Why in the News?
India has overhauled its e-waste governance through the E-Waste (Management) Rules, 2022, which came into force on April 1, 2023, replacing the 2016 version. These rules mark a major policy shift to tackle India’s rapidly growing e-waste crisis.
How Does the New EPR Framework Work?
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What is the role of EPR floor pricing in e-waste management?
- Ensures Fair Returns to Formal Recyclers: EPR floor pricing guarantees minimum compensation for authorized recyclers, making formal recycling economically viable and discouraging unsafe informal practices. Eg: A certified recycler adopting advanced e-waste extraction technologies is assured stable earnings, promoting compliance and expansion.
- Reduces Informal Sector Dominance: By offsetting the cost advantage of informal recyclers, floor pricing shifts e-waste processing to the formal sector, where health and environmental standards are enforced. Eg: In India, 95% of e-waste is handled informally; floor pricing helps shift this to regulated channels.
- Boosts Circular Economy and Material Recovery: Stable pricing encourages recyclers to focus on resource recovery—such as copper, gold, and rare metals—rather than mere disposal. Eg: Proper recycling of circuit boards in formal facilities helps recover precious metals worth crores, reducing raw material imports.
What are the economic and social consequences of poor e-waste management?
- Economic loss from pollution: Over $10 billion lost annually due to pollution from toxic e-waste processing.
- Social cost: Informal processing results in $20 billion in social loss, affecting women and children, whose average lifespan is under 27 years.
- Lost revenue and metals: India forfeits ₹80,000 crore annually in metal value and $20 billion in tax revenue due to untracked, cash-based operations.
- Health impacts: Open incineration and use of cyanide and sulphuric acid cause air, water, and soil pollution, compounding public health crises.
How does stable pricing support formal recycling?
- Ensures Financial Viability for Formal Recyclers: A minimum (floor) price for EPR certificates guarantees fair compensation, encouraging recyclers to invest in safe, modern technologies. Eg: Certified recyclers can recover precious metals like gold and copper efficiently with advanced equipment, making operations economically viable.
- Discourages Hazardous Informal Practices: Stable pricing removes the informal sector’s cost advantage, shifting recycling away from unsafe, illegal methods. Eg: With assured returns, recyclers prefer compliance over risky open burning and acid-leaching methods that dominate 95% of the sector.
- Drives Compliance and Investment: Predictable prices create trust in the system, helping producers meet EPR obligations and promoting infrastructure development.
What are the challenges?
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Way forward:
- Strengthen Awareness and Consumer Participation: Promote widespread consumer education on e-waste disposal through campaigns and incentives for responsible recycling, ensuring more e-waste is directed to formal, safe channels.
- Enhance Infrastructure and Enforcement of EPR: Develop advanced e-waste recycling infrastructure and strictly enforce EPR compliance to ensure producers meet recycling targets and transition e-waste processing to the formal sector.
Mains PYQ:
[UPSC 2023] What is the status of digitalization in the Indian economy? Examine the problems faced in this regard and suggest improvements.
Linkage: India’s growing e-waste problem is linked to its fast digital growth and greater use of electronic gadgets. This issue mainly relates to the economy but also highlights how digitalisation is a key reason behind the rise in e-waste.
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