing population, has the (LiFE)’s goal of encouraging individuals to adopt from a consumption and disposal-based linear
potential to be a leader in the Circular Economy, environmentally conscious lifestyles. Even the economy to a system that extends the life of
given its rich cultural heritage of reuse, reduction, G20 declaration held on September 9-10, 2023, products and materials and minimises waste so
and repair. By promoting Circular Economy at New Delhi agreed on the critical role played that it has many environmental, climate, social
principles, India can decouple economic growth by the Circular Economy, extended producer and economic benefits. The aim is to increase
from resource consumption and environmental responsibility, and resource efficiency in lending to innovative Circular Economy projects
damage. This can lead to a more prosperous and achieving sustainable development and launched that systematically design out waste, extend the
equitable society, while also safeguarding the the Resource Efficiency and Circular Economy life of assets and close material loops. The Circular
natural environment for future generations. Industry Coalition (RECEIC). The declaration Economy is also an opportunity for economic and
committed to enhancing environmentally sound industrial renewal with a corresponding increase
Circularity refers to the circular flow and waste management, substantially reducing in investments.
efficient use and reuse of resources, materials, waste generation by 2030, and highlighting the
and products. The Circular Economy concept importance of zero-waste initiatives. The document strives to provide a framework
is gaining momentum as consumption and for developing new business models that aim
resource utilization increase to serve India’s fast- To spur the momentum, there is a requirement for to increase the value, use, and life of materials,
growing population with rising standards of living. a framework that enables the achievement of the products, and assets, and to design out waste from
The Circular Economy goes beyond resource vision and mission enumerated by the Hon’ble production and consumption. The document
efficiency and recycling, and its adoption Prime Minister and the G20 declaration. This also aims to provide a broad framework for
helps reduce waste, conserve resources, and framework must become an enabler for partners, targets to be achieved, scale, and timeline for
mitigate climate change, contributing to a more especially industries, the business community, and certain sectors, with an emphasis on the trade-off
sustainable future for India. public and private investors, so that the economic between new and recycled products from these
model becomes more lucrative and sustainable. identified sectors. These sectors are high-volume
Moving toward a Circular Economy helps meet This document is an attempt to present a well- sectors that are expected to contribute high value
the country’s Nationally Determined Contribution defined National Circular Economy Framework in terms of both circularity and economy. These
(NDC) targets for reducing greenhouse (NCEF) to accelerate economic growth through sectors are namely: Construction and Demolition
gas emissions, United Nations Sustainable the Circular Economy. Waste, E-waste, Plastic Waste, and Dry and Wet
Development Goals (UNSDGs) commitments Municipal Solid Waste.
to responsible consumption and production, The economic model based on circularity aims

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CII aims to form a Stakeholder Board in the coming days that will provide advisory services, be active The following sections will explore the linear and Circular Economy in more detail, highlighting the
in networking and sharing best practices, connect stakeholders, and facilitate access to finance for key differences between the two models, the importance of circularity for India, and the benefits of
Circular Economy projects. In light of this, this document aims to: transitioning to a Circular Economy.

1. Outline the CII (industries) vision to spur the Circular Economy with a focus on life
cycle assessment.
1.2. Linear Economy
a. What is Linear Economy?
2. Promote a common understanding of the Circular Economy, as well as its
challenges and opportunities, among project partners, with a focus on encouraging
The linear economy is an economic system that operates on a “take-make-waste” model. In this
collaborative innovations, technology development, and on ground actions;
system, raw materials and resources are extracted from the environment to manufacture products.
These products are then consumed and eventually discarded as waste at the end of their lifecycle.
3. Raise awareness about circular solutions among project promoters and other
stakeholders for sectors such as construction and demolition waste, electronic
This approach is considered unsustainable as it assumes that resources are abundant and can be
continuously extracted without significant consequences. However, as the demand for goods and
waste, plastic waste, and dry and wet municipal solid waste, and collaborate across
services continues to rise, this linear model leads to resource depletion, environmental degradation,
sectors and value chains.
biodiversity loss, and a growing waste problem. Figure 1-1 presents different stages of linear economy:

4. Develop a mechanism for recordkeeping that helps evaluate the monitoring of


progress. The objective is to have a proper policy framework that is ready for
review and is updated. This will help to facilitate and harmonize due diligence and
reporting related to Circular Economy projects with project partners.

5. Develop targets for partners and stakeholders engaged in collaborating to contribute


to the Circular Economy by suggesting methods to reduce the cost of transition to
circularity and structuring project pipelines to ensure sustainable financing.

Figure 1-1: Linear Economy

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b. Negative Environmental and Social Impacts
The linear economy is characterized by the following Associated with Linear Economy
stages:
The linear economy causes a wide range of negative impacts, both on the
• Resource Extraction: The first stage of the linear environment and society at large. Some of the negative impacts are as listed
economy involves the extraction of a wide range of below:
resources from the natural world, including fossil fuels,
minerals, and trees from forests etc. through different • Resource Depletion: Continuous demand for resources places immense
processes such as mining, logging etc. Extraction pressure on the natural world, leading to the depletion of finite natural
of resources is foundational to the production of resources such as fossil fuels, metals, minerals, and timber. The unsustainable
goods and services. Extraction of resources can have rate at which these resources are extracted far exceeds the rate of their
a number of negative impacts on the environment, formation, leading to depletion of resources. As resources become
including habitat destruction, deforestation, air and scarce, the price of goods and services is likely to increase, making them
water pollution etc. unaffordable for people on low income.

• Transformation (Production and Distribution): The • Habitat Destruction and Deforestation: The clearing of land for mining
transformation of resources into products is the second and other resource extraction activities destroy habitats for plants and
stage of the linear economy. This stage involves the animals. Also, the logging of trees for timber and other products lead
processing of raw materials into finished goods. to deforestation. Habitat destruction and deforestation lead to loss of
This spans everything from the manufacturing of biodiversity, climate change, soil erosion etc.
automobiles, textiles, and electronics to the production
of food that sustains populations worldwide. The • Pollution: Pollution is caused at all stages of the linear economy, from
transformation of resources into products can also have resource extraction, including mining, to the manufacturing of products,
a number of negative impacts on the environment, their transportation, and their disposal after their useful life. These activities
including greenhouse gas emissions, waste generation emit pollutants into the air, soil, and water, resulting in air pollution, water
etc. contamination, and the degradation of ecosystems.

• Consumption: The consumption of products is the • Waste Generation: As products reach the end of their lifecycle, they
third and most important stage of the linear economy, are discarded as waste, marking the termination of their utility. Waste gets
as it drives economic growth and sustains the demand generated during the resource extraction and manufacturing of products
for goods and services. The transformed products are such as metal scrap, hazardous waste etc. The waste ends up in landfills,
consumed by individuals, businesses, and institutions incinerators, or even in dumpsites or natural environments, contributing to
etc. However, this unidirectional flow of consumption environmental degradation.
poses significant challenges for sustainability.
• Increased Inequality: The linear economy tends to widen social inequality.
• Disposal: Disposal is the last stage of the linear The wealthy, who typically consume more resources and produce
economy. Products are disposed of upon reaching the more waste, create a cycle of environmental injustice, as marginalized
end of their lifespan. The waste typically ends up in communities often bear the brunt of the negative impacts associated with
dumpsites, in scientific landfills or disposed of through resource extraction, pollution, and waste disposal. For example, the mining
incineration. This step, often seen as the conclusion of of coal and other minerals often takes place in tribal areas, where people
a product’s journey, marks the termination of its utility in are exposed to high levels of air and water pollution, which can lead to
the linear economy. The disposal of waste, especially health problems such as respiratory issues. Similarly, most dumpsites or
non-biodegradable materials, poses significant waste disposal sites are located near poor and marginalized communities,
environmental challenges. who are exposed to harmful pollutants from waste.
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1.3. Circular Economy b. The CONCEPT of Circular Economy
The Ellen MacArthur Foundation has described system aims at maximising the use of pure, non-
a. What is Circular Economy? the Circular Economy in a diagram shown in Figure toxic materials and products designed to be
A Circular Economy is an economic system that aims to reduce waste and pollution by keeping 1-2, which comprises two cycles: a biological easily maintained, reused, repaired or refurbished
products and materials in use for as long as possible. It is a closed-loop system that minimizes the use cycle, in which residues are returned to nature to extend their useful life, and later to be easily
of virgin resources and maximizes the reuse and recycling of materials. The Circular Economy takes after use, and a technical cycle, where products, disassembled and recycled into new products,
a holistic approach to economic development, considering the environmental and social impacts components or materials are designed and with minimization of wastage at all stages of the
of all economic activities. In a fully Circular Economy, waste is minimized by designing products marketed to minimize wastage. Such a circular extraction-production-consumption cycle.
and industrial processes so that resources are kept in use in a perpetual flow, and by ensuring that
unavoidable waste or residues are recycled or recovered.

The Circular Economy is characterized by the following:

Reduce: The central idea of the Circular Economy is to reduce both resource
consumption and waste production. This foundation encourages a shift towards a more
mindful utilization of resources, thereby mitigating the impact on the environment.

Reuse: The principle ‘reuse’ promotes usage of products and materials for as long
as possible. This curbs the need for incessant production thereby minimizes resource
extraction and manufacturing.

Repair: In the Circular Economy, the practice of repair takes precedence over
replacement. This not only extends the utility of products but also leads to a culture of
resourcefulness and sustainability, countering the prevalent throwaway culture.

Remanufacture: The concept of remanufacture breathes new life into used


materials. Through this process, products are recreated from discarded components,
demonstrating the profound potential for regeneration within our existing resources.

Upcycle: Upcycling is a process of transforming waste materials or products into


new materials or objects of higher quality or value. It is a key principle of the Circular
Economy, which aims to keep resources in use for as long as possible and to minimize Figure 1: The Ellen MacArthur Circular Economy Diagram
waste.
This circular way of producing and consuming as follows: new products and assets are designed
disconnects economic growth from the extraction and produced in a way that reduces virgin material
Recycle: Recycling process entails the conversion of materials into new products,
and consumption of materials. As such, a Circular consumption and waste generation; new business
ensuring that resources are continually utilized rather than consigned to landfills or
Economy offers a way to hedge future resource and models and strategies are applied that optimize
incineration.
material supply chain risks for companies and increase capacity utilisation and extend the useful life of
their resilience to decreasing supplies and increasing products and assets; and resource and material loops
price uncertainty and volatility. This will reduce are closed through recycling of end-of-life products
resource dependency, spur innovation and increase and materials. It is a system that can help to conserve
competitiveness. resources, reduce pollution, and create a more
equitable society. Figure 1-3 below presents how to
In summary, the Circular Economy can be defined mainstream/implement Circular Economy.

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1.4. Linear Economy Vs. Circular Economy
Unlike linear economy, the Circular Economy considers the entire lifecycle of a product, from its
creation to its eventual disposal or reuse. Circular Economy prioritizes resource efficiency, reuse,
remanufacturing, refurbishing, recycling etc., with an aim to break free from the unsustainable linear
pattern. Table 1-1 below presents the key differences between linear economy and Circular Economy.

Feature Linear Economy Circular Economy

Approach Take-make-waste Reduce-reuse-recycle

Resource use Resources are extracted, used, Resources are kept in use for
and disposed of as waste. as long as possible, extracting
the maximum value from them
while in use, then recovering
and regenerating products and
materials at the end of their
service life.

Waste generation High levels of waste are Waste generation is minimized.


generated.

Pollution Pollution is generated Pollution is minimized through


throughout the lifecycle of the use of cleaner technologies
products. and processes.

Economic model Based on the sale of goods. Based on the provision of


services.

Sustainability Perspective Short-term gains Long-term resilience


Figure 1-3: Implementation of Circular Economy
The Circular Economy contributes to the achievement of multiple SDGs by virtue of minimizing waste
c. Positive Impacts Associated with Circular Economy: generation and pollution, creating new jobs and businesses, and reducing the usage of resources.
The Circular Economy has the potential to have a number of positive impacts, including:

• Reduced Environmental Impact: As the Circular Economy aims to keep resources in use for as
long as possible, the need for extraction of resources and disposal of waste gets minimized. This
helps reduce greenhouse gas emissions, pollution, and waste.

• Increased Resource Efficiency: The Circular Economy can help to conserve resources by reducing
our reliance on virgin materials. This is because the Circular Economy encourages the reuse, repair,
and recycling of materials.

• Economic Growth: The Circular Economy opens up jobs and business opportunities, as it requires
new technologies and business models to be developed.

• Social Benefits: The Circular Economy can help to create a more just and equitable society. This is
because the Circular Economy can create jobs for people from marginalized groups and can help
to reduce environmental inequality.

Circular Economy helps reduce our ecological footprint, create new jobs, and build a more sustainable
future.

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1.5. Importance of Circular Economy for India b. About LiFE Initiative
India, being a resource-intensive economy, with limited access to natural resources such as water, India’s Lifestyle for Environment (LiFE) initiative, a global mass movement launched by Prime Minister
land, and minerals, need to transition to Circular Economy to reduce its reliance on new resources by Narendra Modi, aims to nudge individual and community behavioural change to tackle the climate
promoting the reuse and recycling of materials. India can take advantage of all the benefits that Circular crisis and protect the environment. LiFE is inspired by India’s traditional practices and values, which
Economy can bring, including job creation, economic growth, reduction in pollution, improvement in emphasize sustainability and harmony with nature. The initiative is based on the following principles:
public health and well-being etc. This section presents the importance of Circular Economy for India.
Mindful And Deliberate Utilization: Pro-Planet People:
a. Circularity in Indian Culture: Traditions and Values LiFE encourages individuals to be mindful of their LiFE aims to create a community of “pro-planet
Circularity in Indian culture is deeply rooted in its traditions and values. For centuries, Indians have consumption and to use resources deliberately. people” who are committed to living sustainable
practiced sustainable living and resource conservation, guided by their beliefs and customs. Some of This can be done by adopting simple practices lifestyles. This community can work together to
the key principles of circularity that are embedded in Indian culture include: such as reducing waste, recycling, and using raise awareness of environmental issues and to
Respect for Nature: Indian culture teaches us to respect and cherish nature. This is energy-efficient appliances. promote sustainable practices.
reflected in traditional practices such as worshiping trees and rivers, and celebrating
festivals such as Vasant Panchami and Chhath Puja, which are dedicated to nature. Mission LiFE intends to influence the demand and supply dynamics and the the long-term vision of
This respect for nature translates into a commitment to protecting and preserving the Mission LiFE is to trigger shifts in large-scale industrial and government policies that can support both
environment, which is essential for a Circular Economy. sustainable consumption and production.

Minimalism: Indian culture emphasizes simplicity and minimalism. This is reflected


in traditional practices such as yoga and meditation, which teach us to focus on the c. LiFE Themes
essentials and let go of unnecessary possessions. This minimalist lifestyle helps to Mission LiFE seeks to channel the efforts of individuals and communities into a global mass movement
reduce waste and consumption, which is another key principle of a Circular Economy. of positive behavioural change. There are seven themes in Mission LiFE, as presented in Figure 1-3
below:
Sharing and Community: Indian culture is known for its strong sense of community
and sharing. This is reflected in traditional practices such as joint families, community
kitchens, and religious festivals. This culture of sharing helps to reduce waste and
promote the reuse of resources.
Here are some specific examples of circular practices in Indian culture:
Agriculture: Traditional Indian agriculture is based on sustainable practices such as
crop rotation, utilization of cow dung as fertilizer etc. These practices help to improve
soil health, reduce water consumption, and minimize waste.

Food: Leftover rice and lentils are used to make other dishes such as khichdi and
upma. Also, food scraps are used to make compost or animal feed.

Textiles: Indians have traditionally worn clothing made from natural fibers, such as
cotton and wool. These fibers are durable and can be reused and recycled multiple
times.

Crafts: Indian crafts are known for their use of recycled and upcycled materials. For
example, artisans often use discarded fabrics, paper, and metal to create new products
such as bags, and home decor.

Reuse of Products: Many products, such as glass bottles and plastic containers, are
reused either for their intended purpose or for some other purpose, until the product
reaches its absolute end of life.
Despite the many strengths of Indian culture in terms of circularity, there are also some challenges that need to
be addressed. For example, there is a growing trend of consumerism and overconsumption in India. By reviving
and modernizing these traditional practices, India can build a more sustainable and resilient future. Figure 1-3: LiFE Themes

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d. How Circular Economy Can Support LiFE Initiative? At the same time, India’s resource consumption is projected to grow exponentially between now
and 2075. By 2075, India’s energy demand is expected to increase by 150-200%, driven by rising
The Circular Economy can support the LiFE initiative in a number of ways. For example, it can help to:
incomes, infrastructure development, and a growing middle class. Similarly, the demand for metals
is anticipated to surge by 300%, while the demand for non-metallic minerals is expected to double.

The increased mining and resource extraction associated with India’s growing consumption will have
Reduce waste generation Promote sustainable consumption Create new jobs and businesses
significant environmental and carbon footprint related consequences. Mining activities contribute
to deforestation, habitat destruction, air and water pollution, and soil degradation. Additionally, the
processing and transportation of resources release greenhouse gases, exacerbating climate change.
The Circular Economy The Circular Economy promotes The Circular Economy
focuses on reducing sustainable consumption creates new jobs and
Circular Economy offers a compelling solution to India’s resource dilemma. By adopting circular
waste generation at the by shifting the focus from businesses in sectors such
practices, India can minimize resource extraction, maximize resource utilization, and extend resource
source. This can be done product ownership to product as recycling, repair, and
life through reuse, repair, and recycling. This transition towards a Circular Economy can bring about
by designing products for access. This can be done refurbishment. This aligns
substantial economic, environmental, and social benefits:
durability and repairability, through business models such with the LiFE principle of
and by encouraging as product-as-a-service and LiFE, not just live, as it shows Economic Value Creation: Environmental Preservation:
consumers to reuse and leasing. This aligns with the LiFE that sustainable living can be Circular Economy practices can create new Circular Economy can minimize environmental
recycle products. This aligns principle of pro-planet people, compatible with economic jobs and businesses in resource recovery, damage by reducing the need for new resource
with the LiFE principle of as it encourages consumers to growth and prosperity. remanufacturing, and sustainable product extraction, preventing pollution, and conserving
mindful and deliberate make choices that are good for design, fostering economic growth and natural ecosystems.
utilization of resources. the environment. innovation.

Estimated job creation potential: Reduced waste generation:


10 million jobs by 2050. 50% reduction in waste
1.6. Imperative for National Circular Economy Framework in India generation by 2050.
India, the world’s third-largest energy consumer, is facing a growing resource dilemma. With a rapidly Projected economic value: Water conservation:
expanding population, urbanization, and industrial growth, the country’s resource consumption is $2 trillion by 2050. 20% reduction in water
projected to soar in the coming decades, putting immense pressure on both domestic resources consumption by 2050.
and the environment. This increasing resource intensity, if left unchecked, could have far-reaching
economic, environmental, and social consequences. Carbon Emission Reduction: Biodiversity protection:
By reducing resource extraction and waste Preservation of natural habitats and ecosystems.
India’s import dependence for critical resources is a cause for concern. The country relies heavily on generation, Circular Economy can significantly
imports to meet its demand for essential resources, including: lower India’s carbon footprint, contributing to
climate change mitigation efforts.
• Lithium: India imports nearly 100% of its lithium, a crucial component in electric vehicle batteries.
Potential carbon emission reduction: Reduced Import Dependence and Resource
• Cobalt: India imports 90% of its cobalt, another essential mineral for high-performance batteries. 40% by 2050. Security:
Circular Economy can enhance India’s resource
• Nickel: India imports 80% of its nickel, a critical component in stainless steel production. Contribution to climate goals: security by reducing the need for imports and
Aligns with India’s commitment to reducing promoting domestic resource efficiency.
• Crude Oil: Over 80% of India’s crude oil demand is met through imports. emissions by 30-35% by 2030.

• Coking Coal: India imports 70% of its coking coal, essential for steelmaking. India’s resource dilemma demands a paradigm shift in resource management. Circular Economy offers
a transformative approach that can address the challenges of import dependence, environmental
impact, and resource scarcity while creating economic opportunities, fostering sustainable
• Copper: India imports 50% of its copper, a vital material for electrical wiring and construction. development, and aligning with India’s vision of Atmanirbhar Bharat. By embracing circularity, India
can secure a future of resource abundance, environmental sustainability, and economic prosperity.

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Considering the imperative for Circular Economy, NITI Aayog, in consultation with the Ministry of
Environment and Forest and Climate Change, identified 11 areas to facilitate transitioning from linear
to Circular Economy and to give an impetus to India’s Aatma Nirbhar Bharat Abhiyaan. The identified
areas include:

Municipal Solid Waste and Scrap Metal Lithium Ion (Li-ion) Batteries
Liquid Waste (ferrous and non-ferrous)

Tyre and Rubber Recycling Gypsum Waste End-of-life Vehicles (ELVs)

Electronic Waste Toxic and Hazardous Used Oil Waste (generated A number of Indian states offer
significant opportunity for large-scale
Industrial Waste from tools and machines) Circular Economy programs:
1. Maharashtra
2. Gujarat
3. Tamil Nadu
4. Karnataka
5. Andhra Pradesh
6. Telangana
Agriculture Waste Solar Panels 7. Haryana
8. Rajasthan
9. Uttar Pradesh
10. Madhya Pradesh
In addition to the above, the following factors also act as key enablers/catalysts for Circular Economy: 11. West Bengal

These states have a number of factors in place that make them conducive to the Circular Economy,
Technological Development And Advancement: including:
Every day, there is a change in technology that spurs the development of IoT and big data tools.
This is a big boost and enabler for the spur of Circular Economy business models. These models can
enable the reuse and remanufacturing of resources, and bring in innovation in tracking products or
materials during their life cycle to enable extended use/life and maintain the highest possible value.
With the advancement in production, material science, manufacturing, and artificial intelligence, the Large Populations: Strong Industrial Government Support: Existing Infrastructure:
reuse, design, and manufacturing capabilities can bring about drastic changes in circularity and its Bases:
business model. These states have large These states have strong These states have These states have
populations, which industrial bases, which governments that are existing infrastructure that
means there is a large generate a lot of waste. supportive of the Circular can be used to support
Urbanisation: market for recycled This waste can be Economy. They have the Circular Economy.
India is urbanizing at a rate of 1.5% per year, with approximately one-third of the population living in products and services. converted into valuable introduced policies and For example, they have
resources through the regulations that support waste management
cities as of 2021. This trend is expected to continue, with an estimated 40-41% of the population living Circular Economy. the development of the systems and recycling
in urban areas by 2030. Urbanization presents both circularity opportunities and challenges for India. Circular Economy. facilities.

