India: Non-ferrous metals products to include at least 5% recycled content from FY'28

The Indian Ministry of Environment, Forest and Climate Change has introduced a new roadmap to reduce reliance on primary resources and minimize the environmental impact of mining.

On August 14, 2024, the Ministry of Environment, Forest, and Climate Change issued a draft regulation introducing Extended Producer Responsibility (EPR) for non-ferrous metal scrap.

This regulation, under the Environment (Protection) Act, 1986, mandates that producers, importers, and recyclers of non-ferrous metals like aluminum, copper, and zinc comply with specific recycling targets. The initiative requires all stakeholders to register on a centralized portal and adhere to a structured recycling framework starting from 1 April 2025.

Why it happened?

The regulation addresses the dual challenges of pollution and the scarcity of non-renewable resources. With the growing global demand for non-ferrous metals and their limited availability, recycling has become essential. The Indian government's push for EPR aims to reduce the extraction pressure on natural resources, minimize environmental degradation, and create economic opportunities within the recycling industry.

Notably, the regulation mandates that at least 20% of non-ferrous metal production must come from recycled materials by 2027-28, progressively increasing this share in the following years.

What will happen?

Starting from FY'28, all new products made from non-ferrous metals will have to include a minimum of 5% recycled content. For aluminum, the recycled content must be 10%, for copper 20%, while for zinc it is 25%.

Starting in 2025, producers of non-ferrous metals will be required to meet annual recycling targets, which will increase over time. By 2032, 75% of non-ferrous metal production should come from recycled materials. Compliance will be strictly monitored through a centralized portal, with severe penalties, including environmental compensation, for non-compliance.

Additionally, the regulation encourages the development of a formal recycling infrastructure, ensuring that recycled content is effectively integrated into new products. This initiative is expected to significantly reduce environmental impacts, foster sustainable resource management, and promote the growth of India's recycling industry.