EPR for Waste Oil

Overview of EPR for Waste Oil

In 2016 when the government introduced EPR for e-waste, little did anyone know how effective it would prove to be. Then came 2021, and the government came up with EPR for plastic waste management showing that EPR is an effective way to manage waste generation. In 2022, the MoEFCC introduced EPR obligations for battery and tyre manufacturing, import and recycling. By this time, the concept of the circular economy had been gaining momentum for the last two decades, and India's vision for sustainable manufacturing and waste management practices was visible. Recycling in many sectors showed the potential to reduce the rate of global climate change by reducing the extraction of new resources and the amount of fossil fuels that was being burnt in the manufacturing processes of these sectors.

On 2nd May 2023, MoEF introduced EPR obligations for entities in the oil and lubricant industry as well, considering the benefit from re-refining of used lubricants for both environment and economy. Through EPR for Waste Oil, the government aims to work towards advancing the circular economy, decreasing the impact of oils and lubrication products and promoting the principle of "polluter pays", and making the producer accountable for the product's entire lifecycle.

Objective of EPR for Waste Oil

The government has provided time for the manufacturers, importers and recyclers to implement the waste oil collection and recycling network and deal with the challenges in the used oil re-refining. Therefore, the said amendments in the HWM Rules will be applicable from 1st April 2024. The framework has been designed to promote the use of sustainable and eco-friendly products, lower waste generation, increase recycling capacity etc. The objectives of EPR for Waste Oil, as identified from the rules, are as follows:

1. To Integrate the environmental costs of recycling
2. To develop a traceable waste management system
3. Reduction of un-scientific disposal of waste oil and lubrication products
4. Reduction of burden on municipalities
5. To promote the development of environmentally sound products

The new rules will cover all those entities that deal with the production, import and recycling of base oil or lubrication oils. The Central Pollution Control Board (CPCB) will establish an online portal wherein the entities will need to register on the portal, upload file quarterly and annual returns, and generate EPR certificates. The amendment has made EPR registration compulsory for the following oil manufacturing and refining stakeholders.

1. Producers
2. Collection agents
3. Recyclers
4. Used Oil importers

Highlights of the HWM Amendments Rules, 2023

Through the 2023 draft notification, the following terms have been defined.

Who are Producer, Importers and Recyclers?

Producer: as per the notification, any person or entity who,

• Regardless of the selling method employed, such as dealer, retailer, e-retailer, etc.,
• Manufacturers of base oil or lubrication oil domestically under its brand.
• Provides to trade lubrication oil locally under its own brand, utilising the base oil produced by other producers or suppliers; iii. provides to sell imported base oil or lubrication oil in the country.

Recycler: any individual or organisation involved in the used oil recycling process

Modalities of EPR Portal under EPR for Waste Oil

The CPCB will soon be releasing a centralised online system by the CPCB for registration of entities, submission of quarterly data, annual returns, issuance of EPR certificates and the tracking the quantity of oil produced or generated by stakeholder entities. Any entity that fits into more than one of the aforementioned categories must register under each one separately.

EPR Targets and their implementation under the provisions of EPR for Waste Oil

To meet EPR targets, the producers and waste oil importers with EPR Targets will be allowed to purchase EPR certificates from registered recyclers. Registered oil recyclers can generate EPR certificates after they recycle waste oil in their facilities. The Draft notification defining EPR targets for producers has been elaborated under Schedule X Rule 3(2).

Targets for Used Oil Importers under EPR for Waste Oil

The EPR obligation for used oil importers in a particular year 'Y' will be 100% of the used oil imported by the importer in the previous year, i.e. Y-1. It is important to note that importing used oil will only be permitted for the purpose of re-refining.