Sustainable packaging is vital for businesses as it reduces waste and pollution, improves brand reputation, and appeals to eco-conscious consumers. 

However, achieving government-set targets, such as the Extended Producer Responsibility (EPR) recycling goals for plastic packaging, poses significant challenges that need to be addressed.

Meeting targets

The EPR targets set by the Ministry of Environment, Forest and Climate Change (MoEFCC) for 2024 mandate 100% liability coverage for brand owners, producers, and reporters. Moreover, there are explicit rules, guidelines, and provisions in the Plastic Waste Management Rules of 2023 that hold companies responsible for EPR. Not adhering to these may result in penalties or sanctions or even the suspension of business operations in the Indian market imposed by the Central Pollution Control Board (CPCB). It is a matter of statutory compliance, and those who engage in EPR or establish a system to do so are obligated to comply, says Ashish Jain, Founder, Indian Pollution Control Association (IPCA). The CPCB is the regulatory body in India responsible for enforcing environmental protection laws, including those related to plastic waste management under the Environment Protection Act. 

Enhancing collection, recycling, and use of recycled content, is critical for packaging companies and consumer brands, to comply with EPR regulations. 

Landbell GreenForest Solutions assists brand owners in achieving EPR targets by fulfilling assigned goals through their network of recyclers. Saurabh Shah, the company’s Managing Director, elaborates on three key aspects. Firstly, EPR targets, split between collection and recycling, are outlined in regulations. Secondly, there is a minimum level of recycling. Thirdly, there is the use of recycled content. Shah emphasises, “The use of recycled content will become mandatory in FY25-26, requiring brands to comply by April 2026. For recycling, brands can obtain credits from recyclers or end-of-life treatment processors like cement plants. Currently, for the year 23-24, 100 % credits can be obtained from end-of-life processing.” He also highlighted challenges with multilayer and flexible plastics.

Envofix International Pvt Ltd and Cleanytic India Pvt Ltd specialise in waste management solutions. Highlighting the company’s role in EPR targets, its Founder Kamran Ahmed says, “We assist industry players, particularly smaller and medium-sized entities, in navigating regulatory complexities. Many such players struggle due to frequent legislative amendments and limited resources. Our expertise in legislation interpretation and execution enables us to offer consultancy services, guiding these brands through compliance processes.” Additionally, the companies also serve as collection partners, facilitating the transportation of materials to various plastic waste processors. In India, these processors can recycle the waste or utilise it as an alternative fuel in waste-to-energy plants or cement kilns. 

Challenges involved

India consumes approximately 150,000 to 200,000 MT of flexible packaging material monthly. However, the collection of post-consumer flexible packaging material is merely around 10,000 MT or less, which accounts for less than 5%of the total consumption. 

“The primary reason behind this disparity is the dependency on an unorganised sector, comprising rag pickers, to collect plastic waste from either the littered environment or landfills,” says Jeevaraj Gopal Pillai, Whole Time Director, Director - Sustainability, President - Flexible Packaging Business & New Product Development, Uflex. 

The flexible packaging materials and solutions company had established recycling processes for all its generated waste even before EPR rules came into effect. “Currently, we utilise 90% recycled content in our polyester products and are gradually introducing it into our polyethylene (PE), and cast polypropylene (CPP) products,” says Pillai. “The only material we have not incorporated recycled content into yet is BOPP, but we are actively working on it. We collaborate with the Food Safety and Standards Authority of India (FSSAI) to gain approval for using recycled content in food packaging. Regarding collection, although producers primarily deal with pre-consumer waste, we also assist brand owners by recycling post-consumer waste through local Material Recovery Facilities (MRFs).” The company has local tie-up with MRFs. 

Recently, Uflex also enhanced its project PlastiFix, where a plastic bottle dispensing machine has been installed to dispense used plastic bottles made of PET, and arrangements have been made for the collected bottles to return to its recycling plant for recycling. This will assist its customers, particularly brand owners, in fulfilling their EPR obligations based on collection. 

He adds, “To address this volume effectively, an automated system is required for segregating and sorting municipal solid waste (MSW) using advanced technologies, including AI. This system would separate plastics from organics and other recyclables, enabling the collected plastics to be sent to recycling facilities. However, this solution is currently not prevalent in our country.” 

The latest edition of EPR, declared on March 14, 2024, acknowledges this challenge. It has urged urban land bodies (ULBs) to develop methodologies for automatically sorting and segregating plastic waste from MSW. Pillai adds, “Until this is effectively done, we will continue to rely on conventional methods, and meeting EPR compliances and targets will remain challenging.”

