India's Circular Economy Journey: The National Circular Economy Framework (NCEF) 2024

The Confederation of Indian Industry (CII) is committed to creating a robust, impactful, and conducive sustainable ecosystem for the country. In 2023, CII introduced the National Circular Economy Framework (NCEF) as a pivotal step towards achieving a sustainable, resource-efficient economy. This initiative emerged from a collaborative effort between the government, industries, and communities, all committed to embedding the principles of Circular Economy into their practices. At its heart, the NCEF is built on three key pillars: Resource Conservation, Waste Reduction, and Climate Resilience. This framework is perfectly aligned with India’s broader environmental commitments, such as the Nationally Determined Contributions (NDCs), the United Nations Sustainable Development Goals (UNSDGs), and the Lifestyle for Environment (LiFE) mission.

The Second Edition: Expanding the Scope

Building on the success of its predecessor, the second edition of the National Circular Economy Framework (NCEF), building on the momentum and significant strides made since its launch last year. The 2^ndedition of the NCEF, broadened its scope from six to sixteen andaligned itself with NITI Aayog’s focus materials. Thus, enabling a broader focus on critical materials while addressing key issues such as resource security, carbon reduction, and energy efficiency to support India’s sustainability goals. This revised edition also reflected on global shifts towards circular practices, notably in the wake of the G20’s endorsement of these principles and the establishment of the Resource Efficiency and Circular Economy Industry Coalition (RECEIC). These global movements solidify India’s role as a leader in the sustainable economic development.

Key Highlights of NCEF 2024

The NCEF 2024 incorporates CII’s vision, which advocates for advancing Circular Economy principles, with an emphasis on life cycle assessment. It highlights the need for a shared understanding of circular principles among stakeholders, aiming to overcome existing challenges while promoting innovation, technological advancement, and actionable initiatives.

One of the key elements of this updated framework is its commitment to enhancing cross-sector collaboration. NCEF 2024 actively promotes awareness of circular solutions across sixteen sectors, supporting an integrated approach to the transition towards a Circular Economy. Furthermore, it addresses the need for better data management, which will enable consistent progress tracking and facilitate policy adaptability. The framework also establishes measurable targets to reduce transition costs, ensuring a more sustainable and financially feasible shift towards circular practices.

Two-Part Framework for Circular Transformation

The NCEF is structured into two main sections, each with distinct objectives and strategies:

Part 1: A Comprehensive Framework for All Focus Materials

This section outlines a strategic framework applicable to a wide range of focus materials. Its primary goal is to reduce the use of virgin materials, conserve resources, and enhance the competitiveness of industries. This part also provides the criteria for material selection based on factors like usage, environmental impact, and resource value potential. The key principles guiding this section include:

Prevention
Upcycling
Recycling
Energy Recovery

These principles are all centered around lifecycle-based design and the retention of value throughout the product’s lifecycle. Additionally, Part 1 lays out necessary policies, measures, and strategies for successful implementation, alongside processes for continuous monitoring and evaluation.

Part 2: Material-Specific Action Plans

Part 2 of the NCEF 2024 builds upon the focus of the 2023 edition by expanding the range of materials targeted for circular action. The new focus areas include liquid waste, scrap metal, li-ion batteries, solar panels, gypsum, hazardous waste, used oil, agriculture waste, tyres, end-of-life vehicles, and textiles. These materials have been identified for their significant potential for waste reduction, resource recovery, and environmental impact mitigation.

For each of these materials, Part 2 outlines strategic targets, policies, and actionable plans, which are supported by regulations, incentives, and public-private partnerships. The overarching aim is to establish a robust monitoring and evaluation mechanism that aligns with both national and international standards.

India’s Circular Economy Vision

The NCEF 2024 reaffirms India’s commitment to building a resource-resilient Circular Economy. The framework lays the foundation for sustainable growth, one that not only drives economic development but also integrates environmental responsibility and social equity. By fostering collaboration, education, and targeted actions, the NCEF 2024 aims to position India as a global leader in sustainable economic practices, while also ensuring that the benefits of the Circular Economy are accessible and impactful for all sectors of society.

With a clear vision and actionable strategies, the NCEF 2024 by CII is a comprehensive guide for India’s transition to a circular economy, balancing growth with environmental stewardship and creating a sustainable future for generations to come.