E-waste is increasing three times faster than the world’s population

The transition to a digital world offers unprecedented opportunities for innovation, entrepreneurship, and growth, transforming our lives and the economy. The Indian consumer electronics market was valued at $73 billion in 2022 and is projected to rise to USD 1 trillion by FY26. The rollout of 5G networks and Internet of Things (IoT) is driving the accelerated adoption of electronic products further. Initiatives such as ‘Digital India’ and ‘Smart City’ projects have also raised the demand for such goods. 

But with great technology, comes great responsibility. E-waste is the fastest growing solid waste in the world, increasing 3 times faster than the world’s population. 2022 witnessed a staggering 59.4 million MT of e-waste generated globally, with China, the US, and India generating the highest. 

All claims of sustainability notwithstanding, most of our electronic devices are not eco-friendly. They impact the environment throughout their lifecycle – from raw material extraction to manufacturing, and to eventual disposal. Beginning the cycle with mining for raw materials causes depletion of precious metals like gold, silver, and rare earth elements, which affects the environment significantly.

Interestingly, India, whilst being the fastest growing market for electronic products in the world, happens to be dependent on imports for a lot of its critical mineral requirements – India imports 100% of its Cobalt, Lithium, and Nickel requirement, and more than 90% of its Gold and Silver requirement, among others. 

Manufacturing EEGs (electric and electronic goods) also requires substantial energy inputs such as smelting metals and semiconductor fabrication leading to harmful emissions.

Continuing the cycle, when disposed irresponsibly in large landfills, hazardous substances like mercury, cadmium, and brominated flame retardants present in EEGs can seep into groundwater, harming both land and sea animals. If e-waste is improperly recycled or processed haphazardly, such as by open burning, lead, a neurotoxin, is released into the environment that also affects human health. Open burning is one of the most hazardous activities as the toxic fumes emitted can travel and expose an entire community to a very toxic environment. The widespread practice of informal recycling also leads to negligible amount of recovery of some critical minerals such as rare earth metals. For instance, the total recovery rate for Cobalt - which is in significant demand for production of batteries, is currently only 30%.  

Additionally, every device has a carbon footprint that accelerates climate change as a major contributory. Considered for scale, a tonne of laptops potentially generates 10 tonnes of CO2 at inception, predominantly emitted during production. This makes the adoption of lower carbon processes during the manufacturing stage and product lifetime key determinants of reducing the adverse impact on the environment. 

In the current landscape, a substantial portion of e-waste continues to be handled by the unorganised sector, which lacks the necessary technological sophistication for reducing emissions and maximising material recovery. In terms of scale, this becomes a compounding issue. In 2021, the formal recycling rate in India was estimated at 10% – 20% and the informal recovery rate in India was estimated at 80% to 95%. Infrastructure for systematic collection and segregation of e-waste remains inadequate. Lack of public awareness leads to unknowingly contributing to adverse environmental impact as the sale of discarded electronics is to scrap dealers or they are simply discarded, adding to landfills. Some “authorized” recyclers are unfortunately also to blame. Some very responsible brands and companies are unfortunately and unwittingly handing over their waste to “authorized recyclers” whose recycling facilities exist largely on paper, and who are only acting as conduits for the “EEG grey market”. 

But there is an emerging silver lining to this cloud. India, like its western counterparts, has been working to improve the recycling and material recovery rates for EEGs. Its response to e-waste management has been shaped by both policy and market forces, with the vision to look for an equitable solution. India’s New E-Waste Management Rules, effective since 2023, mark a significant step towards regulating and streamlining the e-waste ecosystem in the country. With an expanded scope, registration requirements, and a refined approach to Extended Producer Responsibility (EPR), the regulations promise to create a more accountable and environmentally conscious landscape to address existing and emerging challenges for e-waste management.

The Confederation of Indian Industry (CII) has also launched a National Framework to accelerate adoption of Circular Economy for efficient management of e-waste and substantially reducing the waste generation by 2030. It aims to promote resource efficiency by minimising waste and maximising the lifespan of these devices through design and practices like repair, refurbishment, and recycling. It encourages responsible consumption, reuse, and proper recycling of electronic devices, to mitigate the negative impacts of e-waste.

Artificial Intelligence tools are also being used increasingly to predict and extend the lifespan of electronic devices while blockchain applications are helping improve traceability, transparency and accountability in management of end-of-life devices. 

Cloud computing and IoT could potentially accelerate the “dematerialization” of the electronics industry. The growth of virtual and shared infrastructure and associated business models, as well as better product tracking and take back schemes can lead to global circular value chains for the electronics industry. Material efficiency, truly compliant and efficient recycling infrastructure, and scaling the volume and quality of recycled materials through efficient reverse logistics are the essential for long term sustainability of our growing electronic goods consumption.

Environmental benefits aside, shifting EEG flows away from the “grey market” also represents significant economic benefits, lower import dependence and enhanced resource security for India, and also creation of thousands of new, skilled jobs. Policy, regulatory enforcement and industry need to work better together to turn this challenge of e-waste into an at-scale, green economy opportunity. 

 Masood Mallick is CEO, Re Sustainability Limited.