Sustainable Solutions: EPR and Plastic Packaging

The Ministry of Environment, Forest and Climate Change (MoEF) notified the Plastic Waste Management Rules, 2016, as amended from time to time (Rules), to ensure scientific management of plastic waste. MoEF in 2022 introduced the detailed framework for implementation of extended producer responsibility (EPR) by companies in India.

1. What is EPR?

EPR means the responsibility of a producer for the environmentally sound management of the product until the end of its life.

2. Who does it apply to?

Producer Person engaged in manufacture of inter alia carry bags; or multi-layered packaging and includes industries or individuals using plastic sheets for wrapping commodities.	Importer Person importing plastic packaging products; or products with plastic packaging or carry bags or multi-layered packaging or plastic sheets. plastic sheets
Brand Owners/Retailers Person/company selling commodities under a registered brand label or trademark. Includes online platform/marketplace; supermarkets	Plastic Waste Processor Recyclers and entities engaged in converting waste into energy/oil; or in industrial compositing.

 

3. What are the categories of plastic waste?

There are five categories of plastic waste and ascending grading of targets for recycling each of these categories

Category 1:	Rigid plastic packaging
Category 2:	Flexible plastic packaging
Category 3:	Multi-layered packaging
Category 4:	Plastic sheet or like used for packaging as well as carry bags and commodities made of compostable plastics
Category 5:	Plastic sheet or like used for packaging as well as carry bags and commodities made of biodegradable plastics

 

4. What are the EPR obligations?

Reuse	Recycling
Use of recycled plastic content	End of life disposal

 

5. What are EPR Targets?

From 2023-24, the EPR target is 100% across all Entities. The EPR targets are mandatory targets on producers, importers and brand owners for reuse of rigid plastic packaging, minimum level of recycling of plastic packaging waste and minimum use of recycled plastic content in plastic packaging.

6. What is EPR Surplus?

If any Entity has exceeded its EPR targets, it can be used for off-setting for previous year’s shortfall, carry forwarded or sold to other Entities. The actual rules of the set -off and sale is granular and would depend on the Category and the type of Entity. This is expected to encourage compliance and improve the financial strength of environmental, social, and governance compliant companies.

7. Major Compliances under the Plastic Waste Management Rules, 2016
   1. Registration: Each Entity has to get registered with CPCB and with various SPCBs depending on the site of the manufacturing units and cannot carry on business without the registration.
   2. Action Plan: Entities (Producer, Brand Owner, Importer) must provide an ‘action plan’ to the CPPCB with targets for each applicable category at the time of application for registration. The Action Plan serves as a detailed description of the collection, recycling, and disposal methods and practices that the applicant will implement to achieve its ‘EPR target’ under Plastic Waste Management.
   3. EPR Target: Compliance is achieved by the Entities (Producer, Brand Owner, Importer) securing sufficient EPR certificates through one or more registered waste processors (i.e. Plastic Waste Processors).
   4. Annual Return: Annual returns have to be made with CPCB or SPCB on the plastic packaging waste collected and processed/recycled, in the prescribed proforma by such government body.

8. What are the Consequences of failure or false reporting?
   1. Suspension/revocation of license: If the reporting to CPCB or SPCB is false, the licenses can be revoked and the Entity cannot run its business.
   2. Environmental compensation: The Rules explicitly state that, based on the principle of ‘polluter pays’, environmental compensation will be levied for non-fulfilment of EPR targets by the relevant Entities. Payment of environmental compensation, however, would not absolve the said Entities of their EPR obligations. The unfulfilled EPR obligations for a particular year shall be carried forward for a period of 3 (three) years. The compensation levied will be returned in the event shortfall is addressed within 3 (three) years.
   3. Penalty under the Environment (Protection) Act, 1986: Any person found responsible for breaching the EPR guidelines shall be penalized under the Environment (Protection) Act, 1986, which stipulates a fine of a minimum amount of INR 10,000 up to INR 15,00,000. Any company found responsible for breaching the EPR guidelines shall be penalized with a fine of a minimum amount of INR 1,00,000 up to INR 15,00,000.
   4. Penalties under the Municipal Laws: Specific penalties, if any, as provided under the municipal laws/local state laws on plastic waste shall be applicable.

HOW MBG CAN HELP

At MBG, we offer a comprehensive program to assist services relating to the EPR, which includes:

1. EPR Advisory

1. Analyzing of Plastic Waste Management Rules, to certain the applicability concerning the business structure and compliance formalities;
2. Analyzing the requirement of statutory compliances with respect to filling of Returns and Reports as applicable;
3. Ascertain the requirement of licenses/permits/certificates required under EPR;
4. Identifying list of documents required for obtaining EPR License/Permits/Certificate.

2. Obtaining the EPR Registration Certificate

1. Preparation of the relevant documents for filing of application of registration certificate for producer, importer and brand owner under the applicable rules;
2. Procurement of registration certificate of producer, importer and brand owner from Central Pollution Control Board.

3. Maintenance of Records

1. Procurement of relevant details regarding the plastic packaging and quantity of plastic packaging materials on quarterly basis;
2. Maintenance of records on database system.

4. Filing of Annual Return

1. Preparation of necessary details for filling the Annual Return to the State Pollution Control Board or Central Pollution Control Board;
2. Online Filing of Annual Return on Central Pollution Control Board Portal.

5. Reply to notices/queries

1. Drafting of reply for notices and query received from the State Pollution Control Board or Central Pollution Control Board;
2. Submission of the Reply to State Pollution Control Board or Central Pollution Control Board.