Innovation

The Deposit Refund Scheme (DRS) has a rich history dating back to Oregon in 1971, where a 5 cents deposit per bottle was charged, but it faded over time, contributing to the rise in littering. In recent years, DRS has reemerged globally, now with technology-driven implementations in over 45 countries, showcasing return rates exceeding 90%. This innovative system incentivizes consumers to return plastic packaging and e-waste by offering a refundable deposit collected during the purchase.

DRS addresses several critical challenges. It reduces material recovery costs and aids in achieving Extended Producer Responsibility targets. By focusing on collecting uncontaminated material, DRS enhances the quality of segregated material for recycling and fosters consumer awareness, motivating individuals to responsibly deposit waste.

Prominent examples of successful DRS implementations include Europe, with Sweden introducing the first system in 1984 and Lithuania achieving impressive recovery rates. Countries like Germany, Denmark, Norway, and others have embraced DRS, showcasing remarkable recycling rates. In response to the global concern for climate change and circular economy promotion, many nations are adopting DRS to manage plastic waste effectively.

In India, Recykal has played a pivotal role in implementing DRS, notably in Kedarnath, addressing the littering issues caused by pilgrims. Successful initiatives, such as the Deoria Taal Vikas Mahotsav and Dr Reddy’s Laboratories, demonstrate the versatility of Recykal's DRS, extending beyond plastic waste to include e-waste. This technology-driven system ensures end-to-end traceability and efficiency in material and financial flows, with numerous Indian states partnering with Recykal to leverage its immense potential. The innovative DRS by Recykal stands as a beacon for responsible waste management, aligning with global efforts toward sustainability and environmental consciousness (SDG8).

Inspiration

Recykal when first started by Mr Abhay was motivated in this sector because he thought “A country crippled by growing waste, a bunch of tech entrepreneurs and waste enthusiasts decided to use their expertise in disrupting the waste ecosystem”. Thus they aimed to bring all the stakeholders in the waste management system under one platform with the help of technology. He believes if the waste management sector is organized then waste recycling won't be a problem

The Kedarnath Project's Net Zero Scheme, conceived by Ila Joseph (senior program manager), creatively integrates the Polluter Pays Principle and deposit refund scheme to promote responsible consumption and waste recycling. Joseph highlights the initiative's core principle: "Nobody loses the money here but the environment is now cleaner."

In this system, consumers pay a slightly higher amount for products, allocating an extra Rs 10 for recycling efforts. Simultaneously, shopkeepers contribute to recycling by paying a premium to wholesalers, supporting the recycling infrastructure. Post-consumption, products feature QR codes, allowing consumers to redeem the designated amount at collection centers, fostering a participatory approach.

Joseph emphasizes that the initiative engages not only consumers but also the informal sector, including kabadiwallahs, who recognize the value of waste bottles. This incorporation of the informal sector formalizes waste management, providing structure to the process. QR codes play a vital role in traceability, ensuring transparency and accountability in recycling.

Addressing Extended Producer Responsibility (EPR), companies can trace their products post-consumption through QR codes. Brands contribute to these efforts by paying deposits to Recykal, essentially prepaid by consumers. This financial mechanism not only supports recycling infrastructure but also formalizes the waste management sector, contributing to SDGs like poverty alleviation and social responsibility. The Kedarnath Project's Net Zero Scheme exemplifies a comprehensive and sustainable approach to waste management, aligning with global sustainability goals and fostering a circular economy.

Overall impact

In the short term, Recykal's initiatives in India, such as employee awareness programs and the Rethink program for students, are expected to yield immediate positive effects. These efforts aim to enhance awareness about sustainable practices, leading to a heightened sense of responsibility among employees and students alike. The targeted education through the Rethink program can prompt rapid behavioral shifts, with students actively incorporating sustainability principles into their daily lives.

Furthermore, the integration of the informal waste sector, including kabadiwallahs and waste pickers, into the organized sector through initiatives like the Net Zero Scheme can provide swift benefits. This formalization may lead to improved working conditions, fair compensation, and increased efficiency in waste collection and recycling, creating positive short-term impacts.

In the long term, these initiatives are poised to bring about more profound transformations in the Indian context. The ongoing educational efforts may result in the adoption of sustainable lifestyles, contributing to a cultural shift where environmentally responsible practices become ingrained in society. The cumulative effect of initiatives like the Net Zero Scheme and the Extended Producer Responsibility (EPR) program can lead to substantial reductions in environmental pollution and resource depletion over time, fostering a cleaner and healthier environment.

Moreover, the long-term impact extends to the development of a circular economy, minimizing waste generation and maximizing material reuse and recycling. The formalization of the informal waste sector can create enduring economic opportunities, contributing to poverty alleviation and improving the livelihoods of those engaged in waste management. Ultimately, these long-term effects may influence policy development, encouraging the implementation of sustainable practices and holding businesses accountable for their environmental impact.

Business benefit

Recykal has made significant strides in India's waste management sector. From a small team of 5-10, they've grown to a workforce of 350. They received a $4 million boost in 2020, followed by challenges during the pandemic lockdowns. Despite these hurdles, they've achieved impressive financial milestones: including a net worth surpassing Rs. 1000 crores. In 2022, Morgan Stanley further fueled their growth with a $22 million investment.

Taking on the $100 billion plastic waste challenge is no easy feat, but Recykal is proving its mettle. Their impact extends beyond finances, fostering positive social change. Employee welfare and middlemen training programs empower communities, giving families hope for a brighter future and social mobility. This is further reinforced by their remarkable 4x revenue jump to Rs. 745 crore in FY23, painting a promising picture for the years ahead.

Social and environmental benefit

Recykal, India's innovative w-commerce marketplace, is turning trash into treasure, not just for the environment but also for its employees and the country as a whole. Operating at the heart of India's 15-million-ton daily waste problem, Recykal is more than just a business – it's a sustainability revolution in action.

Recykal's impact starts with its people. No longer relegated to the shadows as "Kabadiwalas," waste collectors are now valued members of the team. Through training and integration into the formal workforce, Recykal breaks down social stigma and empowers individuals, contributing to decent work and economic growth (SDG 8).

Recykal's sophisticated platform connects waste generators across India with processors, creating a seamless infrastructure for waste management (SDG 9). This tech-driven approach not only streamlines waste collection but also paves the way for a more efficient and sustainable future.

Recykal doesn't just talk the talk of reduced inequalities (SDG 10); it walks the walk. By integrating previously marginalized waste collectors into the fold, the company challenges social barriers and fosters inclusivity. This not only empowers communities but also injects their valuable knowledge into the waste management system.

Recykal isn't just about collecting waste; it's about giving it a new life. By championing a circular economy model (SDG 12), the company closes the loop on resource utilization, reducing reliance on virgin materials and minimizing environmental impact. This sustainable approach is a win-win for both the planet and the economy.

Clean streets and healthy communities are the cornerstones of sustainable cities and communities (SDG 11), and Recykal is building them one waste stream at a time. By providing efficient and environmentally friendly waste management solutions, the company is creating cleaner, healthier cities and leaving a lasting positive impact on India's future.

Recykal's story is a testament to the power of innovation, collaboration, and a genuine commitment to sustainability. By tackling critical SDGs head-on, the company is not just managing waste, but building a more sustainable and equitable future for India. Its success is a beacon of hope, inspiring a wave of entrepreneurs and paving the way for a future where waste isn't just a problem, but an opportunity.

Interview

Mrs. Ila Joseph, Program Manager