The COP27 meet brought to fore a circular economy’s relevance in mitigating carbon emissions by ensuring responsible consumption and sustainable resource management.
What is circular economy?
Circular economy - According to the World Economic Forum, a circular economy is “an industrial system that is restorative or regenerative by intention and design.”
It is a model of production and consumption, which involves sharing, leasing, reusing, repairing, refurbishing and recycling existing materials and products as long as possible.
In practice, it implies reducing waste to a minimum.
Need to switch to a circular economy - The world's population is growing with the demand for raw materials but the supply of crucial raw materials is limited.
Extracting and using raw materials has a major impact on the environment.
It also increases energy consumption and CO2 emissions.
How does circular economy work?
Designs out waste and pollution - Circular economy designs out economic activities that negatively impact human health and natural systems.
Keeps products and materials in use - Circular economy favors designing products for durability, reuse, remanufacturing, and recycling to keep materials circulating for as long as possible.
Regenerates living systems - Circular economy avoids the use of fossil fuels and non-renewable energy.
What about the picture in India?
Rules - In sync with a circular economy, the government formulated
Battery Waste Management Rules 2022
Plastic Waste Management Rules as amended in 2022
e-Waste Management Rules 2022
These rules promote utilisation of waste generated by setting out target waste disposal standards for stakeholders along with enabling transactions for extended producer responsibility certificates.
Budget - The Budget recognises the action plans formulated across 10 sectors including electronic waste, lithium-ion batteries, end-of-life vehicles, scrap metal, municipal solid waste, etc.
They emphasise the importance of reusing secondary materials recovered from waste, implementation of an extended producer responsibility framework and tax rebates.
What are the challenges?
Lack of clear vision - There is a lack of clear vision towards the end-goal of India’s circular economy mission and gaps in actual implementation of the policies.
Reluctance of industries - Industry is also reluctant in adopting the circular economy model due to supply chain limitations, lack of incentives to invest, complex recycling processes.
Sub-optimal outcomes - The efforts are made at the very end of value chains, resulting in sub-optimal economic and environmental outcomes.
What more needs to be done?
There must be legislative mandates for the procurement of recycled/ secondary raw materials in the initial stages of the production cycle.
A streamlined framework on circular economy for providing fiscal incentives to businesses to complete the supply chain will also help.
The government’s initiatives need to be in conjunction with industry collaboration to reap the benefits of the circular economy.
What are the challenges?
