Date : 11/09/2023

Relevance – GS Paper 3 – Environment

Keywords – ICEA, NITI AYOG, EPR, PRO

Context

In response to the burgeoning issue of electronic waste, the Indian Cellular and Electronics Association (ICEA) published an extensive report on August 28. This report delves into the concept of establishing a circular economy within India's electronics sector and explores significant economic opportunities that can be unlocked by effectively harnessing e-waste. This initiative originates from the government's collaboration with NITI Aayog, aiming to investigate strategies for sustainable electronic waste management—a pivotal step towards a greener future. The report posits that adopting a circular economy approach could potentially create an additional $7 billion market opportunity within India.

E-Waste Management in India:

E-waste management predominantly operates within the informal sector, with approximately 90% of e-waste collection and 70% of recycling activities being managed by a fiercely competitive informal sector. This sector excels in extracting valuable components from older electronic devices and capitalizing on repair and refurbishment. Notably, certain regions, such as Moradabad, serve as industrial hubs where substantial quantities of printed circuit boards (PCBs) undergo processing to extract precious metals, including gold and silver.

Evolution of E-Waste Legislation in India

• In 2011, India introduced the first set of e-waste rules, emphasizing Extended Producer Responsibility (EPR) to hold producers accountable for safe disposal.
• The 2016 rules, amended in 2018, expanded provisions to promote 'authorisation' and 'product stewardship,' introducing 'Producer Responsibility Organisations' (PRO).
• In November 2022, the Ministry of Environment and Forests notified new e-waste rules effective from April 1, 2023. These rules introduce an EPR framework, emphasizing stakeholder registration and digitalized systems. The aim is to enhance transparency and combat issues like unauthorized refurbishers and informal sector involvement, marking a pivotal evolution in e-waste regulation.
• In an effort to streamline and enhance e-waste management, the Union Government introduced the E-Waste (Management) Rules in November 2022. These rules aim to digitize the entire e-waste management process, enhancing transparency regarding the movement of e-waste within the economy. The proliferation of affordable smartphones and accessible data plans has led to an increase in phone damages, underscoring the urgent need for efficient e-waste management strategies.

Other Initiatives

• Over 21 products (Schedule-I) were included under the purview of the rule. It included Compact Fluorescent Lamp (CFL) and other mercury containing lamps, as well as other such equipment.
• Various producers can have a separate Producer Responsibility Organisation (PRO) and ensure collection of E-waste, as well as its disposal in an environmentally sound manner.
• Deposit Refund Scheme has been introduced as an additional economic instrument wherein the producer charges an additional amount as a deposit at the time of sale of the electrical and electronic equipment and returns it to the consumer along with interest when the end-of-life electrical and electronic equipment is returned.

Importance of the Informal Sector:

The informal sector is the ‘face’ of e-waste disposal in India as 95% of e-waste is channelised to the sector. Therefore, they also hold immense potential to improve the state of e-waste management. In the hierarchical process of e-waste collection, segregation and recycling in the informal sector, it is the last stage that poses a major concern where e-waste is handed over to the informal dismantlers/recyclers. The rest of the stages (collection of mixed waste, segregation of e-waste, clustered accumulation of e-waste according to their type) do not involve any hazardous practices and should in fact be strategically utilized for better collection of e-waste.

Within the informal sector, several innovative strategies are employed to remain competitive. One noteworthy approach mentioned in the report is 'cannibalization,' where repair shops purchase complete electronic devices and disassemble them to obtain spare parts for subsequent repairs. This strategy often results in cost advantages for repair shops, as tariff rates for individual parts can be lower than those for fully assembled products.

The Significance of a Circular Economy:

The escalating demand for electronics across various price segments exacerbates issues related to resource scarcity and high emissions. Instead of regarding discarded electronics as waste, a circular economy mindset views them as valuable resources that can be reintegrated into the electronics ecosystem, emphasizing that every material produced on Earth is a resource and not waste.

Efforts to promote a circular economy for e-waste could take inspiration from global examples. Some nations, for instance, have set targets for incorporating secondary raw materials into the manufacturing of new products. These initiatives aim to reduce waste and conserve valuable resources.

Policy Recommendations for a Circular Economy:

To encourage the transition to a circular economy for e-waste, the ICEA report offers several strategic recommendations. These include promoting public-private partnerships to establish a comprehensive "reverse supply chain," encompassing the collection of devices from users, erasure of personal data, and facilitation of further processing and recycling. The report also suggests creating auditable databases to track materials collected through this process and the establishment of geographical clusters dedicated to device disassembly. A critical recommendation is to incentivize "high yield" recycling centers, as most facilities are not adequately equipped to extract the full potential value from the products they handle. In support of this, the IT Ministry initiated a scheme in April to cover 25% of the capital expenditure for such facilities.

Furthermore, encouraging repair practices and extending the lifespan of electronic products, possibly through the implementation of a "right to repair" policy for users, is another key recommendation to alleviate the environmental burden associated with electronic waste.

Challenges in E-Waste Management:

Effective e-waste management in India faces several challenges. Beyond the dominance of the informal sector, which is challenging to regulate and monitor, there are significant hurdles to overcome. For instance, an estimated 200 million devices remain unused in consumers' homes, as people often hesitate to hand them over for recycling due to concerns about the security of their personal data.

Building large-scale recycling plants is capital-intensive, but the unstable supply of materials poses another formidable challenge. Ensuring a stable and reliable supply of materials is vital for the growth of recycling facilities.

Some key challenges can be classified as –

• Poor infrastructure to recycle e-waste. ...
• A serious lack of awareness. ...
• Mismanagement of products. ...
• Unsustainable and ecologically degrading practices.

Way Forward

To chart a path forward, several key steps and strategies should be considered:

1. Enhanced Policies and Implementation: India boasts a growing number of startups and companies engaged in electronic waste collection and recycling. However, there is a pressing need for improved implementation methods and inclusive policies. These policies should recognize and validate the role of the informal sector, enabling it to contribute significantly to achieving recycling targets while maintaining environmental integrity.
2. Inclusive Participation: To achieve higher collection rates, it's crucial to involve all stakeholders, including consumers. Encouraging responsible disposal and recycling practices among consumers can substantially enhance e-waste management efforts.
3. Engagement of the Informal Sector: Developing a comprehensive strategy to engage with informal sector workers is imperative. This approach not only fosters better e-waste management practices but also serves as a vital component of environmental protection. Additionally, it can lead to improved working conditions for laborers and create enhanced employment opportunities for a substantial number of people. This inclusion of the informal sector can result in more environmentally sustainable e-waste management practices that are easier to monitor.
4. Boosting Employment Opportunities: Addressing the current employment needs is paramount. One effective way to achieve this is by identifying and promoting cooperatives. Furthermore, expanding the scope of the E-Waste (Management) Rules to encompass these cooperatives and informal sector workers can provide a significant boost to employment generation while simultaneously improving electronic waste management practices.

Incorporating these strategies and focusing on policy refinement, inclusive participation, engagement with the informal sector, and employment generation will collectively contribute to a more sustainable and efficient electronic waste management framework in India.

Conclusion:

Efforts to harness the potential of e-waste through the implementation of a circular economy present a promising avenue for India's electronics sector. Despite the challenges, effective policy measures and fruitful collaborations between the public and private sectors can pave the way for the transformation of e-waste into a valuable resource, promoting both environmental sustainability and economic growth. As the availability of "virgin" components dwindles, the imperative to extend the life of products and their individual parts becomes increasingly apparent, ensuring a sustainable and prosperous future for the electronics industry in India.

Source – The Hindu