Circular economy in India

IN NEWS:

• Economic Advisory Council to the Prime Minister (EAC-PM) has released a document titled “India’s tryst with a circular economy”.

CIRCULAR ECONOMY:

• Circular economy is an economic system based on the reuse and regeneration of materials, especially as a means of continuing production in a sustainable way.
• Circular systems employ reuse, sharing, repair, refurbishment, remanufacturing and recycling to create a closed-loop system, minimising the use of resource inputs and the creation of waste, pollution and carbon emissions.

WHY INDIA NEED CIRCULAR ECONOMY:

• Improve resource utilisation:
  • The current economic model is largely linear, where resources are extracted, processed, and transformed into products, sold to consumers and disposed after use. But this results in sub optimal utilization of resources, as many of the disposed products could still be used through repair, reuse or recycle.
• Address the problem of waste management:
  • According to the Central Pollution Control Board (CPCB), India generates over 62 million tonnes of waste every year. About 43 million tonnes (70%) are collected, of which about 12 million tonnes are treated, and 31 million tonnes are dumped in landfill sites. This is expected to increase to 165 million tonnes by 2030. To tackle this growth, circular economy is a viable solution.
• Promote sustainable resource management:
  • India’s resource extraction is 1580 tonnes/acre, which is 251% higher than the world average of 450 tonnes/acre. However, only around 20% of goods are recycled. Through circular economy, the rate of resource extraction can be reduced significantly.
• Employment generation:
  • The circular economy could create new job opportunities for the repair and refurbishment of goods, recycling and recovery of materials, and waste management.
• Industrial growth:
  • Circular economy emphases on localizing production and using locally sourced materials, which could create new opportunities for MSMEs.
• Preservation of Natural Capital:
  • Practicing a circular economy could enhance natural capital by encouraging nutrient flow within the ecosystem and creating conditions for regeneration.
• Attain climate goals:
  • By promoting the use of renewable energy sources, reducing greenhouse gas emissions, and minimizing waste generation, the circular economy aligns with India's commitments to the Paris Agreement.
• Improve resource security and resilience:
  • India is heavily dependent on imported resources such as petroleum. The circular economy's focus on energy efficiency and resource optimization could reduce India's dependence on such resources and vulnerability to global price fluctuations and supply chain disruptions.

STEPS TAKEN TOWARDS CREATING A CIRCULAR ECONOMY:

• Draft National Resource Efficiency Policy (NREP), 2019:
  • It seeks to create a facilitative and regulatory environment to mainstream resource efficiency.
  • NREP, 2019 is guided by the principles of:
    1. Reduction in primary resource consumption to ‘sustainable’ levels, in keeping with achieving the Sustainable Development Goals and staying within the planetary boundaries,
    2. Creation of higher value with less material through resource efficient and circular approaches
    3. Waste minimization
    4. Material security
    5. Creation of employment opportunities and business models beneficial to the cause of environment protection and restoration.
• Extended Producer Responsibility (EPR):
  • EPR is a regulatory framework that makes manufacturers and producers responsible for the post-consumer waste generated by their products. The EPR framework encourages producers to adopt sustainable product design practices, increase the use of recycled materials, and support waste management and recycling initiatives.
  • Regulations such as the Plastic Waste Management Rules, 2016 have implemented the concept in India.
• Swachh Bharat Mission (SBM):
  • It aims to promote waste segregation, recycling, and composting, and aims to make India a "zero-waste" country.
• Atal Innovation Mission:
  • The mission includes initiatives to support the development of circular business models and encourage the adoption of sustainable technologies.
• Swachh Digital Bharat:
  • It seeks to raise awareness among the public regarding the recycling of e-wastes by unorganised sector and to educate them about alternative methods of disposing of their e-waste.
• Waste to energy schemes:
  • Eg: GOBAR-Dhan scheme: Under this scheme cattle dung, kitchen waste and agricultural waste can be tapped to create biogas-based energy
• Awareness campaigns:
  • Eg: ‘Prakriti’:
    • In another step toward eliminating single-use plastic, the Union Environment Ministry launched “Prakriti”, a mascot to spread greater awareness about small changes that can be sustainably adopted in the lifestyle for a better environment.
  • Eg: Greene:
    • The programme aims to create effective awareness in various levels of society to reduce the adverse impact on environment and health arising out of the polluting technologies used in recycling e-waste in the unorganized sector.

CHALLENGES:

• Volume of waste generated:
  • With rapid urbanisation, rising population and increasing dependence on plastics, the amount of waste generated far exceeds the management capabilities.
• Informal waste management sector:
  • Waste collection and processing in India is carried out largely by the informal sector. This makes it difficult to implement the waste management rules, ensure scientific disposal of wastes and address the welfare of workers.
• Lack of differentiation between circularity and recycling:
  • The policies around waste management in India broadly focus on end-of-life waste management. Hence, there is little regard for reuse, repair, refurbish and remanufacture of products.
• Infrastructure deficit:
  • Due to lack of adequate infrastructure for waste management, considerable amount of plastic waste is not recycled, leading to it being incinerated or dumped in landfills.
• Lack of awareness:
  • There is lack of awareness and understanding of circular economy concepts among businesses and consumers.
• Absence of collaboration:
  • There is absence of collaboration among the key stakeholder: government, business and consumers. This hinders the adoption of circular economic practices.
  • Eg: Without collaboration, businesses and government agencies may not have the resources to invest in circular infrastructure, technologies, and research and development. On the other hand, missing the link with consumers can limit consumer engagement in circular practices.
• Downcycling:
  • Downcycling refers to the process of recycling materials into products of lower value and quality compared to the original material.
  • While downcycling does help in reducing the amount of waste generated, it also leads to a reduction in the quality and value of the recycled material, making it less desirable for reuse.
• Lack of incentives for industry:
  • In a circular economy, businesses need to redesign their products, services, and business models to use resources more efficiently, reduce waste, and minimize environmental impact. However, this transition can be costly and time-consuming, and businesses need incentives to make the shift.
• Deficit in Research and development:
  • A circular economy requires a fundamental shift in the way we design, produce, consume, and dispose of goods and services. However, the lack of research and development in this limits the knowledge and expertise needed to develop circular business models, technologies, and products.

WAY FORWARD:

• Comprehensive circular economy policy:
  • A comprehensive circular economy policy at the national level will be a critical driver for India's mission on circular economy. It should include efforts towards improving capacity building, awareness generation, research and development and multi-stakeholder collaboration.
• Circular economy stakeholder platform:
  • A circular economy stakeholder platform can be developed to serve as a hub for knowledge sharing, facilitate networking and collaboration, capacity building and monitoring of progress.
• Improve waste management system:
  • India needs to invest in waste processing and recycling facilities and improve waste collection and segregation systems to enable the efficient and effective processing of waste.
• Awareness campaigns:
  • The government needs to create awareness campaigns and education programs to promote the adoption of circular economy practices and encourage consumers to adopt sustainable consumption patterns.
• Encourage people and industry to adopt:
  • Eg: For example, policies to incentivize the utilization of reused, repaired, and recycled products, or regulations that mandate the use of recycled materials in certain products, can help drive the adoption of circular practices.

PRACTICE QUESTION:

Q. The concept of a circular economy has gained popularity in recent times. Why should India adopt this economic model. What are the challenges in adopting the model?