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Here are some specific examples of Circular Economy initiatives that are being implemented in Despite the challenges, the transition to a Circular Economy is well underway. Several businesses and
different states in India: governments are already implementing Circular Economy principles, and as its adoption spreads, its
benefits will become more evident. A well-defined National Circular Economy Framework is essential
• Maharashtra Plastic Waste Management Rules, 2018, which require all producers and brand owners to accelerate this transition.
of plastic products to collect and recycle their products.
References:
• Gujarat Industrial Policy, 2020, which provides incentives to businesses that adopt circular practices. 1. Mission LiFE
https://missionlife-moefcc.nic.in/
• Tamil Nadu Green Building Policy, 2014, which mandates the use of recycled materials in the
2. G20 New Delhi Leaders’ Declaration, New Delhi, India, 9-10 September 2023
construction of new buildings. https://www.g20.org/content/dam/gtwenty/gtwenty_new/document/G20-New-Delhi-Leaders-
Declaration.pdf
• Karnataka State Policy on Solid Waste Management, 2012, which promotes waste reduction, reuse,
and recycling. 3. Wautelet, Thibaut. (2018). Exploring the role of independent retailers in the Circular Economy: a case
study approach. 10.13140/RG.2.2.17085.15847.

• Andhra Pradesh State Policy on Renewable Energy, 2015, which promotes the use of recycled 4. Ellen MacArthur Foundation, Towards the Circular Economy Vol. 1: an economic and business rationale
materials in the generation of renewable energy. for an accelerated transition (2013).

5. Circular Innovation Council: ‘Circular Economy: Beyond Recycling’


• Telangana State Industrial Policy, 2015, which provides incentives to businesses that adopt circular https://circularinnovation.ca/circular-economy/
practices.
6. UNEP, UNDP and UNFCCC secretariat. 2023. Building Circularity into Nationally Determined Contributions
• Haryana State Waste Management Rules, 2019, which require all generators of waste to segregate (NDCs) - A Practical Toolbox User Guide. Nairobi
https://doi.org/10.59117/20.500.11822/43594
and dispose of their waste in a sustainable manner.
7. UNEP building circularity platform
• Rajasthan State Plastic Waste Management Rules, 2019, which require all producers and brand https://buildingcircularity.org/
owners of plastic products to collect and recycle their products.
8. “The Circular Economy: An Indian Perspective” by Confederation of Indian Industry
https://www.cii.in/PressreleasesDetail.aspx?id=78471
• Uttar Pradesh State Waste Management Rules, 2019, which require all generators of waste to
segregate and dispose of their waste in a sustainable manner. 9. “India’s Circular Economy: A Pathway to Sustainable Development” by World Resources Institute (WRI)

10. “Circular Economy for Sustainable Development in India” by India Brand Equity Foundation (IBEF)
• Madhya Pradesh State Plastic Waste Management Rules, 2019, which require all producers and https://www.ibef.org/
brand owners of plastic products to collect and recycle their products.
11. “Circular Economy: A Business Imperative for India” by The Energy and Resources Institute (TERI)
• West Bengal State Plastic Waste Management Rules, 2019, which require all producers and brand https://wsds.teriin.org/2018/files/teri-yesbank-circular-economy-report.pdf
owners of plastic products to collect and recycle their products. 12. “India’s Resource Dilemma and the Promise of Circular Economy” by NITI Aayog

13. “Circular Economy in Municipal Solid and Liquid Waste” by Ministry of Housing and Urban Affairs

1.7. Challenges for Transition to Circular Economy 14. NITI Aayog website https://niti.gov.in/
Here are some of the challenges that need to be addressed in order to transition to a Circular Economy:

• Lack Of Awareness: Many businesses and consumers are not aware of the Circular Economy or
its benefits.

• Lack Of Infrastructure And Investment: The infrastructure needed to support a Circular Economy,
such as recycling and composting facilities, is not yet in place in many places. Also, there is limited
investment in new technologies for product design, manufacturing, and repair.

• Regulatory/Policy Barriers: Some government policies can discourage businesses from adopting
Circular Economy practices.

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2.2. Objectives of NCEF
The NCEF is a roadmap for India to transition to a more sustainable economy. By implementing the
framework, India can reduce waste, increase resource efficiency, and create a more sustainable
future for its citizens. The National Circular Economy Framework (NCEF) helps: (a) reduce reliance
on imported resources; (b) decouple economic growth from resource consumption; (c) reduce
resource consumption and pollution; (d) enhance resource security; (e) reduce costs and improve
competitiveness; (f) attract investments; (f) enhance public health; (g) create job opportunities.

2.3. Focus Materials


2
Chapter

National Circular Economy Focusing on key materials for the initial implementation of the National Circular Economy Framework
Framework (NCEF) is essential before expanding the scope to include more materials in the near future. The
materials listed below present significant scale of resource value opportunity and have a higher
environmental impact. Addressing these materials can yield substantial benefits in terms of waste
reduction, resource conservation, and environmental protection:

2.1. Introduction
National Circular Economy Framework (NCEF) provides a clear and
Plastics Construction Electrical and Mixed Municipal Waste Mixed Municipal Waste
consistent vision for the transition to a Circular Economy. This can Materials Electronic Goods – Dry Fraction – Wet Fraction
help to align the efforts of government, businesses, and the society
towards common goals. There are many compelling reasons to Moving forward, additional materials can be incorporated within this framework to enhance emphasis.
introduce a framework on Circular Economy at a national level to
reap a wide range of economic, environmental, and social benefits. 2.4. Principles
The NCEF is based on the following four principles – Prevention,
The NCEF attempts to provide key strategies to overcome the Upcycling, Recycling, and Energy Recovery, as detailed below:
challenges such as:
Prevention: The first priority is to prevent waste from being generated
(a) lack of markets for recycled products; in the first place. This can be done through product design, reuse,
repair, refurbishing and remanufacturing.
(b) lack of awareness and understanding of the Circular Economy
concept; Product Design And Life Extension
Products should be designed to be durable, reusable,
(c) lack of infrastructure for waste collection, sorting, and recycling reparable, refurbishing and remanufacturing-friendly. This can
etc. be done by using high-quality materials, designing for
modularity, and making it easy to disassemble and repair
The National Circular Economy Framework is a roadmap for products.
India to transition to a more sustainable and developed
economy. By implementing the framework, India can Reuse
reduce waste, increase resource efficiency, and create a Products should be reused whenever possible. This can
more sustainable future. be done through product-as-a-service models, rental and
sharing schemes etc.

Repair, Refurbishing, And Remanufacturing


Products should be repaired, refurbished, and
remanufactured whenever possible. This can be done by
making spare parts and repair manuals available, and by
providing financial incentives for repair and refurbishment.
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Upcycling: Waste should be upcycled whenever possible. This means converting Choice of Application of Principle(s)
waste into new products of higher value. For example, plastic waste can be upcycled
into new plastic products, or food waste can be upcycled into compost or animal ‘Retained Value’ is a measure of the value that is retained in a product or material after it has been
feed. used. It is calculated as the percentage of the original value of the product or material that is still
present after it has been used. The retained value of products and materials varies depending on the
Recycling: Waste should be recycled whenever possible. This means converting product or material and the method used to extend its life. In general, reuse, repair, refurbishment, and
waste back into materials that can be used to make new products. For example, paper remanufacture have a higher retained value than recycling. The choice of right method (reuse, repair,
waste can be recycled into new paper products, and metal waste can be recycled refurbish etc.) shall be the one that will extend the life of the product or material while maximizing the
into new metal products. retained value.

Energy Recovery: Waste that cannot be recycled or upcycled should be used to


generate energy. This can be done by burning waste to generate electricity, or by 2.5. Targets
converting waste to biogas. Energy recovery can help to reduce the amount of waste Targets provide a clear roadmap for all the stakeholders to work towards specific goals in the
that is sent to landfills and incinerators; However, it is important to note that energy transition to a Circular Economy. They establish a shared vision and direction for sustainable economic
recovery is not a substitute for prevention, reuse, and upcycling, as it still generates development, providing a basis for measuring the effectiveness of the policies and other measures.
some pollution and greenhouse gas emissions. By setting targets, stakeholders are held accountable for their contribution, encouraging long-term
planning and strategic thinking.
The ultimate goal of the Circular Economy is to achieve zero waste. This means that no waste is sent
to landfills or incinerators. This can be achieved through a combination of the above principles. NCEF intends to set targets for India to reduce waste, increase resource efficiency, and create a more
sustainable economy. The respective chapter in Part 2 of the NCEF (Circular Economy Action Plan
for Focus Materials) defines targets for each focus material. Both quantitative and qualitative targets
are set for each focus material, and these targets are periodically reviewed and adjusted to reflect
evolving circumstances and emerging opportunities. The list of possible targets is presented below:

• Reduction in use of virgin materials

• Reduction in waste generation at source

• Increase in the proportion of products designed for durability and repairability

• Increase in recycling/resource recovery rate

• Extended Producer Responsibility (EPR) targets

• Circular procurement targets (for government agencies and large corporations)

• Creation of new jobs and businesses

• Development and implementation of policies/regulations to support Circular Economy.

• Promotion of innovation in Circular Economy technologies and business models.

• Creation of supportive ecosystem, including access to finance and infrastructure.

• Community engagement and education

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2.6. Key Strategies for Implementation - Policies and Measures To ensure the successful implementation of NCEF, the above key strategies must be employed across
various sectors and stakeholders. Chapter 4 presents each of the above key strategies in detail.
The successful implementation of the NCEF in India requires a multi-dimensional approach that
engages all stakeholders, drives innovation, and aligns policies and regulations. By employing these 2.7. Monitoring And Evaluation
key strategies, India can forge a path towards a more sustainable, efficient, and resilient Circular
Monitoring involves collecting data on the implementation of the NCEF and its impacts. The data
Economy, ultimately benefiting both the environment and the economy. The following key strategies
shall be collected regularly and should be disaggregated by the focus material, sector, region, and
are proposed for successful implementation of NCEF across various sectors:
other relevant criteria. Evaluation involves analysing the data to assess the progress of the framework,
Regulations: The government could strengthen existing regulations or introduce new identify challenges, and make recommendations for improvement, based on clear and transparent
regulations that require businesses to adopt Circular Economy practices such as reduction of criteria.
waste, increase of resource efficiency etc.
A robust Monitoring and Evaluation (M&E) system (including regular reporting on key performance
Incentives: The government could provide incentives to businesses that adopt Circular indicators and outcomes for each focus material) needs to be implemented to track the progress
Economy practices (tax breaks, subsidies, and/ or grants etc.). The incentives can be financial, of NCEF. M&E can be conducted by the government, professional organizations, academia etc. It is
non-financial, and regulatory incentives. important to ensure that all stakeholders are involved in the M&E process, so that the data collected is
comprehensive and representative.
Public Awareness: The government could raise public awareness of the Circular Economy and
the benefits of adopting Circular Economy practices. This could be done through education The data collected for M&E can be used to: (a) track progress towards the ‘targets’ set by the NCEF
campaigns, workshops, and other outreach activities. for each of the focus material; (b) identify challenges and areas for improvement; (c) inform decision-
making about the implementation of the framework; and (d) communicate the progress and impacts
Investment in Research and Development: The government can either invest or facilitate of the framework to different stakeholders. Based on the outcome of the M&E, the NCEF may be
investments in R&D to develop and deploy innovative technologies and solutions that support revised to reflect evolving circumstances and emerging opportunities. M&E is very critical to ensure
circularity. It shall provide incentives for businesses and start-ups to innovate in areas like that the NCEF is successful in achieving its goals and objectives.
recycling, renewable energy, and sustainable materials.
2.8. Next Steps
Promotion of Public-Private Partnerships (PPPs): PPPs can play an important role in accelerating It is important to take the following steps to ensure the NCEF remains relevant and effective in the long
the transition to a Circular Economy. By bringing together the resources, expertise, and term, and that it is able to adapt to changing circumstances:
innovation of both the public and private sectors, PPPs can help to develop and implement
Circular Economy solutions at scale. • Revision of NCEF: The NCEF shall be revised periodically to reflect evolving circumstances and
emerging opportunities based on learnings from M&E, stakeholder engagement, tracking global
Circular Economy Knowledge Network: The network can serve as a platform for sharing trends, and identifying emerging technologies and solutions. Also, the scope of NCEF shall be
knowledge and best practices, facilitating collaboration and innovation, and building capacity. expanded from time to time to cover new focus materials based on the learnings and the progress
The network can host regular events, develop and maintain a knowledge base, facilitate made.
formation of working groups and partnerships etc.
• Stakeholder Engagement: Multi-stakeholder engagement shall be carried out regularly to address
Circular Economy Parks: Circular Economy parks, also known as eco-industrial parks or the key challenges identified in implementing the NCEF and achieving its objectives.
resource recovery parks, may be established in different parts of the country. The Circular
Economy parks are designated areas designed to promote resource efficiency and waste • Integration Of Circular Economy Into Other Policies And Programs: Efforts shall be put in place
reduction through collaborative efforts among businesses and other stakeholders. These to align the Circular Economy with other national priorities, such as climate change mitigation or
parks provide a physical infrastructure and supportive environment for businesses to adopt economic development.
Circular Economy principles, such as: industrial symbiosis, circular supply chain management,
waste valorization, access to shared infrastructure etc.
References:
Institutional Framework: National Circular Economy Authority (NCEA) may be established
1. Circular Transition Indicators V3.0 Metrics for business, by business by World Business Council for
which can implement the national Circular Economy strategy, coordinate the activities of
Sustainable Development (WBCSD)
different industries and agencies, reform the regulations to make them more conducive to
https://www.wbcsd.org/contentwbc/download/14172/204337/1
the Circular Economy, invest in research and development etc.

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3
Chapter

Implementation of NCEF -
Enabling Principles

3.1. Introduction
The NCEF helps India transition from linear economy to Circular Economy by providing a roadmap for
conservation of resources, reduction in reliance on virgin materials, reduction in waste and ecological
footprint, creation of jobs and more equitable society. The successful implementation of an NCEF
requires a number of enabling principles, which are the foundation on which the framework is built.

The four enabling principles for implementation of the NCEF are: Prevention, Upcycling, Recycling, and
Energy Recovery. These four principles can be spearhead at a faster pace only when government
and companies rethink not only their use of resources but also to redesign and adopt new business
models based on dematerialization, longevity, refurbishment, remanufacturing, capacity sharing, and
increased reuse and recycling. Reference is often made to three circular business model categories,
each of which focuses on a different phase of the value chain: (a) the design and manufacturing
phase; (b) the use phase; and (c) the value recovery phase. These different business models can be
illustrated in what is called a Value Hill, shown in Figure 3-1.

Figure 3-1: Circular Economy business models in the Value Hill2


Elisa Achterberg, Jeroen Hinfelaar, Nancy Bocken, “The Value Hill Business Model Tool: identifying gaps and
opportunities in a circular network” (2016)

3.2. Prevention
Prevention is the most important principle of the Circular Economy as the first priority is to prevent
waste from being generated. This can be achieved through: (a) product design and life extension; (b)
reuse; and (c) repair, refurbishing and remanufacturing. This mainly comes from optimal use models.
It focuses on the development of existing or new products and processes that seek to optimize
circularity. Products are designed to last longer and/or be easy to maintain, repair, upgrade, refurbish,
remanufacture, or recycle. Additionally, new materials are developed and/or sourced, e.g., bio-based,
less resource-intensive, or fully recyclable. The risks related to financing such innovations do not differ
much from financing other innovation or Research, Development, and Innovation (RDI) projects.

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a. Product Design and Life Extension: b. Reuse
Products should be designed to be durable, reusable, and reparable. This means using high-quality In the context of Circular Economy, Reuse refers to the practice of extending the lifespan of products
materials, designing products with fewer parts, and making it easy for consumers to repair products and materials without significantly altering their form or function. This involves finding new uses
if they break. Here are some means through which life extension can be achieved. for items that would otherwise be discarded, thereby reducing waste generation and conserving
resources. Reuse plays a crucial role in minimizing the need for new resource extraction and
Strategic Material Selection: Selection of materials should be done consciously during the processing, contributing to environmental protection and sustainable development.
design phase with priority to the materials with minimal environmental impact and a high
potential for circularity. The primary components of reuse in Circular Economy include:

Design For Disassembly And Repair: Products should be designed in a way that makes • Product Design for Reusability: Incorporating design principles that enhance product reusability
them easy to disassemble and repair. This will make it easier to extend their lifespan and is essential to extend product lifespans and facilitate reuse. This involves:
to recycle their components.
Durability: Designing products using durable materials and construction methods to withstand
Use Of Recycled Materials: Products should be made using recycled materials whenever repeated use and extended lifespans.
possible. This will help to reduce the demand for virgin materials.
Standardization: Adopting standardized components and interfaces to allow for easy
Durability: Products should be designed to be durable and to last for a long time. This will compatibility and interchangeability, facilitating reuse across different products or models.
help to reduce the need for replacement and to minimize waste.
Modularity: Employing modular designs that allow for easy disassembly, repair, and
Modular Design: Products should be designed in a modular way so that components can replacement of individual components, enabling upgrades or adaptations without discarding
be easily replaced or upgraded. This will help to extend their lifespan and to make them the entire product.
more adaptable to changing needs.
• Product Sharing and Rental Services: Promoting product sharing and rental services can
Efficiency: Products should be designed to be efficient in their use of resources. This will significantly reduce individual ownership and encourage the utilization of products on a temporary
help to reduce the environmental impact of their production and use. basis. This involves:

Reusability: Products should be designed to be reused or upcycled at the end of their Platform Development: Establishing online or physical platforms that connect product owners
lifespan. This will help to reduce the amount of waste that is generated. with potential renters or borrowers, facilitating access to shared products.

Extended Warranty and Repair Services: Products should come with extended warranty Rental Infrastructure: Creating a network of rental centers or drop-off locations to ensure
to ensure they remain functional during their intended lifespan. convenient access and handling of rented products.

Product design and life extension are crucial aspects of Circular Economy implementation. By Maintenance and Repair: Providing maintenance and repair services to ensure the continued
incentivizing eco-design principles such as modularity, standardized components, and durability, functionality and quality of rented products, extending their lifespan.
manufacturers can create products that are easier to repair, reuse, and recycle. Extended Producer
Responsibility (EPR) schemes can further encourage manufacturers to take responsibility for the end- • Second-hand Markets and Product Donation Programs: Developing vibrant second-hand
of-life management of their products, driving innovation in sustainable design. Additionally, public markets and promoting product donation programs can provide alternative avenues for product
procurement policies can prioritize products with longer lifespans, sending a clear signal to the market reuse. This involves:
about the demand for durable goods.
Marketplaces and Platforms: Establishing online or physical marketplaces for buying and
selling second-hand products, providing a centralized hub for reuse transactions.

Donation Networks: Creating networks of charities or non-profit organizations that collect


and redistribute donated products to those in need, giving them a second life.

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Repair Centers and Workshops: Creating a network of repair centers and workshops
Product Certification and Quality Control: Implementing quality control measures and equipped with the necessary tools, equipment, and expertise to handle a wide range of repair
certification programs to ensure the safety and reliability of secondhand products, fostering needs.
consumer confidence in reuse.
Training and Certification Programs: Developing and implementing training and certification
• Consumer Awareness and Education: Raising public awareness about the benefits of reuse and programs for repair technicians, ensuring a skilled workforce capable of performing high-
educating consumers on proper product care and maintenance practices are essential to promote quality repairs.
reuse. This includes:
Accessibility and Convenience: Providing convenient access to repair services through
Awareness Campaigns: Launching campaigns that highlight the environmental and economic strategically located repair centers, mobile repair options, and online support platforms.
advantages of reuse, promoting a mindful consumption mindset.
• Spare Parts Availability and Supply Chains: Ensuring the availability of quality spare parts and
Product Care Guides: Providing practical tips on product care, maintenance, and repair maintaining a reliable supply chain are essential for effective repair and refurbishment. This
techniques to extend product lifespans and prevent premature disposal. involves:

Sustainable Consumption Education: Integrating education on sustainable consumption Inventory Management: Maintaining adequate inventories of spare parts to meet repair
practices, including reuse, into school curricula and community programs. needs, considering product lifespans and repair frequency.

Reverse Logistics and Part Recovery: Implementing reverse logistics systems to collect and
c. Repair, Refurbishing, and Remanufacturing recover used parts from discarded products, providing a source of spare parts for
Repair involves fixing broken products so that they can be used again. Refurbishing involves restoring refurbishment.
used products to their original condition. Remanufacturing involves disassembling used products and
then reassembling them using new or recycled parts. Repair, refurbishing, and remanufacturing are Partnerships with Manufacturers: Collaborating with manufacturers to ensure access to
all valuable strategies for extending the lifespan of products. By providing access to affordable and original spare parts and technical support, enabling high-quality repairs.
skilled repair services, ensuring the availability of spare parts and components, and offering training
and certification programs for repair technicians, governments can support the growth of the repair • Consumer Awareness and Education: Raising public awareness about the benefits of repair and
sector. refurbishment and educating consumers on proper product care and maintenance practices are
essential to promote these practices. This includes:
The primary components of repair and refurbishment in Circular Economy, include:
• Product Design for Repairability: Incorporating design principles that enhance product Awareness Campaigns: Launching campaigns that highlight the environmental and economic
repairability is essential to facilitate repair and refurbishment. This involves: advantages of repair, emphasizing its role in extending product lifespans and reducing waste.

