Offset your company’s plastic footprint sustainably by fulfilling EPR Post Compliances.

EPR Post Compliance - Regarding Plastic Credits & Recycler Agreement - Overview

It is not a secret that plastic waste is a prominent factor that is damaging the environment and thereby increasing pollution. Additionally, plastic waste is hazardous to human health and also to wildlife. So, if plastic scrap is not adequately managed, producing new plastic products will be merely a waste of resources. There needs to be more action from businesses on plastic waste, despite schemes like the Polluter Pays' Principle - a widely accepted concept recommending that waste producers must bear the costs of alleviating it. This is where plastic EPR post-compliance comes into the picture. The process promotes plastic recycling as an effective solution to waste management.

For the unversed, plastic waste recycling is collecting and converting such scrap into reusable products. Nowadays, almost all products comprise plastic involved in it. Thus, plastic recycling guarantees that plastic is not getting wasted. Instead, it is recycled into plastic granules, which are further transformed into new products. To encourage this concept, Plastic Waste Management Rules were framed that clearly state the roles and responsibilities of PIBOs. The rules additionally offer the centre stage to PWPs, including plastic recyclers helping PIBOs meet their EPR post compliances. Here are the details of the same.

Note - Rule 4 of these norms does not apply to the export-oriented units (EOU) or units in special economic zones (SEZ), notified by the Central Government, manufacturing their products against an order for export: Given that this exemption does not apply to units involved in the packaging of tobacco, gutkha and pan masala and also to any rejects or surplus, leftover products and the like.

Plastic Waste Management Rules, 2016

The Plastic Waste Management Rules, 2016, mandate that plastic waste generators take measures to reduce the generation of such scrap, ensure segregated waste storage at the source, not to litter the plastic waste and hand over segregated waste as per the norms. The PWM Rules, 2016 cast Extended Producer Responsibility (EPR) on Producer, Importer, and Brand Owner (PIBO).

The following entities are covered under the EPR obligations and provisions of the norms, namely: -

An exporter is any person or occupier under the jurisdiction of the exporting nation which exports waste, including the country which exports plastic waste;

• (i) Producer (P) of plastic packaging;
• (ii) Importer (I) of all imported plastic packaging and/or plastic packaging of imported products;
• (iii) Brand Owners (BO) such as online platforms/marketplaces and supermarkets/retail chains except those which are micro & small enterprises according to the criteria of Ministry of Micro, Small & Medium Enterprises (MSME), (GOI) Government of India; and
• (iv) Plastic Waste Processors

Fulfilment of EPR Obligations (Plastic EPR post compliance)

According to the Plastic Waste Management Rules, 2022, the PIBOs must furnish the details of recycling certificates only from registered recyclers and the quantity sent for end-of-life disposal by 30th June of the subsequent financial year while submitting annual returns on the online portal. The online portal cross-checks the information furnished by PIBOs and registered PWPs. In case of difference, the lower figure is considered towards the fulfilment of the EPR obligation of PIBOs. The certificates are subject to verification by PCC/SPCB/CPCB, as the case may be.

Liability of PWP or plastic waste recycler in helping PIBOs fulfil their plastic EPR post compliance

(1) The total quantity of plastic waste processed by PWPs and attributed to PIBOs, annually must be made available on the centralised portal created by CPCB and also on the website of PWPs.

(2) Only registered plastic waste recyclers under PWM Rules, 2016, as amended, must offer plastic waste processing certificates, except in case of the use of plastic waste in road construction. If plastic scrap is used in road construction, the PIBOs must furnish a self-declaration certificate in pro forma created by CPCB. The certificate given by only registered plastic waste recyclers is considered to fulfil EPR post compliance by PIBOs.

(3) Plastic waste Recyclers under the category of PWP must fill out forms 3, 6 and 10 to help PIBOs fulfil their post-EPR compliance.

(4) The pro forma for the certificate is created by CPCB. In no situation the amount of plastic packaging waste recycled by the entity must be more than its installed capacity. The certificates must be for plastic packaging category-wise and include the entity's GST information.

(5) The certificate for plastic packaging waste offered by registered PWPs must be in the name of registered PIBOs or Local authorities, as applicable, depending upon agreed modalities. CPCB must come up with a mechanism for the issuance of such certificates on the centralised portal.

