Circular Economy to be Driving Force of Green Growth in India

The message from the COP30 conference in Belém, Brazil, is very clear: from targets to delivery when it comes to climate action. The focus in the years to come will include but not be limited to achieving a circular economy in countries such as India.

The latest conference, COP30, highlighted that it is no longer a time when applause for ambitious climate action targets will do. Only when practical solutions become tangible can the victory in this war against climate change be achieved. The battle this time is not just centered on “how much reduction” but rather on “how and where these reductions will come from.” The Belém Declaration concerning global green industrialization thus reflects this reality since it focuses on trade, industry, and resource relationships with climate diplomacy.

For India, this moment holds special significance. With the country quickly lining up to become a global manufacturing powerhouse and simultaneously attempting to achieve net-zero, being able to gauge and assess a green future in India will not simply be based on how many photo voltaic panels they can install. Rather, it will be based on how effectively steel, cement, aluminium, and plastics can be used. Green growth, clearly, is not just based on renewable energy but smart industry.

The country’s cities alone produce close to 62 million tons every year, with a negligible portion being recycled. Going by this trend, this amount is projected to surpass 400 million tons in 2050. However, this challenge that is soon to come with waste management holds an immense opportunity as well. The boost in the circular economy will see materials obtained from waste used in replacement of virgin materials, hence alleviating pressure on dump sites and injecting life into the economy. This will see over $2 trillion in value and 10 million jobs established by 2050.

Secondary production—the production of products using scraps or materials at the end of their life—is a feasible and very necessary route. It is one of the cleaner methods of turning waste into a raw material this way. This will directly fulfill SDG goal 12 but will also fulfill SDG targets 8, 9, 11, and 13.

A case in point is the aluminium production chain. A total of 5% of the original amount of electricity is all that is required if aluminium is recycled compared to when it is mined from bauxite. Furthermore, in India, nearly 40% of aluminium production is from recycled production, resulting in a reduced level of CO₂ emissions by over 90%. Most of the aluminium production in India, which utilizes coal-fired electricity, will perhaps face a challenge with European countries imposing a ‘carbon tax.’

COP30 presented this challenge in employment terms. Already, the recycling industry provides jobs for millions of people across the globe, and in India alone, this is projected to go above 10 million by 2050. As a sector where MSMEs preponderate, this sector is equally vital in terms of GDP and exports of India. The message is simple—the circular economy can become a dual engine for employment and climate action.

However, one word of warning is necessary in this context. A transition that focuses too heavily on automation may see an increase in productivity but not necessarily jobs. An important requirement for a green and healthy economy in India is to bring all waste pickers, small scraps vendors, and informal sector workers into this new industrial order.

The take-home message in COP30 is very clear: “Implementation matters more than promises,” and this is an important message in this context because, in this case, “India can do better in encouraging low-carbon materials and facilitating industries and MSMEs in a green transition,” which can definitely be achieved through some important steps such as “prioritizing recycled materials in public procurement, improving scrap availability systems, technology upgradation, and labor formalization.” 

At the end of the day, this is not simply an environmental policy—it is an economic one. So-called secondary production reduces carbon emissions per unit of production but increases jobs requiring human inputs. The COP30 referred to this technique as the ‘Job-Carbon Dividend’: less carbon, more jobs. If a serious attempt is made in India, it can show to the whole world that green growth is not an expense but an investment of a lifetime in making both earth and economy green.e