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11 December 2025

Clean Energy, Toxic Waste: Are Our Waste Laws Ready For The Future?

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BTG Advaya

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BTG Legal is an Indian law firm with particular focus on: defence; industrials; digital business; energy (renewables and nuclear); retail; transport (railways and electric vehicles); and financial services. Practices include corporate transactions, commercial contracting, public procurement, private equity, regulatory compliance, employment, disputes and white-collar crime.
India is driving a green energy revolution, aiming for 500 gigawatts (GW) of non-fossil energy capacity by 2030.
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India is driving a green energy revolution, aiming for 500 gigawatts (GW) of non-fossil energy capacity by 2030. It has already achieved over 250 GW of non-fossil energy capacity, primarily from solar (123 GW) and wind (52 GW). While the shift to clean and green energy sources such as solar, wind, battery energy storage systems (BESSs), and electric vehicles (EVs) is essential for the climate and India's energy independence, it also introduces a hidden, alarming threat: a massive wave of industrial waste.

We are shifting from simple trash to complex, hazardous "new energy" waste. For example, the government estimates solar waste alone will increase from 100 tonnes today to over 600,000 tonnes by 2040. If this waste is disposed of in landfills, the lead, lithium, glass fibre, and cadmium inside will contaminate our soil and water, creating serious environmental and health risks if not properly managed. 

So, is India ready?

To manage these wastes, the government of India regulates waste compliance through the Extended Producer Responsibility (EPR) mechanism for businesses. Unlike the old 'sell and forget' model, the EPR is based on the 'polluter pays' principle, where clear, quantifiable recycling targets are outlined. Further, these targets can be met only by purchasing EPR certificates from registered waste recyclers, thereby ensuring environmentally sound management of these wastes. 

For the purposes of the EPR, a person or an entity must qualify as a 'Producer' to bear responsibility under the relevant Indian waste rules. The legal definition of a Producer is much broader than most realise. Generally, under India's waste rules, you are considered a producer if you fall into any of these categories: (i) the Manufacturer; (ii) the Importer; and (iii) the Brand Owner.

Furthermore, under the EPR, liability extends beyond the point of sale. Businesses remain responsible for the product financially and operationally throughout its entire lifecycle and must also ensure waste is collected, diverted, and recycled—not disposed of improperly. Failing to do so results in "Environmental Compensation," which involves heavy financial penalties.

'New Energy' Waste: Regulations & Best Practices

1. Batteries:

The waste generated by the battery sector, driven by the surge in EV batteries and grid-scale storage systems, is currently regulated under the Battery Waste Management Rules, 2022. These rules apply to all types of batteries regardless of their shape, volume, chemistry, usage, or material composition. Additionally, the government considers batteries a strategic resource, not merely waste; it also seeks to recover critical minerals like lithium, cobalt, and nickel to secure India's energy and mineral security. 

The waste regulatory framework for batteries is entirely digitised and operates on a market-based compliance model that tracks every battery entering the market and ensures its circularity. 

Current Practice:

  • Mandatory Registration: Every Producer must register on the Central Pollution Control Board ("CPCB") centralised online portal.
  • Mandatory Recycling Targets: The rules establish specific, progressively increasing targets for collection and recycling. For example, producers must meet annual growth targets for collection and recycling, ensuring the industry expands its recycling capacity in line with sales.
  • Trading System: Recognising that not every battery maker or producer can be a recycler, the rules create a market for EPR Certificates. For instance, a producer can pay a registered recycler to process waste on its behalf. In return, the recycler issues an EPR Certificate, which the producer then submits to the CPCB to demonstrate compliance. It functions similarly to carbon credits but for physical waste.
  • Mandatory Recycled Content: The rules extend beyond disposal to manufacturing. By 2030, new batteries sold in India must contain a minimum percentage of domestically recycled materials, starting at 5% and increasing to 20%. This ensures a steady demand for recycled lithium and cobalt, making the recycling industry economically viable.

Global Practices & Insights: QR Compliance and Product Liability

While India's system is effective at setting collection targets, Europe is leading in transparency and lifecycle tracking.

  • European Union (EU): Under the new EU Batteries Regulation (EU 2023/1542), the EU has introduced the 'Battery Passport'. This is a digital twin for every industrial and EV battery—a QR code that reveals the battery's unique chemical composition, carbon footprint, and dismantling instructions. This transparency drastically lowers the cost and danger of recycling, as recyclers know exactly what is inside the 'black box' before they open it. India's current system lacks this granular data, making recycling riskier and less efficient. Adopting a similar digital tracking standard to prevent illegal dumping and streamline material recovery should be considered.
  • Germany: The German Battery Law Implementation Act (Batterierecht Durchführungsgesetz - BattDG) came into force on October 7, 2025. The law replaced the previous legislation and now aligns with the EU Batteries Regulation mentioned above. It also introduces the concept of 'Producer Fiction,' where distributors and retailers are considered producers if they sell batteries from unregistered manufacturers. This effectively obligates the entire supply chain to monitor itself, as no retailer or distributor wants to assume liability for a non-compliant supplier.

