Recourse to the Circular Economy: The Path Ahead

Abstract

Advancements in science and technology have raised our understanding regarding the levels and types of unsustainability to a greater degree. The world is facing formidable challenges in laying down a path towards a sustainable economy. Undoubtedly, several supply-side factors are crucial in sustainability discourse. However, the demand-side factors have a critical role to play in determining—how long-term sustainability would unfold? Globally, the concept of the circular economy (CE) is being advocated as an effective means of ensuring sustainable consumption and production patterns in the times ahead. In this backdrop, this chapter provides a review of the conceptual foundations of the CE as was first proposed by Pearce and Turner, and analyses the scope and methodological framework of CE in terms of its inter-linkages with other fields such as industrial ecology and ecological economics. It further provides an overview of the recent initiatives of the Government of India towards the adoption of CE. Finally, it puts forth an economic perspective towards CE and highlights some potential hindrances in its mainstreaming from the economic methodology point of view in the realm of the neoclassical economic paradigm. It concludes that there is an urgent need to move beyond the techno-centric and business-oriented understanding of CE to a framework that attempts to integrate with the socio-economic realities and development priorities of the developing economies.

Appendix I: RE Framework in India

The key thrust areas and the set of initiatives that are considered crucial for promoting RE in India are as follows:

I. Policies

•Formulate a national policy on RE for all types of resources (biotic and abiotic) addressing various life cycle stages and key stakeholders • Formulate a national policy on Sustainable Public Procurement (SPP) to minimise consumption of resources, reduce waste generation and GHG emissions, as well as contribute to innovation in materials and technology in the space of RE • Strengthen existing sectoral policies and programmes of Ministry of Mines by incorporating RE principles • Formulate a national policy for end-of-life-vehicles (ELVs) • Formulate a Waste to Resource Management Directive based on existing waste and hazardous substance management rules/regulations following a life cycle approach targeting relevant stakeholders and focussing on RE

II. Programmes and Mainstreaming

• Mainstream RE initiatives by leveraging existing flagship programmes and schemes like Swachh Bharat Abhiyan, Smart Cities, Make in India, Startup India, Digital India and others • Industry may leverage Corporate Social Responsibility (CSR), Corporate Environmental Responsibility (CER) and Extended Producer Responsibility (EPR) for RE initiatives • Build on the National Chemical Management Plan being drafted by Ministry of Environment, Forest and Climate Change (MoEF&CC) to develop a strategy, framework and guidelines for the safe and circular management of chemicals • Leverage the national clean energy and environment fund to finance infrastructure, clean technologies and related RE initiatives

III. Regulations

• Establish a national coordinating body—Bureau of Resource Efficiency (BRE) between various ministries to identify, implement and achieve national RE goals • Establish state-level coordinating bodies to identify, implement and achieve state-level RE goals • Large and resource-intensive industries and bulk waste generation may be mandated to file the Resource Use and Efficiency Statement • Establish and mandate a “Consent to Close” requirement for medium and large industries in the “RED” category to ensure that waste streams are responsibly managed and recycled before closure •Rationalise tax regime on critical virgin raw materials to make secondary raw material price competitive

IV. Setting up a Dynamic Recycling Industry

• Promote the establishment of Material Recovery Facilities (MRFs) with the allocation of land in urban areas and industrial estates • Facilitate urban local bodies (ULBs) to undertake urban mining and create secure landfills. •Facilitate the establishment of Producer Responsibility Organisation (PRO) for waste recycling and for engagement with the informal sector • Facilitate innovation to enhance resource recovery and improve working conditions by integrating the informal sector into the waste value chain • Establish a remanufacturing council or association to catalyse the growth of the remanufacturing industry • Establish and manage platforms for waste exchange by expanding the SBM portal

V. R&D and Technology Development

• Support R&D to develop scalable technologies for RE • Create and manage knowledge platforms that facilitate open innovation, provide access to experts and engage academia to support the transition towards RE • Leverage technologies like artificial intelligence (AI), robotics, block chain, etc., for the recycling industry

VI. Capacity Development, Outreach and Monitoring

• Facilitate creation of accredited laboratories that could conduct testing (especially for recycled products) as well as provide advisory services • Provide capacity development support on RE for ministries/departments at the national and state levels • Develop and promote programmes and certifications for informal sector skill development in RE • Develop and launch citizen awareness programmes on RE • Foster intergovernmental collaboration and knowledge exchange with the G20, RE dialogue and other bodies like International Resource Panel and other national and international forums • Develop monitoring and outcome indicators for tracking progress on RE • Establish and mandate the certification for operators managing waste-to-resource recycling centres to ensure safe, efficient and net positive operations

1. Source GOI, 2019