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Indian Circular Economy: Key Challenges and Opportunities in 2024 and Beyond

Table of Contents

Challenges for the Indian Circular economy

Opportunities for the Indian Circular economy

Recommendations for the Indian Circular economy

Conclusion

India’s circular economy is poised for significant growth, with a projected value of $2 trillion by 2050, according to the National Circular economy Framework (NCEF) unveiled by the Confederation of Indian Industry (CII) and other industry players. The roadmap outlines the establishment of a National Circular economy Authority (NCEA) to implement strategies, coordinate industry activities, and reform regulations. Even in a tepid global economy, this ambitious initiative aims to create 10 million jobs and address critical challenges in waste management, offering a promising future for sustainable economic practices.

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Challenges for the Indian Circular economy

These include:

1. Recycling Rates and Waste Management

Despite the immense potential and constant India economic growth, the country faces challenges in waste management, with a recycling rate below 10 percent, according to Masood Mallick, Chairman of CII Task Force on Waste to Worth. The urban areas alone generate a staggering 42 million tons of municipal solid waste annually. The current formal recycling rate stands at 10-20%, emphasizing the urgent need for improved recycling infrastructure.

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2. Awareness and Infrastructure

One major hurdle is the low awareness surrounding circular economy practices. A significant portion of waste, including 25% recyclable dry components, remains unutilized. As the framework emphasizes, increasing awareness among businesses and the public is crucial to encourage a shift towards a circular economy. Additionally, the lack of adequate infrastructure poses a challenge, necessitating substantial investments to support the circular transition.

3. Regulatory Barriers

The regulatory landscape plays a vital role in shaping the circular economy. While India has made progress with rules like Plastic Waste Management, e-Waste Management, and others, regulatory barriers still persist. Streamlining regulations and ensuring their effective implementation is essential for fostering theeconomy.

4. Existing Plastic Waste Management Scenario in India

India, ranking as the fifth-highest global generator of plastic waste, has faced the adverse consequences of insufficient plastic waste management. Despite the ban on single-use plastic items with low utility in 2022, the country generated approximately 34.7 lakh tonnes per annum of plastic waste in 2019–2020. The challenges are exacerbated by unregistered plastic manufacturing units and non-compliance issues.

India’s vast population and growing economy pose a significant challenge in managing plastic waste. The Informal Recycling Sector (IRS), comprising about 15 million individuals, plays a crucial role in collecting and recycling plastic waste. However, their contribution often goes unnoticed due to a lack of recognition and formalization. Bridging this gap is essential for effective plastic waste management. The true meaning of circular economy is to ensure effective management of waste matter.

Opportunities for the Indian Circular economy

These include:

1. Policy Solutions to Address Plastic Pollution

Private sector initiatives, such as The Global Plastic Action Partnership (GPAP) and Tide Turners, a youth-led movement, showcase collaborative approaches to address plastic pollution. Engaging businesses, government institutions, and civil society organizations fosters a shared vision for sustainable plastic waste management.

Circular economy principles offer a promising path forward. India’s efforts to enforce EPR guidelines and set year-wise targets for recycling plastic waste demonstrate a commitment to creating a circular plastics economy. By embracing this approach, India aims to reduce plastic consumption, lower greenhouse gas emissions, and generate economic benefits.

2. Economic Growth and Job Creation

The circular economy is not only an environmental imperative but also a significant opportunity for economic development in India. The NCEF anticipates the creation of 10 million jobs by 2050, unlocking India’s economy potential and reducing reliance on imported resources. The focus on states like Maharashtra, Gujarat, and others showcases the vast opportunities for large-scale circular practices across diverse sectors.

3. National Circular economy Roadmap

The collaboration between India and Australia, as evidenced by the National Circular economy Roadmap for reducing plastic waste, exemplifies international cooperation. This initiative aligns with the global push for a Plastic Waste Treaty, emphasizing India’s commitment to environmental sustainability. International and national initiatives have emerged to combat plastic pollution.

In 2022, the United Nations Environment Assembly (UNEA) initiated negotiations for a new global treaty to end plastic pollution by 2024. India’s Plastic Waste Management Rules, along with Extended Producer Responsibility (EPR) and other regulatory measures, aim to strengthen the country’s plastic waste management systems.

3. Technological Innovations

India has shown significant strides in technological innovations for sustainable waste management. Initiatives like the ‘Recycling on Wheels’ bus and the development of technologies by institutions like CSIR highlight the potential for advancements in waste-to-wealth solutions.

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Recommendations for the Indian Circular economy

Despite progress, challenges persist in achieving a circular economy in India, especially in managing plastic wastes. To overcome these challenges, a set of recommendations is proposed:

  1. Enhance Compliance Monitoring: Establish institutional mechanisms to monitor the manufacturing and usage of banned plastic items and prevent unscientific disposal of plastic waste.
  2. Design Changes: Promote design alterations to restrict the use of plastics in new products, emphasizing durability, reusability, and recyclability.
  3. Engage Brand Owners: Encourage increased engagement between brand owners and Urban Local Bodies (ULBs) for proper plastic waste management.
  4. Develop Recyclable Plastics: Invest in research and development to create low-cost, recyclable plastics as substitutes for non-recyclable counterparts.
  5. Market-Based Tools: Implement market-based tools, such as tax exemptions or subsidies, to incentivize businesses for preventing, minimizing, and recycling plastic waste.
  6. Promote Circular economy: Encourage systemic change in product design and promote a paradigm shift from single-use to reuse.
  7. Infrastructure Investment: Scale up critical recycling infrastructure for plastic waste and invest in end-of-life innovation, ensuring further Indian economic growth.
  8. Capacity Building: Conduct targeted capacity building programs for stakeholders, including waste managers, government officials, manufacturers, and consumers.
  9. Public Awareness: Launch public awareness campaigns to shift mindsets towards responsible production and consumption.
  10. Government Leadership: Implement a comprehensive circular economy approach with the goal of achieving ‘zero plastic waste by 2030.’

As the nation moves forward, a collective effort from government, industries, and citizens will be instrumental in achieving a sustainable and thriving circular economy by 2050. By aligning efforts across government, private sector, and civil society, India can build a sustainable plastic waste management system, contributing to a cleaner and healthier environment.

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Conclusion

India’s journey toward a circular economy is on the right path, with ambitious targets and collaborative efforts. The NCEF and the Plastic Waste Roadmap demonstrate a commitment to addressing challenges and leveraging opportunities. However, a comprehensive approach involving regulatory reforms, infrastructure development, and increased awareness is crucial for realizing the full potential of India’s circular economy.

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