With a new legal framework regarding solid waste management and a strategy aiming at a well-functioning circular economy, the Indian government is convinced that the country can achieve economic resilience, environmental sustainability, and social security.
In December 2024, the Indian Ministry of Environment, Forest and Climate Change (MoEFCC) introduced draft rules on solid waste management (SWM) for public consultation, feedback, and comments, the Indian Centre for Science and Environment (www.cseindia.org) informed, and offered a webinar in January this year. As reported, eight years after the existing regime of the SWM Rules 2016, the proposed new draft rules would lead to “significant reforms, such as encouraging responsible management of biodegradable and non-biodegradable waste by bulk waste generators and incentivizing recycling through exchangeable certificates between waste processors and generators.” The draft was open for public comment until the first week of February 2025. Once approved, the new rules would come into effect in October 2025. According to “EnvilianceAsia – EHS Info Service” (enviliance.com) – an environmental information service developed by Japan-based research and consulting firm EnviX (www.envix.co.jp/en/) – the draft rules included an “Extended Bulk Waste Generator Responsibility (EBWGR)”, which means new obligations for entities generating large quantities of solid waste. A bulk waste generator was defined as buildings with floor area of 20,000 square meters or above, water consumption of 5,000 liters per day, solid waste generation of 100 kilograms per day.
This category includes institutional entities such as central government departments or undertakings with buildings, commercial establishments like airports, malls, hotels, stadia, and markets, as well as residential societies. These bulk waste generators have to register on an online portal, the draft said. They have to fulfill the responsibility of processing the waste generated by purchasing certificates from local bodies or waste processing facilities, Aoki Kenji wrote in January this year. Furthermore, they have to submit information, for example, about the generated waste, for the financial year. There are also rules for industrial units regarding the utilization of solid waste fuels; the percentage starts at six percent and is to increase to ten percent after three years from the date the new rules came into effect. As reported, the Indian citizens also have obligations. They have to sort the waste into four separate streams – wet waste, sanitary waste, special care waste (for example, paint drums, pesticide cans, spent batteries), as well as dry waste – and then pass them to authorized pickers or collectors. Biomedical as well as construction and demolition waste need to be disposed of separately from solid waste. Moreover, Indian households are obligated to pay a user fee for solid waste management as specified in the byelaws of local bodies.
Waste recycling and climate change
According to available information, India generates about 62 million tons of waste each year. Of this volume, 43 million tons (or 70 percent) are collected. Twelve million tons of the collected quantity are treated, and 31 million tons end up in landfill sites, according to the online dictionary Wikipedia. “With changing consumption patterns and rapid economic growth, it is estimated that urban municipal solid waste generation will increase to 165 million tons in 2030.”
Given this dimension regarding waste, with plastic, electronic, and hazardous waste growing rapidly, the Minister for Environment, Forest and Climate Change, Bhupender Yadav, had inaugurated an event organized by the Recycling and Environment Industry Association of India (https://reiaindia.org), on “Waste Recycling & Climate Change 2025” in February this year. On this occasion, the minister indicated that India is shifting from waste management to harnessing the economic potential of recycling through waste-to-wealth initiative. “The circular economy has a major role in the future, including reducing, reusing, and recycling at every stage, from product design to end-of-life management,” he was quoted by the governmental Press Information Bureau (PIB). “Waste should not be treated as a burden but as a resource. Adopting sustainable practices is crucial for achieving economic resilience, environmental sustainability, and social security.”
According to the information, the minister further stated that by the year 2050, India’s circular economy is expected to have a market value of two trillion US-Dollar and create ten million jobs. It would be a huge opportunity for start-ups and new recycled product developers. Furthermore, he urged the recycling industry in the country to develop and adopt newer innovative technologies for reducing dependence on natural resources, as well as cutting down imports of critical minerals needed for economic growth. “Adopting circular economy principles can bring tremendous economic benefits. This shift towards resource efficiency aligns seamlessly with our national vision of Atmanirbhar Bharat, enhancing the competitiveness of Indian industries in global markets”, the PIB cited Bhupender Yadav, who informed that the ministry has been instrumental in formulating policies and regulations, including Extended Producer Responsibility (EPR) frameworks that incentivize recyclers and integrate the informal sector into formal recycling systems. These initiatives would aim to streamline waste management and promote eco-friendly production across industries. The ministry had notified several market-based EPR Regulations, including those on e-waste, end-of-life vehicles, plastic packaging, waste tires, waste batteries, and used oil. “The revenue earned by registered recyclers from the sale of EPR certificates is additional profit earned over and above the profit generated from the sale of recycled product,” he was quoted.
