Publisher’s Note
While the term Circular Economy is recent, the concept itself is not new, with earlier concepts like the cyclical system of production, performance economy in 1976, and concepts like industrial ecology and industrial symbiosis in circulation. The primary goal of the Circular economy is to recycle material flow and balance economic growth and development with environmental and resource use. The Ellen MacArthur Foundation outlines that a Circular Economy (CE) paves the way for economic growth aligning sustainable social, environmental, and economic development.
The UN Climate Change Conference of the Parties (COP) COP 27 asserted the importance of a transition to a circular economy through the elimination of waste and pollution, reduction and avoidance of emissions across the value chain, product and material circulation enabling retention of embodied emissions, and regeneration of nature.
The 5 R’s of CE are: rethink, redesign, reduce, reuse and recycle.
PM Modi announced India’s aim to achieve net zero emissions by 2070. The Government of India released the CE Report in August 2021 and the CE Action Agenda in 2022. Oil and lubricant reuse and recycling are one of the 11 key areas, to transition from a linear to CE and lubricant manufacturers.
While many believed that lubricants manufactured from RRBOs were inferior compared to those made from virgin base oil, there has been a shift in awareness, advancements in technologies used for oil re-refining, and the environmental and economic sustainability benefits of RRBO- based lubricants in the last decade have brought about an increase in their acceptance and adoption.
Global giants like Shell and Castrol are already working on internal targets of RRBOs constituting at least 10-25% of reused oil.
Like many nations in the world, The Government of India has been pushing to revolutionize material flow in manufacturing processes and move to a CE through new regulations that encourage reusing and recycling oils. With the growing acceptance of and a steady demand for recycled oil, there is no longer a real difference between virgin oil and reused oil. Though implementation has been challenging, the Government of India is incentivizing oil industries that are reusing at least 25% of the recycled oil. According to Technavio, the Indian lubricant market is expected to grow by 809.93 thousand tons from 2021 to 2026.
Mr. Sahil Bhargava, Head of Strategy, IFP Petro Products Pvt. Ltd., India, shared that they provide RRBOs to large organisations like IOC, HPCL, Bharat Petroleum, and many others. He shared that while the CE is in a nascent stage in India, the future needs technological upgradation. He added that the Ministry of Petroleum and the Ministry of Environment are cognizant of this and working towards encouraging EPR (Extended Producers’ Responsibility) among oil and lubricant manufacturers in the country.
Shell’s launch of a used oil management service initiative to increase re-refining rates and to reduce emissions related to end-of-life of lubricants, helping India meet carbon neutral targets and the goal of a CE. Hindustan Petroleum Corporation Limited’s launch of ENKLO 68 Green, with 30% RRBO content on the barrel defines a new era of Green lubricants in the country.
The only challenge that remains is the raw material availability of used oil for diversion for recycling and procurement at a reasonable rate for industries. While used oil recycling is a challenge, the impetus, encouragement, and incentivization from the government are hugely motivating for the industries.
India remains at the lower ranks of recycling oils compared to countries like Italy that recycle up to 98%. While there is a long way to go, industries and the government are working towards making the planet greener and more sustainable. Let’s work towards sustainability, reduce carbon footprints, do our bit towards the environment, and rethink growth for long term well-being.
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