SESSION ON :

Opportunities for expanding EPR : End of Life Vehicles (ELVs)

Date : 13th May 2016 Venue : India Habitat Centre , New Delhi

Presentation by

Central Pollution Control Board (CPCB) Ministry of EF&CC

ELV definition no more debatable : Age Vs ROAD WORTHINESS (CMVR ‘fitness certificate’ )

Genesis : •Deteriorating ambient air quality particularly in cities held the TRANSPORTATION SECTOR responsible (traffic statistics directly proportional to population) ;

•Under the transportation sector DIESEL fuelled vehicles were targeted mainly due to particulate matter (PM) emissions ;

•Under the Diesel vehicles the OLD diesel vehicles were targeted : this highlighted the growing ELVs population and the need to abate emissions from OLD vehicles (a) installation of emission control devices like filters and catalysts (b) retrofitting options (c) ELVs - banning / phasing out (old) diesel vehicles (ELVs)

•Hon’ble NGT (Vardaman Kaushik Vs UoI year 2014) banned old diesel vehicles i.e. ELVs ( age 10 / 15 years (define ‘obsolescence’ )

•Need for assessment of ELV Sector CPCB’s joint study with GIZ : “Analysis of ELV sector in INDIA “

ELVs : floods /accident / arson/ dumped

(deserted / unclaimed)

Story of a Dying Car in India – Understanding the Economic and Materials Flow of End-of-Live Vehicles (2012)

Main towns .

cities

Locations

Delhi

Mayapuri

Gokul Puri

Jama Masjid

Abul Fazal

Punjabi Bagh

Karam Pura

Karol Bagh

Gehvra Mor

Meerut

Chatriwala Peer

Soti Ganj

Kolkata Phool Bagan

Nazibabad Kabari bazaar

Moradabad

Landgey ki Puliya

Nawabpura

Karaula

Transport Nagar

Manesar -

Lucknow -

Background data on five major hubs :

Chennai, Pune, Jamshedpur, Kolkata, Indore

CPCB’s initiatives on ELVs • Reports are the background of this presentation

a) Analysis of ELV sector in INDIA (Background data on five major hubs :

Chennai, Pune, Jamshedpur, Kolkata, Indore besides earlier ELV studies for Delhi , Western UP and Kolkata)

b) Guidelines for Environmentally Sound

Management (ESM) of ELVs in INDIA • Displayed in public domain to invite feedback

OPPORTUNITY #2 : The recycling of vehicles provides an important OPPORTUNITY for transforming resource use. OPPORTUNITY #3 : Automobiles that are no longer ‘fit’ for transportation purposes , referred to as ELVs - serve as a resource sink = secondary resources. The ELVs contain large quantities of metal and other materials that, if salvaged or recycled rightly , can be once again fed into the economy.

Type of

vehicle

ELVs in 2015 ELVs in 2025

Two Wheelers 72,89, 442 1,77,23,951

Three Wheelers 2,62,439 7,57,932

Private Cars/SUVs 7,21,558 28,09,966

Commercial

passenger Vehicles

46,522 94,757

Commercial goods

vehicles

4,11,230 11,88,833

Total ELVs approx. 87,31,185 2,18,95,439

OPPORTUNITY #1.:Table : Estimation of ELV generation in India

Opportunities for expanding EPR : End of Life Vehicles (ELVs) OPPORTUNITIES for market / business proposition in India

EXISTING POTENTIAL FOR RECYCLING

A typical passenger car consists of

about 70% steel and iron by

weight. and 7-8% aluminium

The rest 20-25% is plastic, rubber,

glass etc., which are also

recyclable.

(Sakai et al., 2013).

In India, vehicles have much

potential for re-use –up to

70% of a vehicle are

dismantled and directly re-

used or sold to other

manufacturers (CPCB ,. 2015).

OPPORTUNITY #4 : ELVs have HW ( The Waste Rules under E (P) 1986 recognizes the market for reuse / recycling HW , the need for REVISION within FIVE years in year 2016 of WASTE Rules highlights the importance of ESM of waste as a business proposition)

OPPORTUNITIES for market / business proposition in India (contd.)