To drive sustainable growth and resource efficiency, he highlighted four key strategies:
- “Redesigning Products for Circularity: Companies must move beyond single-use models and design products for recyclability. The integration of biodegradable, reusable, and modular components will help extend product life cycles and reduce waste.
- Investment in Advanced Recycling Technologies: Adoption of emerging technologies can transform waste management systems, thereby improving recovery rates.
- Strengthening Supply Chain Collaboration: Businesses need to collaborate across the value chain to optimize resource utilization, create closed-loop production systems, and build markets for secondary raw materials.
- Consumer Awareness and Behavioral Change: Circularity requires active consumer participation. Industries must invest in campaigns to engage consumers, incentivize recycling, and promote sustainable consumption behaviors.”
As also reported, Dr. Amandeep Garg, Additional Secretary at the ministry and Chairman of Central Pollution Control Board, expressed his opinion that “there is a huge gap and huge potential to work towards waste recycling system, as the role of recycling industry is important to cut imports of various critical products needed for economic growth”. Corporate houses should lead the transition to a circular economy by incorporating recyclable designs, promoting sustainability in dealership operations, and enhancing consumer awareness.
The Indian investment climate
As described by the Asia Investor Group on Climate Change (AIGCC) in June this year, India’s institutional investors are showing “strong progress in integrating climate into their governance and in engaging corporates on climate risks and opportunities”. They would also increasingly recognize the financial materiality of climate change. Based on a recent analysis of the most significant Indian institutional investors, the new data covers 15 Indian institutional investors with – converted – 1.2 trillion US-Dollar in collective assets under management. The data was an exclusive India-focused extract complementing the sixth edition of AIGCC’s annual ‘The State of Investor Climate Transition in Asia’ (https://aigcc.net/wp-content/uploads/2025/04/AIGCC-Climate-Transition-Report_April2025.pdf), which reviews 230 of the most significant and influential investors across Asia.
According to AIGCC’s research, a growing proportion of India’s investors is on par with the overall Asian investor benchmark. This applies to several aspects of climate governance and climate corporate engagement, such as:
- “Recognition of Climate Risks/Opportunities. This is gradually becoming mainstream investment practice amongst Indian investors as 60% of Indian investors are now recognizing the financial materiality of climate change.
- Investment Policies on Climate Integration. 47% of Indian investors have integrated climate considerations into their investment policies. This is near the overall Asia Investor Average of 66%.
- Board-Level Oversight of Climate Change. 53% of Indian investors are integrating climate into their corporate governance oversight.
- Reporting on Voting Decisions. 50% of Indian investors are reporting on voting decisions (vs Overall Asia Investor Average of 39%).”
AIGCC has also identified key areas for Indian investors to prioritize:
- “Near term climate targets. India’s investors do not yet appear to set near term climate goals (for example, 2030 or 2035 emissions reduction targets). Setting robust interim targets form the basis for investors in order to further develop concrete transition plans and strategies.
- Internal policies on, or approaches to, high-impact areas, including fossil fuels and nature/deforestation. A few of India’s investors appear to have internal climate policies on fossil fuels or other high-emitting sectors but many of them have yet to build this up internally.
- Publication of climate scenario analysis. A few of India’s investors have started to do so but many of them have yet to make disclosing climate scenario analysis results a mainstream practice.
- Transparency and support of climate policies. India’s investors do not yet publicly disclose support or actions relating to climate policy advocacy and related engagements.”
Investment opportunities
“Invest India” (www.investindia.gov.in), the National Investment Promotion and Facilitation Agency of the Government of India, serves as the first point of contact for global and domestic investors. “It provides comprehensive, end-to-end support across all stages of the investment lifecycle – ranging from pre-investment advisory and facilitation to aftercare and expansion support – with a strong emphasis on enabling manufacturing through the Make in India initiative,” one can read on the homepage.
The agency focuses on promoting investments in high-impact sectors such as Electronics & Semiconductors, Renewable Energy, Electric Vehicles, Capital Goods, Textiles, Food & Agriculture, Pharmaceuticals, Chemicals & Critical Minerals, and Infrastructure.
(Published in GLOBAL RECYCLING Magazine 3/2025, Page 3, Photo: MSV, AI-generated)
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