The Objectives of Extended Producer Responsibility

The Plastic Waste Management Rules 2016 need waste generators to dispose of or recycle post-consumer plastic waste sustainably. Extended Producer Responsibility (EPR) is a business & environmental strategy for handling a product's lifespan. EPR Authorisation is the term used to describe the producer's responsibility for controlling product disposal after consumers have declared them to be useless. A producer's obligation is to make it simpler for end-of-life, post-consumer waste to be recycled and collected. The aim is to frame a system that manages waste collection, sorting, and transportation to a disposal site. Because of their low cost & high quality, these materials can also be utilised in cement kilns, pyrolysis, road construction, and recycling facilities. End-of-life garbage generated by waste generators, like brand owners & producers, must be collected. Brands are financially inspired by this to compete with markets for the buyback, reuse and recycling of materials. Entities might also assign a third party to complete this duty.

Coverage of Extended Producer Responsibility

The following plastic packaging categories are covered under Extended Producer Responsibility:

(i) Category I - Rigid plastic packaging;

(ii) Category II - Flexible plastic packaging of a multi or single layer (more than one layer with different plastic types), plastic sheets or like and covers made of plastic sheet, carry bags, plastic sachet or pouches;

(iii) Category III - Multi-layered plastic packaging (at least one layer of plastic & at least one layer of material other than plastic);

(iv) Category IV - Plastic sheet or like used for packaging and carry bags made of compostable plastics.

EPR Post Compliance – Plastic Waste

EPR post-compliance for plastic waste in India is a set of norms and procedures that entities must follow. These compliance ensure that entities are meeting their responsibilities for managing plastic waste. This involves setting up recycling infrastructure, collection systems, and waste management plans to guarantee the proper disposal and plastic waste recycling. After obtaining EPR authorisation for plastic waste management, PIBOs must fulfil their post-compliance obligations, including implementing a grievance redressal mechanism for stakeholders, filing annual reports on their PWM activities and fulfilling other requirements. Failing to adhere to these norms can result in legal action, penalties, or environmental compensation. However, by following the PWM rules and fulfilling plastic EPR post-compliances, PIBOs, with the help of plastic waste recyclers, can promote a more responsible and sustainable way to PWM, thereby lowering the adverse environmental effect and improving the brand image in addition to the reputation.

Advantages of EPR Post Compliance – Plastic Waste

The benefits of fulfilling plastic EPR post-compliance obligations and getting plastic credits are as follows -

• PIBOs can help lower the negative environmental impact of plastic waste. This involves reducing the amount of plastic waste that ends up in oceans, landfills and other natural areas.
• Implementing responsible and sustainable practices for PWM can enhance the brand image.
• Effective PWM by fulfilling EPR post compliance can result in cost savings, including reduced waste disposal fees and the ability to generate revenue from the sale of recycled plastic materials.
• By adhering to the EPR post-compliance regulations, PIBOs can avoid legal action and penalties.

Registration Process for plastic EPR post compliance

Step 1 - Register as a Plastic Waste Recycler under the PWP category at SPCB/CPCB online portal.

Step 2 - Submit relevant documents given below, including agreements, action plans, certificates, licenses and other documents like -

• Copy of GST certification stating the address of the entity's site
• Waste audit reports
• Legit address of the proof producers/importer
• Copy of business certification granted by DGFT, DIC or Local Body
• Copy of BIS registration number or ISI mark, if applicable
• Information related to the Reduction of Hazardous Substances (RoHS) compliance
• Extensive EPR plan including details pertaining to channelisation of plastic waste, collection methods, website information, etc.
• Items information like the batch number and model number
• Information of goods placed in the market (in chronological orders reflecting quantity, number, weight, etc. ) during the last ten years
• Details of upcoming awareness programs
• Annual reports on plastic waste management
• Legal consent granted by the concerned ministry/department for selling their product
• Declaration related to the management of technical documents on RoHS
• Copies of recycler agreement (format given in Annexure IV of SOPs for PIBOs Registration under PWM Rules, 2016 and amendments made thereof)
• Copies of agreements with collection centres and dealers and
• Copy of agreement with TSDF
• Copy of agreement with PRO (if applicable)
• Recycling and disposal facility agreements
• Proof of registration with relevant regulatory authorities
• Proof of payment of fees or charges
• Any other documents needed by the regulatory authority

Step 3 - Involve an authorised PWM agency to collect the agreed volume of post-consumer plastic waste within a year from the intended site.

