Vehicle Scrappage Policy And EV Vital For India’s Circular Economy

21 Jan 2025 CW Team

Union minister for environment, forest and climate change Bhupender Yadav emphasized the importance of transitioning to a circular economy during his keynote address at the 3rd International Conference on Sustainable Circularity, organized by the Society of Indian Automobile Manufacturers (SIAM) in New Delhi.

“Circular economy is not just an option but an imperative for India’s future,” Yadav said, stressing the economic, environmental, and social benefits of sustainable practices in the automotive sector. He added that “nature’s recycling efficiency should inspire waste management strategies,” urging stakeholders to align growth with environmental goals.

The minister highlighted key policies, including the Vehicle Scrappage Policy (2021), aimed at phasing out older vehicles, and the End-of-Life Vehicles (ELVs) Rules, effective April 2025, to ensure environmentally sound vehicle disposal.

He also noted the government’s push for electric vehicles (EVs) through FAME and PLI schemes, with EV sales projected to reach 35% of total vehicle sales by 2030, potentially avoiding 5 metric tonnes of CO2 emissions annually.

The minister also unveiled SIAM’s strategy paper, "Towards Circular Future in the Automobile Industry," and called on the industry to lead by incorporating recyclable designs, promoting sustainability, and enhancing renewable energy use.

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