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Circular Economy

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India’s Pace Toward Circular Economy

Sonal Desai


India is marching toward being a circular economy.

India’s growth rate over the past few quarters has been roughly 7.4%. The country registered *7.6% growth in H12024 (Q1 7.8% and Q2 7.6% respectively). The RBI in the bi-monthly policy has revised the current FY growth to 7% from the earliest forecast.

Thanks to favorable economic policies, and a conducive environment, the country is today the fifth-largest economy in the world.

India demonstrated resilience and robust economic growth despite the COVID-19 pandemic and challenging global economic conditions, as per Circular Economy Catalyst.

India could potentially earn $45 billion from the circular economy by 2030. The private sector can significantly benefit from securing green investments. Additionally, these organizations are facing increased pressure from investors, consumers, and regulators to adopt pro-climate practices domestically and internationally. The government too is launching initiatives to increase public awareness and educate those involved in the ecosystem.

Ambitious target:

By 2050, India’s circular economy is expected to grow to $2 trillion, reshaping industries and boosting the world economy. India may eliminate single-use plastics by 2035, recycle two-thirds of all plastics used, and cut down on the quantity of waste in the environment and landfills.

During India’s G-20 presidency, Prime Minister Narendra Modi reiterated the focus on four key areas namely: circular economy, steel industry circularity, extended producer responsibility (EPR), and industry coalition for resource efficiency and circular economy.

The Indian economy faces challenges like supply and demand, urbanization, waste, and inadequate recycling. It is, therefore, important to strengthen the circularity instinct in Indian culture.

Strengthening the circular economy policy:

Consequently, the Indian government and trade associations are actively developing policies and collaborating on projects to transition the country’s journey towards a circular economy.

For example, Prof. Ajay K. Sood, Principal Scientific Adviser to the Government of India, recently introduced the National Circular Economy Framework (NCEF). The framework provides a thorough road map and emphasizes cooperation, awareness, and focused actions for India’s shift to a circular economy.

Similarly, Dr. Jitendra Singh, Minister of State (Independent Charge) for the Ministry of Science and Technology and Minister of State for the Prime Minister’s Office, released a document titled “National Circular Economy Roadmap for Plastic Waste Reduction in India.” The initiative is a joint effort between CSIRO, Australia’s national science agency, and India’s top research institutions. It describes future directions for improving India’s plastic waste recycling, repair, and repurposing.

The Confederation of Indian Industries (CII) has also released a roadmap for the National Circular Economy Framework. It has advocated the creation of the National Circular Economy Authority (NCEA) to implement the national strategy.

In September 2022, NITI Aayog established the Circular Economy Cell (CE Cell). Ten sector-specific action plans were completed and will be implemented by participating Ministries and Departments.

Of these, the Metals Recycling Policy, Construction and Demolition Waste Management Rules, Plastic Waste Management Rules, and E-waste Management Rules have been notified.

Some examples:

The Council of Scientific and Industrial Research (CSIR) is developing technologies to help recycle and lessen the country’s carbon footprint. The government has generated Rs.11,000 crore in revenue in the last three years by disposing of electronic scrap, highlighting the importance of innovation and technology in waste management.

In yet another initiative, the Department of Science and Technology, Technology Development Board, and CSIR have launched the ‘Recycling on Wheels‘ bus, transforming waste into wealth.

The Indian Institute of Petroleum has developed a repurposed used cooking oil van for biofuel production. CSIR-CRRI has developed a revolutionary steel slag road technology, enabling large-scale utilization of waste steel slag from steel plants for road construction.

The shift to a circular economy and its advantages:

Making the shift to a circular economy can have a lot of advantages. It can generate new employment opportunities in addition to lessening the impact on the environment and conserving resources. Additionally, it can spur profitable and sustainable innovation in business models and product design.

India, led by Prime Minister Modi, has set up the Global Biofuels Alliance during the G20 New Delhi Summit, aiming to make ‘Lifestyle for Environment‘ a global mission.

Additionally, The National Circular Economy Roadmap projects a 30% decrease in landfills, the phase-out of single-use plastics, and a 67% increase in recycling rates by 2035. Recycling plastic waste into useful materials would result in 20–50% fewer greenhouse gas emissions and better air quality.

India’s transition to a circular economy could yield an annual value of Rs14 lakh crore and Rs 40 lakh crore by 2030 and 2050, respectively, due to population growth, economic expansion, climate change, and environmental pollution.


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Climate change, Climate action,G20, SDGs

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Need to fast track Climate Action, Green Energy, SDGs: PM Modi

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Prime Minister Narendra Modi in his address as the G20 President called upon global leaders to unite to tackle climate change, foster policies for climate action, and fast-track SDGs.

The ethos reflected in his blog sums up his G20 Presidency.