Modular Design: Designing products with modular construction, allowing for easy disassembly Repair Guides and Tutorials: Providing accessible repair guides, tutorials, and online resources
and access to individual components, simplifying repairs and replacements. to empower consumers with the knowledge and skills to conduct basic repairs themselves.

Standardized Components: Employing standardized components and interfaces to ensure Right-to-Repair Advocacy: Supporting right-to-repair initiatives that advocate for accessible
compatibility with available repair parts and service providers, reducing the complexity of repair information, parts availability, and fair repair practices.
repairs.

User-Friendly Repair Manuals: Providing clear and accessible repair manuals with detailed
instructions, schematics, and troubleshooting guides, empowering users and repair technicians
to conduct repairs effectively.

• Repair Infrastructure and Service Networks: Establishing a robust repair infrastructure and network
of skilled repair technicians is crucial to support repair and refurbishment activities. This involves:

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3.3. Upcycling Upcycled Fashion:
Example: Repurposing old fabrics or garments to create new, stylish clothing items.
Upcycling is a sustainable design and waste reduction practice that involves taking discarded or
unused items and transforming them into products of higher value or quality. Unlike recycling, Relevance: India is a major player in the textile and fashion industry, making upcycled
which often involves breaking down materials to create new ones, upcycling focuses on creatively fashion a fitting approach to reduce textile waste.
reusing existing materials without significant alteration. This can help to create new products and
Upcycled Furniture and Home Goods:
business models. Redesigning products for other uses can also be a valuable upcycling strategy. By Example: Crafting furniture or home decor items from discarded or surplus materials.
designing products for disassembly and recyclability, manufacturers can make it easier for materials
to be recovered and used in new products. Examples of upcycling include: turning used tires into Relevance: India has a strong tradition of craftsmanship, and upcycled furniture aligns with
playground equipment, turning old clothes into new bags, turning broken glass into jewellery, turning the growing interest in sustainable and artisanal products.
old shipping containers into restaurants etc.
E-Waste Upcycling:
Example: Extracting valuable materials from electronic waste to create new electronic
Key aspects of upcycling include: components or devices.

Relevance: India faces challenges with e-waste management, making upcycling a crucial
Creativity: Upcycling involves innovative thinking and creative approaches to repurpose
aspect of minimizing environmental impact.
materials in unexpected ways.
Food Waste Upcycling:
Value Addition: The goal is to enhance the value or quality of the original item, creating
Example: Converting food waste into compost or biogas for energy.
something new and often more valuable than the sum of its parts.
Relevance: With a significant population engaged in agriculture, upcycling food waste
Resource Efficiency: Upcycling reduces waste by utilizing existing materials, contributing
supports sustainable farming practices.
to a more sustainable and environmentally friendly approach to consumption.

Several upcycling approaches and examples are highly relevant for India, given the country’s diverse Upcycling in Agriculture:
culture, resource availability, and environmental challenges, as presented below: Example: Using agricultural waste for composting or creating innovative solutions for
irrigation systems.
Textile Upcycling:
Example: Transforming old saris or textile scraps into unique garments, accessories, or Relevance: Agriculture is a major sector in India, and upcycling practices can enhance
home decor items. resource efficiency.

Relevance: India has a rich textile heritage, and upcycling textiles aligns with sustainable Collaborative Upcycling Hubs:
fashion practices. Example: Establishing collaborative spaces where artisans and innovators can share
resources and ideas for upcycling projects.
Waste-to-Art Programs:
Example: Creating artwork or decorative pieces from discarded materials, such as plastic Relevance: Encourages community engagement and supports the growth of a Circular
bottles, paper, or metal scraps. Economy.

Relevance: India has a vibrant art and craft tradition, and waste-to-art initiatives can tap into These approaches leverage India’s cultural, economic, and environmental context, providing
this cultural aspect while promoting sustainability. sustainable solutions to address waste challenges and contribute to the Circular Economy.

Upcycled Construction Materials:


Example: Using reclaimed wood or repurposed metal for construction projects, like
furniture or building components.

Relevance: Upcycling in construction aligns with India’s growing infrastructure needs and
can contribute to sustainable building practices.

Packaging Upcycling:
Example: Designing packaging materials from upcycled cardboard or biodegradable
materials.

Relevance: With a growing concern about plastic waste, upcycled packaging aligns with
India’s push for sustainable packaging solutions.

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3.4. Recycling 3.5. Energy Recovery
Recycling is a critical component of the Circular Economy, as it allows materials to be recovered In the context of Circular Economy, energy recovery refers to the process of extracting and utilizing
from waste and used to create new products. Recycling is the process of converting waste materials energy from waste materials that would otherwise be disposed of in landfills or incinerated. This
into new materials, which can be done through a variety of mechanical, chemical, and biological involves converting waste into usable forms of energy, such as electricity, heat, or biofuels, thereby
processes. This helps to reduce the need for virgin materials and conserve natural resources. reducing the reliance on fossil fuels and minimizing greenhouse gas emissions. Energy recovery plays
Key components of a ‘Recycling Ecosystem’ include: a crucial role in transitioning towards a more sustainable and resource-efficient economy.

Collection and Segregation: The first step in recycling is the efficient collection and segregation
The primary components of energy recovery in Circular Economy include:
of waste materials. This involves establishing effective waste collection systems, educating the
public on proper waste segregation at the source, and incentivizing waste pickers to collect
• Waste-to-Energy (WTE) Technologies: A diverse range of waste-to-energy (WTE) technologies
and segregate waste effectively. A well-organized waste collection and segregation system
exist, each with its own advantages and limitations. These technologies can be categorized into
ensures a steady supply of quality recyclable materials for further processing.
three main groups:

Sorting and Pre-processing: Once collected, recyclable materials undergo sorting and pre-
Incineration: Incineration involves burning waste derived fuels at high temperatures to
processing to prepare them for further processing. This involves separating different types
generate heat and steam, which can be used to produce electricity or provide district heating.
of materials, removing contaminants, and cleaning the materials to meet the specifications of
downstream recycling facilities. Effective sorting and pre-processing are essential for producing
Anaerobic Digestion: Anaerobic digestion breaks down organic waste in the absence
high-quality recycled materials that can be used in manufacturing new products.
of oxygen, producing biogas, a methane-rich fuel that can be used for electricity generation
or transportation.
Material Processing and Recycling: Material processing involves breaking down the sorted
and pre-processed recyclable materials into their basic components or transforming them
Gasification: Gasification converts waste into a combustible gas called syngas, which can be
into usable forms. This may include shredding, melting, or chemically treating the materials to
used to generate electricity or produce synthetic fuels.
prepare them for recycling. The specific processing methods depend on the type of material
being recycled.
• Advanced Fuel Production Technologies: Promising technologies such as ‘torrefaction’ are available
to produce high energy density solid fuels from waste/biomass. Torrefaction is a thermochemical
Manufacturing and Product Design: Recycled materials are used as feedstock in the
process (typically conducted at 200 to 350 oC in an inert atmosphere) that converts waste into a
manufacturing of new products, replacing virgin resources and reducing the environmental
solid fuel with improved properties, including higher energy density, reduced moisture content,
impact associated with resource extraction and processing. Product design plays a crucial role
and improved grindability. The solid fuel generated from torrefaction can be used in a variety of
in maximizing the use of recycled materials and ensuring the recyclability of products at the
applications including co-firing in coal-fired power plants, direct combustion in biomass boilers
end of their lifespan.
etc.

Extended Producer Responsibility (EPR): EPR schemes can also play a key role in promoting
recycling. By holding manufacturers accountable for the recycling of their products, EPR
schemes can provide funding for recycling programs and encourage manufacturers to design
products that are easier to recycle. Additionally, targets for recycled content in products can
help to create demand for recycled materials.

Market Development And Demand Creation: Market development encompasses a range of


strategies aimed at increasing the demand for recycled materials and expanding the market
for recycled-content products. This involves initiatives such as: supporting businesses that
utilize recycled materials through financial incentives, tax breaks etc.; investing in recycling
infrastructure; and promoting research and development for innovative recycling technologies.
Demand creation focuses on educating consumers about the benefits of recycled products
and encouraging them to make environmentally conscious purchasing decisions. This involves
strategies such as: public awareness campaigns; eco-labeling and certifications; retailer
partnerships etc.

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Heat Production: Waste heat generated during energy recovery processes can be used for
district heating systems, providing warmth to buildings and reducing reliance on fossil fuels.

Biofuel Production: Waste-derived biogas or syngas can be processed into biofuels, such as
biomethane or methanol, offering alternatives to fossil-based fuels for transportation and
industrial applications.

• Emissions Control and Environmental Protection: Energy recovery processes must incorporate
effective emissions control measures to minimize the environmental impact. This involves:

Flue Gas Treatment: Flue gas treatment systems remove pollutants and particulates from
combustion exhaust, preventing air pollution.

Wastewater Treatment: Wastewater generated during WTE processes is treated to remove


contaminants and prevent water pollution.

Continuous Monitoring and Compliance: Continuous monitoring of emissions and adherence


to environmental regulations ensure responsible energy recovery practices.

• Policy and Regulatory Framework: Supportive policies and regulations play a critical role in
promoting energy recovery and ensuring its sustainability. This includes:
• Energy Recovery In The Form Of Solid/Liquid Or Gaseous Fuels: Energy can be recovered from
waste in the form of solid, liquid, or gaseous fuels. Plastics to diesel, green coal from refuse derived Feedstock Tariffs and Incentives: Providing financial incentives for the use of waste materials
fuel, compressed biogas from landfills, biochar from pyrolysis plants, syngas from gasification etc. as feedstock for energy recovery, encouraging the adoption of this technology.
are different examples of energy recovered from waste.
Regulatory Standards and Emission Limits: Establishing clear regulatory standards and
• Waste Pre-Processing And Stream Management: Effective waste pre-processing and stream emission limits for WTE facilities to protect environmental quality.
management are essential to optimize energy recovery processes and increase the energy
density of waste derived fuels. This involves: Research and Development Funding: Investing in research and development to improve
energy recovery technologies, enhance efficiency, and reduce environmental impacts.
Waste Segregation: Separating different types of waste materials to ensure optimal processing
and prevent contamination. By effectively implementing these components, energy recovery can play a significant role in
transitioning India towards a Circular Economy, reducing waste disposal, minimizing reliance on fossil
Waste Characterization: Analyzing the composition and calorific value of waste streams to fuels, and promoting sustainable energy production.
determine the most suitable energy recovery technology.
3.6. Landfilling (Common Disposal Facility)
Waste Preparation: Pre-treating waste materials to remove contaminants, adjust moisture While the goal of Circular Economy is to minimize waste and maximize resource efficiency, there
content, improve processing efficiency. will always be some material (or fraction of the material) that reaches the end of its life cycle and
require disposal. In instances where materials cannot undergo reuse, repair, upcycling, recycling, or
• Energy Conversion and Utilization: The energy extracted from waste through WTE technologies are unsuitable for energy recovery, a responsible approach is essential.
can be utilized in various ways:
Common Disposal Facilities, particularly landfills, are the end-of-the-pipe choice for disposal of such
Electricity Generation: Waste-derived energy can be converted into electricity using turbines residues. Landfilling ensures the materials are disposed of in a safe and environmentally responsible
or generators, providing a renewable source of power. manner. However, given that landfills are perpetual, robust environmental controls and long-term
geotechnical stability are key considerations. With advancements in technologies facilitating reuse,
recycling, and resource recovery, the necessity for landfill disposal gets minimized.

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References:
1. Elisa Achterberg, Jeroen Hinfelaar, Nancy Bocken, “The Value Hill Business Model Tool: identifying
gaps and opportunities in a circular network” (2016)

2. Leonidas Matsakas, Qiuju Gao, Stina Jansson, Ulrika Rova, Paul Christakopoulos, “Green conversion
of municipal solid wastes into fuels and chemicals”, Electronic Journal of Biotechnology (https://
www.sciencedirect.com/science/article/pii/S0717345817300040)

Chapter
3. https://www.ellenmacarthurfoundation.org/
Implementation of NCEF -
4. Ekins, P., Domenech, T., Drummond, P., Bleischwitz, R., Hughes, N. and Lotti, L. (2019), “The Circular Key Strategies
Economy: What, Why, How and Where”, Background paper for an OECD/EC Workshop on 5 July
2019 within the workshop series “Managing environmental and energy transitions for regions and The NCEF provides a roadmap for making the transition to a Circular Economy, which is essential for
cities”, Paris addressing the challenges of climate change, resource scarcity, and pollution. The implementation
of an NCEF requires a number of key strategies, including: regulations, incentives, public awareness,
investment in R&D, public-private partnerships etc. This chapter discusses each of these key strategies
in detail and provide examples of how they can be implemented in practice. By implementing the
key strategies discussed in this chapter, India can create the conditions necessary for a successful
transition to a Circular Economy.

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4.1. Policy and Regulations Regulations are an important tool for implementing a national Circular Economy framework. Regulations
establish clear and standardized guidelines for industries, businesses, and individuals to follow in their
Policy interventions play a critical role in supporting the transition to a Circular Economy. These
pursuit of Circular Economy practices. This provides a common framework for sustainable operations.
interventions include regulatory standards, design requirements, tax reforms, extended producer
responsibility, tax reforms, public awareness etc. Figure 1-1 below presents the key policy interventions
For example, the National Resource Efficiency Policy (NREP), launched in 2019, is a comprehensive
at each stage which can play a critical role in supporting the transition to a Circular Economy.
policy that aims to promote sustainable production and consumption patterns, enhance resource
efficiency, and reduce the environmental impact of economic activities. The NREP includes measures
to encourage the adoption of circular business models, such as product-as-a-service, leasing, and
Figure 1-1: Policy Interventions to Support Circular Economy
sharing, and promotes the use of recycled materials.

Strengthening existing regulations and introducing new regulations will help transition to a Circular
Economy. A few potential regulations are listed below:

a. An overview of existing policies and regulations


There are several existing policies in India that support Circular Economy across various lifestyle
stages, namely – resource extraction, design, production/manufacturing, consumption, and end-of-
life. The key policies are listed below for each lifestyle stage.

Resource Extraction:
• National Mining Policy, 2008:
o New draft 2018
o Zero-waste mining
o Upgradation of mining technology for efficient extraction
• Steel Policy, 2017:
o Increase in extraction rates
o Higher efficiency to reduce environmental impacts
• National Mineral Policy, 2019

Design
• National Housing and Habitat Policy, 2007
o Ecological design standards for building components, materials and
construction methods
• National Design Policy, 2007
o Eco-friendliness, ecology and sustainability as key criteria for the India
Design Mark (I Mark)
• E-Waste (Management and Handling) Rules, 2016
o Restricts usage of certain hazardous substances in electrical and
electronics equipment
• Ecomark issued by the Bureau of Indian Standards

Production/Manufacturing:
• Make in India, 2014:
o Increase in energy and water efficiency and pollution control technologies
through Technology Acquisition and Development Fund (TADF)
• National Manufacturing Policy, 2012:
Source: ‘Policy Levers for a Low-Carbon Circular Economy’ by Circle Economy, Nov 2017 o Use of clean and efficient technology

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Consumption: c. Introduction Of New Regulations
• No comprehensive legislation for (green) public procurement; however, guided
Public Procurement Policies: Public procurement policies in India can be changed to
by other central legislations, e.g. give preference to products and services that are circular in design and production.
o Contract Act 1872
o Sale of Goods Act 1930 Recycled Content Mandates: Recycled content mandates require products to contain
o Prevention of Corruption Act 1988 a certain percentage of recycled materials. This can help to increase the demand for
recycled materials and create markets for them
o Arbitration and Conciliation Act 1996
• Task Force on Sustainable Public Procurement set up by Ministry of Finance in Prevention Of Greenwashing: New regulation(s) may be introduced to combat
2018 greenwashing, where businesses falsely claim to be environmentally responsible. The
regulations should ensure accurate and transparent reporting, ensuring that businesses
End of Life back their claims with real initiatives/actions.
• Clean India Mission (Swach Bharat):
Product Design Standards: Product design standards in India can be strengthened to
o Overarching programme for sanitation and waste management require products to be designed for durability, reparability, and recyclability. In addition,
• Legislations protecting the environment, human health and ensuring sound ‘eco-design’ requirements can be set to require products to be designed to minimize
management of waste streams, in part incorporating on Extended Producer their environmental impact throughout their life cycle.
Responsibility (EPR):
Reporting on Circular Economy Performance: Businesses may be mandated to report
o Solid Waste Management Rules, 2016 on their Circular Economy performance in a detailed manner. The existing reporting
o E-waste Management & Handling Rules, 2016 frameworks such as ‘Business Responsibility and Sustainability Report (BRSR)’ may be
o Plastic Waste Management Rules, 2016 amended to include a section on Circular Economy performance.
o Batteries (Management and Handling) Rules, 2001 (and subsequent
Regulations To Prevent Planned Obsolescence: The government could introduce
amendments)
regulations to prevent planned obsolescence, which is the practice of designing
o Construction and Demolition Waste Management and Handling Rules, products to fail prematurely.
2016 (no EPR)
o Steel Scrap Recycling Policy, 2019 (no EPR) The above list of regulations is only an indicative list to present an overview of different possibilities.
New regulations may be introduced in consultation with different stakeholders, such as government
agencies, industry associations, and environmental groups, with a common goal of achieving a
b. Strengthening Of Existing Regulations Circular Economy.

Extended Producer Responsibility (EPR) Schemes: EPR schemes require producers


to be responsible for the end-of-life management of their products. This encourages
design for durability, reparability, and recyclability, ultimately reducing waste
generation. The existing scope of EPR may be expanded to may other sectors, in a
phase-wise manner.

Green Credits: The list of eligible activities under green credits program may be
revised periodically to include all the Circular Economy initiatives by different
businesses.

Ban On Single-Use Products: The scope of existing ban on single-use plastics may
be revised periodically to include more items under the ban. In addition, materials
other than plastics, which are considered single-use products, may also be phased
out or banned.

Waste Management Rules: In addition to the existing rules related to municipal solid
waste, hazardous waste, e-waste, plastic waste etc., new rules may be introduced to
cover a wide range of waste categories (waste tyres, agricultural waste etc.).

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4.2. Incentives To Businesses
• The Ellen MacArthur Foundation’s “A New Plastics Economy” initiative is working to raise awareness
of the problem of plastic pollution and to promote the transition to a Circular Economy for plastics.
a. Financial Incentives
Tax breaks and subsidies: Governments can offer tax breaks or subsidies to businesses that • The European Commission’s “Circular Economy Action Plan” includes a number of measures to
invest in Circular Economy practices, such as developing new upcycling technologies, using raise public awareness of the Circular Economy, such as developing educational materials and
recycled materials in their products, or offering repair and reuse programs. launching social media campaigns.

Grants and loans: Governments can provide grants or loans to businesses to help them • The United Kingdom’s “Circular Economy Strategy” includes a number of measures to raise public
implement Circular Economy initiatives. awareness of the Circular Economy, such as working with businesses to develop Circular Economy
products and services and launching public education campaigns.
Loan guarantees: Governments can provide loan guarantees to businesses to reduce their
risk of borrowing money to invest in Circular Economy projects. These are just a few examples of the many ways that public awareness can be raised for the Circular
Economy. By working together, governments, businesses, and non-profit organizations can create
a more informed and engaged public, which is essential for the successful transition to a Circular
b. Non-Financial Incentives Economy.
Public Procurement: Governments can give preference to businesses that offer Circular
Economy products and services when making public purchases. b. Integration Of ‘Circularity’ Concept In School Curriculum
Awards And Recognition: Governments can give awards or recognition to businesses that Introducing circularity in the school curriculum is important for a number of reasons. It will help
are leading the way in promoting the Circular Economy. students to understand the challenges of climate change, resource scarcity, and pollution, and how
the Circular Economy can help to address these challenges. Also, the curriculum on circularity will
Technical Assistance And Training: Governments can provide technical assistance and
training to businesses to help them implement Circular Economy practices. prepare students for the future of work, as the Circular Economy is creating new jobs and opportunities
in a variety of sectors. It will empower students to make a difference by making informed choices
about the products they buy and the way they live. By learning about circularity in school, students
4.3. Public Awareness On Circular Economy
will develop the values and practices they need to live sustainably.

a. Public Education Campaigns By Government And The Businesses 4.4. Investment In Research And Development For Circular Economy
Public awareness is essential for the successful transition to a Circular Economy. The public needs to Investment in R&D for Circular Economy is essential for the transition to a more sustainable future. By
understand the importance of the Circular Economy, the benefits it offers, and the role they can play investing in R&D, governments, businesses, and academia can help to develop the technologies and
in making it happen. There are a number of ways to raise public awareness of the Circular Economy.
practices that support the Circular Economy and the solutions needed to reduce waste and pollution,
Here are a few examples:
improve resource efficiency, and create new economic opportunities.
Public Education Campaigns: Governments, businesses, and non-profit organizations can
launch public education campaigns to raise awareness of the Circular Economy and its By prioritizing R&D, India can position itself at the forefront of the global Circular Economy movement
benefits. These campaigns can use a variety of channels, such as television, radio, social towards a more resource-efficient and environmentally conscious economy. Some of the areas where
media, and print media.
R&D investment is needed to support the transition to a Circular Economy in India include:
Community Events: Community events, such as festivals and fairs, can be used to raise Product Design: R&D should facilitate design of products with modular components
awareness of the Circular Economy and promote Circular Economy businesses and products.
that can be easily replaced and design of appliances with built-in diagnostic tools that
Social Media: Social media platforms can be used to share information about the Circular make it easier to identify and fix problems. R&D should also make ‘material substitution’
Economy and to engage with the public on this issue. opportunities available to replace harmful raw materials with eco-friendly raw materials.
R&D should also look into opportunities such as ‘3D-Printing’ to reduce waste and
Partnerships: Governments, businesses, and non-profit organizations can partner together minimize cost.
to raise public awareness of the Circular Economy. These partnerships can help to reach a
wider audience and to deliver more effective messaging.
New Materials And Technologies: Development of new materials and technologies can
In addition to these general awareness-raising activities, it is also important to target specific audiences be used to create products that are more durable, repairable, and recyclable. Examples
with tailored messages. For example, businesses need to understand the economic benefits of the include self-healing materials, new recycling technologies etc. Also, development of
Circular Economy, while consumers need to understand the environmental and social benefits. Here
new materials and coatings that are more resistant to corrosion, wear, and abrasion
are some specific examples of public awareness campaigns and initiatives that are promoting the
Circular Economy around the world: could extend the life of products such as cars, appliances, and tools.

