EPR Credits — Generation, Transfer, and Surplus
A three-year trend showing EPR credit generation by tyre recyclers, credits transferred to tyre producers, and unsold credits — revealing rapidly growing generation capacity outpacing producer demand and creating a growing credit surplus in 2024-25.
| Year | Credits Generated (M tonnes) | Credits Transferred (M tonnes) | Credits Available / Unsold (M tonnes) |
|---|---|---|---|
| 2022–23 | 2.00 | 1.68 | 0.33 |
| 2023–24 | 2.75 | 2.19 | 0.55 |
| 2024–25 | 4.40 | 2.43 | ~2.00 |
Beyond definitions
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How to read this table
- All figures are in million tonnes. M tonnes = millions of tonnes of waste tyre processing equivalent, not literal credit count.
- Credits Available/Unsold = Credits Generated minus Credits Transferred to producers in that year.
- The trend direction (growing unsold credits) is more important than the absolute numbers for business planning — it signals a shift from a seller's market to a buyer's market for EPR credits.
About this table
The waste tyre Extended Producer Responsibility (EPR) system generates credits when a registered recycler processes waste tyres into approved end products. Those credits must be purchased by tyre producers to meet their mandatory producer obligation under the EPR framework. This three-year trend table reveals a critical structural pattern in the Indian tyre EPR market that directly affects recycler revenue.
In 2022–23, the system was in its early phase: recyclers generated 2.00 million tonnes of EPR credits, producers transferred 1.68 million tonnes (purchased credits), leaving only 0.33 million tonnes unsold. The market was close to balanced — supply and demand for credits were roughly aligned. In 2023–24, generation grew to 2.75 million tonnes while producer purchase grew to 2.19 million tonnes — unsold credits rose to 0.55 million tonnes, a growing but still manageable surplus.
2024–25 shows a structural shift: credit generation almost doubled to 4.40 million tonnes, but producer purchases grew only modestly to 2.43 million tonnes — leaving approximately 2.00 million tonnes of EPR credits unsold. This growing surplus has two implications for a new recycler. First, the gap between generation capacity and producer demand has widened significantly, which creates downward pressure on EPR certificate prices as more credits compete for the same pool of producer obligation. Second, it suggests that producer EPR targets — which ramp up progressively through financial years — may not be growing as fast as recycling capacity, at least in the near term. Recyclers entering the market now must factor in lower or more volatile EPR certificate prices than the early-stage market suggested.
Key insights
- EPR credit generation grew 120% from 2022-23 to 2024-25 (2.0M to 4.4M tonnes) while producer purchases grew only 45% — the growing mismatch signals increasing credit market competition.
- The 2024-25 unsold credit surplus of approximately 2.0 million tonnes is a structural oversupply signal — new recyclers should factor lower EPR certificate prices into financial projections, not assume early-market pricing.
- Growing recycling capacity without commensurate growth in producer obligation uptake suggests that EPR target enforcement or producer obligation amounts may need regulatory adjustment to rebalance the market.
- Recyclers with diversified revenue (EPR credits plus direct product sales from crumb rubber or reclaimed rubber) are less exposed to EPR price volatility than recyclers who depend primarily on certificate revenue.
Methodology & sources
Data is based on publicly available CPCB EPR portal reporting for waste tyre EPR credits as of the reporting periods shown. Credit generation figures represent registered recycler volumes as reported to CPCB; transferred credits represent producer obligation fulfilment. The 2024-25 unsold credit figure is approximate. EPR framework rules, producer obligation targets, and certificate validity periods are subject to regulatory revision.
Related data tables
EPR Revenue Scenarios and GST Treatment by End Product
EPR certificate revenue scenario comparison for 1,000 MT of waste tyre input, and the complete GST and HSN code reference for every input and output stream in a tyre recycling operation.
EPR Targets and End-Product Certificate Weightages
The Extended Producer Responsibility (EPR) obligation targets for tyre producers ramp up year by year to full coverage — and the certificate weightage multipliers show which end products generate the most EPR revenue per tonne processed.