EPR Credits

Overview of EPR Credits in India

EPR credits in India, in the context of CPCB regulations, indicate that producers have met their obligations under the EPR framework. When producers successfully implement recycling and waste management programs, they earn these credits, demonstrating compliance with CPCB regulations and their commitment to responsible environmental practices.

The Central Pollution Control Board uses the EPR Credit Model, which is outlined in the waste management regulations, to enable producers to fulfil their EPR obligations in a flexible manner. If a producer's EPR obligations have already been met, they are able to trade with the help of EPR Certificates with other producers. The waste doesn't have to be picked up by the same producer who produced it under this system. A product travels across regions during its lifetime, so it is not practical for the manufacturer to collect and dispose of it. Even though it is recycled and managed by another party, the producer still has an EPR obligation to meet.

First EPR Credit in India

The Indore Municipal Corporation (IMC) is now the country's first urban organization to receive EPR credit. IMC received its initial EPR credit for seizing and recycling eight metric tonnes of prohibited plastics.

The Indore Municipal Corporation region produces about 163.8 metric tonnes of plastic per day, which is collected separately from the source using a door-to-door collection system and a bulk collection system. It is then transported without human assistance to both centralized and decentralized material recovery facilities.

Challenges related to EPR Credit in India

EPR Credit has been viewed, in recent decades in the developed world and more recently in India, as a promising alternative to conventional waste management policy but EPR credit in India faces several challenges. Some of the challenges are:

Lack of knowledge

The lack of knowledge and understanding of EPR obligations and procedures among consumers, producers, and recyclers is a significant obstacle. Implementation and enforcement of EPR credit regulations are inconsistent across states, leading to ineffective recycling efforts.

Inadequate Infrastructure

Additionally, the infrastructure for collection, segregation, and recycling of e-waste and packaging materials is inadequate. Many producers find it difficult to set up efficient collection and recycling systems, especially smaller companies with limited resources.

Integrating the informal sector into the formal recycling

Another challenge is the informal sector's involvement in recycling, which often operates in unsafe and environmentally harmful conditions. Integrating the informal sector into the formal recycling process is a complex task but crucial for effective EPR credit implementation.

Benefits of EPR Credits in India

The EPR (Extended Producer Responsibility) credit model offers several benefits:

Promotes Environmental Responsibility

EPR credits encourage producers to actively engage in sustainable waste management practices, minimizing the negative impacts of their products on the environment and encouraging a circular economy and encouraging a circular economy.

Incentivizes Recycling

Producers are motivated to invest in recycling infrastructure and technologies to meet EPR credit targets, leading to increased recycling rates and reduced landfilling or incineration of waste.

Encourages Innovation

To achieve EPR credit targets, producers may invest in research and development of eco-friendly materials and products, fostering innovation in the industry.

Engages Stakeholders

EPR credit systems often involve collaboration with local communities, waste pickers, recyclers, and other stakeholders, creating partnerships that enhance the efficiency of waste management processes.

Consumer Awareness

EPR credit systems often involve awareness campaigns, educating consumers about responsible disposal and recycling, leading to more environmentally conscious consumer behaviour.

Long-term Sustainability

EPR credit models promote sustainable consumption and production patterns, paving the way for a more sustainable future by reducing waste and conserving resources.

Working of EPR Credit Model

Producers can use the EPR Credit Model to distribute EPR Certificates as payment for their EPR obligations. Once a producer has met his obligation, he can begin receiving EPR credits for the waste he recycles.

For each type of waste, a separate entry for this EPR Credit is made on their EPR Portal. They have the option of using or selling the accumulated EPR Credit to cover their liability for the following year. To fulfil their EPR obligation for the previous fiscal year, the producers purchase these EPR Credits from recyclers and other producers.

Types of Stakeholders in the Management of EPR Credit in India

Each type of waste has a different set of required entities that must abide by the laws and rules governing waste management. These stakeholders are the commercial organizations that create, distribute, or process different kinds of reported waste. Before they begin producing or processing any plastic waste, electronic waste, battery waste, or tire waste, they must obtain the EPR registration. These are the organizations that must comply:

Producers

This is a broad term, and it encompasses a wide range of business entities, including manufacturers, importers, and brand owners. These entities must register with the Central Pollution Control Board and obtain EPR authorization.

Manufacturer

Some entities are involved in the production of finished goods from raw materials. When a product reaches the end of its useful life, it becomes a notified waste for which the EPR Obligation must be met.

Importers

Importers are business entities that import either the product for which EPR rules apply or the product wrapped in plastic packaging or sheets for which plastic waste management rules apply.

Company owners

Businesses that distribute and market goods under their brands are known as brand owners. They may manufacture the products themselves or contract out the production to other manufacturers, but if the products contain any waste that is listed in the waste management regulations, they must meet their EPR obligations.

Types of EPR credits in India

The EPR credits show that by assisting in the proper handling and recycling of products after their useful lives, the producers have met their environmental obligations. Some of the types of EPR Credit in India are:

EPR Credits in India related to Plastic waste management

The idea of plastic credits is raising a lot of attention and offers significant opportunities for financing circular plastic systems. At the same time, uncoordinated and unregulated plastic credit schemes bear certain risks, especially with regard to incentives for waste prevention and the introduction of EPR systems, crucial cornerstones for the sustainable use of plastics.

