Union Budget 2025: Strengthening Corporate Accountability Through EPR Policies

Union Budget 2025: Strengthening Corporate Accountability Through EPR Policies
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Union Budget 2025: Strengthening Corporate Accountability Through EPR Policies

Extended Producer Responsibility (EPR) is a business response to the threat of climate change and environmental degradation.

India generated about 1.751 million MT of electronic waste (e-waste) in 2023-24, while the amount of plastic waste is estimated to be 9.3 MT annually. This waste occupies landfills and clogs water bodies, leaching harmful chemicals into the air, water, and soil. Although improper waste management has been a concern for a long time, the surge in consumerism and urbanization has only exacerbated the issue, posing a threat to the ecosystem and public health.

The waste is of many types and is generated from multiple sources. Extended Producer Responsibility emphasizes the need for producers to take proactive measures in handling post-consumer waste. There is mounting pressure on manufacturing companies not only to meet the changing needs of consumers but also to do so in a way that ensures the environment does not have to pay the price. For this reason, strengthening and widespread implementation of Extended Producer Responsibility (EPR) policies is a pivotal topic that needs to be addressed in the upcoming budget to promote sustainable waste management, drive circular economy initiatives, and reduce environmental degradation.

The Role of EPR in Waste Management

India currently generates 62 million tons of waste every year, growing at an average annual rate of 4%. This includes both recyclable and non-recyclable items. With the rise in consumption of single-use plastic, e-waste, and other non-biodegradable materials, the country’s waste management crisis has worsened.

Extended Producer Responsibility (EPR) is a business response to the threat of climate change and environmental degradation. It encourages manufacturers to design more sustainable products, ensure waste is disposed of responsibly, and further collect and recycle it. EPR extends producers' responsibility beyond traditional practices of production to the entire lifecycle of their products, including the post-consumer stage. This approach helps achieve environmental goals such as recycling and creates a closed-loop system.

India’s current EPR policy

In India, numerous laws, norms, and regulations govern EPR compliance. However, it extends only to selected sectors through the Plastic Waste Management Rules (PWMR), E-Waste Management Rules (EWMR), Battery Waste Management Rules, and the Hazardous and Other Wastes (Management and Transboundary Movement) Amendment Rules, 2022 (for Waste Tyres). The downside is that several sectors are not part of this framework, yet they generate a significant amount of pollution, like textiles. Furthermore, the implementation of these policies has been irregular, and many manufacturers fail to comply with the regulations, leading to continued environmental degradation and public health concerns.

Some recent findings highlight a significant difference between the quantity processed and the registered and verified capacities. For instance, according to the registration data, the biggest plastic polluters have some of the lowest enrolment in the system, and no manufacturers of virgin plastics are listed on the portal, despite it being a mandate.

The need to expand EPR policies

The 2025 budget presents an excellent opportunity to strengthen the EPR, not only to responsibly manage waste but also to move a step forward in building a greener tomorrow. Foremost, it should be expanded to include more sectors such as textiles, construction, and pharmaceuticals, which are significant producers of waste and need to be part of the EPR scheme. Next, there is a need to strengthen the enforcement and monitoring mechanisms of the existing policy to ensure compliance with EPR policies. Additionally, increasing the recycling targets can be a strategic move to encourage the use of recycled materials and reduce waste.

There is a lot of hope from the forthcoming budget to strengthen the policy framework to tackle the country's growing waste management crisis. By mandating stricter compliance and encouraging circular economies, the country can address the pressing environmental concerns and create a roadmap for long-term economic resilience.

(This article is authored by Prashant Singh, Co-Founder & CEO at Blue Planet Environmental Solutions.)

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