The used oil ecosystem in India has long been characterised by fragmentation and informal practices, with significant volumes of used oil often lost to inefficient processes and improper disposal.
To drive a focused and collaborative effort towards transforming India’s used oil recycling ecosystem, Deloitte India, the Federation of Indian Chambers of Commerce and Industry (FICCI) and the Resource Efficiency and Circular Economy Industry Coalition (RECEIC) collaborated to launch a thought paper on “Advancing India’s self-reliance: Enhancing circularity in used oil management” aimed at reinforcing the country’s commitment to resource efficiency and economic resilience.
Despite a growing awareness of the environmental and economic benefits of recycling used oil, the current system remains heavily reliant on informal networks, presenting significant challenges to efficiency, compliance and sustainability. Here are a few key challenges:
The recommendations outlined herein are designed to drive the transformation of the used oil ecosystem in India by overcoming the challenges through a comprehensive approach:
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These measures form a strategic roadmap that not only supports environmental sustainability but also enhances economic resilience by optimising resource utilisation and reducing energy consumption.