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Utilization Of Digital Technologies: R&D shall be carried to make best use of readily Shared Risk: PPPs can help to share the risk of Circular Economy projects. This is because
available technologies including artificial intelligence, internet of things, block chain the public and private sectors can share the costs and benefits of these projects.
etc. to enable Circular Economy through multiple means.
Increased Public Awareness: PPPs can help to increase public awareness of the Circular
Industrial Symbiosis Opportunities: R&D initiatives may focus on opportunities for Economy and its benefits. This is because PPPs can involve a wide range of stakeholders,
industrial symbiosis, where one industry’s by-products or waste can be used by including businesses, governments, and non-governmental organizations.
another industry. For example, slag from copper industry can be used as aggregate
in construction industry.
Here are some examples of PPPs that are supporting the Circular Economy around the world:

Expanding The Range Of Materials For Recycling: R&D shall focus on developing
• In the Netherlands, the Circular Economy Covenant is a PPP between the government and
technologies to extract as much resource as possible from different waste streams
businesses to reduce waste and increase the use of recycled materials. The Covenant has helped
and enable a wide range of materials fit for recycling. In addition, R&D shall also focus
to reduce waste by 20% in the Netherlands.
on improving the quality of recycled materials.

• In the United Kingdom, the Ellen MacArthur Foundation’s Circular Economy 100 is a global network
Circular Business Models: R&D should support the exploration and implementation
of businesses, governments, and other organizations working to accelerate the transition to a
of circular business models, including product-as-a-service, sharing platforms, and
Circular Economy. The network has helped to develop a number of PPP projects, such as the
closed-loop supply chains, which prioritize resource efficiency and waste reduction.
Circular Cities and Regions Initiative.

Development Of Markets For Recycled Products: R&D should focus on technological


• In China, the Chinese government has launched a number of PPP initiatives to support the Circular
advancements to produce high-quality recycled products that are comparable
Economy. For example, the government has partnered with businesses to develop Circular
to virgin products in terms of performance and cost. R&D should identify different
Economy industrial parks and to promote the use of recycled materials in the construction industry.
means to develop sustainable markets for recycled products through various means
such as product certification programs, recycled content mandates, environmental
awareness etc.

4.5. Promotion Of Public-Private Partnerships For Circular Economy


Public Private Partnerships (PPPs) are partnerships between the public and private sectors to achieve
common goals. PPPs can play an important role in promoting the Circular Economy by bringing
together the resources, expertise, and innovation of both sectors. There are a number of ways that
PPPs can be used to support the Circular Economy. PPPs can be used to:

• Develop and implement Circular Economy infrastructure and technologies


• Promote research and development of Circular Economy solutions
• Provide financial support for Circular Economy projects
• Raise awareness of the Circular Economy and its benefits
PPPs can play a significant role in accelerating the transition to a Circular Economy. By working together,
the public and private sectors can develop and implement the solutions needed to create a more
sustainable future. Here are some of the benefits of PPPs for the Circular Economy:

Increased Investment: PPPs can help to increase investment in Circular Economy projects.
This is because PPPs can bring together the resources of both the public and private sectors.

Accelerated Innovation: PPPs can help to accelerate innovation in the Circular Economy. This
is because PPPs can bring together the expertise of both the public and private sectors.

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4.6. Circular Economy Knowledge Network 4.7. Circular Economy Parks
The government could create a knowledge network to share information and best practices on Circular Circular Economy parks, also known as eco-industrial parks or resource recovery parks, may be
Economy. The knowledge network (hosted by a not-for-profit industry led organization such as CII) established in different parts of the country. The Circular Economy parks are designated areas designed
should act as a platform for sharing knowledge and best practices on the Circular Economy. It could to promote resource efficiency and waste reduction through collaborative efforts among businesses
bring together stakeholders from different sectors, including government, business, academia, and and other stakeholders. These parks provide a physical infrastructure and supportive environment for
civil society, to collaborate on the development and implementation of Circular Economy solutions. businesses to adopt Circular Economy principles, such as:
The knowledge network could enable Circular Economy in India in multiple ways, some of which are
• Industrial Symbiosis: Fostering synergies between industries to exchange waste, byproducts, or
mentioned below: energy resources, reducing the need for external inputs and minimizing disposal.

Innovation In The Circular Economy: The network could provide a platform for businesses • Circular Supply Chain Management: Promoting closed-loop systems where products are
and researchers to share ideas and collaborate on the development of new Circular designed for disassembly, reuse, or remanufacturing, extending their lifespan and reducing
Economy technologies and solutions. This would help to accelerate the pace of innovation reliance on virgin materials.
in the Circular Economy.
• Waste Valorization: Investing in technologies and processes to transform waste streams into
Capacity Building And Training: The network could provide training and capacity valuable resources, creating new economic opportunities and reducing environmental impact.
building opportunities to policymakers, businesses, and other stakeholders on the Circular
Economy. This can help to ensure that they have the skills and knowledge they need to Circular Economy parks offer a range of benefits to businesses, including:
develop and implement Circular Economy policies and programs.
• Cost Savings: By reducing resource consumption, waste disposal costs, and energy expenses,
Development Of Skilled Workforce: The network could provide training and education businesses can improve their profitability and sustainability.
programs to help workers develop the skills they need to work in the Circular Economy.
This would help to create a pool of skilled workers that businesses can draw from as they • Access to Shared Infrastructure: Parks often provide shared facilities, such as waste treatment
transition to a Circular Economy. plants, recycling centers, or renewable energy sources, which can reduce individual capital
investments and operational costs.
Development Of New Markets For Recycled Materials And Circular Products: The
network could help to raise awareness of the benefits of using recycled materials and • Knowledge Sharing and Collaboration: The proximity of businesses within a park facilitates
circular products. This could help to create new markets for these materials and products. collaboration, knowledge exchange, and the development of innovative solutions.

Partner With Other Knowledge Networks: The network could partner with other Circular • Regulatory Support and Incentives: Governments often provide incentives, such as tax breaks or
Economy knowledge networks across the globe to share knowledge and resources on subsidies, to businesses operating in Circular Economy parks, encouraging adoption of sustainable
the Circular Economy. practices.

Regular Events And Workshops: The network could organize regular events and Examples of Circular Economy parks around the world include:
workshops to bring together stakeholders from different sectors to learn from each other
and to collaborate on Circular Economy projects. • Kalundborg Symbiosis in Denmark: This renowned eco-industrial park has operated for over 50
years, showcasing successful examples of industrial symbiosis, with multiple industries exchanging
Awareness On Circular Economy: The network could raise awareness on Circular Economy waste and energy streams.
through various means including: conducting workshops at educational institutions;
developing and disseminating educational resources such as reports, infographics, and • Eco-Industrial Park of As Pontes in Spain: This park focuses on the valorization of waste from the
videos; sharing educational content on social media etc. pulp and paper industry, turning it into valuable products such as biofuel and biofertilizers.

Policy Advocacy: The network, composed of members from different stakeholder • Circular Economy Park of the Eastern Metropolitan Region in Thailand: This park aims to reduce
groups, could leverage learnings from workshops, knowledge sharing sessions, and waste generation and promote resource recovery in the region, involving various industries,
other knowledge networks across the globe to identify the need for revision of existing including food processing, electronics, and construction.
policies or for creation of new ones to accelerate the transition to a Circular Economy.
The network could engage with policymakers to advocate for Circular Economy policies • Some Of The Upcoming Circular Parks In India Include: The ‘Industrial Symbiosis Hub’ being
and programs by providing inputs on the development and implementation of different developed by the National Industrial Corridor Development Corporation (NICDC) at Tuticorin, Tamil
policies and programs. Nadu, The Circular Economy Park being developed by the Maharashtra Industrial Development
Corporation (MIDC) at Talegaon, Maharashtra etc.

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4.8. Institutional Framework • Technical Committees: The technical committees would be responsible for providing technical
expertise to the NCEA on specific aspects of the Circular Economy. They would be composed of
To create an improved institutional framework around enabling the Circular Economy at scale in India, subject matter experts from government, businesses, academia, and civil society.
the following areas of focus are proposed:
• Secretariat: The secretariat would be responsible for providing administrative and technical
• Establish A Clear Vision And Roadmap For The Circular Economy: This should be done through a support to the NCEA. It would be composed of permanent staff and seconded staff from
consultative process that involves all stakeholders, including government, businesses, academia, government and other stakeholders.
and civil society.
The NCEA could be structured as an autonomous body under the Ministry of Environment, Forest and
• Identify And Address Key Institutional Gaps: This may include things like establishing new Climate Change. This would give it the independence and flexibility required to carry out its mandate
institutions, reforming existing ones, and improving coordination between different agencies. effectively.

• Invest In Capacity Building: This is needed to ensure that all stakeholders have the knowledge The NCEA would have a number of functions, including:
and skills necessary to implement the Circular Economy.
• Developing and implementing the national Circular Economy strategy.
• Create A Supportive Environment For Innovation: This could include things like providing funding • Coordinating the activities of different ministries and agencies on the Circular Economy.
for research and development, and creating tax breaks for businesses that develop new circular • Providing support to businesses and other stakeholders in implementing the Circular Economy.
technologies and business models. • Promoting research and development on the Circular Economy.
• Raising awareness and understanding of the Circular Economy.
Here are some specific steps that can be taken:
The NCEA would play a vital role in enabling the transition to a Circular Economy in India. By providing
• Establish a National Circular Economy Authority (NCEA): The NCEA would be responsible for a central platform for coordination and collaboration, and by providing support to businesses and
developing and implementing the national Circular Economy strategy. It would also coordinate other stakeholders, the NCEA can help to accelerate the adoption of circular practices across all
the activities of different ministries and agencies, and provide support to businesses and other sectors of the economy.
stakeholders.
In addition to the above, the NCEA could also have the following functions:
• Reform The Existing Regulatory Framework: The current regulatory framework is not conducive
to the Circular Economy. For example, there are no extended producer responsibility schemes in • Developing and implementing standards for recycled materials and products. This would help to
place for most products. The NCEA should work with other ministries and agencies to reform the ensure that recycled materials and products meet the required quality standards.
regulatory framework and make it more supportive of the Circular Economy.
• Providing financial incentives to businesses that adopt circular practices. This could be done
• Invest In Research And Development: The NCEA should invest in research and development through tax breaks, grants, or other forms of financial support.
of new circular technologies and business models. This could be done through public-private
partnerships or by providing grants to academia and businesses. • Promoting the development of Circular Economy infrastructure. This could be done by providing
funding for the construction of waste management facilities, recycling plants, and other
• Create A Circular Economy Fund: The government should establish a Circular Economy fund to infrastructure that is needed to support the Circular Economy.
provide financial support to businesses that are developing and implementing circular practices.
This fund could be used to provide loans, grants, and tax breaks to businesses. • Regulating the use of resources and the disposal of waste. This would help to ensure that resources
are used efficiently and that waste is disposed of in a sustainable manner.
• Develop A National Circular Economy Curriculum: The NCEA should work with the Ministry of
Education to develop a national Circular Economy curriculum for schools and universities. This will The NCEA could, therefore, play a pivotal role in mainstreaming the Circular Economy in India.
help to ensure that all students learn about the Circular Economy and its importance.
In addition to the above, it is also important to ensure that the institutional framework is inclusive
By taking these steps, we can create an improved institutional framework that will enable the Circular and equitable. This means that all stakeholders, including marginalized communities, should have a
Economy to thrive in India. voice in the development and implementation of the Circular Economy strategy. It is also important
to ensure that the benefits of the Circular Economy are shared equitably. By creating an improved
The structure of a National Circular Economy Authority (NCEA) for India could be as follows: institutional framework that is inclusive and equitable, we can ensure that the Circular Economy is a
success for all of India.
• Governing Body: The governing body would be responsible for setting the overall direction of
the NCEA and overseeing its implementation. It would be composed of representatives from
government, businesses, academia, and civil society.
References:
• Policy Levers for a Low-Carbon Circular Economy’ by Circle Economy, Nov 2017
• Executive Committee: The executive committee would be responsible for implementing the
decisions of the governing body and managing the day-to-day operations of the NCEA. It would
• Resource Efficiency and Circular Economy in the Indian Context - Module 3 by The European
be composed of technical experts and representatives from key stakeholders.
Union – Resource Efficiency Initiative (EU-REI)

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02
Circular Economy
Action Plan for
Focus Materials
Present Recycling And Recovery Rates: Assessment of the current recycling and
recovery rates for the focus material in India shall be presented, along with identification
of reasons for low recycling and recovery rates, such as lack of infrastructure,
technological limitations, or market barriers.

Importance Of Circular Economy (For The Focus Material): The potential of Circular
Economy principles to transform the focus material into valuable resources shall be
presented, with emphasis on environmental, social, and economic benefits.

Adoption Of Enabling Principles: The successful implementation of the NCEF needs

1
Chapter

the following enabling principles: Prevention, Upcycling, Recycling, Energy Recovery.


Circular Economy Opportunities for Circular Economy that each of these enabling principles offer shall be
presented.
Action Plan for Focus Materials
Targets: Ambitious yet achievable targets shall be established considering the views
of industry experts and other stakeholders, available technologies, market potential
1.1. Introduction etc. Clear timelines shall be set for achieving these targets to provide direction and
accountability.
The NCEF shall be implemented in a phase-wise manner following a targeted and strategic approach
to accelerate the transition to a Circular Economy. The following materials have been identified for the Key Strategies for Promoting Circular Economy: Identification of different strategies
initial implementation of the NCEF considering their widespread usage, environmental footprint, and for promoting the Circular Economy practices shall be presented along with action
the significant scale of resource value opportunity. Focusing on these materials can yield substantial plans and roadmaps to implement the strategies effectively. Resources and support
benefits in terms of waste reduction, resource conservation, and environmental protection. systems necessary to ensure the success of these strategies shall also be presented.

Monitoring and Evaluation: A robust monitoring and evaluation framework to track


progress towards Circular Economy goals for the focus material shall be proposed to
collect and analyze data to keep track of the progress towards ‘targets’, challenges and
Plastics Construction Electrical and Mixed Municipal Waste Mixed Municipal Waste areas for improvement etc. Responsible parties for monitoring and evaluation shall be
Materials Electronic Goods – Dry Fraction – Wet Fraction clearly identified.

Case Studies: Successful case studies from around the world that demonstrate effective
This first edition of the NCEF focuses on the above materials. As the NCEF progresses and gains Circular Economy practices for the focus material shall be presented, showcasing the
momentum, a broader range of focus materials shall be included in the next phase based on learnings, innovative solutions and approaches that can be adapted to the Indian context.
feedback, and insights gained from the implementation of initial phase. This approach broadens
the scope of circular interventions and maximizes the benefits of resource efficiency across various
sectors of the economy.

1.2. Key Elements Of A Circular Economy Framework For Each


Focus Material
Considering the unique characteristics of each focus material, a tailored approach is necessary for each
focus material to effectively implement the NCEF. Within the NCEF’s comprehensive structure, each
focus material has a dedicated chapter that provides a detailed exploration and strategic roadmap for
implementing the framework for that particular focus material, addressing the unique challenges and
opportunities. Each such chapter delves into various aspects, providing a nuanced understanding of
how to navigate the complexities of sustainable resource management. The recommended content
to be covered in the chapters for each focus material includes:

Environmental And Economic Footprint: Environmental impact of the focus material,


including resource depletion, water consumption, greenhouse gas emissions, impact
on biodiversity etc. shall be presented. In addition, economic costs associated with the
production, consumption, and disposal of the focus material shall be presented.

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2.2. Environmental and Economic Footprint
Plastic pollution in India has both significant environmental and economic footprints.

Environmental Footprint:

2
Chapter

Circular Economy a. Marine Pollution b. Land Pollution c. Air Pollution


India’s extensive coastline Plastic litter on land can When plastic waste is
Action Plan for Plastics and numerous rivers make take hundreds of years burned, it releases toxic
it particularly susceptible to decompose, leading chemicals and greenhouse
to plastic pollution. Plastic to unsightly and long- gases into the atmosphere,
waste often ends up in lasting environmental contributing to air pollution
2.1. Introduction water bodies, causing harm pollution. It affects terrestrial and climate change.
A Circular Economy in plastics refers to an approach aimed at reducing the environmental impact of to marine ecosystems. It can ecosystems, wildlife, and
harm marine life through can even leach harmful
plastics by keeping plastic materials and products in circulation for as long as possible, minimizing
ingestion and entanglement chemicals into the soil.
waste, and maximizing resource efficiency. This concept is based on the principles of the broader and disrupt the food chain.
Circular Economy, which seeks to decouple economic growth from resource consumption and
environmental degradation.
Economic Footprint:
a. Cleanup Costs:
The government and various organizations incur substantial costs for cleaning up plastic
waste from public spaces, rivers, and oceans. These resources could be better utilized
for other essential services.

b. Health Costs:
The health costs associated with plastic pollution are significant. Pollution from burning
plastic and exposure to harmful chemicals can lead to health issues, increasing the
economic burden on the healthcare system.

c. Tourism Impact:
The unsightly plastic pollution can negatively affect India’s tourism industry. Reduced
tourist inflow can result in economic losses for communities and businesses that depend
on tourism.

d. Impact on Agriculture:
Plastic pollution can impact agricultural lands, affecting crop productivity. The presence
of microplastics in soil and water can lead to reduced soil fertility and damage to the
agricultural sector.

e. Loss of Biodiversity:
The environmental impacts of plastic pollution can lead to a loss of biodiversity, which
can affect various economic sectors, including fisheries, forestry, and agriculture.

f. Economic Opportunities Lost:


Inefficient plastic waste management means the country misses opportunities in
recycling, waste-to-energy technologies, and the production of eco-friendly alternatives
to plastic. Developing a Circular Economy for plastics could create jobs and stimulate
economic growth.

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India has recognized the significance of plastic pollution and has taken steps to address it. Initiatives 2.5. Adoption of Enabling Principles for Circular Economy
like the Swachh Bharat Abhiyan and bans on single-use plastics in some states are aimed at mitigating
the environmental and economic impacts of plastic pollution. However, tackling this complex issue A. Prevention
requires sustained efforts, including better waste management, awareness campaigns, and the
development of sustainable alternatives to plastics. Preventing the introduction of new plastics into the environment can be achieved through the
adoption of one of the following approaches:
2.3. Present Recycling and Recovery Rates
According to data available on the Central Pollution Control Board’s website, India generated a total
of 4.12 million tons of plastic waste in the 2020-21 fiscal year. As per the CPCB’s Extended Producer
Eliminate Replace
Responsibility portal for plastic waste, 3.07 million tons of plastic waste were reported for the 2022-23
Plastics have become deeply ingrained in Careful consideration is needed in
period.
our lives over the past five decades. While the process of replacement to avoid
plastic bans have Plastics have become inadvertently increasing the environmental
Unfortunately, less than 30% of the plastic waste in India is recycled as per the report “Innovation in
deeply ingrained in our lives over the past footprint. For instance, the shift from glass
Plastics – The Potential and Possibilities” by Marico Foundation, Indian Institute of Sciences and Praxis
five decades. While plastic bans have been bottles to PET containers for carbonated
Global Alliance.
introduced in various Indian states with beverages in the 1980s and 1990s was
varying degrees of success, it is essential driven by factors such as weight reduction,
for brands to reconsider their strategies ease of transport, and reduced damage.
and redesign products for packaging Brands should selectively explore replacing
without plastic. This transition should plastic with glass in local markets.
occur gradually. For instance, Apple has
committed to completely eliminate plastic
from its packaging by 2030.

Reuse Refill

Consider the example of large water The refilling model relies on replenishing
dispensing jars when discussing reusability. bottles or containers owned by the
Various startups across India are pioneering consumer, either at their doorstep or at
commercial models that promote the a centralized refilling facility. Similar to
reuse of food containers in collaboration reusability, Indian startups are experimenting
with food delivery companies. Employing with refilling business models. Building
technology to facilitate the reverse supply customer awareness and ensuring user-
chain is crucial in promoting reusability. friendly systems are of utmost importance
when scaling up refilling initiatives.

2.4. Importance of Circular Economy for Plastics


As the global battle against marine litter and plastic pollution intensifies, it becomes imperative to view
this issue through the unique perspective of a densely populated and rapidly advancing economy
such as India’s. While the average citizen in India may not be primarily preoccupied with the entry
of plastics into our oceans, they are definitely conscious of the tangible consequences of single-use
plastics obstructing drainage systems, resulting in flooding and the potential for widespread diseases.

