Draft Notification for EPR Implementation- Role of Producer (Part-1)

Notifications for Producer of plastic packaging.

The Ministry of Environment, Forest, and Climate Change published a draft EPR notification for Plastic Waste Management on 6th October 2021. This draft is published with the purpose of bringing more clarity to the guidelines under EPR Regulation. In our article series, we’d be covering all the aspects mentioned in the notification and how it’s going to impact on PIBOs and PWPFs.

This article will cover notifications for Producer(P) of plastic packaging as follows:

1. Coverage of EPR- This includes the categories and types of plastic packaging with examples that are eligible for EPR.

The following Categories and Plastic Packaging Items are eligible for EPR

• Category I: Rigid Plastic Packaging like PET bottles, shampoo bottles, etc.
• Category II: Flexible Plastic Packaging like LDPE sheets for industrial use, grocery bags, etc.
• Category III: Multi-Layered Plastic Packaging like packets of chips, biscuits, etc.

2. Targets- There are 4 different types of Target under EPR, they are as follows:

a. Quantity Targets- These targets are meant for the quantity of plastic packaging sold and pre-consumer plastic packaging waste generated.

1. Calculation of Quantity: The following parameters will be considered for the calculation of Quantity

• The average weight of plastic packaging sold in the last two financial years
• The average quantity of pre-consumer plastic packaging waste in the last two financial years
• Quantity supplied to registered Brand Owners

2. Target Quantity: The target quantity can be calculated using this formula, (A+B)-C, where A is the average weight of plastic packaging material (category-wise and state-wise in the last two financial years, B is the average quantity of pre-consumer plastic packaging waste in the last two financial year, C is the annual quantity.

3. Annual Targets: The producers of plastic packaging have to manage the following quantity of waste in the respective financial years.

• FY 21–22: 35% of Target Quantity
• FY 22–23: 70% of Target Quantity
• FY 23–24: 100% of Target Quantity

b. Recycling Targets: Recycling is mandated as a method of scientific disposal of plastic packaging waste and this target will be effective from FY 2023–24 onwards.

c. Targets for Use of Recycled Plastic Content : The document mandates the use of recycled plastic (granules) in plastic packaging for all three categories i.e. Rigids, Flexible, and multi-layered and this target will also be effective from FY 2023–24 onwards.

d. State and Type of Plastic: The targets need to be completed state-wise and category-wise and a deviation of 25% is allowed for State Specific targets but the overall annual target must be achieved.

4. Surplus EPR Credits and offsetting: The producer can use the surplus after completion of the annual targets for covering the shortfalls for the previous year, carry forward for use in upcoming years, or sell it to other PIBOs. This can be done through the online portal of CPCB.

5. Violations and Penalty: Entities that do not meet the annual target, have to pay a fine. The violations and penalties mentioned in the document as are follows:

• Violations include, doing business without registration under PWM Rules 2016, providing false information/willful concealment of material facts and submission of forged/manipulated documents.
• Penalty, CPCB will prepare the guidelines for imposition and collection of environmental compensation.
• Fulfillment of EPR:

-Even after paying the penalty, the producer needs to fulfil the EPR obligation and collect the plastic waste as per the target which was missed.

-If the targets are fulfilled within 1 year, 75% of the penalty will be reimbursed, for 2 years 60% and for 3 years 40%.

6. Other important points- Apart from the above mentioned targets, there are some miscellaneous points mentioned in the document, they are as follows:

1. Compostable plastic packaging is included under EPR.
2. Biodegradable plastic packaging is not included under EPR.
3. For any entity (producer, brand owner) to do business, it is compulsory to register under the Plastic Waste Management Rules.

This is a draft notification, and comments on this can be submitted to satyendra.kumar07@nic.in and amit.love@nic.in before 6th December 2021.

Contributed By- Shailesh Shinde, Director at Social Lab

Social Lab Environmental Solutions is a waste management company, which helps brands take-back and scientifically dispose of post-consumer plastic waste of their products. Brands take our services to fulfill Extended Producer Responsibility (EPR) obligation under Plastic Waste Management Rules, 2018.

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