Step 4 - the PWM agency disposes of or recycles the waste securely as per SPCB/CPCB norms.

Step 5 - Authorised Plastic Waste Recycler under the PWP category must upload all the collected data on the CPCB's online portal.

Step 6 - PWPs can now obtain the plastic credits.

Step 7 - PWPs can now issue these plastic credits to the registered PIBOs for fulfilling Plastic EPR post compliances.

Submission of Half-Yearly Progress Reports by PIBO

i. The PIBO must submit half-yearly progress reports associated with PWM for each UT/state in their EPR Action Plan to related SPCB/PCC.

ii. PIBO has to represent that quantity and type of plastic waste as per the EPR target has been processed. Also, it is mandatory to file documentary evidence such as a copy of plastic credit or recycler agreement from respective processing facilities. The PIBO must further file supporting documents as evidence of state-wise waste collection as per the EPR target.

iii The half-yearly progress reports must be submitted within fifteen days of completion of the corresponding half-year term as per the information required.

EPR Targets and PIBOs obligations

(1) The EPR targets for PIBO are determined category-wise as given below -

Producer (P):

(a) EPR target

Q1 = Eligible Quantity in MT

A = The average weight of plastic packaging material (category-wise) sold in the last two financial years

B = The average quantity of pre-consumer plastic packaging waste in the last two financial years

C = The annual quantity given to the entities included in sub-clause 4 (iii) in the previous financial year as under: -

Q 1 (in MT) = (A + B) - C

The EPR target is determined category-wise, as given below

Extended Producer Responsibility target

	Year	Extended Producer Responsibility target (as a percentage of Q1 - category-wise)
1.	2021 - 22	25%
2.	2022 - 23	70%
3.	2023 - 24	100%

The EPR target in MT category-wise, as applicable, is provided by the producer as part of the Action Plan on the centralised portal created by CPCB

(b) Obligation for recycling

The producer must ensure a minimum level of recycling (excluding end-of-life disposal) of plastic packaging waste collected under EPR Target, category-wise, as given below, namely: - The minimum level of recycling (except the end-of-life disposal) of plastic packaging waste (% of EPR Target)

Plastic packaging category	2024-25	2025-26	2026-27	2027-28 and onwards
Category I	50	60	70	80
Category II	30	40	50	60
Category III	30	40	50	60
Category IV	50	60	70	80

In the case of Category IV - plastic packaging category, the minimum level of recycling implies processing plastic packaging waste (ppw) for composting via industrial composting facilities.

(c) End-of-life disposal

(i) Only those plastics which can't be recycled are to be sent for end-of-life disposal, like waste to energy, road construction, waste to oil, cement kilns (for co-processing), etc., according to the relevant guidelines issued by CPCB or Indian Road Congress from time to time.

(ii) The producers must guarantee the end-of-life disposal of the ppw only via methodologies mentioned in Rule 5 (1) (b) of PWM Rules, 2016,

(d) Obligation for the use of recycled plastic content

The producer must guarantee the use of recycled plastic in plastic packaging category-wise, as stated below -

Compulsory use of recycled plastic in plastic packaging (% of plastic manufactured for the year)

Plastic packaging category	2025-26	2026-27	2027-28	2028-29 and onwards
Category I	30	40	50	60
Category II	10	10	20	20
Category III	5	5	10	10

If it isn't possible to meet the obligation regarding recycled plastic content on account of statutory needs, CPCB grants an exemption on a case-to-case basis. However, in such cases, the PIBOs must fulfil their obligations to use recycled content (quantitatively) by purchasing a certificate of equivalent quantity from such PIBOs who have used recycled content more than their obligation. CPCB develops a mechanism for such exchange on the centralised online portal.

Importer (I):

(a) Extended Producer Responsibility Target:

Q2 = Eligible Quantity in MT

A = the avg weight of all plastic packaging material & plastic packaging of imported products (category-wise) sold and imported in the last two financial years

B = average quantity of pre-consumer plastic packaging in the last two financial years

C = the annual quantity supplied to the entities included in sub-clause 4 (iii) in the previous financial years as follows: -

Q2 (in MT) = (A + B) - C

The EPR target is determined, category-wise, as given below, namely: -

	Year	Extended Producer Responsibility target (as a percentage of Q 2 - category-wise)
I	2021 - 22	25%
II	2022 - 23	70%
III	2023 - 24	100%

The EPR target in MT category-wise, as applicable, must be furnished by the importer as part of the Action Plan on the centralised portal developed by CPCB.