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B. Upcycling
Advantages Disadvantages
There is a growing urgency for all plastic packaging to be either recyclable or compostable. Design
is once again a pivotal factor, as brands are willing to eschew excess labels and multiple colors while 1. Energy Generation: Co-processing plastic 1. Greenhouse Gas Emissions: The
still maintaining their brand’s visual appeal on the packaging. In Europe, Deposit Refund Systems have waste in cement kilns or waste-to-energy incineration of plastics can release carbon
seen successful implementation. However, in a country like India, where over 90% of PET is collected plants can recover some of the energy dioxide (CO2) and other greenhouse gases,
and recycled by the informal sector, challenging-to-collect and recycle flexible and multilayer plastics content in the plastics, which can be used contributing to climate change. This is in
may not be the best fit for a Deposit Refund Scheme. Instead, we may witness innovation through the for electricity or heat generation. This can contrast to more circular and sustainable
use of app-based DRS, encouraging users to deposit various types of plastic waste at designated bins help reduce the reliance on fossil fuels for approaches to plastic waste management.
or collection points. energy production.
2. Air Pollution: While emissions can be
To ensure the success of upcycling or bottle-to-bottle recycling, it is crucial to enhance source- 2. Waste Diversion: It diverts plastic waste controlled, the process can release
level segregation, establish larger and more automated material recovery facilities, and increase the from dumpsites and landfills, reducing the pollutants and toxins, such as dioxins and
number of bottle-to-bottle recycling facilities. This will guarantee the production of bottles from post- environmental burden associated with furans, which can have negative health
consumer recyclates with minimal impurities. these disposal methods. effects if not properly managed.

The Food Safety and Standards Authority of India (FSSAI) has already issued guidelines for bottle- 3. Volume Reduction: Incineration reduces 3. Non-Circular Approach: Co-processing
to-bottle recycling of beverage containers. Companies like PepsiCo and Coca-Cola have already the volume of plastic waste significantly, and incineration are linear methods,
initiated collaborations with recyclers to create their first batches of PET bottles using 100% recycled which can help save space in landfills and meaning they do not promote the recycling
plastic. reduce transportation costs. and reuse of plastics, which are more
circular approaches that help reduce the
4. Controlled Emissions: Modern waste- production of new plastics.
C. Recycling to-energy facilities are designed with
advanced emission control technologies to 4. Resource Depletion: Burning plastics in
For several decades, plastic recycling in India has primarily been an unorganized and informal minimize the release of harmful pollutants waste-to-energy plants means that the
industry. It’s common to come across numerous plastic recycling operations in makeshift settlements into the atmosphere. valuable resources contained in the plastics
throughout Indian cities, where both pre and post-consumer plastic waste are transformed into low- are lost, and they cannot be recovered or
value products. Many of these recycling units operate without regulation, making it challenging to reused in the future.
establish a clear record of the materials flowing in and out of these facilities.
5. Plastic Type Matters: The environmental
The recycling of hard-to-process plastics often results in downcycling, where they are transformed impact of incinerating plastic waste can
into low-value items like roofing materials, furniture boards, benches, and flowerpots. While the intent vary depending on the type of plastic being
behind these initiatives is positive, their economic viability and scalability can be questionable. burned, with some plastics producing more
harmful emissions than others.
With the growing acceptance of Extended Producer Responsibility (EPR) in India, there has been
an increase in recycling capacity across various types of polymers. EPR regulations mandate that
these recyclers demonstrate material traceability and adhere to ethical recycling practices. This shift Co-processing or incineration of plastic waste can be a practical solution for managing plastic
towards regulated recycling practices is expected to enhance the sustainability and accountability of waste when other methods like recycling are not feasible in a country like India. However, it is not
the plastic recycling industry in India. a sustainable long-term solution, as it does not promote a Circular Economy and can have negative
environmental and health impacts. Reducing plastic waste at the source, promoting recycling, and
exploring alternative materials are more sustainable approaches to tackling the plastic waste problem.
D. Energy Recovery

Co-processing or incineration of co-mingled plastic waste in cement kilns or waste-to-energy plants


is a widely accepted method used to manage plastic waste in India. This method has its advantages
and disadvantages, and it’s important to consider the environmental and social implications.

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2.6. Adoption of Key Strategies for Promoting Circular Economy 13. Research and Innovation: Invest in research and development to find alternative materials to
traditional plastics and explore ways to make biodegradable or compostable plastics more
Promoting a Circular Economy in plastics is crucial for reducing waste, conserving resources, and effective and environmentally friendly.
minimizing environmental impacts. Here are some key strategies to promote a Circular Economy in
plastics: 14. Waste-to-Energy Alternatives: Explore waste-to-energy methods that minimize the environmental
impact of incinerating plastics, such as energy recovery and emissions reduction technologies.
1. Design for Recyclability: Encourage the design of plastic products and packaging that are easy
to recycle. This includes using mono-materials and avoiding complex, mixed materials that are 15. Monitoring and Reporting: Establish transparent and standardized reporting mechanisms to track
difficult to separate and recycle. For example, Coke currently uses HDPE material for PET bottle progress in plastic recycling and reduction efforts.
caps while Pepsi uses PP material. Standardizing the cap material would simplify PET bottle
recycling and eliminate the need for polymer sorting to separate PP and HDPE. As other example, 16. International Collaboration: Recognize that plastic waste is a global issue and work with
decomposable material may be used as a wrapper on the water bottles instead of PVC film. international partners to develop consistent standards and guidelines for a Circular Economy in
plastics.
2. Extended Producer Responsibility (EPR): India has taken a lead among developing countries in
implementing EPR for plastic waste. With a country of the size of India, it is important to monitor Promoting a Circular Economy in plastics requires a holistic approach involving governments,
the implementation of EPR continuously and closely. industries, consumers, and innovators. It aims to minimize waste, reduce resource consumption, and
mitigate the environmental impact of plastic production and disposal.
3. Tax Incentives: The current GST structure for plastic products disincentivizes the use of recycled
materials. For instance, virgin plastic material incurs an 18% GST, but when this material is converted
into scrap and further processed into granules, another 18% GST is levied on these granules,
2.7. Targets
effectively resulting in double taxation. Previously, chips were subject to a 5% GST and reprocessed
granules to an 18% GST. However, the current GST structure imposes an 18% GST on both. Timeline for Achievement
S.No. Proposed Target
2025 2030
4. Recycling Infrastructure: Invest in and expand recycling infrastructure, including collection
systems, sorting facilities, and recycling plants. This ensures that plastics collected for recycling 1. Reduction in utilization of virgin plastics (%) compared to 2022 5 10
can be effectively processed and turned into new products. Expand the list of SUP materials banned to enhance the percentage
of total plastic waste covered under SUP ban (%)
5. Bottle-To-Bottle Recycling: Promote the use of recycled plastics in manufacturing new products.
This helps create a closed-loop system, reducing the need for virgin plastic production. 2. Basis for target: The share of plastic used for the banned single-use 6 10
plastic products is less than 2%-3% of the total plastic waste generated
6. Consumer Education: Raise awareness and educate consumers about the importance of recycling in India, the industry estimates. https://scroll.in/article/1034134/three-
and proper disposal of plastics. Make recycling easy and accessible to the public. months-in-indias-ban-on-single-use-plastic-has-flopped
Percentage of plastic packaging to be effectively recycled (%)
7. Innovative Recycling Technologies: Support research and development of innovative recycling
3. 20 30
technologies, such as chemical recycling and advanced sorting techniques, to improve plastic Basis for target: The proposed target is in line with the India Plastics
recycling efficiency. Pact targets to 2030.
Increase the collection and recycling of plastic waste
8. Plastic Bans and Regulations: Enact regulations and bans on single-use plastics or non-recyclable (% of plastic waste generated)
plastics to reduce their production and use. Use of alternate materials must also be promoted at
the same time to change user behaviour patterns. Basis for target: India recycles only 30 per cent of 3.4 MT plastic waste
4. 75 90
generated annually
9. Market Demand: Encourage businesses and industries to use recycled plastics in their products. https://economictimes.indiatimes.com/news/india/india-recycles-
The Government of India has created such incentives under the EPR scheme. This must be followed only-30-per-cent-of-3-4-mt-plastic-waste-generated-annually-
through religiously by all stakeholders. report/articleshow/96918352.cms
Increased consumption of plastics in construction as a substitute to
5. 2 4
10. Circular Business Models: Encourage businesses to adopt circular business models, such as leasing conventional construction materials (%)
or take-back programs, which promote reuse and recycling of products rather than disposal.
Average recycled content across all plastics packaging (%).
11. Collaboration: Foster collaboration among central government, state governments, producers, 6. 15 25
Basis for target: The proposed target is in line with the India Plastics
recyclers, and waste management organizations to create a unified approach to tackling plastic Pact targets to 2030.
waste. This includes setting common recycling and sustainability goals.
Percentage of plastic packaging to be reusable, recyclable, or
compostable (%)
12. Consumer Behaviour Change: Promote behaviour changes among consumers to reduce plastic
7. 50 100
consumption, opt for reusable alternatives, and make sustainable choices. Basis for target: The proposed target is in line with the India Plastics
Pact targets to 2030.

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2.8. Monitoring and Evaluation
India has established a robust foundation for Extended Producer Responsibility (EPR). To ensure
stringent oversight of EPR implementation, the Indian government should consider adopting the
Producer Responsibility Organization (PRO) model. This approach, as demonstrated in numerous
countries, allows PROs to consolidate the compliance objectives of brand owners. PROs, in a legal
capacity, undertake the responsibility of scrutinizing and assessing recyclers, facilitating the transition
of post-consumer plastic waste by brands, and fulfilling EPR commitments.

Chapter
Furthermore, PROs, essentially associations of brands, actively engage in raising consumer awareness Circular Economy Action Plan for
and contribute to the monitoring and reporting of the reduction of plastic litter in India’s streets and
water bodies. This approach offers a holistic solution to enhance the effectiveness of EPR in the Construction Materials
country.

3.1. Introduction
2.9. Case Studies
On the positive side construction industry strategies: Reduce, Reuse, Recycle and Recover.
1. Coca-cola launches the first 100% recycled PET water bottle holds great economic significance for our To address the negative environmental impact of
https://www.recyclingtoday.com/news/coca-cola-india-launches-rpet-bottle/
country, however on the converse side it also C&DW, many countries are adopting legislative
2. Refillable – startup refilling detergent and cleaning liquids at customer doorsteps using a has a significant environmental impact due to measures and raising awareness to encourage
subscription model https://www.indiatimes.com/news/india/refillable-mumbai-startup- its extensive excavation, sand mining, gravel the reduction of such waste.
offering-refilling-homecare-liquids-at-doorstep-575115.html quarrying and the consequent generation
of waste during excavation, demolition and The Indian Government’s Swachh Bharat Mission
3. InfinityBox – startup supplying reusable food containers, working closely with food delivery
apps - https://thoughtforfood.org/content-hub/the-end-of-single-use-packaging/ construction activity. has set a target to process all solid waste,
including C&DW in major cities and towns. The
4. Banyan Nation – recycling HDPE to be supplied for making new bottles for shampoos and The concept of Circular Economy for C&D Ministry of Urban Development has urged all
lubricants - https://www.forbesindia.com/article/leadership-awards-2023/banyan-nation- waste has also gained significant attention in states to establish recycling facilities for C&DW in
climate-warriors-chipping-away-at-indias-plastic-problem/84261/1
recent years, as an alternative to the traditional all cities and towns with populations exceeding 1
linear natural resource consumption model. This million. The need of the hour is for debris to be
References: approach focuses on reducing waste through the recycled and reused as recycled aggregates for
1. Annual Report 2020-21 on Implementation of Plastic Waste Management Rules, 2016, CPCB, Delhi (https://cpcb.nic.in/ implementation of universally accepted four main partial or total substitution of natural aggregates.
uploads/plasticwaste/Annual_Report_2020-21_PWM.pdf)

2. CPCB’s Extended Producer Responsibility Portal for Plastic Waste


https://eprplastic.cpcb.gov.in/#/plastic/home

3. https://innovation-in-plastics-report.s3.ap-south-1.amazonaws.com/Innovation_in_Plastics.pdf

4. https://eprplastic.cpcb.gov.in/#/plastic/home/main_dashboard

5. https://www.apple.com/in/environment/

6. https://fssai.gov.in/upload/advisories/2022/01/61e7acd01a850Direction_Recycled_Plastics_19_01_2022.pdf

7. https://gstcouncil.gov.in/sites/default/files/Agenda/37-meeting/Detailed%20Agenda%20Note%20-%2037th%20
GSTCM%20-%20Volume%203.pdf

8. https://scroll.in/article/1034134/three-months-in-indias-ban-on-single-use-plastic-has-flopped

9. https://economictimes.indiatimes.com/news/india/india-recycles-only-30-per-cent-of-3-4-mt-plastic-waste-
generated-annually-report/articleshow/96918352.cms

10. https://www.indiaplasticspact.org/roadmap/

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3.2. Environmental and Economic Footprint 3.4. Importance of Circular Economy
To promote sustainability in the construction industry, it is important to focus on maximizing the
Recycled aggregate (RA) can eliminate the waste disposal problem and reduce the cost of concrete.
recycling of waste generated from construction, demolition, and excavation activities.
It is becoming increasingly popular as a construction material due to its benefits from both material
and structural perspectives. Its use, which involves recycling and repurposing C&DW, is promoting
These contribute to the Circular Economy in the following ways:
sustainable development within the construction industry. Using RA in construction is a sustainable
• By the production of RA of high quality and value, which serve as a substitute for mined material
practice with multiple benefits for the industry. Recycling also reduces energy consumption since
in various construction applications, including concrete and precast products.
it requires less energy to produce recycled materials than mined aggregate. It further reduces the
waste that ends up in landfills, thus conserving space and avoiding the need for landfills. In addition
• The dry waste component of MSW, known as Refuse Derived Fuel (RDF), is separated from inert
to these benefits, the use of RA helps to reduce emissions, making it an environmentally responsible
materials such as street sweeping waste, drainage silt, stones, etc. The RDF is further utilised
option that aligns with sustainability goals. Overall, the use of recycled aggregates is a sustainable
as boiler in-feed for thermal generation of electricity which leads to residual materials such as
solution that benefits both the environment and the construction industry.
bottom ash and fly ash. The inert materials and residue are ultimately dumped at the landfill site
designated by the respective Municipal Corporation. Inert materials and the bottom ash are in the
3.3. Present Recycling and Recovery Rates nature of Construction and Demolition (C&D) Waste and can be further utilised for the purposes
of making paver blocks, bricks, aggregate, etc.
The recycling rates in US and Australia are estimated to be 60 to 70% of the generated C&DW. Compare
this to the unofficial estimates of about 2 to 3% in our country. The generation in a random sample of
Indian cities is as given below as per a study conducted by BMTPC.

Figure: C&D waste generation in various Indian cities (TPD) (BMTPC, 2018, CPCB, 2017).

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• Ensuring the ability to meet the demand for RA from a sustainable source which is renewable. • Pre-processing and segregation of MSW at WTE facilities also leads to organic waste as an output
which is not of fertiliser grade and can be utilised as compost soil enhancer. The same can also be
• Ensuring supply in areas where natural reserves of sand are diminishing
procured by the Municipal Corporations for earth-filling and utilisation in the municipal gardens.
• Minimising transport costs for the aggregates as recycled materials are typically produced closer
to urban centres. • Ministry to engage with BIS to investigate further development/amendment of standards and the
prospects for ISI certification of several categories of products made from C&DW.
As the construction industry continues to grow, it is important to explore new ways of building that
are both economically and environmentally sustainable. Recycled aggregates are one promising
• MoHUA to engage with BIS for increased inclusion of recycled products in revisions of the National
solution to this challenge.
Building Code.

• MoHUA to engage with Indian Roads Congress for increased adoption of RA as granular sub base.

• MoHUA to engage with Ministry of Finance to explore GST rebates on recycled bound products.

• MoHUA to engage with green building rating schemes such as GRIHA and IGBC for inclusion of a
greater range of products made from C&D waste into their certification schemes.

• MoHUA may make necessary arrangements for developing quality checks of recycled products
that involve reliable and transparent third-party assessment.

3.6. Targets
Timeline for
S.No. Proposed Target Achievement

2025 2030
Recycled Aggregate Recycled Sand
Usage of secondary materials/recycled content in new building construction (%)

3.5. Adoption of Enabling Principles for Circular Economy 1.


Basis for target: In line with the recommendations made in the document ‘Circular
10 20
Economy in Municipal Solid and Liquid Waste’ by Ministry of Housing and Urban
A broader policy push on enabling principles is necessary to alter market dynamics to foster greater Affairs (https://mohua.gov.in/pdf/627b8318adf18Circular-Economy-in-waste-
management-FINAL.pdf)
uptake of recycled products from C&DW, including efforts to safeguard recycled product quality and
financial viability. Once a mature market develops for such recycled products, there will be less need Usage of secondary materials/recycled content in roads and highways (%)
for financial incentives.
Basis for target: In line with the recommendations made in the document ‘Circular
2. 20 40
Implementation: Economy in Municipal Solid and Liquid Waste’ by Ministry of Housing and Urban
• Preferential Public Procurement policies such as those in Delhi should be circulated by the ministry Affairs (https://mohua.gov.in/pdf/627b8318adf18Circular-Economy-in-waste-
management-FINAL.pdf)
in their capacity development efforts with guidance on how they can be adapted.
Reduce the generation of C&D waste by promoting more sustainable construction
3. 2 4
practices (%).
• Ministry may guide state agencies such as PWD, R&B, S&WB to adopt preferential Public
Procurement policies in a time-bound manner. Increase in collection & recycling of C&D waste (%)
Basis for Target: “India manages to recover and recycle only about 1 per cent
4. of its construction and demolition (C&D) waste, says new CSE analysis” https:// 20 40
• State government should direct PWD for inclusion of various recycled products from C&DW in www.cseindia.org/india-manages-to-recover-and-recycle-only-about-1-per-
their Schedule of Rates. cent-of-its-construction-and-demolition-10326

5. Introduce EPR for producers of construction materials with targets (%) 15 25


• Buy-back of recycled paver blocks, bricks, etc. that is made from the inert materials of MSW and
Circular procurement targets (for government agencies and large corporations)
bottom ash from the boiler of MSW WTE Plants. The aggregate can also be procured by the Roads 6. 10 20
in %.
and Buildings (R&B) Department for the purposes of construction of roads.

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3.7. Adoption of Key Strategies for Promoting Circular Economy 3.8. Monitoring and Evaluation
C&D Waste Governance in India: This responsibility of monitoring and evaluation lies with the Urban Local Body. Their duties cover the
The overarching rules for C&D waste management in India are called the Construction & Demolition following aspects
Waste Management Rules, 2016. The governance of C&DW was made clear to all stakeholders -
from the respective urban local body (ULB) down to the average urban resident by the Solid Waste 1. Issue Detailed Directions:
Management Rules (2016). After the Municipal Solid Wastes (Management and Handling) Rules, 2000 How C&D waste will be handled within its jurisdiction. Chalk out stages, methodology and equipment
which encompassed all waste streams under one umbrella, the 2016 Rules were a welcome change involved in the activity and disposal after completion of C&D processing.
when C&DW was recognised as a separate solid waste stream. They distinguish between different
waste streams and create specific rules for handling each one of them. For the record apart from C&D
2. Establish Collection Facilities:
Waste we also have specific rules for plastic, hazardous Waste, e-waste and biomedical waste.
Planning for proper collection and handling of waste by placing appropriate containers, and ensuring
they are regularly removed when full, using their own resources, or by appointing private operators.
The following loop holes need overhaul to make the C&D rules effective.
• Most state governments are yet to come out with this policy document. This needs to be
3. Arrange Transport Till Processing:
urgently taken up. While the Centre sets the overarching Rules, the State creates the framework
Shall get the collected waste transported to appropriate sites for processing and disposal either
for implementation through policy and infrastructure, it is important to note that in C&D waste
governance, the Urban Local Body (ULB) is a key stakeholder through their own resources or by appointing private operators.

• Only in a few Indian cities there are recycling facilities (about 15 Nos). Need is to have these in all 4. Sanction Waste Management Plans:
million plus cities. Even in cities which have recycling facilities the secondary collections points Examine and sanction waste management plans within one month from the date of approval of the
where bulk generators / citizens can deposit waste are barely functional. building plan.

• Only in case of Delhi there is a mandate for the procurement (10-20%) of recycled materials for 5. Maintain Waste Database:
government projects. The advisory regarding the uptake of C&D recycled products was published Keep track of the generation of C&D waste within its jurisdiction and maintain a database that is
in 2015 followed by an order for the same in 2016. It mandates a minimum 2% use for building works, annually updated.
10% use in roadworks, and 5% use in non-structural applications, even for private individuals. The
order necessitates modifications in existing bye-laws to enforce this at the time of building plan 6. Setup of C&D Waste Processing Facility:
approval. Such rules need implementation in other cities as well. Shall devise appropriate measures in consultation with expert institutions for the management of C&D
waste generated including processing facility and for using the recycled products in the best possible
• The Town and Country Planning bodies should ensure the incorporation of the recycling
manner.
infrastructure into the land use plan of the state.

