Content Detail

• Content META

  Title	India sets guidelines for futures trading under the Extended Producer Responsibility for plastic packaging materials
  ID	3037647
  External ID	7194278210
  Author	Unknown
  Published Date	Oct. 8, 2024, 7:13 a.m.
  Summary	Minimum level of recycling - Extended Producer Responsibility target (%) Plastic packaging category 2024-25 2025-26 2026-27 2027-28 onwards Category I 50 60 70 80 Category II 30 40 50 60 Category III
  Tags	None
  URL	https://www.polymerupdate.com/news/details/1342043/important
  Sentiment	Negative: 0.01939    Neutral: 0.94950    Positive: 0.03111
  Relevance	0.01732

• Content Details

  Content ID	1494255
  Key	4948e118-0252-47e9-a952-8022d4a8aa73
  Content	Minimum level of recycling - Extended Producer Responsibility target (%) Plastic packaging category 2024-25 2025-26 2026-27 2027-28 onwards Category I 50 60 70 80 Category II 30 40 50 60 Category III 30 40 50 60 Category IV 50 60 70 80 India’s pollution control regulator, the Central Pollution Control Board (CPCB), has unveiled draft guidelines for futures trading under the Extended Producer Responsibility (EPR) for plastic packaging materials. Termed as ‘Guidelines for Authorization of Extended Producer Responsibility Electronic Trading & Settlement Platform for Plastic Packaging (EPRETPPP) Operator’, these guidelines follow the EPR norms published on February 16, 2022, by the parent ministry, the Ministry of Environment, Forest & Climate Change (MoEF&CC), under ‘Plastic Waste Management (PWM) Rules 2016.The move aims to streamline plastic waste management, enhance recycling, and promote sustainable practices by involving producers, importers, and brand owners (PIBOs) in the EPR framework. According to the notified EPR guidelines, the authorization of the EPRETPPP Operator must follow the guidelines framed by CPCB. However, the existing guidelines for futures trading in any instrument must be monitored by other ministries and regulatory bodies, including the Securities and Exchange Board of India (SEBI), under the Ministry of Finance. Source: Ministry of Environment, Forest and Climate Change Extended Producers Responsibility (EPR) status for registered Produces, Importers and Brand Owners (PIBOs) (tonnes) Categories EPR targets Average plastic waste generated in FY 2021-22 and FY 2022-23 Plastic raw materials procured in FY 2021-22 and FY 2022-23 Category I – rigid plastic 282,028 1,083,179 40,148 Category II – Flexible plastic 927,249 1,853,419 108,186 Category III – Multi-layered plastic 39,491 453,601 231,727 Category IV – Compostable plastic 8,822 5,416 0 Total 1,257,591 3,395,616 380,061 An EPR is the concept that brands, plastic packaging producers and importers should take responsibility for the plastic they put into the market across its entire lifecycle. The EPR policies are based on the ‘polluter pays’ principle and are generally implemented by governments via a set of rules and targets. The CPCB issues certificates to companies adhering to the EPR guidelines which can be traded on an electronic platform for futures price references. However, the price quoted at the futures platform may vary from the prevailing prices in the spot markets.The EPR certificate is an essential accreditation that signifies a company’s commitment towards environmental sustainability and responsibility. It is a mandatory certification in India that ensures the proper disposal of plastic and electronic waste. The certificate is required for Indian manufactures and importers of products that generate plastic waste. The EPR Certificates are available in various denominations viz. 1 T (trading plus 1 day delivery), 10 T (trading plus 10 days delivery), 50 T (trading plus 50 days delivery), 100 T (trading plus 100 days delivery), 500 T (trading plus 500 days delivery), and 1000 T (trading plus 1000 days delivery). The Uniform Clearing Price (UCP) is set to be discovered for all categories of EPR Certificates. Source: Ministry of Environment, Forest, and Climate Change CPCB clarified that the applicant willing to commence futures trading in EPR should be a company limited by shares incorporated or deemed to be incorporated under the provisions of the Companies Act and shall include public limited companies and private limited companies with proven track records in the field. The main object clause of the Memorandum of Association (MoA) of the applicant company should include the business of establishing / running / operating of electronic exchange traded product (ETP) / or electronic markets (eMarkets).Additionally, the applicant entity should have a minimum ten-year of experience for working in this field. The EPRETPPP Operator (ETP Provider/Operator) should have a minimum two years of existing and working national level online trading systems associated with public/government institutions or programs. Most importantly, the ETP Provider should not have been debarred/blacklisted by any government sector/ public