Future Trends in EPR: Textiles, Glass, Used Oil, and Beyond

India’s Extended Producer Responsibility (EPR) framework is rapidly evolving, driven by the Plastic Waste Management Rules, 2016, E-Waste (Management) Rules, 2022, Battery Waste Management Rules, 2022, and Hazardous and Other Wastes (Management and Transboundary Movement) Amendment Rules, 2022. The EPR market, valued at $1.5 billion in 2025, is projected to reach $5 billion by 2030, reflecting a 20% CAGR (industry estimate). The Ministry of Environment, Forest and Climate Change (MoEFCC) and Central Pollution Control Board (CPCB) are expanding EPR to include textiles, glass, and used oil, signaling a transformative shift in waste management. This blog explores emerging frameworks, government policies, pricing mechanisms, recent developments in used oil EPR, and opportunities for Producers, Importers, and Brand Owners (PIBOs).

Government Efforts to Standardize EPR Credit Pricing

The MoEFCC and CPCB are prioritizing transparency in EPR credit pricing to curb fraud and ensure market stability. Key initiatives for 2025 include:

• Centralized EPR Portal Enhancements: The CPCB’s portals (e.g., eprplastic.cpcb.gov.in) leverage blockchain for ~70% of credit transactions, ensuring traceability (industry estimate, 2024). In 2024, the portal facilitated trading of 600,000 metric tons (MT) of credits, a 15% increase from 2023 (CPCB Annual Report, 2023-24).

• Proposed Pricing Oversight:
  A CPCB committee is developing indicative price bands (subject to finalisation):

  • • Plastics: ₹0.5–₹1/kg (Category I, rigid), ₹0.8–₹1.5/kg (Category II, flexible).

    • Tyres: ₹0.3–₹0.8/kg (crumb rubber, pyrolysis oil).

    • Textiles (proposed): ₹2–₹5/kg, reflecting high sorting and processing costs (aligned with EU benchmarks of €0.02–€0.05/kg).

    • Glass (proposed): ₹0.2–₹0.6/kg, driven by high recyclability and low contamination.

    • Used Oil (proposed): ₹0.8–₹2/kg, due to contamination risks and specialised re-refining processes.

• Impact: These measures aim to reduce price fluctuations (20–30% in 2024) and stabilize markets. In 2024, credit trading reached 600,000 MT, with projections of 800,000 MT by 2026 (CPCB, 2023-24).

• Dynamic Pricing Models: Proposed 2025 guidelines will adjust rates quarterly based on recycler output and PIBO demand, with pilot testing in Delhi and Maharashtra targeting 10% price stabilization by Q2 2025.

• Environmental Compensation (EC) Linkage: Non-compliance penalties range from ₹5,000–₹10,000/ton, incentivizing credit purchases to avoid EC fines of ₹10 lakh–₹50 lakh (CPCB Guidelines, 2024).

• Producer Responsibility Organizations (PROs): PROs like Ecoex publish indicative prices (₹0.5–₹1.5/kg for plastics). Bulk purchases (10,000+ MT) offer 20–30% discounts, saving SMEs ₹2–₹5 lakh annually.

• Fraud Prevention: Blockchain tracks ~85% of PRO transactions, addressing fake certificates (estimated 1.2 lakh in 2024, per CSE Report, October 2024).

• Stakeholder Consultations: Workshops in 2024 achieved 90% stakeholder agreement on balancing recycler viability and PIBO affordability for textiles and glass pricing.

Challenges:

• The informal sector, handling ~40% of waste, complicates standardization (CSE Report, 2024).

• Portal downtime (15% in 2024) inflates prices by 10–15%.

• Regional variations persist (e.g., tyre credits at ₹0.9/kg in Northeast vs. ₹0.3/kg in Gujarat).

Pending Supreme Court Ruling

A 2023 petition (WP(C) No. 130/2023) challenges inconsistent EPR enforcement, with hearings ongoing in 2025 and no confirmed ruling timeline. Key issues include:

• Lack of uniform pricing, causing market distortions (20–30% price variance in 2024).

• Weak enforcement, with only 60% compliance among PIBOs in 2024 (CSE Report, 2024).

• Inadequate penalties for fake certificates, undermining trust.

Potential Outcomes (Speculative):

• Mandatory pricing framework (e.g., ₹0.5–₹1.5/kg for plastics).

• Stricter penalties, potentially up to ₹1 crore and 7-year imprisonment for non-compliance.

• Fast-tracked textile and glass EPR implementation by 2026.

• Mandatory PRO audits for 100% credit traceability.

Industry Impact:

• Compliance costs for SMEs may rise 15–20% (₹5–₹10 lakh annually).

• Uniform pricing could boost credit trading by 30%, reaching 800,000 MT by 2026.

• Stricter rules may drive ₹50 lakh investments in recyclable packaging designs.