EPR systems effectively contribute to reducing packaging waste in the environment and allow the setting up and financing of reliable and systematic waste management structures to ensure that waste is collected, sorted, and treated. The market's perception of relative demands and supplies will determine the cost of EPR credit. Therefore, the credit rises when important processes lose accreditation, and it decreases when end-use recycled plastic is disrupted.

A Model Based on Credit

• The producer is not required to recycle their packaging in a credit-based model. To fulfil their obligations, they must make sure an equal number of packages are recycled.
• Producers are required to obtain paper works of recycling and processing from recognized organizations. This evidence will be provided by recyclers, plant operators, cement co-processors, and users of plastic in road construction.
• The producers and processors (recyclers, dismantlers), at a price agreed upon by them, exchange the plastic credits or EPR credits for cash transactions.
• Without using middlemen, the processors can collaborate with the brands directly and make more money from their business.

How do credits help businesses abide by the law?

The EPR framework has different effects on large, medium, and small manufacturers:

• Small manufacturers pay EPR to regional organizations, which in turn recycle the producers' share of the waste they generate.
• Medium-sized manufacturers hire experienced agencies or people to manage their waste and negotiate financial arrangements on their behalf.
• When large manufacturers try to get credit, they send plastic and waste to recycling facilities. Additionally, it enables the business to adhere to regulations without taking on the responsibility of waste management.
• Producers and manufacturers can combine environmental, economic, and social factors with the aid of EPR credits. Businesses can abide by the rules by providing credits rather than bearing the burden of waste management.

Responsibility of the Producer and brand-owner under this mechanism

In order to implement the municipal solid waste (MSW) management system, the producers and brand owners must collaborate with the local urban bodies. They cooperate to put the Segregation Model which distinguishes plastic from other materials into action. In the segregation process, following methods are undertaken:

• Mechanical recycling- This process involves washing and chopping up the plastic. The plastic is washed before being ground into powders and melted.
• Recycling using chemicals- this process involves dissolving the plastic into monomers.
• The builders of the infrastructure will receive help from the producers. Additionally, they will offer management assistance for growth in the management of plastic waste.
• The owners are in charge of interacting with and forging relationships with the waste collection, segregation, and recycling organizations.

EPR Credits in India related to E-waste

In the context of e-waste, Extended Producer Responsibility (EPR) credits refer to a system where producers of electronic devices are given credits or incentives for the management of the entire lifecycle of their products, including proper disposal and recycling. These credits can be earned through various sustainable practices, such as designing products with easier recyclability, establishing collection and recycling programs, and promoting environmentally friendly manufacturing processes.

EPR credits encourage manufacturers to take responsibility for the environmental impact of their products, especially electronic waste. By earning these credits, companies can demonstrate their compliance with regulations, contribute to reducing e-waste pollution, and improve their environmental sustainability efforts.

The implementation of EPR credits in e-waste management incentivizes producers to design products that are easier to recycle and encourages them to invest in proper disposal and recycling infrastructure. This, in turn, helps in reducing the environmental burden associated with electronic waste and promotes a more circular economy where resources are reused and recycled efficiently.

EPR Credits in India related to battery waste

Battery waste recyclers offer EPR credits as a form of financial compensation for manufacturers who take accountability for the entire lifecycle of their products. This implies that producers are in charge of the production, distribution, disposal, and recycling of their products. Government hopes to encourage manufacturers to create products that are simpler to recycle and produce less waste by implementing EPR programs.

For instance, based on the volume of recycled or refurbished materials, the Central Pollution Control Board will even generate Extended Producer Responsibility certificates through a centralized online portal. Then, recyclers or refurbishers will receive these certificates. In exchange for used batteries, they can trade these certificates with manufacturers.

EPR Credits in India related to Tyre waste

In the case of tire waste, tire producers can earn credits by promoting the use of recycled rubber in tire manufacturing, establishing tire collection and recycling initiatives, and investing in technologies that turn used tires into valuable products like crumb rubber for various applications.

Tire manufacturers can earn credits by actively participating in or supporting tire recycling initiatives. This includes setting up or contributing to tire collection centres and partnering with recycling facilities. The credits earned can be proportional to the volume of tires collected and recycled. Manufacturers investing in innovative recycling technologies that effectively convert used tires into valuable products, such as rubber crumbs for asphalt or playground surfaces, can earn EPR credits. The adoption of advanced and environmentally friendly recycling methods is often rewarded. Manufacturers can earn credits by promoting and using recycled tire rubber in their products. This could include incorporating recycled rubber into new tire manufacturing or using it in the production of other goods, such as sports surfaces, mats, or construction materials.

How can Corpbiz assist you?

With the help of its team of experts, Corpbiz offers EPR related services to its clients at the most competitive prices and particularly has a stellar track record in EPR Credit Related Services.

Affordable Price for EPR Credit

Through its extensive network of recyclers, Corpbiz offers EPR Credits to producers at the most competitive prices. The producers' annual EPR obligations are met thanks to this credit. If you choose Corpbiz's services, you also have the freedom to select the recycler of your choice.

Management of the Online EPR Portal and Annual Filing

You must provide information about your yearly sales, purchases, and recycling to the Central Pollution Control Board's online EPR Portal. Corpbiz oversees the management of your EPR Portal and makes sure that annual returns are filed on time as needed.

Legal Backing for CPCB Notices

Your legal matters are handled by our skilled legal team. You need not be concerned if you have received any legal notices or CPCB inquiries because our staff will be there to help you every step of the way.