Source: DTE

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Context:

• The International Finance Corporation (IFC) is a private lending arm of the World Bank.
• It decided not to fund a proposed $40 million loan for waste-to-energy (WTE) incineration projects in Gujarat.
• These projects were intended to support the construction of four WTE plants in Rajkot, Vadodara, Ahmedabad & Jamnagar.

Key Issues:

1. Environmental and Public Health Concerns:

• Local communities & activists raised concerns over the potential increase in air & water pollution because of incineration of unsegregated municipal solid waste.
• The emissions from the incinerators can contribute to respiratory diseases, climate change, & other public health hazards.
• Activists argued that the WTE projects will undermine sustainable waste management practices like waste segregation and recycling.

2. Financial Viability:

• Company behind this projects has faced a net loss of Rs 19 crore in 2023.
• Loan Default: it has also struggled to meet loan interest payments. This has raised doubts about the project’s financial sustainability.

3. Implications for Policy and Financial Institutions:

• Activists said that other financial institutions such as Power Finance Corporation (PFC) & Indian Renewable Energy Development Agency (IREDA) should reconsider loans to ACEL.
• They questioned the need for policies that focus on sustainable waste management solutions instead of investing in polluting WTE plants.
  

Solid Waste Management (SWM) in India :

• The issue of waste management in India goes beyond the Gujarat WTE projects.
• The Solid Waste Management (SWM) Rules, 2024 amend the SWM Rules of 2016. It is ready to come into force by October 1, 2025.
• It is Issued under the Environment Protection Act (EPA), 1986. And these rules are designed to address issues in the waste management sector.
• The Central Pollution Control Board (CPCB) and State Pollution Control Boards (SPCBs) are responsible for enforcing pollution control guidelines including the EPA, 1986 rules.
• Despite these regulatory advancements, India's solid waste management still remains in a state of crisis.
• According to the TERI, India generates 62 million tons of waste annually. But only 43 million tons are collected, and only 12 million tons are treated.
• Remaining 31 million tons of waste remain either uncollected or dumped in landfills.
• Lack of effective waste segregation at source, shortage of trained personnel, & inadequate financial resources for local bodies further complicate the problem.
  

Key Challenges and Initiatives for Effective Waste Management :

• Local governments face financial limitations. It makes it difficult to implement modern waste management practices.
• Outdated & unsafe disposal methods continue to prevail due to a lack of resources.
• The management of waste in India is complicated by overlapping responsibilities.
• The Ministry of Environment, Forest and Climate Change (MoEFCC) is responsible for developing guidelines, while the Ministry of Housing and Urban Affairs (MoHUA) handles enforcement at the ground level. But this lead to challenges in coordination, funding, & policy implementation.
• Modern technological solutions like blockchain, IoT, & AI have the potential to revolutionize waste management, but their adoption is stopped by high costs & limited awareness in many parts of India.

Key Initiatives for Waste Management Improvement:

1. Smart Cities Mission:  around 60 cities are using technology to better manage waste, improving collection efficiency & route management.
2. Swachh Bharat Mission (Grameen and Urban): These initiatives focus on proper waste management both in rural and urban areas, with the aim of achieving a Garbage Free status for all urban areas by 2026.
3. Global Initiatives: The United Nations Environment Programme (UNEP) works through the International Environmental Technology Centre (IETC) in Japan to support the proper treatment of special wastes in developing countries.

Way Forward:

• There should be focus on reducing single use plastics, waste segregation at source, & decentralized waste processing to minimize waste generation.
• circular economy models should be promoted that prioritise recycling & reuse over incineration.
• Sustainable Development Goals (SDGs):
  • • Waste management strategies should be linked with SDG 12 (Responsible Consumption and Production).
    • It talks about sustainable consumption & production patterns.
    • It ensures public health & environmental protection by adopting clean energy & climate resilient solutions.

Source: 

DTE