India’s environment regulator, the Central Pollution Control Board (CPCB), under the aegis of the Union Ministry of Environment Forest and Climate Change (MoEF&CC), has warned to impose Environmental Compensation on over 100,000 players across plastic value chain for violating Plastic Waste Management Rule. These players include primary Producers, Importers, and Brand Owners (PIBOs), recyclers, and other players across the plastic value chain, who have failed to file the compliance report and therefore grossly violated the Plastic Waste Management Rule.
In a notification dated November 25, 2024, CPCB found that these players have violated the filing of compliance report with regard to the Extended Producer Responsibility (EPR) and other guidelines by the deadline as set by the regulator. However, over 100,000 companies and individual players have been found to have missed the deadline and failed to file the compliance report as prescribed in the rule.
The CPCB notification further reads, “CPCB has discovered that several units across the industry value chain have failed to file Annual Report fulfilling EPR obligations for the financial year 2023-24. Therefore, they are advised to file the Annual Report mentioning adherence to the EPR guidelines. These units also require to pay annual processing charges. These units were given an opportunity to file the Annual Report by November 30, 2024, failing which Environmental Compensation shall be levied on every unit that fails to file the Annual Compliance Report.”
Mandatory Extended Producer ResponsibilityThe government of India notified guidelines for Extended Producer Responsibility for Plastic Packaging on February 16, 2022. Under the EPR guidelines, the following entities shall register on the Centralised EPR Portal developed by the CPCB, namely (1) Producer, including micro and small enterprises as defined under the Micro, Small and Medium Enterprises, (2) Importer, (3) Brand Owner, (4) Plastic Waste Processor engaged in (a) recycling, (b) waste to energy, (c) waste to oil, (d) co-processing, and (e) industrial composting.
Additionally, manufacturers and importers of plastic raw material, and manufacturers of items made from compostable plastics or biodegradable plastics, were also added to the list from which EPR filing are required. Therefore, the EPR target in metric tonnes category-wise, as applicable, is also required to be provided by all PIBOs as part of the Action Plan on the centralized portal developed by CPCB. These filing needs to be completed by June 30 of the next financial year. CPCB also directed industry players to provide information on the reuse and/or recycled content used for packaging purposes, along with the details of the registered recyclers from whom the recycled plastic.
According to the EPR guidelines, failing to provide the detailed information with Annual Compliance Report may invite penalty in the form of Environmental Compensation based upon polluter pays principle, with respect to non-fulfilment of EPR targets by PIBOs, for the purpose of protecting and improving the quality of environment and preventing controlling and abating environment pollution.
EPR explainedExtended Producers Responsibility fixes the responsibility of Producers, Importers and Brand-Owners to ensure processing of their plastic packaging waste through recycling, re-use or end of life disposal (such as co-processing, waste-to-energy, plastic to-oil, road making, and industrial-composting, among others). In order to streamline the implementation process of EPR, the MoEF&CC notified ‘Guidelines on Extended Producer Responsibility for Plastic Packaging’.
As per these guidelines, PIBOs shall have to register through the online centralized portal developed by the CPCB. Accordingly, this portal has been developed to register PIBOs who are operating in more than two states with CPCB and those operating in one or two states or Union Territories shall be registered with the concerned State Pollution Control Boards (SPCBs). Plastic Waste Processors (PWPs) shall also have to register with the concerned SPCB/ Pollution Control Committee (PCC) in accordance with the provisions on this centralized portal developed by CPCB.
The CPCB portal will help in improving accountability, traceability and transparency of fulfilment of EPR obligations. The portal is planned to have seven modules, which allows registration of PWPs and PIBOs, issue certificates by PWPs & exchange of credits, and allows real-time monitoring of transactions between PIBOs and PWPs. The portal also allows levy of environmental compensation and provides system generated reports and facilitates filing of annual returns for the stakeholders.
Previous show cause noticeCPCB had issued a show cause notice on August 19, 2024 to PIBOs for filing of Annual Return for the financial year 2022-23 before September 1, 2024 or else their Annual Compliance Report shall be auto-filled an actions including Environmental Compensation and increase of EPR target for the financial year 2023-24 by 25 percent as penalty shall be taken against them in line with the provisions.
However, it was observed that the Annual Compliance Report for the financial year 2022-23 was not filed by several companies. Therefore, the EPR target was increased by 25 percent for the financial year 2023-24. Further, CPCB issued a notice on July 1, 2024, wherein the last date of filing the Annual Compliance Report by registered PIBOs for the financial year 2023-24, was extended till September 30, 2024, which was subsequently extended up to November 30, 2024.
Link to the notification - https://eprplastic.cpcb.gov.in/plastic/downloads/SCN_for_AR_filing_FY_23_24.pdf
By Dr. Sajjid Mitha (Founder and CEO)
POLYMERUPDATE / POLYMERUPDATE ACADEMY / RACE CONFERENCES
sajjid.mitha@polymerupdate.com