Meeting EPR targets is not challenging for packaging companies since they typically outsource collection and recycling activities to agencies like IPCA, says Jain. However, challenges primarily revolve around additional costs incurred for compliance, as brands must allocate separate budgets for EPR. “Another challenge is the issue of trust; brands must trust that the EPR credits they receive are valid, despite not physically witnessing the material movement. Moreover, regulatory uncertainties, frequent policy changes, and the burden of sharing confidential data with government authorities pose significant challenges. Also, recent directives requiring an increase in the percentage of plastic packaging reuse and the incorporation of minimum recycling content further complicate compliance efforts.”

Shah adds to the challenges: “Currently, the entire EPR credits system is halted due to issues with the CPCB portal.” Despite registering over 40,000 brand owners, importers, producers, and 8,000 to 10,000 recyclers, the portal was hacked due to security reasons. Notably, major brand owners such as Pepsi, Coca-Cola, Unilever, Procter and Gamble, and Bisleri face significant hurdles. Shah highlights their struggle with the dysfunctional CPCB portal and the difficulty in distinguishing genuine credits from spurious ones. Additionally, the absence of a pricing benchmark poses challenges too. He mentions, “CPCB has suggested a benchmark of a minimum of Rs 1.5 per kilo and a maximum of Rs 5 per kilo. But that is still not established in a system.” However, for Shah, the most significant challenge lies in meeting EPR compliance due to the prolonged non-functionality of the CPCB portal.

Regulatory requirements

Although some brands are exploring alternative packaging options, these efforts are still limited in scope. While regulations mandating the use of recycled content in packaging are a positive step, Ahmed believes that minimising waste should be the top priority. Plus, sustainable solutions require a fundamental shift towards reducing plastic consumption, which regulatory frameworks should prioritise.

When EPR was introduced initially, in 2016, it lacked clarity on implementation procedures. The government had only mandated brand owners, producers, and importers to establish collection mechanisms for processing plastic packaging. Jain explains that their organisation (IPCA), with expertise dating back to 2001 in waste management, proposed action plans to facilitate compliance. Collaborating with multinational companies like Perfetti, Pepsi, DS, Dabur, and Nestle, they devised strategies to meet EPR obligations, including collecting post-consumer plastic packaging for recycling. The CPCB approved the proposal, and now IPCA collaborates with 200+ brands, establishing supply chains, engaging with waste workers, scrap dealers, and building recycling networks to meet EPR targets.

Recycling infrastructure

While some companies or consortia have indeed invested in recycling infrastructure, it is not a prevalent model in India, says Jain, adding, “Most companies prefer to subcontract their EPR obligations to specialised agencies like IPCA.” This preference stems not from cost concerns but from a lack of expertise and a desire for a simpler compliance process. The reluctance is because recycling infrastructure falls outside the core expertise of many brands. Additionally, investing in such infrastructure may expose brands to liabilities.

Ahmed acknowledges the need for significant planning and investment in establishing recycling infrastructure, a less common practice. He recommends, “Companies must collaborate with ULBs to enhance waste segregation,” emphasising its importance as a crucial initial step towards effective recycling infrastructure.

All of Uflex’s plants currently recycle pre-consumer waste, and some, such as those in India, Poland, Mexico, and Egypt, also recycle post-consumer waste. “Our aim has always been to recycle both pre- and post-consumer waste, thereby contributing to community recycling efforts,” says Pillai. “In India, we currently operate around 14 recycling plants, each with a cumulative annual capacity of 20,000 metric tonne.” Regarding nationwide recycling infrastructure, he adds, “We do not require extensive investments. Assuming a recycling plant can handle 100 MT per month, we would need only 2,500 to 3,000 recycling plants, which is feasible for a country like India.” However, he points out, “Without a proper waste collection infrastructure, the recycling infrastructure would remain underutilised.” 

Key strategies to meet 2024 EPR targets

All brands, irrespective of their size, must actively engage in meeting EPR targets. Additionally, here are the strategies compiled from industry viewpoints.

• Invest in recycling infrastructure to address potential shortages of EPR credits in the future and foster transparency within the system.
• Start the EPR compliance process early in the year rather than waiting until later quarters to secure credits.
• Begin trials for incorporating recycled content into packaging materials, especially for non-food-grade applications, to meet compliance by 2026.
• Prioritise improving waste collection mechanisms for plastic waste.
• Emphasise recycling over other disposal methods to minimise residual waste.
• Accurately assess the costs associated with EPR compliance when engaging waste management agencies to avoid superficial compliance without addressing the root causes of plastic pollution. 

Action Plan: Collection Mechanisms for processing plastic packaging

• Source: Indian Pollution Control Association