Posted inOpinion

Balancing sustainability and profitability in the face of new plastic waste management regulations

These initiatives enhance recycling targets and promote a circular economy to reduce waste and boost growth.

India is at the forefront of a global movement towards a more sustainable future. CPCB’s recent guidelines around EPR, recycling, and the use of recycled content in plastic packaging mark a significant step towards a circular economy. This ambitious initiative aims to reduce plastic waste, promote environmental sustainability, and stimulate economic growth.

Starting in fiscal year 2025, producers, importers, and brand owners of plastic packaging will be required to incorporate a minimum percentage of recycled content into their products. This phased approach, beginning at 30 per cent for rigid plastics and increasing annually, is a bold move that demonstrates India’s commitment to addressing the challenges of plastic pollution.

Understanding the new rules
India’s new plastic packaging regulations will significantly alter the landscape of plastic waste management. These rules mandate higher recycling targets for producers, requiring them to achieve rates of 50 per cent for rigid plastics, 30 per cent for flexible and multi-layered plastics, and 50 per cent for other plastic waste. Additionally, packaging must now incorporate a specified percentage of recycled material, ranging from 30 per cent for rigid plastics, 10 per cent for mono-material flexible packaging, and 5 per cent for multi-layered plastics. The expanded scope of the EPR covers more plastic types and necessitates improved waste collection and recycling systems. To ensure compliance, producers face stricter reporting requirements and enhanced monitoring with penalties. Furthermore, a phased ban on certain single-use plastics and a push for alternatives aim to reduce plastic waste and encourage sustainable packaging practices.

By mandating the use of recycled content, the government is creating a market for recycled plastics, ensuring the growth of the recycling industry. This, in turn, will lead to increased plastic waste collection and processing, reducing the amount of plastic that ends up in landfills and waterways. 

A Roadmap for Brands
The shift towards recycled content in packaging and manufacturing presents a significant opportunity for businesses to contribute to a more sustainable future. While the initial costs associated with sourcing and processing recycled materials may be higher, the long-term benefits are substantial. By reducing consumption of virgin plastic, companies can significantly lower their environmental footprint, enhance their brand image, and potentially reduce costs over time.

One of the primary challenges businesses will face is the need to adapt their packaging design and production processes to accommodate recycled materials. This may involve changes in materials selection, manufacturing techniques, and supply chain management. For instance, recycled plastics often have different properties than virgin plastics, requiring adjustments to packaging design and production processes to ensure product integrity and performance. However, with careful planning, investment in research and development, and collaboration with suppliers, companies can successfully overcome these hurdles and develop sustainable packaging solutions.

Practical approach
The chemical properties of recycled PET must be equivalent to virgin resin to ensure compatibility with the brand owner’s established moulding and bottling operations. Due to their chemical composition, rPET generated from personal care items, mosquito repellents, pharmaceuticals, and agrochemicals poses considerable risks for food packaging, the feedstock of rPET granules needs to ensure traceability of no such materials are included in the feedstock. To ensure the safety of both consumers and recycling workers, these items must be meticulously segregated at the source.

The new regulations also emphasise the importance of advanced recycling technologies. European case studies show that source-segregated materials assure higher yield, better quality and overall higher adoption. For source collection and segregation, a closely connected infrastructure that ensures efficient reverse logistics, source-level segregation, and grading by their type should be exercised.

Also, a marketplace for post-consumer waste provides end-to-end solutions by partnering with the stakeholders at the different stages of the value chain. It ensures source traceability and compliance, which is critical for brand owners. It helps free the flow of feedstock across markets.

By investing in innovations such as the digital Deposit Refund System (dDRS) India can improve the quality and efficiency of the supply of feedstock in ensuring source-level segregation, thereby enhancing the recycling process, and making recycled plastics a more reliable option for businesses. At the same time, digital DRS has a proven track record of bringing mass behavioural change towards sustainable disposal of waste since it instils a sense of ownership for the packaging of the product at its end of life.

Such technologies have the potential to bring plastic waste into the circular economy again. The post-consumer recycled plastic can be used in various applications, thereby increasing the demand for recycled content and reducing the need for virgin plastic production thereby reducing the overall carbon footprint of the region.

Economic Opportunities and Global Leadership
Beyond the environmental advantages, the transition to a circular economy for plastics presents a significant opportunity for economic growth and development. The expansion of the recycling industry will create new jobs, stimulate innovation, and contribute to the overall economic prosperity of the country. As the demand for recycled plastics increases, businesses will need to invest in new technologies, infrastructure, and skilled labour, driving economic activity and fostering entrepreneurship.

Even before the mandate was active, brands like Coca-Cola demonstrated their participation by launching 100 per cent rPET bottles. This echoes their commitment to sustainability and preparedness for upcoming regulations. Various other brands are also taking initiatives to incorporate recycled content into their packaging.

India’s efforts to promote a circular economy for plastics can attract foreign investment and technology, enhancing its competitiveness on the global stage. By demonstrating its commitment to sustainability, India can improve its image as a responsible and forward-thinking nation, attracting businesses and tourists alike.

India’s Extended Producer Responsibility (EPR) rules align with global trends in plastic waste management. Many countries, including the European Union and the United States, have implemented similar regulations to address the environmental and economic challenges posed by plastic pollution.

By embracing this transition towards sustainable circularity, India can stimulate economic growth and establish itself as a global leader in environmental stewardship.