SDGs:
The Prime Minister wrote, “An interconnected world means our challenges across domains are interlinked. This is the midway year of the 2030 Agenda and many are noting with great concern that the progress on SDGs is off-track. The G20 2023 Action Plan on accelerating progress on SDGs will spearhead the future direction of the G20 towards implementing SDGs.”

Climate action:
Many countries of the Global South are at various stages of development and climate action must be a complementary pursuit. Ambitions for climate action must be matched with actions on climate finance and the transfer of technology.

“We believe there is a need to move away from a purely restrictive attitude of what should not be done, to a more constructive attitude focusing on what can be done to fight climate change,” the PM observed.

Citing an example from India he noted,” Living in harmony with nature has been a norm since ancient times. We have been contributing our share towards climate action even in modern times. For example, the Chennai HLPs for a Sustainable and Resilient Blue Economy is focused on keeping our oceans healthy.”

Democratizing climate action is the best way to fuel the momentum. Just as individuals make daily decisions based on their long-term health, they can make lifestyle decisions based on the impact on the planet’s long-term health. Just like Yoga became a global mass movement for wellness, we have also nudged the world with Lifestyles for Sustainable Environment (LiFE), the PM wrote.

Climate change and food security:
Due to the impact of climate change, ensuring food and nutritional security will be crucial. Millets, or Shree Anna, can help with this while also boosting climate-smart agriculture. In the International Year of Millets, we have taken millets to global palates. The Deccan High-Level Principles on Food Security and Nutrition are also helpful in this direction, he stated.

Green energy:
On green energy, the PM observed that a global ecosystem for clean and green hydrogen will emerge from `our presidency’, along with a Green Hydrogen Innovation Centre. “In 2015, we launched the International Solar Alliance. Now, through the Global Biofuels Alliance, we will support the world to enable energy transitions in tune with the benefits of a circular economy.”

Women empowerment:
That India is the fastest-growing large economy is no accident. Our simple, scalable, and sustainable solutions have empowered the vulnerable and the marginalized to lead our development story. From space to sports, economy to entrepreneurship, Indian women have taken the lead in various sectors. They have shifted the narrative from the development of women to women-led development. Our G20 Presidency is working on bridging the gender digital divide, reducing labor force participation gaps, and enabling a larger role for women in leadership and decision-making.

Technology:
Technology is transformative but it also needs to be made inclusive. In the past, the benefits of technological advancements have not benefited all sections of society equally. Over the last few years, India has shown how technology can be leveraged to narrow inequalities, rather than widen them.

For instance, the billions across the world that remain unbanked, or lack digital identities, can be financially included through digital public infrastructure (DPI). The solutions we have built using our DPI have now been recognized globally. Now, through the G20, we will help developing countries adapt, build, and scale DPI to unlock the power of inclusive growth.

Inclusion:
In December 2022, when we took over the Presidency from Indonesia, I had written that a mindset shift must be catalyzed by the G20. This was especially needed in the context of mainstreaming the marginalized aspirations of developing countries, the Global South, and Africa.

The Voice of Global South Summit, which witnessed participation from 125 countries, was one of the foremost initiatives under our Presidency. Gathering inputs and ideas from the Global South was an important exercise. Further, our Presidency has not only seen the largest-ever participation from African countries but has also pushed for the inclusion of the African Union as a permanent member of the G20.

Today, accomplishing things at scale is a quality that is associated with India. The G20 Presidency is no exception. It has become a people-driven movement. Over 200 meetings have been organized in 60 Indian cities across the length and breadth of our nation, hosting nearly 100,000 delegates from 125 countries by the end of our term. No Presidency has ever encompassed such a vast and diverse geographical expanse.

Vasudhaiva Kutumbakam’ or the world is one family, captures a deep philosophy. This all-embracing outlook encourages us to progress as one universal family, transcending borders, languages, and ideologies. During India’s G20 Presidency, this has translated into a call for human-centric progress. As One Earth, we are coming together to nurture our planet. As One Family, we support each other in the pursuit of growth. And we move together towards a shared future – One Future – which is an undeniable truth in these interconnected times.

Three important learnings:

  • First, a growing realization about a shift away from a GDP-centric view of the world to a human-centric view is needed.
  • Second, the world is recognizing the importance of resilience and reliability in global supply chains.
  • Third, there is a collective call for boosting multilateralism through the reform of global institutions. Our G20 Presidency has played the role of a catalyst in these shifts.

Our G20 Presidency strives to bridge divides, dismantle barriers, and sow seeds of collaboration that nourish a world where unity prevails over discord in which shared destiny eclipses isolation. As the G20 President, we had pledged to make the global table larger, ensuring that every voice is heard and every country contributes. I am positive that we have matched our pledge with actions and outcomes.


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