(b) Obligation for recycling

The importer must ensure a minimum level of recycling (excluding end-of-life disposal) of plastic packaging waste collected under EPR Target, as follows -

Plastic packaging category	2024-25	2025-26	2026-27	2027-28 and onwards
Category I	50	60	70	80
Category II	30	40	50	60
Category III	30	40	50	60
Category IV	50	60	70	80

(c) End-of-life disposal

(i) Only those plastics which can't be recycled are to be sent for end-of-life disposal, like waste to energy, road construction, waste to oil, cement kilns (for co-processing), etc., according to the relevant guidelines issued by CPCB or Indian Road Congress from time to time.

(ii) The producers must guarantee the end-of-life disposal of the ppw only via methodologies mentioned in Rule 5 (1) (b) of PWM Rules, 2016,

(d) Obligation for the use of recycled plastic content

The importer must guarantee the use of recycled plastic in plastic packaging category-wise, as given below.

Compulsory use of recycled plastic in plastic packaging (% of imported plastic for the year)

Plastic packaging category	2025-26	2026-27	2027-28	2028-29 and onwards
Category I	30	40	50	60
Category II	10	10	20	20
Category III	5	5	10	10

Any recycled plastic used in imported material must not be counted towards fulfilling an obligation. The importer has to fulfil its obligation of using recycled content (quantitatively) via buying certificates of equivalent quantity from PIBOs who have used recycled content more than their obligation. CPCB may create a mechanism for such exchange on the centralised online portal.

Brand Owner (BO):

(a) Extended Producer Responsibility target:

Q3 = Eligible Quantity in MT

A = the average weight of virgin plastic packaging material (category-wise) bought and introduced in the market in the last two financial years.

B = average quantity of pre-consumer plastic packaging in the last two financial years as given below -

Q3 (in MT) = A + B

The EPR target shall be determined, category-wise, as follows: -

	Year	Extended Producer Responsibility target (as a percentage of Q3 - category-wise)
I	2021 - 22	25%
II	2022 - 23	70%
III	2023 - 24	100%

(b) Obligation for reuse

(I) The BO using Category I (rigid) plastic packaging for their items must have a minimum obligation to reuse such packaging as follows: -

Given that the reuse of Category I rigid plastic packaging in food contact applications must be subject to the regulation of FSSAI.

(II) Minimum obligation to reuse for Category I (rigid plastic packaging)

	Year	Target (as a % of Category I rigid plastic packaging in products sold per year)
A	Category I rigid plastic packaging with weight or volume equal to or more than 0.9 litres or kg but less than 4.9 kg or litres, as the case may be
I	2025 – 26	10
II	2026 – 27	15
III	2027-28	20
IV	2028-29 and onwards	25
B	Category I rigid plastic packaging with a volume of weight equal or more than 4.9 litres or kg
I	2025 – 26	70
II	2026 – 27	75
III	2027-28	80
IV	2028-29  and onwards	85

(III) The quantity of reused rigid packaging by BO must be calculated by subtracting virgin plastic packaging imported/manufactured/purchased in that year from the sales of the BO. The BO must provide this information on the CPCB’s centralised portal.

(IV) The quantity of categoryCategory I rigid plastic packaging reused must be subtracted from the total plastic packaging used under Category I by the obligated BOs.

(V) The quantity of Category I rigid plastic packaging reused during 2022 – 2023 and 2023-2024 must be subtracted from the total plastic packaging used under Category I.

(c) Obligation for recycling

The BO must guarantee a minimum level of recycling (except the end-of-life disposal) of plastic packaging waste collected under the EPR target, category-wise, as given below. The minimum level of recycling (excluding end-of-life disposal) of plastic packaging waste (% of Extended Producer Responsibility Target)

Plastic packaging category	2024-25	2025-26	2026-27	2027-28 and onwards
Category I	50	60	70	80
Category II	30	40	50	60
Category III	30	40	50	60
Category IV	50	60	70	80

In the case of the Category IV plastic packaging category (carry bags made of compostable plastics and plastic sheets or like used for packaging), the minimum level of recycling implies the processing of plastic packaging waste for composting via industrial composting facilities.