7. Conduct IEC Activities:


Here is what is can be considered for inclusion in the policy
Shall raise awareness about the waste stream through collaboration with expert institutions, civil
1. Lack of Focus on Reuse: The Rules currently treat disposal and it some extent recycling as the best
societies, and its own website.
practice, whereas the principles of Circular Economy stipulate a higher focus on reuse and reduce.
This is the focus area of developed countries, but in India, where there is a robust used material
economy, there is still a need to legitimise and promote it through policy. 8. Provide Incentives:
Shall make provision for giving incentives for use of material made out of C&D waste in the construction
2. C&D Waste Transport: The first mile connectivity (FMC) in C&D waste transport is currently in activity. Salvaging, processing and or recycling preferably in situ for large demolitions.
the hands of the unorganised sector. These leads to leakages in the system and the waste ends
up in unauthorised dump sites. C&D waste transport requires a coordinated effort between the 9. Standards Making Bodies:
generator, the appropriate vehicles (small to big tippers, as per the location in the project site) While a lot is stated about how important it is that C&D waste is recycled, it would fall flat if no one
and the recycler. So, collection remains a major challenge and the city administrators remain on uses it. To address this aspect, the Rules have allocated responsivity to the following bodies:
tenterhooks as to where the next dump would get created.
• Bureau of Indian Standards (BIS)
3. Exclusion of Demolition Contractors: While the actual work of demolition and thus C&DW waste • Indian Road Congress (IRC)
generation is carried out by demolishers, a standard demolition protocol is missing. This means a
gap between the recycler and the generator. Their duties as per the Rules are “preparation of code of practices and standards for use of recycled

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materials and products of construction and demolition waste in respect of construction activities”. In • Granular sub base (GSB) for road construction
2016, BIS came out with the IS 383:2016 which gave legitimacy to the use of Recycled Aggregates (RA) • Soil improvements thru enhanced weathering techniques of atmospheric CO2 sequestration
and Recycled Concrete Aggregates (RCA) in construction for lower grades of concrete and PCC. Later • Substitute material for mined aggregate in concrete / PCC
in 2017, the Indian Road Congress released the IRC:121-2017 or the ‘Guidelines for Use of Construction • Precast product manufacturing: CC Blocks / Bricks / Pavers/Tiles
and Demolition Waste in Road Sector’ that specified standards pertaining to the construction of roads
and embankments using the C&DW recycled materials. The process of producing “green aggregates” typically involves the following steps:

Lacunae in the responsibilities and reporting Structure of the Administrators: Collection And Sorting: The waste is collected from construction/ demolition and legacy
dumpsites. It is then sorted according to their fraction type.
The C&D Waste Management Rules 2016 are a good start identifying the key stakeholders and their
Crushing: The sorted feedstock is crushed into smaller pieces in two stages using jaw
responsibilities pertaining to C&D waste management. However, the Rules need to percolate and crushers and impact or cone crushers.
reach the city administration levels. Only during the annual Swacch Survekshan of these cities is some
activity seen to meet the obligatory requirement by hook or crook to garner points. Screening: The crushed material is screened to remove any debris, such as wood or metal,
that may have been missed during the sorting process.
All cities need to have an enforceable policy document for C&D Waste Management. There has to be
Washing: The crushed and screened material is washed to remove any remaining debris
an order mandating the uptake of products made with recycled C&D waste. Without this mandatory or contaminants.
usage and incentives, the recycled material and pre- cast products do not have an easy outlet.
Sizing: The material is sized according to the desired use, such as coarse or fine aggregate.
Enforcement of waste management plans at the building plan sanctioning stage, and establishment
Quality Control: The recycled aggregates are tested for quality and compliance with
of secondary collection facilities. This would arrest the leakages in the collection system. relevant standards.

Without enforceable policy and appropriate policy instruments in place, citizens do not benefit from Distribution: The recycled aggregates are then despatched to construction sites and RMC
these capital-intensive amenities. plants ready to be used in new construction projects.

GST i.e. 18% is imposed on recycled products, making them equal to products made from mined
aggregate compared to conventional products. There is needs to be concession on this to promote References:
recycled material and products.
1. MoEFCC. (2016). Construction & Demolition Waste Management Rules, 2016.

Policy and governance are related but distinct concepts. While policy creates guidelines to regulate 2. Municipal Solid Wastes (Management and Handling) Rules, 2000, (2000).
behaviour, actions, and decision-making within a context, governance involves the execution-
3. CPCB. (2017). Guidelines on Environmental Management on Construction & Demolition (C&D) Waste (Vol. 1,
management of the policy. Issue March).

The drawback of the C&D Waste Management Rules 2016 is not the policy, but rather its governance. 4. Advisory: Use of Recycled C&D Waste Project in Delhi, (2015)
In specific, the enforcement. The purpose of enforcement is to ensure that individuals or entities 5. Order: Use of Recycled Products from C&D Waste, (2016).
comply with the policies and face consequences if they fail to do so. However, without incentives or
appropriate penalties in place, the C&D Waste Management Rules (2016) to date, remain at a guideline 6. Indian Standard Coarse and Fine Aggregate for Concrete - Specification (Third Revision), (2016).
level, without the much-required enforceability in most Indian cities. 7. Indian Roads Congress. (2017). Guidelines for Use of Construction and Demolition Waste in Road Sector.

3.9. Case Studies


Green Aggregates: “Green aggregates” is a term used to describe construction materials that are
environmentally friendly and sustainable. These materials are designed to reduce the impact of the
built edifice on the environment by utilizing materials that are recycled rather than relying solely on
the finite resources. Using green aggregates reduces the carbon footprint of construction projects,
which can significantly impact the environment. Green aggregates produced from C&DW can be
used in a variety of construction applications, such as:

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4.2. Environmental and
Economic Footprint
The environmental and economic footprint of
Electrical and Electronic Goods (EEGs) refers to
the impacts these products have on both the
environment and the economy throughout their
entire lifecycle, from raw material extraction to

4
manufacturing, use, and eventual disposal.
Chapter

Circular Economy Action Plan for


Electrical and Electronic Goods Environmental Footprint
• The extraction of raw materials (metals,
minerals, plastics, etc.) for manufacturing
electronic goods contributes to resource
4.1. Introduction depletion. This includes metals like gold, silver,
The Circular Economy Action Plan for Electrical and Electronic Goods is a comprehensive initiative and rare earth elements, which can have
aimed at revolutionizing the way we produce, consume, and manage electronic products. This significant environmental consequences.
forward-thinking plan is designed to address the escalating challenges posed by the rapid growth
of the electrical and electronic industry, including resource depletion, e-waste accumulation, and
• The production of electronic goods requires
environmental degradation.
substantial energy inputs, both in the
At its core, this action plan promotes a paradigm shift from the traditional linear “take-make-dispose” manufacturing process and during their use.
model to a circular approach, which emphasizes sustainability, resource efficiency, and waste reduction. This includes energy-intensive processes like
It encompasses a wide range of strategies and measures to optimize the entire lifecycle of electrical smelting metals, semiconductor fabrication,
and electronic goods, from design and production to use, repair, and end-of-life management.
and electricity consumption during product
Key objectives of the Circular Economy Action Plan for Electrical and Electronic Goods include: operation.

• Encouraging manufacturers to create products that are built to last and can be easily repaired, • The production, transportation, and use of
thereby extending their lifespan, and reducing the need for frequent replacements. electronic goods result in greenhouse gas
• Encouraging the reuse and refurbishment of electronic devices, diverting them from landfills and emissions. This includes emissions from
reducing the demand for new products. manufacturing facilities, as well as those
generated during energy production to
• Implementing efficient and environmentally friendly recycling processes to recover valuable power the devices.
materials from discarded electronic goods, reducing the environmental impact associated with
resource extraction.
• Improper disposal of electronic waste is a
• Encouraging the use of sustainable and recyclable materials in the production of electronic goods, significant environmental concern. Many
as well as exploring innovative technologies for material recovery. electronic devices end up in landfills, where
they can release harmful chemicals and
• Implementing policies that hold manufacturers accountable for the entire lifecycle of their
contribute to soil and water pollution.
products, thereby incentivizing them to adopt more sustainable practices.

• Raising public awareness about the benefits of a Circular Economy for electrical and electronic • Electronics often contain hazardous
goods and providing consumers with information on responsible consumption and disposal substances like lead, mercury, cadmium,
practices. and brominated flame retardants. When not
• Collaborating with global partners to establish common standards and best practices for the properly managed, these substances can
sustainable management of electrical and electronic goods. leach into the environment, posing risks to
human health and wildlife.

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Economic Footprint • The Circular Economy for EEGs presents economic opportunities through various stages of the
product lifecycle, including design, repair, remanufacturing, and recycling. This can lead to job
• Manufacturing electronic goods involves various costs, including labor, raw materials, energy, creation and stimulate innovation in the sector.
and facility expenses. The complexity and precision required in production can make this industry
capital-intensive. • Embracing circular practices encourages innovation in product design, materials selection, and
recycling technologies. This drives technological advancement and promotes the development
• The EEG industry invests heavily in research and development to drive innovation. This leads to of more sustainable and efficient EEGs.
technological advancements, which in turn contribute to economic growth and job creation.
• Designing products for durability and repairability extends their lifespan. This not only reduces the
• The production, distribution, and servicing of EEGs create employment opportunities. This includes frequency of replacements but also enhances the value proposition for consumers.
jobs in manufacturing, design, engineering, sales, and customer support.
• A Circular Economy encourages consumers to make informed choices about their
• The electrical and electronic industry represents a significant portion of many countries’ economies. purchases and to consider factors like product durability, repairability, and recyclability.
For some nations, exports of electronic goods contribute significantly to their trade balance and This empowers consumers to become active participants in sustainable consumption.
overall economic stability.
• By minimizing resource extraction, reducing pollution, and lowering energy consumption,
• Improper disposal of electronic waste can result in significant environmental cleanup costs, which
can burden both the public and private sectors. a Circular Economy for EEGs contributes to overall environmental preservation and
conservation efforts.

4.3. Present Recycling and Recovery Rates • Many regions and countries are implementing strict regulations regarding e-waste
management and sustainable production practices. Adhering to Circular Economy
India, like many countries, has been working to improve the recycling and recovery rates for EEGs
principles helps businesses comply with these regulations and avoid potential fines or
due to the environmental and economic benefits associated with responsible e-waste management.
legal repercussions.
As of 2021:
• Embracing a Circular Economy for EEGs aligns with broader global sustainability goals,
such as the United Nations Sustainable Development Goals (SDGs), particularly Goal 12:
• Formal recycling rate in India is estimated at 10% – 20% Responsible Consumption and Production.

• Formal recovery rate in India is estimated at 80% to 95% 4.5. Adoption of Key Strategies for Promoting Circular Economy
Promoting a Circular Economy for electrical and electronic goods is crucial for sustainable resource
Data from: management and reducing environmental impact. Here are some key strategies that can be adopted:
• www.cseindia.org
Product Design for Durability and Disassembly
• www.toxicslink.org
• Design products to last longer by using high-quality materials and robust construction.
• Incorporate modular design principles to allow for easy repair and upgrade.
4.4. Importance for Circular Economy • Design for disassembly to facilitate the separation of components for recycling or reuse.
The Circular Economy is of paramount importance for electrical and electronic goods (EEGs) due to
a multitude of economic, environmental, and social benefits it offers. Here are some key reasons why Extended Producer Responsibility (EPR) (partially implemented)
the Circular Economy is crucial for EEGs: • Implement EPR policies, which make manufacturers responsible for the end-of-life disposal of
• EEGs rely on a wide range of raw materials, including metals, plastics, and rare earth elements. A their products. This encourages them to design products with recyclability and reusability in mind.
Circular Economy promotes resource efficiency by minimizing waste and maximizing the lifespan
of these materials through practices like repair, refurbishment, and recycling. Take-back and Recycling Programs
• Establish collection and recycling programs to ensure that end-of-life products are properly
• The disposal of electronic waste (e-waste) poses significant environmental and health risks. A managed.
Circular Economy aims to minimize waste generation by encouraging responsible consumption,
• Provide convenient drop-off points or pick-up services for consumers.
reuse, and proper recycling of EEGs, thus mitigating the negative impacts of e-waste.

• The production of electronic goods is energy intensive. A Circular Economy promotes energy Material Efficiency and Recycling
efficiency through strategies like remanufacturing and refurbishment, reducing the overall energy • Promote the use of recycled materials in the manufacturing process.
footprint associated with the manufacturing and disposal of EEGs. • Implement technologies for efficient extraction and processing of critical raw materials from
discarded electronics.
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Remanufacturing and Refurbishment Incentives for Circular Design:
• Encourage remanufacturing and refurbishment of electronic goods to extend their lifespan. Introduce financial incentives for electronics manufacturers adopting circular design principles,
• Develop standards and quality controls for remanufactured products. encouraging the industry to embrace sustainable practices. These can include:

Digital Product Passports and Tracking a. Tax Rebates: Provide tax rebates or reduced tax rates for electronic manufacturers
• Implement digital tracking systems to provide detailed information about a product’s lifecycle, incorporating circular design principles in their products, encouraging them to adopt
including materials used, manufacturing processes, and maintenance history. sustainable practices.

Change in definition of Bulk Consumer: In Rules 2022/2016, Bulk Consumers responsibility is very b. Green Certification: Introduce a certification system that rewards companies adhering
limited, there is no mention of Annual filings for a bulk consumer. And definition of Bulk Consumer to circular design standards, granting them access to government contracts or
needs to be Redefined. exclusive market opportunities.

• Current definition: Bulk Consumer means any Entity which has used at least “1000” units of c. Public Recognition: Establish awards or recognition programs for companies
Electrical &Electronic equipment listed in schedule I, at any Point in the particular Financial Year showcasing excellence in circular design, enhancing their public image and fostering
and incudes e-retailer. healthy competition within the industry.

• Proposed: Bulk Consumers means any Entity which has used at least “200” units of Electrical & Research and Innovation Funding:
electronic equipment either listed or not listed in schedule I. Allocate research and innovation funds to support the development of environmentally friendly
technologies and processes in the electronics sector, promoting circularity through innovation. These
Annual Filings for Bulk Consumer should be made Mandatory and He should be made responsible for may include:
disposing hi material to an Authorized recycler.
a. Grants for Sustainable Technologies: Allocate government grants to electronics
In addition, Bulk Consumers (especially in IT sector) who use more than “200” Units per year Should be companies investing in research and development of sustainable technologies,
registered in portal and details pertaining to E-waste disposal should be made mandatorily uploaded. especially those focusing on material innovation, energy efficiency, and waste
reduction.
Revision in Incentivization of Refurbishing: Current 2022 Rules have Brought in incentivization of
Refurbishing by Adding only 75% of deferred Quantity to the producers of total 100%. However, this is b. Collaborative Research Centers: Establish collaborative research centers where
too small for a Producer to take a step towards refurbishing his product. This should be made at least industry experts, academic institutions, and government agencies work together to
50% to make it effective. advance sustainable practices in the electronics sector, with dedicated funding for
such initiatives.
Utilization of Informal Sector: Role of Informal sector should be effectively used to develop a strategic
collection mechanism instead of completely avoiding them from E-waste business. c. Innovation Challenges: Organize innovation challenges with cash prizes or funding
opportunities for projects that address specific environmental challenges in the
Rating of Recyclers: Current E-waste Management Practice is not identifying best compliant Recyclers electronics industry, promoting creative solutions.
in country, where these Recyclers setup an advanced technology system but were treated same and
compete with a normal dismantler for pricing. A mechanism to rate recyclers may be introduced. Collaborative Initiatives:
Government Should recognize these companies as Grade 1, 2, 3 recyclers & should enforce other Facilitate collaboration among industry stakeholders, government bodies, and NGOs to create a
dismantlers & Recyclers to send their material who cannot fully process their material. holistic approach to circularity, fostering a collective responsibility for sustainable practices in the
electronics industry. These may include:
Environment Compensation: Current Environment compensation only concentrates on a Producer
who fails to complete his target. Strict environmental compensations should also be extended to Bulk a. Industry Roundtables: Facilitate regular industry-wide roundtable discussions involving
consumers who doesn’t dispose his E-waste responsibly. manufacturers, government representatives, and environmental organizations to share
best practices, address challenges, and collectively set industry-wide goals for
Due Diligence on Recyclers: CPCB should perform a due diligence on existing recyclers & identify few circularity.
good recyclers & should enforce all government organizations, institutions, colleges and universities
to dispose them to the listed recyclers.

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b. Joint Awareness Campaigns: Collaborate with NGOs and industry associations • Track the flow of electronic waste from collection to recycling or disposal. Monitor compliance
with recycling regulations and assess the effectiveness of take-back programs.
to launch joint awareness campaigns educating consumers about the environmental
impact of electronics and promoting responsible consumption. • Evaluate the economic benefits of Circular Economy practices, including job creation, cost savings
through material recovery, and the development of new markets for recycled materials.
c. Resource Sharing Platforms: Create platforms where companies can share insights,
resources, and successful case studies related to circular practices, fostering a • Assess the social benefits of Circular Economy initiatives, such as improved working conditions in
recycling facilities, community engagement, and consumer awareness.
collaborative environment for sustainable development.
• Engage with stakeholders, including consumers, manufacturers, NGOs, and government agencies,
4.6. Targets to gather feedback on Circular Economy initiatives and identify areas for improvement.
• Monitor compliance with existing regulations and evaluate the effectiveness of policies and
incentives designed to promote circularity.
Timeline for
S.No. Proposed Target Achievement
• Track the adoption of innovative technologies and practices that promote circularity in the
2025 2030 electrical and electronic goods industry.
Achieve recycling rate for electronic waste in India by encouraging
1. 40 90 • Document and share successful case studies and best practices to showcase the positive impacts
responsible disposal and recovery of valuable materials (%)
of Circular Economy initiatives.
Ensure compliance with EPR regulations among electronics manufacturers,
2. 80 100
promoting accountability for the entire product life cycle (% compliance) • Conduct regular assessments and reviews to measure progress against set KPIs and adjust
strategies as needed.
Percentage of products designed with interchangeable and upgradeable
3. parts by establishing standards for modular components in electronic 40 70
devices. • Compare the performance of Circular Economy initiatives within the electrical and electronic
goods sector to industry benchmarks and global standards.
Extraction of critical materials like rare earth metals from end-of-life
4. 50 80
electronics (%) • Use the monitoring and evaluation results to identify areas for improvement and implement
corrective actions to enhance the effectiveness of Circular Economy strategies.

4.7. Monitoring and Evaluation


Monitoring and evaluating the implementation of Circular Economy practices for electrical and 4.8. Case Studies
electronic goods is essential to assess progress, identify areas for improvement, and ensure the Case studies of Circular Economy practices in the electrical and electronic goods industry:
effectiveness of initiatives. Here are steps and considerations for monitoring and evaluation:
Fairphone
• Define specific, measurable indicators to track progress towards Circular Economy goals. Examples Fairphone is a Dutch company that produces smartphones with an emphasis on ethical sourcing,
include recycling rates, product lifespan, material efficiency, and reuse rates. longevity, and repairability.
• Establish a robust data collection system to gather relevant information. This may include data on • Circular Practices: Fairphone designs its products with modularity in mind, making it easier to
product lifecycle stages, recycling rates, material usage, and economic impacts. replace individual components like the battery or camera. They also actively work to source
conflict-free minerals and promote fair labor practices. Link: https://www.fairphone.com/en/
• Regularly report on progress to stakeholders, including government agencies, industry associations, impact/long-lasting-design/
and the public.
Apple’s Liam Robot:
• Conduct Life Cycle Assessment- LCAs to assess the environmental impacts of electrical and Apple is a multinational technology company known for its iPhones, iPads, and other electronic
electronic products throughout their entire lifecycle, from raw material extraction to end-of-life products.
disposal.
• Circular Practices: Apple developed the Liam robot, which is designed to disassemble old iPhones
• Monitor and evaluate the transparency of supply chains, ensuring that materials are sourced to recover valuable materials. This allows for the recycling and reuse of components, reducing
responsibly and that production processes adhere to circular principles. the need for raw materials. Link: https://www.apple.com/environment/pdf/Liam_white_paper_
Sept2016.pdf
• Implement digital product passports or tracking systems to provide detailed information about
a product’s lifecycle. This can help in monitoring product origins, materials used, and end-of-life
pathways.

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Dell’s Closed-Loop Recycling:
Dell is a global technology company that manufactures and sells computers, laptops, and other
electronics.