Expanding EPR Scope

Used Oil EPR: Recent Introduction and Implementation

Introduction: On April 1, 2025, the MoEFCC introduced EPR for used oil under the Hazardous and Other Wastes (Management and Transboundary Movement) Amendment Rules, 2022, targeting recycling for sustainable aviation fuel (SAF), animal feed, and soap making. This marks a significant expansion of EPR beyond plastics, e-waste, and batteries.

How It Works:

• Stakeholders: Producers, importers, and brand owners (PIBOs) of lubricating oils (automotive, industrial) are responsible for collecting and re-refining used oil. Registered recyclers process used oil at authorized facilities, ensuring compliance with CPCB standards.

• Collection Targets: Draft guidelines propose 60% collection by 2027 and 85% by 2030, with 20% recycled content in new oil products by 2028.

• Pricing: Indicative EPR credit prices range from ₹0.8–₹2/kg, reflecting high contamination risks and re-refining costs (CPCB, 2024).

• Mechanisms: PIBOs register on the CPCB portal, report used oil quantities, and purchase credits from authorized recyclers. Blockchain ensures traceability, with ~70% of transactions recorded (industry estimate, 2024).

• Progress: In Q1 2025, ~50,000 MT of used oil was collected under EPR pilots in Gujarat and Tamil Nadu, with 80% re-refined into base oils or SAF (MoEFCC, April 2025).

• Impact: Oil companies face compliance costs of ₹5–₹15 lakh annually, driving investments in re-refining facilities (₹10–₹20 crore per unit). The initiative is projected to create 50,000 jobs by 2030, particularly in re-refining and logistics.

• Challenges: High contamination (40% of used oil contains water or metal residues) requires advanced cleaning facilities (₹2 lakh/unit). Low consumer awareness (30% return used oil) and informal sector dominance (50% of collection) hinder progress.

Innovations:

• IoT-enabled collection bins (500 deployed in 2025) improve traceability by 20%.

• AI-based re-refining systems enhance yield by 15%, reducing costs by ₹1–₹2 lakh per facility.

Textile Waste EPR: Government Plans

Proposed Framework: Draft rules proposed in December 2024 under the Environment Protection (EPR) Rules, 2024 target post-consumer textile waste, with enforcement expected by April 2026. The MoEFCC aims to align with the EU’s Waste Framework Directive, which mandates separate textile collection by January 2025.

Key Details:

• Pricing: Indicative credits at ₹2–₹5/kg, reflecting high sorting and processing costs (EU benchmark: €0.02–€0.05/kg).

• Targets: 50% collection by 2027, 80% by 2030; 20% recycled content (e.g., polyester) in new textiles by 2028 (proposed).

• Implementation: PIBOs (fashion brands, importers) must register on the CPCB portal, report textile volumes, and collaborate with recyclers. A pilot scheme in Maharashtra and Tamil Nadu, starting April 2025, will test collection systems for one year, informing national guidelines.

• Impact: Fashion brands face ₹10–₹20 lakh compliance costs annually, driving a shift to recycled polyester (projected 20% adoption by 2028). The textile recycling market could grow to ₹1,000 crore by 2030, creating 300,000 jobs (industry estimate).

• Challenges: Low consumer awareness (only 30% segregate textiles) and informal sector dominance (60% of textile waste) complicate collection. Sorting complexity (mixed fibers) increases costs by 25%.

Government Plans:

• National Mission: The MoEFCC plans to integrate textile EPR with Swachh Bharat, deploying 5,000 IoT bins by 2027 to achieve 100% segregation. A ₹200 crore budget is proposed for 2025-26 to subsidize sorting facilities (25% subsidy, up to ₹10 lakh per unit).

• Global Alignment: India’s framework draws from the EU’s mandatory textile EPR (effective 2025), aiming for 50% reuse/recycling by 2025 and 75% by 2030.

• Stakeholder Engagement: Consultations in 2024 with brands like H&M and Reliance Retail achieved 90% agreement on pricing and targets.

Glass Waste EPR: Government Plans

Proposed Framework: Draft Environment Protection (EPR for Packaging) Rules, 2024, proposed in December 2024, include glass packaging, with enforcement expected by April 2026.

Key Details:

• Pricing: Indicative credits at ₹0.2–₹0.6/kg, reflecting high recyclability and low contamination (CPCB, 2024).

• Targets: 70% collection by 2027, 90% by 2030; 30% recycled content in new glass packaging by 2028 (proposed).

• Implementation: PIBOs (beverage, pharmaceutical companies) must register, report glass volumes, and partner with recyclers. A pilot in Delhi, launched in Q1 2025, tests IoT-enabled bins (3,000 deployed in 2024) for segregated collection.