(d) End-of-life disposal

(i) Only those plastics which can't be recycled are to be sent for end-of-life disposal, like waste to energy, road construction, waste to oil, cement kilns (for co-processing), etc., according to the relevant guidelines issued by CPCB or Indian Road Congress from time to time.

(ii) The producers must guarantee the end-of-life disposal of the ppw only via methodologies mentioned in Rule 5 (1) (b) of PWM Rules, 2016,

(e) Obligation for the use of recycled plastic content

(i) The BO must guarantee the usage of recycled plastic in plastic packaging, category-wise, as below

Compulsory use of recycled plastic in plastic packaging

Plastic packaging category	2025-26	2026-27	2027-28	2028-29 and onwards
Category I	30	40	50	60
Category II	10	10	20	20
Category III	5	5	10	10

Frequently Asked Questions

• 1. What is post-consumer plastic packaging waste?

  Post-consumer plastic packaging waste (ppw) is ppw produced by the end-use consumer post the intended use of packaging is finished and is no longer being used for its intended purpose.

• 2. What are plastic credits?

  Plastic credits are tradable credits that can be sold and purchased by PIBOs to phase out their plastic waste. The concept is to offer a financial incentive for entities to lower their plastic usage and increase the use of more sustainable alternatives.

• 3. What are the benefits of plastic credits?

  Plastic credits offer various benefits such as -

  • 1. Plastic credits can be used to incentivise the reduction of adverse impacts of plastic scrap.
  • 2. These credits can be used to manage the demand and supply of plastic by setting limits on the amount that can be utilised and generated.
  • 3. Plastic credits can be sold, generating revenue for governments or other entities. This revenue can fund initiatives or schemes related to plastic reduction or other environmental goals.
  • 4. These credits can incentivise the development of new practices and technologies that can lower the use of plastic or mitigate its environmental impacts.
• 4. How does plastic credit work?

  Plastic credits are a market-based concept to lower plastic waste. Here’s how they work:

  • PWPs such as waste recyclers that can lower their plastic use or find alternatives to dispose of or recycle plastic in an environmentally sustainable manner can earn plastic credits.
  • These plastic credits can then be sold to PIBOs who are unable to reduce their plastic use or are struggling to meet plastic reduction targets.
  • These credits are traded on a plastic credit exchange, just like carbon credits are sold on a carbon exchange. The price of plastic credits is determined by demand and supply, with the cost generally increasing as the availability of credits reduces.
  • Plastic credits aim to decrease the overall amount of produced plastic waste, encourage the development of more sustainable alternatives to plastic, and incentivise entities to reduce their plastic use.
• 5. How many types of Plastic Credits are available?

  Two types of Plastic Credits are issued - Waste Recycling Credits (WRCs) and Waste Collection Credits (WCCs).

• 6. What happens when a plastic credit is purchased?

  Plastic credits are fungible and transferable credits. These play a role similar to carbon credits. When you purchase a plastic credit, efforts are diverted to entities that help to fulfil the EPR post compliances. These efforts involve recycling, collecting and re-purposing plastic waste to prevent it from landing in the ocean, landfills and other natural habitats. Ultimately, the goal of plastic credits is to balance all the plastic that's being discarded into undesirable locations and offer more sustainable solutions.

• 7. What are the steps involved in the Plastic Waste Recycling Process?

  The basic Plastic Waste Recycling Process proceed as follows -

  • 1. Plastic Waste Collection: Plastic waste is collected from various locations with the help of several schemes such as door-to-door collection, buyback scheme, DRS, collection by PROs, local dabbawalas, etc.
  • 2. Segregation: Upon collection of the plastic waste, it is sent to the segregation facility. Here the plastic waste is segregated according to its type and category in which it falls.
  • 3. Shredding: Shredding covers the segregated plastic waste into flakes.
  • 4. Washing: The plastic waste is sent for washing to remove any unwanted impurities.
  • 5. Melting: The plastic waste is heated to the melting point to be further transformed into granules.
  • 6. Recycled Products: The granules are used for manufacturing and creating eco-friendly recycled plastic products.