Legal Framework Governing E-Waste Management In India

Introduction

The E-Waste (Management) Rules, 2022 ("EWM Rules") notified by the Ministry of Environment, Forest and Climate Change (MOEFCC) on November 2, 2022, and effective from April 1, 2023, represent a comprehensive regulatory framework for addressing India's growing electronic waste challenge. These rules supersede the E-Waste (Management) Rules, 2016, and introduce significant innovations including an online Extended Producer Responsibility ("EPR") system, stricter compliance mechanisms, and provisions for rare earth metal recovery.

Applicability and Registration

The EWM Rules apply to every manufacturer, producer, refurbisher, dismantler, and recycler involved in the entire life cycle (manufacture, sale, transfer, purchase, refurbishing, dismantling, recycling, and processing) of e-waste or electrical and electronic equipment ("EEE") listed in Schedule I, including their components, consumables, parts, and spares.

The EWM Rules cover106 EEEs under seven categories. This comprehensive coverage ensures that virtually all electronic products fall within the regulatory ambit. The EWM Rules do not apply to waste batteries (covered under the Battery Waste Management Rules, 2022), plastic waste (covered under the Plastic Waste Management Rules, 2016, as amended), micro enterprises (defined in MSMED Act, 2006, and radioactive waste (covered under Atomic Energy Act, 1962).

Under Rule 4 of the EWM Rules, entities such as Manufacturer, Producer, Refurbisher and Recycler must register on the centralized EPR portal maintained by the Central Pollution Control Board ("CPCB").All entities are prohibited from conducting business with unregistered entities, i.e. manufacturer, producer, recycler, or refurbisher.

Concept of Extended Producer Responsibility and EPR credits

Extended Producer Responsibility ("EPR") is defined as the responsibility of any producer of EEE for meeting recycling targets as per EWM Rules, which must be fulfilled only through registered recyclers of e-waste to ensure environmentally sound management of e-waste.

One of the most significant innovations of the EWM Rules is the provision for generation of EPR certificates (credits) based on quantity of key metals recovered from the e-waste recycled. The EPR certificates are generated on the EPR Portal against four key end products - gold, copper, aluminium, and iron. This shift focuses the recycling regime on actual material recovery rather than mere weight-based targets.

Producers fulfil their EPR obligation by proportionately purchasing EPR certificates from registered recyclers through the portal on the basis of assigned phase-wise EPR obligations (recycling targets).Under Rule 15 of EWM Rules, a producer may purchase EPR certificates limited to their current year EPR liability, plus any leftover liability of preceding years and additional 5% of the current year liability.

In September 2024, CPCB Environmental Compensation ("EC") Guidelines were notified, introducing minimum payout requirements for EPR certificates namely (a) ₹22 per kg for general e-waste (such as TVs, washing machines, etc.); and (b) ₹34 per kg for smartphone waste.

Compliance with Environmental Compensation

Under Rule 22 of EWM Rules, CPCB is empowered to lay down guidelines for imposition and collection of EC levy in case of violation of any provision of the rules and guidelines issued with approval from the MOEFCC.

EC may be levied in the scenarios such as:(a) Non-fulfillment of EPR obligations by producers; (b) Transaction or use of false EPR certificates; (c) Operation by unregistered entities; (d) Aiding or abetting violations of EWM Rules; (e) Over-generation of EPR certificates by recyclers through false information.

The calculation of EC is based on the cost of handling, collection, transportation, and processing of e-waste. Furthermore, the floor price for EPR certificates is directly linked to the EC, set at a minimum of 30% of the calculated environmental compensation cost.

Reduction of Hazardous Substances (RoHS) Compliance

Rule 16 of the EWM Rules introduces comprehensive Reduction of Hazardous Substances (RoHS) provisions. Every producer of EEE listed in Schedule I must ensure that new EEEs do not contain the hazardous substances beyond specified maximum concentration values.

Every producer seeking EPR registration must submit: (a) Self-Declaration confirming EEEs produced comply with RoHS provisions; (b) Declaration on availability of technical documents on RoHS.

Impact on Rare Earth Metals Recycling

The EWM Rules explicitly recognize rare earth elements as a valuable recoverable material. E-waste contains significant concentrations of critical rare earth elements (REEs) such as lanthanum, neodymium, and other valuable materials. India, as the world's third-largest e-waste generator (producing approximately 3.2 million tonnes annually), faces both a challenge and an opportunity in rare earth recovery.

Critical minerals recovered from e-waste through established recycling systems can become avital domestic source of essential minerals for India, reducing dependence on imports and supporting clean energy transitions.

The current regulatory frameworks focusing on weight-based targets and emphasizing actual material recovery along with the requirement for creating proper material recovery infrastructure create the foundation for rare earth element recovery. Furthermore, the Government has recently introduced a ₹1,500 crores incentive scheme to boost critical mineral recycling, including rare earth elements from e-waste.

Concluding Observation

The EWM Rules represent significant progress in India's environmental jurisprudence. The EWM Rules integrate various principles such as EPR principle making manufacturers accountable for end-of-life management; the Polluter Pays Principle through EC mechanism; the Precautionary Principle through RoHS compliance preventing use of hazardous substances; Circular economy principles by emphasising material recovery and recognition of rare earth element recovery; and digital governance through the centralized EPR portal for purchase of EPR certificates.

The EWM Rules marked a watershed moment in India's environmental regulation, introducing sophisticated mechanisms that recognize the strategic importance of rare earth element recovery. Globally, less than 1% of demand for essential rare earth elements is currently met by e-waste recycling, indicating significant untapped potential. Current technologies only offer recycling potential of less than 5% for cobalt, lithium, and rare earth elements highlighting the need for significant technological advancement.

India's EWM Rules position the country to leverage its large e-waste generation (projected to reach 29 million tonnes by 2030) as a strategic resource for rare earth element recovery, supporting both environmental goals and resource security.

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