South Korean electronics giants LG and Samsung have filed lawsuits against the Indian government over a new policy that mandates higher payments for e-waste recycling. They are joined by other companies like Daikin, Voltas, Havells, and Blue Star.

The cases are scheduled to be heard on April 22, according to court documents. Johnson Controls-Hitachi had also filed a case but later withdrew without explanation.

India recently introduced rules requiring companies to pay at least 22 rupees (US$0.26) per kilogram to recyclers.

The government says the move aims to formalize the recycling sector and attract investment.

However, LG called the rules an “enforcement failure” in its filing. Samsung warned the policy could raise costs by “5-15 times” compared to current payments.

🔗 Source: Reuters

🧠 Food for thought

1️⃣ India’s e-waste policy highlights global transition from voluntary to mandatory recycling models

India’s regulations represent a shift happening worldwide as governments move from voluntary to mandatory e-waste management frameworks.

India ranks as the third-largest e-waste generator globally, with only 43% of its waste recycled properly and 80% handled by informal operators using potentially hazardous methods 1.

This low formal recycling rate (compared to countries like the US with higher rates) has prompted regulatory intervention through fixed pricing requirements 1.

The implementation of the “polluter pays principle” in India follows similar regulatory approaches in the EU, which has established more centralized frameworks, while creating tensions with manufacturers used to market-determined recycling costs 2.

The lawsuits highlight a fundamental tension in environmental policy: Samsung explicitly argued in their court filing that “regulation of prices does not inherently serve the purposes of environmental protection,” reflecting industry preference for market-based solutions over direct price regulation.

With global e-waste projected to reach 82 million tonnes by 2030 (up from 62 million in 2022), more countries are likely to face similar industry pushback as they implement stricter producer responsibility requirements 2.

2️⃣ Economics of informal recycling creates persistent challenges for policy makers

India’s struggle to formalize its e-waste sector highlights the economic complexity behind environmental regulations.