Waste management needs greater policy focus and investments in India. Governments, both central and states need to incentivize the adoption of good waste disposal and reuse initiatives. Small businesses need greater support.
More than anything, the tax burden on recyclers is a big disincentive. The focus should be on extracting wealth from waste rather than making money from waste management companies. The 18% GST is bad for everyone in the waste ecosystem, including the government. This is a big disincentive for compliance.
Waste management needs to be put on the priority sector list. It has an immense potential to offer jobs.
Mr. Masood Mallick, CEO of ReSustainablity, India’s largest waste management company, shares his recommendation for the upcoming budget.
While a transition to green energy is essential it is not enough. The same strategic focus must be extended to decarbonizing materials, which account for 40-45% of our carbon footprint.
Extended producer responsibility (EPR) programs that go beyond plastics, e-waste and ELVs: This requires producers, across all product categories, to take responsibility for the end-of-life management of their products, including disposal and recycling.
Green procurement policies: Governments and organizations can adopt policies that prioritize and mandate the purchase of products that have recycled content and are produced using circular economy principles.
Recycling funds: This involves the creation of funds to finance waste management and recycling initiatives (funded through environmental taxes or producer fees).
Resource efficiency mandates: Governments can establish mandates that require companies to reduce resource use and waste generation, incentivizing the adoption of circular economy practices.
Performance-based incentives: This involves rewarding companies that adopt circular economy practices, such as reducing waste and increasing resource efficiency. Hopefully, the Green Credit program referred to in the past Union Budget can be aligned along these lines.
Encouraging the use of sustainable and biodegradable materials: This includes policies to promote the use of materials such as recycled construction materials, recycled plastics, and compostable materials, which have a lower carbon footprint compared to traditional materials.
Encouraging innovation in low-carbon materials: Governments, private organizations, and universities should have a funded mandate to invest in research and development of new, low-carbon materials, such as sustainable alternatives to concrete, steel, and plastics.