• Impact: The beverage sector is expected to invest ₹50 lakh in IoT bins and recycling infrastructure, with the glass recycling market projected to reach ₹500 crore by 2030 (15% CAGR). AI sorting improves purity by 25%, saving ₹5 lakh annually per facility.

• Challenges: Fragmented collection (40% informal sector) and low consumer segregation (35%) increase logistics costs by 20%.

Government Plans:

• Infrastructure Investment: A ₹300 crore budget for 2025-26 will fund 1,000 recycling units and 5,000 IoT bins under the Smart Cities Mission, targeting 80% recycling by 2030.

• Policy Alignment: The framework aligns with the EU’s Packaging and Packaging Waste Regulation (PPWR), targeting 30% recycled content by 2030.

• Subsidies: MSMEs receive 25% subsidies (up to ₹10 lakh) for AI sorting and IoT bin adoption.

Technological Innovations

• Blockchain: Tracks ~70% of EPR credits, reducing fraud by ~85% (industry estimate, 2024). Platforms like Ecoex ensure 100% traceability for plastics and tyres.

• AI Sorting: Deployed by 500 recyclers in 2024, AI systems (₹1–₹5 lakh/unit) boost yields by 20% for textiles and glass, saving ₹2–₹5 lakh annually.

• IoT Bins: Over 3,000 bins in 2024 improve collection efficiency by 20%, saving ₹50,000–₹2 lakh in logistics. MSME subsidies (25%, up to ₹10 lakh) drive adoption.

Policy Developments

• National Missions: EPR aligns with Swachh Bharat (100% segregation by 2027, 5,000 IoT bins) and Smart Cities (80% recycling by 2030). A ₹500 crore budget for 2025-26 supports recycling infrastructure.

• Targets:

  • • Plastics: 90% recycling by 2030, 30% post-consumer recycled (PCR) content by 2025-26.

    • Textiles: 80% collection by 2030 (proposed).

    • Glass: 90% collection by 2030 (proposed).

    • Used Oil: 85% collection by 2030, 20% recycled content by 2028 (proposed).

• Penalties: Environmental Compensation rises to ₹15,000/ton by 2026 for non-compliance.

• Global Alignment: India’s EPR framework aligns with the EU’s PPWR (30% PCR by 2030) and explores carbon credit linkage by 2028.

Market Growth and Opportunities

• EPR Economy: Projected to grow from $1.5 billion (2025) to $5 billion (2030), driven by 600,000 MT credit trading in 2024 and an expected 30% increase by 2026.

• Recycling Infrastructure: A ₹1,000 crore investment by 2027 will fund 500 recycling units, creating 500,000 jobs (industry estimate).

• Credit Trading: Blockchain platforms enable 30% trading growth, with cross-sector trading (e.g., plastics for textiles) proposed by 2028.

Industry Trends and Impacts

• FMCG/Retail: Shift to recycled PET (rPET), with ₹50 lakh investments for 30% PCR content by 2025-26.

• Textiles: Brands invest ₹20 lakh in recycled polyester, targeting 20% adoption by 2028.

• Beverage/Glass: AI sorting saves ₹5 lakh annually, with ₹50 lakh investments in IoT bins.

• Oil/Lubricants: Shift to re-refined oils, offset by ₹2.5 lakh subsidies for re-refining facilities.

Conclusion

India’s EPR framework is undergoing a transformative shift, with the introduction of used oil EPR in April 2025 marking a significant step toward sustainable waste management. Proposed textile and glass EPR frameworks, expected by April 2026, align with global standards like the EU’s Waste Framework Directive, driving investments in recycling infrastructure and creating substantial job opportunities. Standardized pricing, blockchain traceability, and innovations like AI sorting and IoT bins are tackling fraud and inefficiencies, though challenges such as informal sector dominance and low consumer awareness remain. The pending Supreme Court ruling on EPR enforcement could further enhance compliance, potentially increasing costs for SMEs but fostering market stability. As the EPR market grows to $5 billion by 2030, PIBOs must adapt to stricter targets and invest in sustainable designs to remain compliant and competitive. For more details on EPR credit trading, buying or selling credits, obtaining EPR certificates, or addressing any sustainability queries, contact Sort Consultancy at info@sortconsultancy.com or +91 9321021251. Our expert team is ready to guide you through compliance and help you achieve your sustainability goals.

Disclaimer: The information provided in this blog is for general informational purposes only and does not constitute legal, financial, or professional advice. While SORT Consultancy strives to ensure accuracy, regulations, targets, and market data may change. Readers are advised to consult the Central Pollution Control Board (CPCB), State Pollution Control Boards (SPCBs), or relevant authorities for the most current and applicable information. SORT Consultancy shall not be liable for any loss, damage, or non-compliance arising from reliance on this content. For personalized guidance, contact us at info@sortconsultancy.com or +91 9321021251.