• OPPORTUNITY #5: ELV Model facility by the manufacturers National Automotive Testing and R&D

Infrastructure Project (NATRIP)) has been established in Chennai. It provides a benchmark for infrastructure requirements for automobile recycling operations. (such facilities needs to be integrated with the existing semi-formal ELV sector activities so that jobs are not lost)

• OPPORTUNITY #6 : SPCBs initiatives : TN & Karnataka : recognised under consent regime + Entrepreneurs are ready to make it a business model provided ...

• OPPORTUNITY #7 : Environmentally Sound Management (ESM) of ELVs : Insight into internationally renowned procedures and technologies for ESM of ELVs available

• OPPORTUNITY #8: Sectoral study / Guidelines / Standard

a) An assessment on ELVs - ELV Sector analysis in India

b) Guidelines : Guidelines for Environmentally Sound Management of ELVs in INDIA

(also Policy Framework given )

c) Standards AIS 129

(Dept of Heavy Industries under Ministry of Heavy Industry & Public Enterprises & ARAI , SIAM :)

AIS 129 : Indian automotive industry has set up voluntary Automotive Industry Standards (AIS 129) for ELVs (AIS Committee 2015) at authorised centres.

Challenges : Present scenario

Point Source Vs Non-point Source

Point Source (NEW vehicles )

Non point source (ELVs)

Generation of NEW vehicles (automobile manufacturers – PRODUCERS)

GENERATORs : Process of ELV declaration & de-registration of vehicle & maintenance of records in public domain at various RTOs TYPES of ELVs : range from light to heavy vehicles Processing of ELVs : Generation , Collection , handling & transportation De-pollution ‘tiered’ dismantling , shredding material recovery of ELVs (segregation)

Managing Non point pollution has always been a MAJOR Challenge EPR / SR : is an option for Mgmt of ELVs

Stakeholders • Government ( inter ministerial collaboration)

• Automobile manufacturers - PRODUCERS

• Dealers /intermediaries

• Other Players also involved in : Collection , handling & transportation, De-pollution , dismantling , shredding , material recovery (semi formal sector)

• Recyclers

• Insurers and

• CONSUMERS - END USERS

RESPONSIBILITIES – Stakeholders

• The activities associated along the ELV value chain needs the support of all stakeholders

• To optimize the various processes in ELV management there is a need to clearly understand and define the involvement / responsibilities of the stakeholders.

AUTOMOBILE MANUFACTURERS • The most knowledgeable stakeholder in the entire life

cycle of a vehicle is the AUTOMOBILE MANUFACTURER.

• Vehicle manufacturers play a key role as their decisions often directly affects the recyclability of their products i.e. through the choice of material, car design , fuel choice (hybrid , dual fuel , electric ) and other aspects.

• Furthermore, they are often larger, better connected and endowed with more resources than independent recycling facilities, thus they have a better advantage to operate ELV management in an effective manner.

RESPONSIBILITIES – Stakeholders Automobile manufacturers - PRODUCERS

TYPES of PRODUCER RESPONSIBILITIES (PRs)

• Extended PRODUCER Responsibility (EPR) : makes the manufacturer or importer of the product responsible for the entire life cycle of the product i.e. ELV. This responsibility starts at the design stage of the vehicle. The producer’s responsibility for a product is hence extended beyond the ‘manufacturing’ to the ‘post-consumer stage’ of a product’s life cycle (OECD 2001).

• ‘Individual PRODUCER responsibility’(IPR) means that the producer (manufacturer or importer) takes responsibility individually for its own products throughout the entire life cycle including the collection and ‘end-of-life management’ through ‘take back’ or any other system.

• ‘Collective PRODUCER Responsibility’ (CPR) is when a number of producers, manufacturers, importers and other stakeholders come together as a consortium or establish an organisation to take collective responsibility for the end-of-life management of products manufactured or imported. Such organisations are often called the ‘Producer Responsibility Organisation (PRO)’. They function on behalf of producers and are responsible for collection and channelization of end-of-life products for environmentally sound recycling (Lindhqvist 2000; OECD 2001).

“ SHARED RESPONSIBILITY “

In order to provide a practical operational system for dealing with the ELVs in India a system for Shared Responsibility has been proposed in the Guidelines.

