Report on Circular Economy of E-Waste and Lithium-ion Batteries | Current Affairs | Vision IAS
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In Summary

  • NITI Aayog & TERI report highlights e-waste circularity challenges: informal sector dominance, weak EPR, and low technical capacity.
  • India's e-waste generation is 6.19 MMT (2024), projected to reach 14 MMT by 2030, with a recycling rate of 10%.
  • Recommendations include strengthening EWMR, incentivizing battery recycling via PLI and carbon markets, and integrating the informal sector.

In Summary

The report has been released by NITI Aayog in collaboration with The Energy and Resources Institute (TERI).

  • Circular economy is a model of production and consumption, which involves sharing, leasing, reusing, repairing, refurbishing and recycling existing materials and products.

Challenges in Circularity of E-Waste

  • Informal and inefficient collection: Approximately 78% of India's total E-waste is processed by the informal sector, achieving material recovery rates of only 10-20% compared to 95-97% in formal facilities.
  • Weak monitoring & enforcement: Manipulation of Extended Producer Responsibility (EPR) system. E.g. spurious EPR certificates.
    • Limited EPR coverage: Only a few metals dominate, Iron (52%), Copper (18%) etc.; critical minerals (such as Lithium and Cobalt) remain neglected.
  • Low technical capacity: Lack of skills and technologies for efficient, safe, and scalable recycling.

Recommendations:

  • Strengthen Waste Management Rules: Monitoring of recyclers through an expanded of EPR coverage to include high-value metals.
  • Provide Incentives: Additional incentives proposed for manufacturers of Advanced Chemistry Cells under the Production Linked Incentive (PLI).
    • Integrate Battery recycling into the Indian Carbon Market, allowing recyclers to monetize Green House Gas (GHG) emission reductions.
  • Informal Sector Integration: Use the single-window system; establish a separate vertical in National Critical Mineral Mission (NCMM) only on recycling.
  • Other:  Consumer awareness; skilling and re-skilling of workforce, etc.

Status of E-Waste in India

  • E-waste generation: Increased to ~6.19 MMT in 2024 and is projected to reach 14 MMT (2030), making India the 3rd largest globally (7% of global volumes).
  • Recycling rate: At 10% is much lower than global average (~22%), EU (55%) and USA (56%).

India’s Initiatives

  • E-waste Management Rules (EWMR), 2022: Establishes Extended Producer Responsibility (EPR) mandates, requiring producers to fulfill recycling targets through the purchase of EPR certificates.
  • Battery Waste Management Rules (BWMR), 2022: Mandates collection, recycling, and refurbishment targets, prohibiting landfill disposal and incineration.

Global Best Practices

  • South Korea: strict penalties for non-compliance that can reach up to 130% of the recycling cost.
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Battery Waste Management Rules (BWMR), 2022

Indian regulations that mandate collection, recycling, and refurbishment targets for batteries, while prohibiting their disposal in landfills or through incineration.

National Critical Mineral Mission (NCMM)

A proposed mission in India focused on critical minerals, with a suggestion to establish a dedicated vertical for recycling within it to address challenges in the e-waste sector.

Indian Carbon Market

A market mechanism being developed in India to facilitate the trading of carbon credits, allowing entities to monetize greenhouse gas emission reductions. Battery recycling is proposed to be integrated into this market.

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