sector undertakings (PSUs) / bilateral and multilateral agency in the past five years.Audited accounts/balance sheets need to be submitted for the last three financial years along with the application in the prescribed format. The applicant should have a revenue turnover of minimum Rs 100 crore as per the audited balance sheet for the last three years. The ETP Provider should have a positive net worth of at least Rs 50 crore for the last three financial years. Moreover, the ETP Operator must have ownership of the proposed ETP system that is operated and maintained by the entity. The proposed ETP system shall have proven capability to handle at least 50,00,000 transactions in a yearThe proposed ETP system shall have a proven track record of handling 1,00,000 users / participants. The ETP Provider should have requisite functional expertise of trading systems particularly Participant and User Management, Price Discovery (matching) Engines, Trading Engine, Funds Pay-in and Pay-Out Modules, Risk and Settlement Management. The ETP operator shall regularly upgrade the ETP technology to keep up with advancements in technology and increasing user demands.The organizations falling under Producers, Importers, and Brand Owners (PIBOs) or Plastic Waste Processors (PWPs) categories shall not be empanelled as ETP Provider. Any organization having more than 50 percent ownership by equity, directly or through common directors in PWPs or PlBOs shall not be empanelled as ETP Provider, according to CPCB. Any shareholder other than a PIBO/PWP directly or indirectly, either individually or together with persons acting in concert, shall not acquire or hold more than 25 percent of shareholding in the Trading Platform.A PIBO/PWP directly or indirectly, either individually or together with persons acting in concert, shall not acquire or hold more than 5 percent of shareholding in the Trading Platform. Trading Platform can have a maximum of 49 percent of its total shareholding owned by entities, which are members or clients, directly or indirectly, either individually or together with persons acting in concert. The number of independent directors shall not be less than the number of Shareholder Directors on the Board of the Trading Platform.Meanwhile, CPCB guidelines say that no PIBO/PWP shall be on the Board of Directors of the Trading Platform. The applicant should be demutualized, which means that the ownership and management of the applicant shall be segregated from the trading rights, in terms of these guidelines.The electronic platform needs to adopt a Uniform Price and Double Side Closed Auction & Continuous Fixed Price Market system for discovery of price of EPR Certificates. EPRETPPP should have provision for price discovery for different categories of EPR Certificates based on the selling/ buying price quoted by the stakeholders, based on Uniform Price Auction, which should be permitted for a fixed duration during a week, and may be decided by CPCB based upon market requirements.The EPRETPPP should enable all sellers to put in orders specifying the type and quantity (MT) of EPR Certificates as well as the limit price (minimum) at which they want to sell during the Uniform Price Period. Industry experts believe that EPR certificate pricing has to be between 30 percent and 100 percent of the Environment Compensation (EC) fixed by CPCB for each category, i.e Cat I (PET, HDPE, PP) – Rs 2.9/kg, Cat II (LDPE, MLP with only plastic layers) – Rs 5/kg, and Cat III (MLP with one/more non-plastic layer) – Rs 7.9/kg.The EPRETPPP should enable all buyers to specify their requirements of different categories of EPR Certificates (Type & quantity (MT)) as well as the limit price (maximum) at which they are willing to purchase the said ERP Certificates during the Uniform Price Period. Uniform clearing price (UCP) shall be discovered based on demand and supply and price constraints.Price discovery mechanism for EPR Certificates to adopt the principle of maximization of economic surplus (sum of buyer surplus and seller surplus), taking into account all bid types. The EPRETPPP to ensure fair, neutral, efficient and robust price discovery. A Matching of the auction will only take place if there are crossing prices (buy price >= Sell Price) in the order book, that is, if the best order price is equal to or higher than the best ask price. In that case, the equilibrium price is determined.DILIP KUMAR JHAEditordilip.jha@polymerupdate.com
  Content Reference URL	None

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  Publisher Name	Polymerupdate (#5619)
  Publisher URL	https://www.polymerupdate.com/
  Description	None
  Trust Flow Score	50
  Citation Flow Score	35

• Data Source

  Data Source Name	Quantexa News (#5)
  Data Source Type	news
  Data Source URL	https://app.aylien.com/dashboard
  Description	Welcome to Quantexa News API — the most powerful way to aggregate, filter, and integrate global news data into your apps and models.
  Weight	10