Ref.: Guidelines for Environmentally Sound Management (ESM) of ELVs in INDIA (CPCB)

Shared Responsibility (SR) Major challenge : ELV recycling requires massive infrastructure and capital investment This would require various parties taking part in a ‘SHARED RESPONSIBILITY’ Scheme, including automobile manufacturers, government agencies and vehicle owners. Replicating National Automotive Testing and R&D Infrastructure Project (NATRIP) facility is one such path: GoI proposes to set up similar facilities (MoHI & MoRTH).

Extended Producer Responsibility (EPR) would have to be embedded within a Shared Responsibility Framework. This would enable the development of controlled channels for the flow of materials , infrastructure and capital to handle the ELVs.

ELVs : Overview of Policies & Regulations

China USA India

ELV LAW

ELV Recycling

Regulation 2001 ELV

Recycling Technology

Policy, 2006

NO ELV LAW

Environment Laws

RCRA

Clean Air Act, etc. &

Market Mechanisms

NO ELV LAW

Environmental Laws

Hazardous Waste Rules

2008, Batteries Rules 2001,

E-waste Rules 2011

EU Japan Korea

ELV LAW

EU Directive 2000/53/EC

on ELV Sep 2000

Revised I 2005LAW

ELV LAW

ELV Recycling Rules

2002 enforced 2005

ELV LAW

Resource Recycling of EEE

& ELV 2005 in enforce form

2008

ELVs : Overview Recycling Responsibility

EU Japan Korea

EPR

Producer responsible for free take back & to incur recycling cost

Sustainable Recycling Society under 3R

Shared responsibility owner, manufacturer

Collector & recycler

EPR

Automobile Manufacturers / importers

responsible for recycling

China USA India Traded as valuable secondary resource

No regulations traded as valuable secondary resource

Market driven

No regulation Economics of recycling & employment in informal sector for urban poor

ELV activities • ELV collection & Handling, storage

and transportation, Dismantling and segregation

• Environmentally sound de-pollution, dismantling, shredding, material recovery and disposal

• Shredding & Processing Residues • De-pollution - The processes involved

to make the ELV free from hazardous substances so that further processing becomes safe.

• Set Targets : reuse / recycle

• Training skills : manpower development

Hazardous substances (solids)

Hazardous substances (fluids)

Lead acid batteries Air filter Oil filter Hot tank solutions Mercury switch Brake shoe clutch plates/discs (asbestos) Rubber parts Glass parts Electronic parts Refrigerant gases Airbags Catalyst

Waste oils Brake fluids & cleaners Fuel and fuel filters

Reduce the overall environmental footprint of the product ( automobile) by reducing the use of toxic and hazardous substances;

Challenges : Has India’s market for ‘Mgmt. of ELVs’ matured ?

1. All ‘WASTE Mgmt.’ Rules under E (P) Act 1986 underwent several hurdles : ‘public awareness’ was a key factor

2. SPCBs have recognized players in WASTE mgmt (listing recyclable HW, registration of HW recyclers , installation of TSDFs) under Consent regime (Water Act & Air Act ) : ELVs related activities can be brought under WASTES Mgmt under ‘ORANGE’ category ( garage / service stations ) as observed in TN & Karnataka.

3. In-situ ELVs handling within cities: SERVICE STATIONS

4. De-registration of vehicles under CMVR – clarification needed to encourage entrepreneurship investment

5. Public awareness : Print media / website : Central & State Govt, Associations (ex SIAM) , MSMEs

ELVs Management & Training Skills

Manual interventions – OUT, Mechanisation – IN

The most knowledgeable stakeholder in the entire life cycle of a vehicle is the AUTOMOBILE MANUFACTURER.

Challenges : Has India’s market for ‘Mgmt. of ELVs’ matured ? Contd.

7. Opportunities for training SKILLS in ELV dismantling & metal recovery: PRODUCERS

8. International ESM experiences (US, EU, Japan, Korea ) : ESMs also took more than a decade to come to some semblance of ‘organized approach ‘ to ELV management. - Global ESM may be a gateway , however for a vast country like India the direct adoption of ESM PRACTICES have to be economically sustainable , the necessary work ENVIRONMENT created , phase wise approach desirable ( this has been the approach AFP , AVFP )

9. ? Financial mechanisms and way forward for the ELV activities listed in previous slide needs Inter-ministerial deliberations

A CPCB presentation

THANK YOU