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ESG Update – EPR Rules for the scrap of non-ferrous metals

ESG Update – EPR Rules for the scrap of non-ferrous metals

On July 1, 2025, the Ministry of Environment, Forest and Climate Change (MoEFCC) introduced the Hazardous and Other Wastes (Management and Transboundary Movement) Amendment Rules, 2025.  These rules amend the 2016 regulations by adding a new chapter on Extended Producer Responsibility (EPR) for the scrap of non-ferrous metals and are scheduled to come into force on April 1, 2026.

The 2025 amendment rules have introduced the following concepts:

  • Extended Producer Responsibility (EPR): The responsibility of a producer of non-ferrous metal products to meet the recycling targets specified in Schedule XI. 
  • Environmentally Sound Management of Scrap: Taking all necessary steps to ensure that non-ferrous metal scrap is managed in a way that protects public health and the environment from adverse effects throughout its lifecycle. 
  • Orphaned Products: Non-branded products listed in Schedule-X or those produced by a company that has ceased its operations. 
  • Standard Operating Procedure: A document issued by the Central Pollution Control Board (CPCB) detailing the minimum requirements for equipment and processes for environmentally sound management. 
  • Centralised Online Portal: The CPCB shall establish and manage an online portal to oversee the implementation of these rules. This portal will function as a unified data repository for managing and implementing EPR. The portal will be used for registration, filing half-yearly and annual returns, and managing the transaction of EPR certificates. The CPCB may charge registration and annual maintenance fees based on the capacity of non-ferrous metal scrap generated, recycled, refurbished, or handled by the registered entities.

Mandatory Registration:

Under the 2025 amendment rules, the following entities are required to register on the portal:

  1. Manufacturer 
  2. Producer 
  3. Collection agent 
  4. Refurbisher 
  5. Recycler 

Obligations of Producers and Manufacturers:

Producers are required to meet the annual recycling targets for their products as (defined in Schedule-XI). These EPR obligations can be met either through direct recycling or by purchasing EPR certificates from registered recyclers via the portal. Manufacturers must use a minimum percentage of domestically recycled non-ferrous metals in their new products (specified in Schedule-XIII). The CPCB has the authority to grant exemptions in cases where statutory or technical limitations prevent compliance. 

Refurbishing Framework:

The rules permit the refurbishing of certain products made of non-ferrous metals, as listed in Schedule-XII.  Registered refurbishers will generate refurbishing certificates on the portal. Producers can use these certificates to temporarily defer their EPR obligations for a duration determined by the CPCB. Subsequently, 75% of the deferred quantity is added back to the producer’s EPR target upon the expiry of the refurbished product’s extended life.     

Environmental Compensation:

As per Rule 60, the CPCB is empowered to impose environmental compensation (EC) on any registered or unregistered entity that fails to comply with its obligations or furnishes false information, thereby causing damage to the environment or public health. This payment does not absolve the entity from its EPR targets, which are carried forward for up to three years. A refund mechanism is in place for entities that subsequently comply within a specified timeframe.     

Governance and Oversight:

A Steering Committee will be constituted by the Central Government to oversee the implementation of the rules, resolve disputes, update recycling targets, and recommend measures for improving compliance. The committee will be chaired by the Chairperson of the CPCB and will include members from relevant government ministries, industry associations, and state bodies. Responsibilities have been assigned to state and local bodies to ensure effective grassroots-level implementation.  State Governments and Union Territories are tasked with allocating industrial space for recycling facilities, ensuring the registration and skill development of workers, and monitoring their health and safety. Municipalities and Local Bodies must help establish collection points, ensure scrap metal is properly segregated from municipal solid waste, and manage the collection of scrap from orphaned products. State Pollution Control Boards are responsible for coordinating with the CPCB for implementation, monitoring EPR compliance, and conducting random inspections. 

Conclusion:

The 2025 amendment to the Hazardous and Other Wastes Rules marks a significant step towards formalising the recycling ecosystem for non-ferrous metals in India. By introducing mandatory EPR obligations, establishing a centralized digital compliance framework, and integrating refurbishing and environmental compensation mechanisms, the rules aim to ensure environmentally sound management of metal scrap while promoting circular economy principles. The active involvement of producers, recyclers, refurbishers, and government bodies across all levels underscores a co-ordinated approach to resource recovery and sustainability in the non-ferrous metals sector.