• Circular Practices: Dell has established a closed-loop recycling system where it takes back used
electronics and uses the materials to manufacture new products. This minimizes the need for
virgin materials. Link: https://www.dell.com/learn/vg/en/vgcorp1/corp-comm/closed-loop-
recycled-content

Chapter
Renault’s Electric Vehicle (EV) Battery Recycling:
Renault is a multinational automobile manufacturer. Circular Economy Action Plan for
• Circular Practices: Renault is working on projects to repurpose or recycle used EV batteries. This Mixed Municipal Waste – Dry Fraction
includes finding ways to use retired EV batteries for energy storage in various applications. Link:
https://www.renaultgroup.com/en/news-on-air/news/the-circular-economy-of-the-electric-
vehicle-battery/ 5.1. Introduction
IKEA’s Buy Back and Resell Program: The management of municipal waste is a critical environmental challenge facing India, a nation with
IKEA is a Swedish multinational company known for its furniture and home goods. a rapidly growing population and urbanization. With an increasing urban lifestyle and consumption
patterns, the generation of mixed municipal waste, including dry fractions, has been on the rise.
• Circular Practices: IKEA launched a program that allows customers to return used furniture, This poses significant environmental and resource management concerns. In response to these
including electronic goods like lamps and chargers, in exchange for store credit. The returned challenges, India has been working on developing a Circular Economy Action Plan specifically aimed
items are refurbished and resold. Link:https://www.ikea.com/gb/en/customer-service/services/ at addressing the management of dry fractions of mixed municipal waste.
buy-back/#:~:text=With%20Buyback%20%26%20Resell%2C%20you%20sell,gives%20it%20
a%20new%20home. Understanding Mixed Municipal Waste - Dry Fraction: Mixed municipal waste refers to the collection
of various waste materials generated from households, institutions, and commercial establishments.
Sony’s Take-Back and Recycling Program: Dry fractions are components of this waste that do not decompose easily and typically include
Sony is a Japanese multinational conglomerate known for its consumer electronics. materials such as plastics, metals, glass, and paper. The management of dry fractions is of paramount
importance due to its environmental impact, as improper disposal leads to pollution and depletion
• Circular Practices: Sony has established take-back and recycling programs for its products, of resources.
ensuring responsible disposal and recycling of electronic waste. Link:https://www.sony.
co.in/microsite/environment-policy/ewaste/#:~:text=Sony%20ensure%20that%20 The Need for a Circular Economy Approach: A Circular Economy is an alternative to the traditional
e%2Dwaste,telephones(Mobile)%20for%20recycling. linear economy, which follows the “take, make, dispose” model. In a Circular Economy, resources
are kept in use for as long as possible, and waste and pollution are minimized. Such an approach is
Circular Electronics Initiative in the Netherlands: not only environmentally friendly but also economically advantageous, as it reduces the pressure on
The Netherlands has a national initiative focused on promoting circular practices in the electronics natural resources and promotes sustainability.
sector.
Challenges and Opportunities: India’s Circular Economy Action Plan for Mixed Municipal Waste – Dry
• Circular Practices: This initiative involves collaboration between government agencies, Fraction aims to address several challenges:
manufacturers, and stakeholders to develop and implement strategies for sustainable design,
recycling, and reuse of electronic products. Link: https://www.government.nl/topics/circular- • Lack of Infrastructure: One of the primary challenges is the lack of proper infrastructure for waste
economy/accelerating-the-transition-to-a-circular-economy segregation and recycling. India is working to enhance its waste collection and segregation
systems to efficiently manage dry fractions.
• Awareness and Behavior Change: There is a need to create awareness and encourage responsible
References: waste disposal practices among citizens. Public engagement and education campaigns are crucial
for changing people’s behavior.
1. www.cseindia.org • Technological Advancements: The plan focuses on leveraging technology for efficient sorting and
recycling of dry fractions. Innovations in waste-to-energy technologies and recycling methods
2. www.toxicslink.org are being explored.
• Economic Incentives: Developing economic incentives for the private sector, such as tax benefits
3. https://www.un.org/sustainabledevelopment/sustainable-consumption-production/ and subsidies, to invest in recycling and waste management facilities is an essential aspect of the
plan.
4. https://cpcb.nic.in/uploads/Projects/E-Waste/e-waste_rules_2022.pdf • Lack of source segregation, use of non-recyclable material, filler materials in textile and mixing of
soil, debris etc. makes dry waste highly heterogenous. Soil and debris affect wet waste and its
processing as well.
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• Conversion of dry waste in to any useful resource requires comprehensive and extensive level of Economic Footprint:
processing. The processing is completely based on mechanical processes and equipment.
Job Creation: The Circular Economy Action Plan has the potential to create jobs in various
• Nature of waste, lack of economics and heterogeneity of waste makes conversion of dry waste
sectors, including recycling, waste management, remanufacturing, and sustainable product
in to any resource is improbable. Lack of economics makes investment in to robust equipment
design. This can address unemployment and contribute to economic growth.
almost impossible.
Policy Framework: The Circular Economy Action Plan for Mixed Municipal Waste – Dry Fraction in
Entrepreneurship: Encouraging entrepreneurship in recycling and upcycling businesses
India is guided by a comprehensive policy framework that incorporates the principles of a Circular
can stimulate local economies and provide opportunities for small and medium-sized
Economy. This includes regulations for waste segregation at source, extended producer responsibility,
enterprises to thrive.
product design standards, and the establishment of recycling and resource recovery centers.
Resource Efficiency: Adopting a Circular Economy approach can increase resource
The Way Forward: India’s commitment to implementing a Circular Economy Action Plan for Mixed
efficiency, reduce costs, and improve competitiveness for businesses. This can lead to long-
Municipal Waste – Dry Fraction is a significant step towards addressing the environmental challenges
term cost savings and bolster the Indian economy.
posed by increasing urbanization and consumption. By promoting responsible waste management,
recycling, and resource conservation, this initiative not only supports environmental sustainability but
Innovation: The plan can drive innovation in waste management technologies, recycling
also presents economic opportunities and job creation.
processes, and circular supply chains. It may lead to the development of new, innovative
solutions and products, potentially driving economic expansion.
In conclusion, India’s Circular Economy Action Plan for Mixed Municipal Waste – Dry Fraction is a
holistic approach to manage the challenges posed by urban waste generation. It showcases the
Export Opportunities: India can tap into international markets for recycled and upcycled
nation’s dedication to embracing Circular Economy principles, fostering sustainable practices, and
products, increasing exports and foreign exchange earnings.
creating a cleaner and more resource-efficient future.

5.2. Environmental and Economic Footprint Sustainable Tourism: A cleaner environment and better waste management can contribute
to a boost in sustainable tourism, providing economic benefits to regions with tourist
The implementation of a Circular Economy Action Plan for Mixed Municipal Waste – Dry Fraction in attractions.
India could have a profound impact on both the environment and the economy. Here’s an analysis of
its potential environmental and economic footprints in the Indian context: In conclusion, the Circular Economy for mixed municipal waste – dry fraction in India has the potential
to deliver significant environmental and economic benefits. It can address pressing environmental
Environmental Footprint:
issues, conserve resources, create jobs, and stimulate innovation and entrepreneurship. The success
Waste Reduction: Implementing the Circular Economy Action Plan will significantly reduce of this plan will depend on effective implementation, government policies, public awareness, and
the amount of dry fraction municipal waste ending up in landfills. This reduction will lead to private sector engagement.
lower greenhouse gas emissions and a decreased environmental burden associated with waste
disposal.
5.3. Present Recycling and Recovery Rates
Resource Conservation: By promoting recycling, reusing, and upcycling of materials in the
dry fraction waste stream, this plan will help conserve valuable resources like metals, plastics, Dry waste consists of recyclables such as plastic, India generates 70 million metrics of municipal
and paper. This, in turn, reduces the need for virgin resource extraction and energy-intensive paper, cardboard, metals, glass, rubber, non- solid wastes. Out of it, only 20% is recycled and
manufacturing processes. recyclables and other combustible. It is the most the rest ends up in landfills and oceans affecting
valued waste stream in municipal solid waste humans, and marine life, along with destroying
Air and Water Quality: A reduction in waste going to landfills and the adoption of cleaner waste
management practices will lead to improved air quality and a decrease in pollution. It will also owing to high economic value of its components, the environment. This necessitates a solid waste
help mitigate the leaching of contaminants into groundwater, leading to improved water quality. especially recyclables. Rapid urbanization management system in place.
and economic growth have led to changing
Energy Savings: Recycling and reusing materials generally require less energy than producing
new products from raw materials. As a result, the plan will contribute to energy savings and a consumption patterns. Economic prosperity has It is estimated that waste management in India is
reduced carbon footprint. also resulted in increase in potential value of potentially a $15 billion industry. Out of the entire
recyclable fractions necessitating the adoption waste produced in India, 25% are dry waste
Reduced Pollution: Diverting dry fraction waste from landfills will decrease the leaching of
of Circular Economy principles for resource components that can be recycled.
harmful chemicals into the soil and water, contributing to cleaner ecosystems and less harm to
wildlife. recovery.
This recyclable waste, dumped into landfills due
Circular Supply Chains: Encouraging the circular use of materials in the dry fraction waste stream According to the ministry of environment, forest, to a lack of proper collection and infrastructure,
will lead to shorter supply chains, reducing transportation-related emissions and associated
environmental impacts. and climate change, under the government of can be reused as raw material. If it is properly
India, India is the fifth-largest economy in the segregated and processed further, it can be a
Biodiversity and Ecosystem Benefits: As waste-related pollution decreases, local ecosystems world. The nation generates approximately 62 highly lucrative source of revenue generating.
and wildlife can benefit from reduced contamination and habitat degradation.
million tons of waste with an average annual Heterogeneity of waste also makes conversion
Public Health: Improved waste management and reduced pollution can lead to improved public growth rate of 4%. It is also found that currently, difficult from dry waste to any useful resource.
health, reducing the incidence of diseases related to environmental contamination.
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India also generates about two million tonnes This can be accomplished in one of two ways: Considering India’s massive domestic needs due to growing population and economic advancement,
(MT) of e-waste annually, which makes plastics either by raising the selling price or lowering resource offsetting measures are required to reduce environmental pollution and climate change
and electronics two key components of waste the cost of manufacturing. Since it is difficult to effects.
generation. However, these waste generation raise prices due to severe competition, many
components, alongside solid waste, have a industries are focusing on cost reduction. These twin challenges of dry waste management and growing resource requirements can be
huge potential to be capitalised into channels The cost of raw materials used to make items converted into an opportunity. Dry waste management using circularity principles can help India
of high revenue generation. Similarly, in 2020, 81 accounts for a large component of the total cost decouple its growth from consumption of primary resources and materials, thus ensuring efficient
billion worth of paper waste and paper pulp was of manufacturing. If minimised, the production resource recovery from dry waste. India currently generates approximately 1.45 Lakh metric tonnes
imported to India. On the other hand, only 20% of cost can be radically reduced. This is where of solid waste, 35% of which is dry waste. Thanks to India’s informal sector, a majority of the plastic
paper waste is being collected, segregated, and recyclable waste, sometimes known as “scrap” or waste is recycled. India can take inspiration from countries with high recycling rates: Germany (66.1%),
recycled rest goes to landfills. The same applies reprocessed material, comes in. The processed Singapore (60.6%), South Korea (59.0%) and further improve its resource recovery and recycling.
to glass and metal waste. waste is comparatively cheaper than new raw
material, therefore if it is used in a proportional
It is high time we shift our focus towards gaining amount, quality can be maintained while costs are Challenges in Other Dry Waste Components (Non- Plastic)
increasing utility from waste generation. Every reduced. As a result, the demand for reprocessed • Processing of Tetra Pak: Commonly used compound packaging such as Tetra Pak comprises
industry is aiming to enhance its profit margins. recyclable waste is steadily expanding. three recyclable components i.e. 75% paper, 20% polyethylene and 5% aluminium thereby making
its recycling difficult and cost intensive.

• Segregation Of Metals And Unscientific Recycling By Informal Sector: Contamination of metals


with bio-degradable waste is a critical matter of concern due to toxicity of metals. Though
segregation of metals from other waste streams is relatively easy due to high density of metals,
small metal scraps are often lost due to inefficient segregated waste collection and waste tracking,
resulting in loss of valuable metal resources.

• Issues In Recycling Of Glass And Ceramic Waste: Approximately 45% of glass is recycled in India.
Risks of injuries and issue of breakages while handling glass and ceramics makes it less attractive
to recyclers and handlers. Though glass segregated by colours has an established market, yet lack
of segregation and availability of glass is neither reported nor is there an established mechanism
of communication between cities and the glass recycling industry.

• Segregated Collection And Processing Of Textile Waste: A McArthur Report estimates that
globally the production of clothes has doubled in the last 15 years while the time duration for
which clothing is worn before it is thrown away has fallen by approximately 40% leading to more
textile waste. The Indian Textiles industry in India reports that more than 1 million tons of textiles
are discarded every year, with most of this coming from household sources. While the industry
has a recycling potential of 50%, at present only 25% is being recycled/ reused. Even though age-
old circular (reuse and refurbish) barter system still exists in small towns, there is limited collection
and recycling system for textiles.

• Processing Of Tyres And Rubber: With the growth of automobile sector, the tyre industry is also
growing fast. It is estimated that India currently produces about 6,50,000 tyres and discards 2,75,000
every day, generating over a million tonnes of ELTs (End of Life Tyres) each year. Currently, there is
no tracking of discarded tyres and monitoring of their disposal across India. Though retreading of
tyres by unorganized sector is a common practice, a large portion of the scrap tyres are dumped
in landfills.

• Localized Processing Facilities For Thermocol: Thermocol (Expanded polystyrene) finds wide
scale application as packaging goods (especially electronic goods) and is an excellent material
for the construction and decorating industry due to its insulating properties and light weight.
Though it is a technically recyclable material, its transportation is a challenge due to its ultra-low
density and high volume resulting in limited processing/recycling.

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• Recycling Of Coconut Waste: With 72% of world’s production in India and coconut’s role in The importance of a Circular Economy approach for mixed municipal waste, specifically the dry
Indian culture, it is an important waste component. In recent years, due to increased demand for fraction, cannot be overstated. Here are key reasons why it is crucial:
recycling, coconut shells are being segregated and shredded by informal workers. But in smaller
and remote cities segregation, transportation and logistics cost of coconut waste act as significant • Resource Conservation: Mixed municipal waste, including dry fraction waste, contains valuable
barrier for coconut recycling. resources such as metals, plastics, paper, and glass. Adopting a Circular Economy approach
ensures that these resources are reused, recycled, or upcycled, reducing the demand for virgin
• Collection And Processing Of Human Hair Waste: Despite a large-scale economy running around materials. This conserves natural resources and reduces the environmental impact of extraction
human hair, there is limited scientific management of human hair waste. The collection system is and production.
often limited to large generators of hair waste like large temple complexes, whereas small units
generating hair waste such as salons, beauty parlours, etc. are not connected to the collection • Waste Reduction: A Circular Economy approach minimizes waste generation by emphasizing
system. The efficient and environmentally safe utilization of human hair also requires appropriate the reduction of waste at the source by minimizing packaging, reuse of products, recycling
technologies for different uses of hair waste. of materials and refurbishment of various materials. This reduces the burden on landfills and
incineration, which can lead to lower greenhouse gas emissions, reduced pollution, and less strain
on local ecosystems. Reduction in waste generation will be a challenge for a growing economy
of India; policy makers need to guide enterprises to manufacture sustainably in India with the
5.4. Importance of Circular Economy for Mixed Municipal Waste (Dry Fraction) most innovative and advanced technology. India will always provide the scale and volume for
India’s economic growth is essential for its people especially the economically weaker section, the economic viability.
growth of middle class with its aspirations and growing urbanisation will lead to growth in waste. This
• Climate Change Mitigation: By reducing the energy-intensive processes associated with the
aspect needs to be accepted before identifying solutions. India needs solutions designed to cater to
production of new materials, recycling and reusing materials from mixed municipal waste can lead
its requirements to significant energy savings. This, in turn, contributes to mitigating climate change by lowering
carbon emissions.
The adoption of Circular Economy requires a shift in approach - a shift from linear – take - make-waste
model to a full multi-life-cycle circular model. According to a KPMG study, the savings from Circular • Economic Opportunities: Circular Economy practices create economic opportunities. Recycling,
remanufacturing, and waste management industries generate jobs and stimulate entrepreneurship.
Economy in India are estimated at US$ 624 billion in year 2050, for the current development trend. To
These industries can contribute to economic growth and foster innovation in waste management
move towards a Circular Economy in dry waste, the design and material aspect related to production technologies and sustainable product design.
must be addressed. Recycling is a crucial part of the Circular Economy, but the goal of “true recycling”
is that of converting the waste resource back to its original form, without sacrificing quality or integrity • Reduction in Pollution: A Circular Economy approach can significantly reduce the release of
pollutants into the environment. This includes a reduction in leachate from landfills, the release of
in the process. The recycled material should be at par with what was originally created using virgin
harmful chemicals, and the contamination of soil and water. This leads to cleaner air and water,
raw material, for true circularity. benefiting both the environment and public health.

Material recycling facilities can play significant role in making dry waste management circular. If • Sustainable Consumption: A Circular Economy encourages consumers to make more sustainable
implemented, material recycling facilities can help improve recovery from ₹5,187 crores/annum to choices, such as buying products made from recycled materials or choosing products designed
for longevity and repairability. This helps shift consumer behaviour towards more sustainable
₹17,023 crores/annum by 2025 thus adding ₹11,836 crores to economy per annum. MRFs will also help
practices.
to generate employment of 40 Lakh person-days during construction of MRFs and ~80 Lakh person-
days in perpetuity for operations & maintenance of these facilities. • Less Environmental Damage: The extraction of raw materials, such as mining and deforestation,
often leads to severe environmental damage. By using existing materials more efficiently, a Circular
Contribution to Climate Change Mitigation The waste sector (including dry waste) accounts for 3.7% Economy minimizes the negative impacts of resource extraction.
of India’s total national level GHG emissions. Whilst the aggregate contribution may be insignificant
• Resilience in Resource Scarcity: As global resources become scarcer and more expensive, a
when compared to sectors like land energy or land use change, waste sector emissions have risen Circular Economy ensures that existing resources are used efficiently and that products have
at a compound annual growth rate (CAGR) of 4.2% during 2005-2015. The GHG emissions per tonne longer lifecycles. This resilience to resource scarcity is vital for long-term sustainability.
of solid waste disposed have also increased by 2.7 times, rising from 85 kg of CO2 per tonne of solid
waste disposed during 1954-60 to 227 kg of CO2 per tonne of solid waste disposed during 2005-2015. • Local and Global Sustainability: A Circular Economy approach contributes to both local and
global sustainability by reducing waste-related environmental issues and improving resource
Hence scientific waste management can play an important role in mitigation of GHG emissions. management.

Applying circularity principles in dry waste management can help India achieve its GHG emissions • Regulators need to simultaneously build capacity to adapt to the dynamic nature of sustainability
reduction commitments faster. For example, if ‘refill’ bottle designs and models were to be applied and facilitate towards environment protection rather than regulate with a stick.
to all bottles in cosmetics, personal care as well as home cleaning, packaging and transport savings
• Responsible packaging, production, reusability, and a credible refurbishment of various equipment
would represent an 80–85% reduction in GHG emissions compared to today’s traditional single-use for use in affordable economies of India is the need of the hour. This will not only adhere to
bottles. Circular Economy principles but also fulfil the aspirations of people.
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• India’s rapid adoption of a digital economy is a case study for the global economy and it needs to Region Average user fee in selected cities (US$/year, as reported in data)
be leveraged to reduce waste. Retail sector with use of AI and digitisation can leverage the scale
to identify people’s daily needs and establish a supply chain fulfilling those needs. East Asia and Pacific 46
Europe and Central Asia 83
• Segregated combustible fraction of waste and its use as alternative fuel for cement industry of
power generation in waste to energy needs to be deployed on a case to case basis. Latin America and the Caribbean 80
Middle East and North Africa 55
In conclusion, the adoption of a Circular Economy for mixed municipal waste, especially the
dry fraction, is critical for reducing waste, conserving resources, mitigating climate change, South Asia 34
and promoting economic growth. It represents a holistic and sustainable approach to waste Sub-Saharan Africa 10-40
management that benefits both the environment and the economy while contributing to a *World bank estimates
more sustainable and resilient future.
8. Collaboration and Partnerships:
5.5. Adoption of Key Strategies for Promoting Circular Economy • Foster collaboration between government agencies, municipalities, businesses, and community
Promoting a Circular Economy for mixed municipal waste, particularly the dry fraction, requires a organizations to create a coordinated approach to Circular Economy initiatives.
combination of key strategies. These strategies aim to maximize resource efficiency, reduce waste, • Form partnerships with waste management companies and recycling facilities to ensure effective
and minimize the environmental impact. Here are some key strategies for promoting a Circular collection and processing of dry fraction waste.
Economy for mixed municipal waste - dry fraction:

1. Waste Segregation and Collection: 9. Regulatory Framework:


• Implement effective waste segregation systems to separate dry fraction waste from other waste • Establish and enforce regulations that mandate the responsible disposal, recycling, and recovery
streams like organic or hazardous waste. of materials from mixed municipal waste.
• Ensure efficient collection processes that are designed to prevent contamination of recyclable • Set recycling targets and standards for both public and private sectors.
materials.
• Policy makers need to guide producers in order to manufacture sustainable products with
2. Public Awareness and Education: innovative and advanced technology.
• Educate the public about the importance of waste reduction, recycling, and the Circular Economy. • Waste characterisation is a must for all urban centres; for this a dedicated waste management
• Promote responsible waste disposal and recycling practices at the community level. corporation is imperative to analyse and deployment of technologies for management of dry
waste
3. Extended Producer Responsibility (EPR):
• Establish EPR programs that hold manufacturers and producers responsible for the entire life cycle • Tenders should be designed with detailed process description for processing of each fraction of
of their products, from production to disposal. waste. Rights of sale of by products should be with the operator.
• Encourage manufacturers to design products for easy recycling and reuse. • Each project should have third party or independent consultants preferably institutions such as
Anna University, EPTRI, NEERI, EIL etc.
4. Innovative Recycling Technologies:
• Clear and non-deviating methodology for compliance, for example traceability and transparency
• Invest in state-of-the-art recycling technologies to efficiently process dry fraction waste materials.
• Support the development of innovative recycling methods for materials that are traditionally of use of by products to be established by CPCB.
challenging to recycle. • Mandatory clauses in tenders with regards to production of RDF from SCF along with type of RDF
to be produced with range of specifications to be provided such as size, moisture and ash.
5. Resource Recovery Facilities: • In case of tenders with RDF production as the major way of managing dry waste, cement industry
• Develop resource recovery facilities that extract valuable materials, such as metals and plastics,
to be included as part of pre-bid meetings to ensure RDF offtake.
from mixed municipal waste.
• Use advanced sorting and separation technologies to recover as much recyclable material as • Cement industry to provide clear quality specifications along with uniform process of sample
possible. preparation and testing of RDF.
• Use of rail and sea for movement of RDF with support from railways in terms of lowest freight
6. Circular Design and Product Innovation: classification for RDF use
• Encourage product manufacturers to design products for longevity, repairability, and recyclability.
• Promote the use of eco-friendly and sustainable materials in product manufacturing. • No incentive or penalisation for waste management or cement companies for production of right
quality of RDF or usage of RDF.
7. Economic Incentives: • Government tenders can mandate cement offtake from cement companies which are more
• Implement economic incentives, such as deposit-return schemes, to encourage the return and green w.r.t to use of Alternative Fuel
recycling of dry waste.
• Transparency with reference to TSR achieved by cement companies and contribution of RDF to
• Offer tax breaks or subsidies to businesses that invest in Circular Economy practices.
• Imposing additional tax provisions to control waste generation & dumping. the TSR.

