Govt Plans to help MSMEs to decarbonize

The government plans to offer fiscal incentives and provide regulatory relaxations to help micro, small and medium enterprises (MSMEs) go green and adopt technologies that can help decarbonise.

MSMEs contribute over30% to India’s GDP and more than 45% to total exports from India.

The sector is highly energy and emission-intensive, prompting the government to look for green alternatives to reduce their carbon footprint and high-dependence on fossil fuels.

The measures being considered include setting up emission reduction targets, promoting green fuel and technological innovations, and creating a pool of skilled work-force that could help the sector decarbonise.

This is part of the government’s vision to decarbonise sectors, including MSME in line with its 2070 net zero target.

MSMEs account for 10-15% of total industrial emissions in India. Their contribution to total CO2 emissions in the country is 3-4%.

The major chunk of carbon emissions stem from pumps, motors boilers and energy production from fossil fuels.

The mitigation efforts, therefore, need to be directed towards energy efficiency, use of alternate fuels, greening the grid, adoption of a circular economy, and also adoption of emerging technologies in their processes.

The MSME ministry will also come up with a green scheme, covering aspects such as creating an e-marketplace for recyclables, setting up material recovery facilities, and establishing a data-centric approach.

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