2. Solar Panels:

Solar waste was previously unregulated, with developers often storing or discarding end-of-life panels without proper scientific processing. Decommissioned panels were not covered by primary e-waste or hazardous waste regulations, leading to improper disposal. The waste contains hazardous materials like glass, aluminium, silicon, lead, and cadmium, posing environmental and health risks if not managed properly. However, in 2022, the government officially classified solar photovoltaic modules, panels, and cells as distinct categories of 'e-waste' under the E-Waste (Management) Rules, 2022, resolving the ambiguity. 

However, the approach used differs significantly from that for batteries, given the longer lifespan and lower immediate toxicity of solar PV panels.

Current Practice:

  • Mandatory Registration: Like battery rules, registration on the CPCB portal is required for all producers, who must file annual return and maintain an up-to-date inventory of their solar products placed on the market.
  • No Recycling Targets: The rules set specific targets for recycling; however, they currently do not apply to waste generated from solar PV modules, panels, or cells. 
  • Waste Storage: The current regulations place a strong emphasis on storage. Producers are legally required to store their solar waste safely and securely until 2034-2035, as the government anticipates that 'significant quantum of solar panel waste is not expected to be generated until the year 2035' given the 25-year lifespan of the majority of solar capacity installed after the launch of the National Solar Mission in 2010. 
  • Draft Guidelines: To support the 2022 Rules, the CPCB has also issued draft guidelines titled "Safe Handling and Disposal of Solar Photovoltaic Modules, Panels, and Cells". These guidelines, which are advisory in nature, outline the roles of various stakeholders, including manufacturers, bulk consumers, dismantlers, and recyclers, to ensure waste is directed only through registered and authorised facilities.

Global Practices & Insights: Financial Guarantees and Building Recycling Market

India's "store it for later" approach to solar panel waste creates liability for companies, as the government delays addressing the issue due to limited recycling capacity. What will happen if a solar manufacturer goes bankrupt in 2030? It still remains unclear.

  • European Union (EU): To address the bankruptcy risk, the EU WEEE Directive (2012/19/EU) requires 'Financial Guarantees.' Solar companies must now allocate funds at the point of sale via recycling insurance, blocked bank accounts, or membership in a producer compliance scheme to ensure that recycling funds are secured in advance. Even if the company dissolves, these funds remain to cover legacy waste.
  • China: While India waits for 2035, China is aggressively building recycling clusters today. Recognising the value of the silver, copper, and high-grade silicon in panels, China is now incentivising recyclingtechnology rather than just warehousing waste. India must consider shifting from a passive storage mandate to active technology incentives to boost the domestic recycling industry before the 2035 deadline.

3. Wind Turbines:

Wind energy faces the greatest physical challenge. Unlike batteries or panels, wind turbine blades are enormous structures made of composite materials (fiberglass, carbon fibre, and epoxy resins) that are notoriously hard to crush, melt, or repurpose.

Current Practice:

Currently, India does not have a specific law for wind turbine waste. A private member's bill, the Wind Turbine and Solar Energy Waste (Handling, Disposal and Recycling) Bill, 2022, was introduced but has not yet become law. Without clear legislation, old blades are often cut into pieces and sent to landfills or abandoned on leased land. This not only takes up large amounts of space but also wastes the high-calorific value of the composite materials.

Global Practices & Insights: Mandatory Recycling, Disposal Bans and Decommissioning Bonds

With no law in place, India has an opportunity to start fresh and adopt the most effective waste management strategies. Some of these practices are discussed below:

  • Germany: It enforced a strict 'Landfill Ban' on wind turbine blades. This prompted innovation, resulting in the "cement kiln route," where shredded blades are used in cement production. India, with its large cement industry, could explore this solution.
  • France: It sets strict, progressive recycling targets specifically for wind turbine rotors under Article 20 of the Order of June 22, 2020 (Arrêté du 22 juin 2020). The order mandates that a minimum of 35% of the rotor mass be reused or recycled for existing turbines as of July 1, 2022. This target increases to 45% for projects submitted after January 1, 2023, and further to 55% for those submitted after January 1, 2025. This regulatory push forces manufacturers to design for recyclability, directly addressing the challenge of composite waste management.
  • USA: In Oklahoma, Oregon, and Indiana, state laws require developers to post 'Decommissioning Bonds or Security' before constructing a wind turbine. These securities/bonds secure funds for dismantling the turbine and restoring the land to its original condition after the project ends. This protects farmers and landowners from being left with abandoned wind turbines and debris if a wind energy company fails.

Conclusion: Closing the Loop

India's transition to a non-fossil future depends not only on increasing capacity but also on the sustainable closing of the energy loop. While the introduction of EPR and digitized compliance marks a significant policy shift away from the old "use and throw" model, there is still a large gap in preparedness. Batteries have clear regulations, but solar rules are just beginning, and wind energy has no laws at all—this needs urgent attention. To truly secure its energy future, India must do more than just follow basic rules. It should adopt global best practices, such as allocating funds for cleanup, tracking items digitally, and building better recycling facilities. Ultimately, the success of the green revolution will depend on transforming this looming industrial waste challenge into a circular economy opportunity, ensuring that India's green energy solutions to climate change are truly sustainable and do not become the next environmental crisis.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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