Context: Producers, Importers, Brand owners (PIBOs) are increasingly purchasing Plastic EPR credit certificates to fulfill their extended producer responsibility (EPR).
Relevance of the Topic: Prelims: About Extended Producer Responsibility, EPR credit certificates.
Government’s EPR mandate
- Producers, Importers, Brand owners (PIBOs) using food-grade plastic packaging are required to ensure that at least 30% of their packaging consists of recycled polyethylene terephthalate (rPET). April 1, 2025 was the deadline for the manufacturers to meet the government’s extended producer responsibility (EPR) mandate.
- However, many producers are still struggling to meet this target due to the limited availability of food-grade rPET in the market. Amid this challenge, Producers, Importers, and Brand Owners (PIBOs) are increasingly turning to plastic EPR credit certificates to fulfill their obligations.
EPR Credit Certificates
- According to the Plastic Waste Management (Amendment) Rules 2022, PIBOs can meet their obligations by purchasing credit certificates from CPCB-registered waste processors, who have recycled or properly disposed of an equivalent quantity of plastic waste.
- EPR Credit Certificates: Proof of recycling or end-of-life disposal of one kilogram of plastic (1 kg of waste plastic constitutes one credit).
- The price range for EPR certificates is determined by the CPCB (Central Pollution Control Board), and the price may vary from state to state.
- Non-tradable: Plastic waste processors generate and provide a GST e-invoice to the buyer. This invoice is then uploaded to the EPR portal (maintained by CPCB) to get the EPR credit certificate. Unlike carbon credits, these EPR certificates are non-tradable (meant only for statutory compliance).
EcoEx Platform: EcoEx is a private platform that acts as a marketplace or intermediary where registered producers and recyclers can connect, negotiate, and execute trades within the regulatory framework set by CPCB. It does not issue or validate EPR certificates on its own.
What is Extended Producer Responsibility?
- Extended Producer Responsibility is a policy approach that holds producers accountable for the environmental impact of their products throughout their entire life cycle, including post-consumption. E-Waste (Management and Handling) Rules, 2011 introduced the concept of EPR for the first time in India, giving boost to the idea of Circular Economy.
- Under EPR, producers, importers, and brand owners are responsible for the collection, recycling, and disposal of their products. It is based on the Polluter Pays Principle.
- Presently, stringent EPR guidelines cover plastic, e-waste, and battery waste. Textiles, steel and paper are next in line. Plastic Waste Management Rules, 2016, introduced EPR for plastic waste management in India.