The concept of a “green economy” has become more relevant in recent years, driven by the need to address environmental challenges and the growing awareness of the need for sustainable consumption and production patterns. One critical aspect of achieving a green economy is the transition to circular ecosystems. In India, this transition is critical, as the country generates about 62 million tonnes of waste (recyclable and non-recyclable) annually.1
In many areas the quantum of waste is rapidly rising and leading to environmental degradation. For instance, India doubled its share in small IT and telecommunication equipment waste generation in the world from 3.1 per cent in 2010 to 6.4 per cent in 2022 (highest growth in the world).2 E-waste contains hazardous materials which, if not properly handled and treated, can have damaging effects on the environment and human health. Toxic materials include heavy metals and substances such as arsenic, cadmium, lead, and mercury, as well as persistent organic pollutants,
To facilitate the transition towards a cleaner, greener, waste free environment, in addition to effective reuse, recycling and waste management, digitally enabled lifecycle solutions are essential.
Lifecycle solutions involve the careful consideration of a product or material from its origin to its disposal. These solutions entail the use of data and technology to enable businesses to optimise resource use, reduce waste, and minimise the environmental impact of their products. Digitally enabled lifecycle solutions are a critical component of achieving circular ecosystems as they provide an end-to-end view of the product life cycle, allowing businesses to identify areas of improvement and optimise their operations.
One of the key challenges in transitioning to circular ecosystems is the lack of information. Lack of data on the origin, composition, and destination of materials and products presents a significant barrier to the circular economy. The data gap extends to information on product design, manufacturing, logistics, and consumption patterns. Addressing this information gap requires a concerted effort by policymakers, industry, and other stakeholders to collect, analyse, and share data.
The Indian government needs to undertake initiatives to address this data gap and enable the transition to circular ecosystems. Just as we have the payments infrastructure for financial transactions, the government could set up a nationwide technology infrastructure for sustainability. The sustainability infrastructure could aim to streamline data exchange across stakeholders, including businesses, policymakers, waste management agencies, and consumers, to enable the transition to circular ecosystems. This is now a critical need as the quantum of waste mounts across all our cities and now even in rural hinterlands.
Companies should seek to adopt environmentally sustainable practices and leverage digital technologies to optimise resource use and minimise waste. The adoption of digital technologies can enable businesses to track and trace materials and products, optimise production processes, and reduce waste. For instance, sensors and data analytics can be used to optimise supply chain logistics, reduce material consumption, and minimise waste generation. Adoption of digital technologies can also facilitate the development of waste-to-value solutions, such as recycling, upcycling, and repurposing of products.
Coordination among stakeholders is crucial for the transition to circular ecosystems. Given the scale and complexity of the challenge, a multi-stakeholder approach is necessary. Such efforts can also provide opportunities for innovation and entrepreneurship, particularly in waste management and recycling.
[1] Waste management: facts, challenges & solutions, Nextias, 8 September 2024, accessed on 8 October 2024
[2] India sees fastest growth in electronic waste generation: Unctad report, Business Standard, 14 July 2024, accessed on 8 October 2024
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