Implementation of the Plastic Waste Trading Scheme
July 21, 2024

Why in News?

The Central Pollution Control Board (CPCB) has initiated a nationwide audit of about 800 recyclers of plastic waste across the country.

This was decided following the revelation that four firms in Gujarat, Maharashtra and Karnataka had issued about 600,000 bogus certificates under the Extended Producer Responsibility (EPR) scheme.

What’s in Today’s Article?

  • An Overview Plastic Waste in India
  • Efforts for the Scientific Management of Plastic Waste in India
  • How did Plastic Waste Recyclers Violate the EPR Scheme?

An Overview Plastic Waste in India:

  • Plastic has several applications and its physical and chemical properties contribute to its commercial success.
  • However, the indiscriminate disposal of plastic (especially plastic carry bags) has become a huge environmental hazard.
  • In response to a question, the Minister of Environment (MOEFCC) recently stated in the Parliament of India that more than 34 lakh tonnes of plastic garbage were generated in 2019-20, up from 30.59 lakh tonnes in 2018-19.
  • This indicates that in the last five years, India's plastic garbage creation has more than doubled, with an average yearly rise of 21.8%.
  • In order to solve the issue and for the scientific management of plastic waste, the government has notified the Plastic Waste Management Rules, 2016 (amended in 2018 and 2021).

Efforts for the Scientific Management of Plastic Waste in India:

  • The Plastic Waste Management Rules, 2016:
    • About: The rules mandate plastic waste generators to take steps to reduce plastic waste, ensure segregated storage at the source and give it over to local bodies or agencies.
    • Objectives:
      • To raise the minimum thickness of plastic carry bags from 40 to 50 microns and to mandate a minimum thickness of 50 microns for plastic sheets in order to assist the collection and recycling of plastic waste.
      • Expand the jurisdiction of applicability from the municipal area to rural areas, as plastic has also reached rural areas.
      • To bring in the responsibilities of producers and generators, etc.
    • Extended Producer Responsibility (EPR):
      • Under this, producers, importers and brand owners have been made responsible for collecting waste generated by their products.
        • Producers are those engaged in the manufacture or import of carry bags, multi-layered packaging and sheets and those using these for packaging or wrapping their products.
      • They must engage local governments to develop a plan or system for plastic waste management within the timeframe specified.
  • The Plastic Waste Management (Amendment) Rules 2018: The amended Rules are now applicable to Multilayered Plastic (MLP) and mandates phasing out of MLP, which are non-recyclable or non-energy recoverable or with no alternate use.
  • The Plastic Waste Management Amendment Rules, 2021: The rules prohibit identified single use plastic items which have low utility and high littering potential by 2022.
  • Banning SUP: On August 12, 2021, a ban on identified single-use plastic (SUP) items was notified by the MOEFCC under the Plastic Waste Management Amendment Rules, 2021. It came into force on July 1, 2022.

How did Plastic Waste Recyclers Violate the EPR Scheme?

  • About the EPR certificates:
    • The Plastic Waste Management Rules 2016 mandate all companies that use plastic packaging to register with the CPCB.
    • The EPR scheme mandates businesses that use plastic packaging material to recycle a certain percentage of the plastic used in the previous two years.
    • In 2022-23, companies were expected to recycle 70% of the packaging used in the previous two financial years and not complying with these targets can invite fines.
    • The EPR certificates are generated by registered plastic waste recyclers who collect plastic waste and recycle them. Every tonne of plastic recycled by them generates a certificate.
    • Certificates are considered legitimate only if recyclers are actually able to sell the recycled plastic.
    • The certificates are uploaded on a dedicated portal maintained by the CPCB and recyclers and buyers can transact online to trade in these certificates.
  • What has been found?
    • The four recycling companies have generated many more EPR certificates than the installed capacity of their plants.
    • They were unable to establish proof of sales to the CPCB.
  • What may be the possible reason for this violation?
    • Lack of clarity among recyclers on the mechanics of the EPR scheme.
    • This is akin to the early years of implementing GST (Goods and Services Tax) or filing Income Tax returns online.