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10. Research and Innovation: Timeline for
• Invest in research and development to find new ways to recycle and upcycle dry fraction waste S.No. Proposed Target Achievement
materials. 2025 2030
• Support academic and industrial research in waste reduction and resource recovery. 1 Increase the percentage of households practicing source segregation (%) 50 75
Increase in recycling rate of MSW dry fraction (%) by establishing Material
2 40 60
Recovery Facilities (MRFs) dedicated to sorting and recycling dry waste
11. Monitoring and Reporting:
Replace RDF with coal in cement kilns/thermal power plants to increase
• Implement a robust monitoring and reporting system to track progress in waste reduction and 3 15 30
Thermal Substitution Rate (TSR) (% replacement)
Circular Economy practices.
• Use data and metrics to measure the environmental and economic impact of these strategies. 4 Reduction in landfilling/dumping of dry waste (%) 60 100

12. Consumer Engagement: Compliance with Extended Producer Responsibility (EPR) regulations (%):
Introduce EPR programs for specific products/materials within the dry
• Engage consumers in the Circular Economy process by providing information on the environmental 5 50 100
waste category (sanitary napkins, diapers etc.) ensuring producers take
benefits of recycling and purchasing recycled products. responsibility for the end-of-life management of their products.
• Encourage individuals to make conscious choices that support a Circular Economy, such as buying
recycled products and reducing single-use items.
Promote Waste to Energy (thermal) projects to enhance the overall installed
6 250 400
capacity (MW)
13. Promotion Of Projects Producing RDF:
Mandating use of recycled materials in the non-food grade packaging to
• Projects producing RDF (including Grade I, II, and III as per Ministry of Housing and Urban Affairs 7 15 25
ensure uptake of recycled materials. (Usage of recycled material in %)
(MOHUA)’s “Guidelines on Usage of Refuse Derived Fuel in Various Industries” present the
standards for RDF for utilisation in waste to energy plants and cement industry duly confirmed by Additional targets for 2025 onwards (to be discussed and mentioned) is mentioned below:
Cement Manufacturing Association.
2025 (%) 2030 (%) 2035 (%)
• RDF grades I and II can be used for direct co-processing in cement kilns while RDF grade III can be
Municipal waste Recycling
use used for co-processing directly or after processing with other waste materials in cement kiln.
• All projects producing RDF of any grade (grade I, II, or III) shall be promoted to maximize the Packing waste Recycling
gainful utilization of dry fraction of the municipal waste. Paper & cardboard packaging
Municipal waste landfill
Promoting a Circular Economy for mixed municipal waste - dry fraction is a multifaceted effort WTE Incineration Projects Operational
that requires cooperation between government, industry, and the public. These strategies, when WTE Biogas Projects Operational
implemented effectively, can lead to significant reductions in waste, resource conservation, and
economic opportunities. Recently, the European Union has carried out Member state Assessment in 2023 to identify which
member States are at risk of not meeting the 2025 municipal and packaging waste recycling targets
and the 2035 landfilling target and it was found that;
5.6. Targets
India may set a target for Municipal waste to be achieved by 2025,2030 & 2035 and to benefit from the • 9 Member States were on track to meet the main recycling targets for municipal waste (coming
maximum environmental and resource-saving benefits. Effective measures shall be taken to ensure from households and businesses) and packaging waste for 2025.
that the targets are attained.
• 18 Member States were at risk of missing one or more targets. The Commission has presented
India shall prepare a Circular Economy monitoring framework, aimed at better tracking progress in recommendations and makes available financial and technical support to these Member States.
the transition to a Circular Economy. As a result, we can establish the directive for ‘early warning’
mechanism to track progress toward the targets and alert States/UT’s when additional efforts are • Recommendations for addressing tactical issues for improving existing projects and lay the
required. foundation for better projects:

Industrial and commercial waste collection (Non-hazardous) to be initiated by Industrial


development corporations and create separate facilities for the same on the lines of hazardous
waste

Tipping fees should be worked out before a project and bidding to be done within a price
band of the actual cost. Any bid beyond the band width will be considered speculative and
rejected.

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BOOT projects with VGF and tipping fees are the most viable business model. VGF can only data can be collected from waste management facilities, recycling centers, and relevant government
be given to projects which adhere to tender conditions. agencies.

Equipment imported for waste management need to be exempted from duty or manufacturing
of non-IP parts in India in a given time frame like in case of FDI in retails which mandates certain 5. Regular Reporting:
percentage sourcing in India Establish a reporting system to regularly collect and analyze data. Reports should be generated at
regular intervals, such as monthly or annually, and shared with stakeholders and the public to enhance
Waste management projects and operators to be exempted from GST or one time GST on transparency.
equipment as equipment can be reused for different projects.

Stronger EPR regime with dialogue and engagement of waste management operators. 6. Stakeholder Engagement:
Involve all relevant stakeholders, including government agencies, waste management companies,
EPR service fees and ULB paying tipping fee for MSW management cannot cross subsidise recycling facilities, businesses, and the public, in the monitoring and evaluation process. Their insights
each other. can be invaluable in assessing the program’s effectiveness.
Plastic collection and segregation a more complicated and process oriented- task which
requires more capex and opex. 7. Environmental and Economic Impact Assessment:
Conduct assessments to determine the environmental benefits of the program, such as reductions in
EPR to be extended to other streams of dry waste such as textile, glass, textile etc. greenhouse gas emissions, landfill usage, and water pollution. Also, assess the economic impact in
terms of job creation, cost savings, and market development for recycled materials.
India can also establish a committee/ mechanism for determining the target and continuously
monitoring the Recycling and waste to Energy threshold to provide timely alert and guidance
regarding the same. It will be a positive and supportive approach towards meeting the target in due 8. Target Achievement:
course of time. Regularly review progress toward the defined objectives and KPIs. Determine if the program is
meeting its goals and if adjustments are necessary.

5.7. Monitoring and Evaluation


9. Periodic Audits:
Monitoring and evaluation are crucial components of any Circular Economy program for mixed
Conduct independent audits to verify the accuracy of data and compliance with recycling and
municipal waste, particularly the dry fraction. These processes help assess the effectiveness of
resource recovery regulations and standards.
initiatives, measure progress, identify areas for improvement, and ensure that Circular Economy
goals are met. Here are some key steps and considerations for monitoring and evaluating a Circular
10. Continuous Improvement:
Economy program for mixed municipal waste - dry fraction:
Use the monitoring and evaluation findings to drive continuous improvement. Identify areas where
the program can be enhanced, and adjust strategies accordingly.
1. Define Clear Objectives:
Begin by establishing clear and specific objectives for the Circular Economy program. What are you
11. Public Communication:
trying to achieve in terms of waste reduction, resource recovery, and environmental impact reduction?
Share the results and impact of the Circular Economy program with the public and stakeholders to
build support and awareness. Transparency is key to maintaining public trust.
2. Develop Key Performance Indicators (KPIs):
Identify the KPIs that will help you measure progress toward your objectives. These may include waste
12. Policy Adjustments / Updating:
diversion rates, recycling rates, resource recovery rates, energy savings, carbon emissions reductions,
If the evaluation reveals that certain policies or practices are not achieving the desired outcomes,
and economic benefits.
consider making dynamic policy adjustments to align with Circular Economy goals.

3. Baseline Assessment:
13. Knowledge Sharing:
Conduct a baseline assessment to understand the current state of waste generation, recycling, and
Share best practices and lessons learned from the monitoring and evaluation process with other
resource recovery for the dry fraction. This will provide a benchmark against which progress can be
regions or countries looking to implement similar programs.
measured.

Incorporating monitoring and evaluation into the Circular Economy program for mixed municipal
4. Data Collection:
waste - dry fraction is essential for tracking progress, ensuring accountability, and driving effective
Implement a comprehensive data collection system to gather relevant information on waste
resource management. It allows for data-driven decision-making and the optimization of Circular
generation, recycling rates, resource recovery, energy consumption, and other pertinent data. This
Economy practices to maximize environmental and economic benefits.

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5.8. Case Studies management across Europe.

Several case studies highlight successful initiatives and strategies for implementing a Circular Economy These case studies showcase diverse approaches to managing mixed municipal waste, emphasizing
for mixed municipal waste, particularly the dry fraction. These examples demonstrate how various the dry fraction, and transitioning towards a Circular Economy. They demonstrate that effective
regions and organizations have effectively managed and repurposed waste to reduce environmental waste separation, recycling technologies, public awareness, and innovative policies can lead to
impact and generate economic value. Here are a few notable case studies: significant waste reduction, resource recovery, and environmental benefits while creating economic
opportunities.
1. San Francisco, California, USA: Zero Waste Program
San Francisco has made significant progress in its Zero Waste program, which includes recycling and
resource recovery for mixed municipal waste. By implementing comprehensive waste segregation,
composting, and recycling programs, the city has achieved a diversion rate of over 80% of its waste References:
from landfills. The Dry Fraction, which includes materials like plastics and metals, is a significant focus
of their recycling efforts. This program has not only reduced waste in landfills but has also created 1. https://www.investindia.gov.in/waste-to-wealth#:~:text=According%20to%20the%20
Ministry%20of,are%20the%20principal%20waste%20materials.
jobs in recycling and composting industries.
2. https://timesofindia.indiatimes.com/blogs/voices/recycling-waste-can-generate-crores-in-
2. Amsterdam, Netherlands: Metropolitan Region Amsterdam (MRA) revenue-in-india/
The MRA has launched a Circular Economy program for mixed municipal waste that focuses on
maximizing resource recovery. They employ state-of-the-art waste sorting and recycling facilities to 3. https://mohua.gov.in/pdf/627b8318adf18Circular-Economy-in-waste-management-FINAL.pdf
separate valuable materials from mixed waste streams. This approach has significantly reduced the
4. https://mohua.gov.in/pdf/627b8318adf18Circular-Economy-in-waste-management-FINAL.pdf
waste going to landfills and incineration. The recovered materials are then used for new product
manufacturing, promoting a Circular Economy in the region. 5. https://www.recyclingtoday.com/news/europe-packaging-recycling-landfill-diversion-targets-
18-countries-at-risk/#:~:text=The%20EC%20has%20concluded%20just,2025%20targets%2C%20
the%20commission%20says.
3. Ljubljana, Slovenia: Zero Waste Ljubljana
Ljubljana, the capital of Slovenia, has made remarkable progress in waste reduction and recycling 6. h t t p s : / / w w w. e p a . g o v / t r a n s f o r m i n g - w a s t e - t o o l / z e r o - w a s t e - c a s e - s t u d y - s a n
through its Zero Waste Ljubljana initiative. They have embraced source separation, efficient waste francisco#:~:text=The%20city’s%20Mandatory%20Recycling%20and,incineration%20again%20
collection systems, and innovative recycling technologies to reduce waste and improve recycling 50%25%20by%202030.
rates. The city diverts a significant portion of its dry fraction waste from landfills and incineration,
7. https://zerowastecities.eu/bestpractice/best-practice-ljubljana/
promoting Circular Economy practices.

4. Japan: 3R (Reduce, Reuse, Recycle) Initiatives


Japan has a long history of implementing 3R initiatives that prioritize reducing waste, reusing materials,
and recycling. They have developed advanced technologies for sorting, separating, and recycling
mixed municipal waste, including the dry fraction. These efforts have reduced the environmental
impact of waste management and have enabled Japan to recover valuable resources from waste
streams.

5. São Paulo, Brazil: Circular Economy for Dry Fraction


São Paulo has initiated a Circular Economy program focusing on dry fraction waste. Through
partnerships with recycling centers and innovative technologies, the city has improved the recycling
of materials like plastics, metals, and paper. By recovering these materials and integrating them into
local manufacturing processes, São Paulo is reducing waste and conserving resources.

6. European Union (EU): Circular Economy Package


The EU has introduced a Circular Economy Package with ambitious waste management targets,
including diversion of dry fraction waste from landfills. This policy framework encourages member
states to prioritize recycling and resource recovery, promoting a circular approach to waste

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6.2. Circularity and Potential Wet Waste Utilization
• Encourage businesses and producers, especially bulk generators, to reduce the generation of wet
waste by promoting responsible consumption and production practices.

• Implement measures to reduce food waste, such as improved meal planning, portion control, and
food preservation techniques.

• Advocate for decentralized management of wet waste, recognizing that source segregation in
areas with lower population equivalents can be more efficient.

6
Chapter

Circular Economy Action Plan for •Promote the following strategies for improved wet waste management:
a. Incentivize home composting by offering benefits to individual homeowners through
Mixed Municipal Waste – Wet Fraction property tax incentives, as exemplified by the Pune Municipal Corporation.
b. Link industrial consents and fees to the utilization of wet waste for biogas or compost
production.
c. Introduce a waste cess similar to water cess, as outlined in the Water Act, with the
6.1. Current Scenario in Wet Waste Management proceeds allocated to support solid waste management projects.
In accordance with the ‘Implementation of Solid Waste Management Rules, 2016,’ which were released
in June 2022, the Annual Report for 2020-21 reveals that in India, 26% of waste remains unaccounted • Enforce an expired packaged food take-back policy, which requires arrangements for disposal at
for, and 27% ultimately ends up in landfills. This report highlights a concerning statistic: although nearly local Municipal Solid Waste facilities. This policy prevents the mixing of the wet fraction of waste
100% of the daily waste is collected, only 47% of the 70,973 metric tons generated each day receive with solid waste and provides a valuable resource for biogas production.
proper treatment.
• In 2023, India has the potential to generate 21,000 metric tons per day (TPD) of Compressed
• Urban areas in India produce approximately 42.0 million tons of municipal solid waste on an Biogas (CBG) from wet waste.
annual basis, equivalent to 1.15 lakh metric tons per day (TPD). Of this total, 83,378 TPD is generated
within 423 Class-I cities. • This quantity of CBG has the capacity to replace imports of 200,000 barrels of crude oil per day,
representing a significant step towards energy independence and sustainability.
• The collective generation of wet waste, which includes kitchen waste, ranges from 51,000 to
55,000 metric tons per day, and this quantity is steadily increasing at a rate of 4.5% per year.
6.3. Gaps in Policy, Regulation, Infrastructure, and Financial
Incentives
• The waste generated in the 423 Class-I cities constitutes 72.5% of the total daily waste generation
and necessitates immediate attention. • The absence of a standards enforcement authority has resulted in sporadic design implementation
and the dissemination of misleading data, which has been a primary factor contributing to the
• Municipal solid waste comprises 30% to 55% biodegradable (organic) matter, 40% to 55% inert failure of these projects.
matter, and 5% to 15% recyclables. The composition of waste varies depending on the size of the
city, the season, and the income group. • In order to create a level playing field, all Integrated Solid Waste Management (ISWM) projects
bidding processes should include a clear definition of the technology to be employed, as well as
specific technical performance parameters.

• It is imperative that all projects incorporate a detailed and standardized Key Performance Indicator
(KPI) system for a comprehensive month-on-month performance evaluation.

• Every project should engage third-party or independent consultants, preferably institutions with a
proven track record such as Anna University, EPTRI, NEERI, and EIL.

• Operational-level dispute resolution should be conducted by regulatory bodies to ensure fairness


and adherence to established guidelines.

• Each state should establish a waste management corporation with the following responsibilities:
a. Developing environmental infrastructure, similar to an Industrial Development Corporation.

b. Implementing the Hybrid Annuity Model (HAM) for municipal waste management, akin to
sewage treatment, effluent treatment, and road construction.

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c. Requiring all Urban Local Bodies (ULBs) to pass resolutions delegating environmental 6.5. Technology options and Business Models
infrastructure development, operation, and maintenance work to the waste management
corporation, facilitated by the Environment Protection Act, 1986. • The most effective business model for wet waste processing comprises a single-party ownership
and operation structure, with responsibility for all aspects of the process. This model should
d. Discouraging and disqualifying speculative bidding that undermines compliance with
encompass the following steps:
established regulations.
• Efficient collection and transportation of waste.
e. Ensuring the implementation of Supreme Court directives regarding the appointment of • Implementation of a fully automated waste segregation system.
technically qualified Member Secretaries and Chairpersons from the field of environmental • Establishment of an integrated waste-to-energy treatment facility employing the following
science. technologies:
a. Utilization of biogas for wet waste.
f. Staffing waste management corporations with personnel possessing a diverse mix of technical,
commercial, and legal backgrounds. b. Composting for garden waste.
c. Segregation and collection of all Industrial and Commercial Waste (ICW) using distinct, color-
g. Introducing a Landfill Tax to incentivize ULBs to promote waste processing and enhance waste coded trucks to enhance waste segregation accountability.
segregation practices. • Mandating a uniform design for all states is crucial for the success of this approach. The Central
Pollution Control Board (CPCB) can issue technical guidelines in collaboration with the Central
Public Health and Environmental Engineering Organization (CPHEEO).
6.4. Open policy • The project’s financials should incorporate Viability Gap Funding (VGF) and tipping fees as integral
• Municipal corporations, as the legal owners of waste, still rely on a crude tender awarding process components. Any discrepancies in royalty payments from vendors should be discouraged.
that emphasizes the L1 criteria, diluting the quality of project delivery and failing to enforce • Making ICW collection a mandated Key Performance Indicator (KPI) for concessionaires, with a
published biogas standards. This approach has led to the development of substandard projects direct link to local tax collection from establishments, ensures accountability and performance
in the past, resulting in large-scale project failures and eroding confidence among financial evaluation.
institutions in the sector.

• Concessionaires should be empowered to collect waste management fees from users and
impose penalties for non-collection of waste from users when waste is not segregated at the 6.6. Recommendations and Opportunities
source. Establishing escrow accounts for waste management collection fees with transparent
governance between concessionaires and project proponents is essential. • To prevent disputes and ensure performance, it is imperative to mandate comprehensive projects
that encompass waste collection through to processing.
• The commingling of biogas into natural gas pipelines, along with the introduction of a last-mile
connectivity subsidy scheme, is currently in progress but experiencing delays.
• Tipping fees should be determined prior to initiating a project, and the bidding process should
• A stringent directive should be issued to Oil Marketing Companies (OMCs) to replace a minimum adhere to a predefined price range that aligns with the actual cost. Bids falling outside this range
of 1% of fossil fuels with renewable alternatives in the current year, with a scaling target of 5% by will be considered speculative and rejected.
2027. However, this initiative lacks strong support to address the availability of wet waste.

• The SATAT policy for the offtake of Compressed Biogas (CBG) and its dispensing at fuel stations is • The promotion of advanced global technologies for biogas production, such as high-rate
only partially developed. fermentation and landfill gas recovery, is crucial.

• The SATAT policy provides a minimum purchase guarantee for CBG producers but it does not • Build-Operate-Own-Transfer (BOOT) projects, supported by Viability Gap Funding (VGF) and
explicitly define the liability for non-compliance with offtake quantities.
tipping fees, represent the most sustainable and viable business model.
• Offtake is presently allowed only in City Gas Distribution (CGD) networked pipelines and not in
the GAIL main feeder line. • City planning should designate specific land parcels within urban areas, similar to Sewage
Treatment Plants (STPs), for the establishment of waste processing facilities.
• The pipeline network is still incomplete across the country, posing challenges for project locations.
• Streamlining project licensing and compliance processes should be achieved through a single-
• While there is a financial incentive offering a basic price and an 80% share in the market price, it is
crucial to establish guarantees for offtake and supply. window clearance system.

• Banks are hesitant to support this industry due to past failures. To encourage financing for such • Encourage a national-level carbon credit exchange platform for the trading of carbon emission
initiatives, they should be covered under a central government-backed insurance program. The reports.
requirement for collaterals and personal mortgages often discourages project developers.

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• The Government of India should take the lead in establishing five Municipal Solid Waste (MSW)
projects fully funded by them, showcasing a range of technologies in various cities. These projects
should feature state-of-the-art biogas plants, serving as model facilities for others to emulate.

6.7. Data Driven Policies


Streamlined data collection and centralized management are essential. Regulators should actively
engage in assessing compliance through this data, which can then drive process and strategy
adjustments.

6.8. Information, Education, and Communication


Leveraging CSR funds for environmental awareness and promoting waste segregation, with a more
targeted and purposeful allocation of these funds.

6.9. Targets
Leveraging CSR funds for environmental awareness and promoting waste segregation, with a more
targeted and purposeful allocation of these funds.

Timeline for
Achievement
S.No. Proposed Target
2025 2030

1 Increase the percentage of households practicing source segregation (%) 50 75

Percentage of source segregated organic fraction (SSOF) to be processed


2 60 100
through biomethanization etc. (%)

3 Reduction in percentage of wet waste sent to landfills or open dumps (%) 50 100

4 Eliminate open dumps (% elimination) 50 100

Number of dumpsites/landfills equipped with landfill gas capture and CBG


5 40 60
production units

Mandate for fertilizer units to utilize compost in their production process (%


6 7.5 12
of compost)

Setting up of min. 200 TPD biomethanization plants in all the ULBs exceeding
7 25 75
1 million population (~75 cities)

8 Generation of ~ 2 million tons of CBG by 2030 0.7 2.0

References:
1. https://cpcb.nic.in/uploads/MSW/MSW_AnnualReport_2020-21.pdf

2. Guidelines for Preparation of Detailed Project Reports and Selection of Technologies for
Processing and Final Disposal of Municipal Solid Waste using 12th Finance Commission Grants
https://mohua.gov.in/upload/uploadfiles/files/93.pdf

3. https://satat.co.in/satat/#/

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