With more and more production and usage of electrical and electronic equipment ("EEE"), the world is staring at a huge problem of Electronic waste ("e-waste"). E-waste refers to any electrical or electronic device, including solar panels, that has been whole or in part discarded as waste or completed its life or is not required anymore; as well as EEEs that were not up to standard during manufacturing, refurbishment, or repair processes. E-waste can include items like computers, DVD players, mobile phones, televisions, large household appliances, etc.
India stands as one of the largest generators of e-waste globally generating 4.1 million kg in the year 2022 and is increasing every year, trailing only behind China and the United States1. As the country continues to experience rapid urbanization, increasing incomes, and the proliferation of affordable electronic devices, the challenge of managing e-waste has become increasingly pressing2.
Regulatory Background:
The journey of e-waste regulation in India began with the notification of the E-Waste (Management and Handling) Rules in 2011 by the Ministry of Environment, Forests and Climate Change ("MoEFCC"). These rules were the first of their kind in South Asia3 and aimed to provide a structured approach to e-waste management.
The initial framework encompassed 22 product categories, primarily focusing on IT devices and select consumer appliances. The rules have been revised several times to improve their effectiveness, with significant updates in 2016 and 2018. These revisions introduced phased collection targets for e-waste, initially requiring a 30% collection rate in the first two years, increasing the target to 70% over time. The 2022 update expanded the scope to include over 130 product categories4, including solar panels, medical devices, and toys, while also separately introducing the Battery Waste Management Rules, 2022 to address battery disposal.
Extended Producer Responsibility:
A cornerstone of India's e-waste regulation is the concept of Extended Producer Responsibility ("EPR"). The EPR refers to the obligation of producers of electrical or electronic equipment listed in Schedule I to meet recycling targets outlined in Schedules III and IV of the E-Waste (Management) Rules, 2022, by using registered e-waste recyclers to ensure environmentally sound management of such waste5.
For the purposes of these rules, a 'producer' is defined as any person or entity who: i. Manufactures and offers to sell EEE and their components or consumables or parts or spares under its own brand; or ii. Offers to sell under its own brand, assembled EEE and their components or consumables or parts or spares produced by other manufacturers or suppliers; or iii. Offers to sell imported EEE and their components or consumables or parts or spares; or iv. Who imports used EEE; irrespective of the selling technique used by such as dealer, retailer, e-retailer, etc6.
The EPR mandates that producers of EEE are responsible for the entire lifecycle of their products, including post-consumer waste management. This responsibility encompasses the collection, recycling, and environmentally sound disposal of e-waste.
The E-Waste (Management) Rules, 2022, apply to every manufacturer, producer, refurbisher, dismantler, and recycler involved in the lifecycle of EEE listed in Schedule I7. These rules inter alia mandate the registration of entities on a designated portal and fulfill specific obligations, including:
- Collection and Recycling: Here producers are required to collect e-waste generated during the manufacturing process and ensure the fulfillment of EPR targets through the use of registered recyclers. Further, recyclers must adhere to standards and guidelines set by the Central Pollution Control Board ("CPCB") inter alia including maintaining records and filing returns.
- Reporting: Producers are also mandated to file annual and quarterly returns detailing their e-waste management activities, ensuring transparency and accountability.
- Awareness Campaigns: Producers must create awareness about e-waste management through various communication channels, thereby educating consumers on responsible disposal practices.
- Collaboration with PROs: The rules encourage collaboration with PROs to streamline e-waste collection and recycling efforts.
The CPCB has set goals for collecting e-waste. Accordingly, for 2024-2025, producers must collect 20% of the e-waste based on their sales from 2022-2023. The next year, 2025-2026, the target stays at 20% of the sales from the last two years.
Environmental Compensation:
A key component of E-Waste (Management) Rules, 2022, is the imposition of Environmental Compensation ("EC")8, which is structured into two distinct regimes to address various forms of non-compliance.
A. EC Regime 1: EPR Targets
Under this regime, producers are required to collect and recycle a specified percentage of the e-waste generated from their products. If they do not meet these targets, they are liable to pay compensation based on the average costs incurred for the collection, transportation, and recycling of e-waste. The compensation is calculated to reflect the environmental damage caused by the shortfall in e-waste collection and processing. The average cost of collection, transportation, and processing is used as a parameter for determining the EC charges. The EC charges are designed to incentivize producers to improve their waste management practices and ensure that e-waste is handled in an environmentally sound manner. This regime emphasizes the importance of responsible production and encourages producers to take proactive steps in managing the end-of-life of their products.
B. EC Regime 2: General Non-Compliance
This regime aims to ensure that all entities involved in the e-waste lifecycle adhere to the established guidelines and maintain proper operational standards. Under EC Regime 2, penalties are imposed for various violations, such as:
- Operating without valid registration.
- Failure to file annual and quarterly returns.
- Non-disposal of e-waste in an environmentally sound manner.
- Submission of false information or wilful concealment of information.
The penalties for violations under this regime are structured to escalate with repeated offenses. For instance, the first default incurs a penalty of ₹20,000 for producers and ₹15,000 for recyclers, while subsequent defaults lead to increased penalties, potentially reaching ₹80,000 for producers and ₹60,000 for recyclers. In cases of continued non-compliance, the CPCB may take further actions, including the cancellation of registration and closure of operations.
Our parting thoughts:
India's e-waste regulation represents a significant step towards addressing the growing challenge of EEE waste. While the regulatory framework has evolved to encompass a wide range of products and responsibilities, the effectiveness of these regulations hinges on the formalization of the informal sector and increased consumer awareness. As the country continues to embrace a circular economy, initiatives such as the Right to Repair9 and the establishment of a centralized EPR regime will play a crucial role in fostering sustainable e-waste management practices. The active participation of all stakeholders, including consumers, producers, and regulators, is essential to mitigate the environmental and health impacts of e-waste and pave the way for a more sustainable future.
Considering, the producer companies will have to play a bigger role in e-waste management, it is high time that companies must prepare robust internal policies to not only comply with the applicable laws but also to fulfill their social responsibility towards the menace of e-waste.
Footnotes
2 According to a joint report by the International Telecommunication Union (ITU) and the United Nations Institute for Training and Research (UNITAR), global e-waste generation reached 62 million kg in 2022. India, standing second in Asia, generated 4.1 million kg of e-waste in the same year.
3 https://www.itu.int/en/ITU-D/Environment/Documents/Toolbox/GEM_2020_def.pdf
4 https://eprewastecpcb.in/#/notified
5 Rule 3(m) of the E-Waste (Management) Rules, 2022.
6 Rule 3(t) of the E-Waste (Management) Rules, 2022.
7 Schedule I of the E-Waste (Management) Rules, 2022.
8 Environmental Compensation (EC) Guidelines were prepared by CPCB in accordance with the E-Waste (Management) Rules, 2022. These guidelines were finalized after consultations with stakeholders and were presented to MoEFCC for approval on August 28, 2024. But was issued on September 9, 2024.
9 The Government of India's Right to Repair initiative, launched in 2022, aims to empower consumers to repair their products at an optimal cost, thereby reducing e-waste.
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