[Answered] A circular economy path adopted by India could bring in substantial annual benefits, along with a significant reduction in congestion and pollution. Substantiate and also suggest ways to nurture a circular economy in the Indian renewable energy industry

A circular Economy is an economy where products are designed for durability, reuse, and recyclability. Thus, almost everything gets reused, remanufactured, and recycled into a raw material. It includes 3Rs (Reduce, Reuse and Recycle) and focuses on increasing productivity in terms of more efficient utilization of resources.

The Government has been actively formulating policies and promoting projects to drive the country towards a circular economy. It has already notified various rules, such as the Plastic Waste Management Rules, e-Waste Management Rules, Construction and Demolition Waste Management Rules, Metals Recycling Policy, etc., in this regard.

Benefits of circular economy:

• It helps in reducing environmental harm, provides energy security and creates new jobs.
• The products in the circular economy are more cost effective for consumers as they tend to be more efficient, besides having a longer shelf life.
• Increased efficiency leads to a reduction in the cost of maintenance as well as that of disposal, which otherwise a consumer has to incur in a huge amount.
• The UNCTAD says that India could create as much as $200+ billion in additional economic value by 2030, rising to $600+ billion by 2050, by adopting circular principles.

Ways to nurture a circular economy in India:

• The existing electronic waste management rules should be revised to bring various clean energy components under their ambit. the cumulative waste generated by India’s total installed solar capacity could be as high as 325 kilotons by 2030.
• Revise existing rules: The revised regulations should clearly define the responsibilities of various stakeholders involved in the renewable energy value chain and provide annual targets for the collection and recycling of waste.
• R & D: Besides traditional methods, investments in research and development could help discover new ways of recycling that result in higher efficiency and a less environmentally damaging footprint.
• Focus on financing routes: Like providing lower interest rates on loans disbursed for waste recycling facilities, issuing performance based green certificates to recyclers, creating market for recycled materials etc.
• A set stringent quality control standards for components used in the government tenders is required. This will prevent premature end-of-life of components, and consequent waste creation due to sub-standard and irrepairable components.

While increased manufacturing and changing consumption patterns will generate more employment and increase per capita income, the effects of such higher production on the environment must also be efficiently managed.  With only 2% of the world’s landmass and 4% of freshwater resources, a linear economy model of ‘Take-Make-Dispose’ would constrain India’s manufacturing sector and, consequently, the overall economy.