India Introduces Groundbreaking Steel Recycling Norms for Automakers
In a landmark move to enhance sustainability in the automobile sector, the Ministry of Environment, Forests and Climate Change has introduced stringent Extended Producer Responsibility norms for Indian automakers. Effective from April 2025, these regulations will require automobile manufacturers to recycle 8% of the steel used in vehicles sold in 2005-06. Over time, this target will gradually rise, reaching 18% by 2035-36, as the focus shifts to vehicles nearing the end of their lifecycle. These measures aim to make the automobile industry more sustainable by addressing the environmental impact of old vehicles and promoting efficient recycling processes.
Key Objectives of the EPR Norms
The new EPR norms are part of the broader Environment Protection (End-of-Life Vehicles) Rules, which mandate automakers to take responsibility for the entire lifecycle of their vehicles, especially after they are decommissioned. The rules outline several key obligations for manufacturers:
1. Safe Collection and Recycling:
Automakers will be required to ensure the safe collection and recycling of vehicles once they reach the end of their useful life. This involves meeting annual recycling targets, starting with 8% in 2025 and increasing gradually over the years.
2. Procurement of EPR Certificates:
Manufacturers must purchase EPR certificates from Registered Vehicle Scrapping Facilities to prove they are meeting their recycling obligations. These certificates are based on the weight of steel recovered from end-of-life vehicles or automobile-related steel scrap processed at the facilities.
3. Promoting Consumer Awareness:
In addition to meeting recycling targets, automakers are required to raise consumer awareness about the importance of vehicle recycling. This can include promoting buyback schemes and other initiatives to encourage vehicle owners to participate in the recycling process.
4. Registration on the Centralised Portal:
All activities related to vehicle collection, scrapping, and recycling must be registered on a centralised portal managed by the Central Pollution Control Board. This portal will track the progress of automakers in meeting their recycling targets and ensure transparency.
Role of RVSFs in the New Framework
To facilitate the implementation of these rules, India currently has 82 Registered Vehicle Scrapping Facilities. These facilities play a crucial role in the recycling process, as they are responsible for dismantling old vehicles and recovering valuable materials like steel. The government plans to expand this network to 100 RVSFs in the coming months, improving the availability of facilities for safe vehicle disposal.
The CPCB will oversee the issuance of EPR certificates through an online portal, allowing automakers to purchase these certificates from RVSFs. The certificates will reflect the amount of steel recovered during the vehicle dismantling process. Automakers will need to procure these certificates to fulfill their recycling obligations, ensuring a formal and efficient recycling process.
Wider Impact on Stakeholders
While automakers are the primary entities responsible for meeting recycling targets, the new rules also apply to other stakeholders in the vehicle ecosystem, including:
• Vehicle Owners:
Owners of end-of-life vehicles will be encouraged to bring their old vehicles to RVSFs for proper disposal and recycling, either through buyback schemes or other initiatives by automakers.
• Bulk Consumers:
Large-scale vehicle operators with over 100 vehicles will also be required to comply with the recycling norms, ensuring that their fleet vehicles are properly recycled once they reach the end of their lifecycle.
• Collection Centres and Automated Testing Centres:
Collection centres, which gather decommissioned vehicles for scrapping, as well as automated testing centres, will play a supporting role in ensuring that vehicles are prepared for recycling in accordance with the new rules.
State Government Role in Setting Up RVSFs
The implementation of these rules is not solely the responsibility of the federal government. State governments, except for smaller northeastern states, are expected to notify their own policies for the establishment of RVSFs within the next two months. This decentralized approach will ensure that vehicle scrapping facilities are accessible nationwide, promoting efficient and widespread vehicle recycling.
A Move Towards a Circular Economy in the Automobile Industry
By mandating the recycling of steel and other materials from end-of-life vehicles, the Indian government is fostering a circular economy in the automobile sector. Automakers will be encouraged to use recycled materials in their production processes, reducing the demand for virgin resources and contributing to a greener, more sustainable industry.
Additionally, the regulations are expected to reduce the environmental impact of vehicle disposal, which has historically contributed to landfill waste and pollution. With a formal framework in place for the safe disposal and recycling of end-of-life vehicles, India is setting a global example of how the automotive sector can be aligned with sustainable development goals.
Future Outlook
As the implementation of the EPR norms begins in April 2025, Indian automakers will face new challenges in ensuring they meet the progressive recycling targets set by the government. However, this move represents a significant shift towards environmental responsibility within the automotive sector. It not only helps India advance its sustainability goals but also lays the foundation for a greener, more circular economy in the automobile industry, where recycling, reuse, and responsible production practices will become the standard.
