This is part of the government’s vision to decarbonise hard-to-abate sectors, including steel, coal and MSME in line with its 2070 net zero target, officials said.
Official think-tank Niti Aayog has held several rounds of consultations with the stakeholders and a road map to decarbonise the MSME sector could be put in place by mid-February, one of the officials told ET.
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,” said Anil Bhardwaj, secretary general of Federation of Indian Micro and Small & Medium Enterprises (Fisme). “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,” he added.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.
ET had earlier reported that the green scheme outlay could be around ₹15,000 crore and the scheme envisages the Bureau of Energy Efficiency (BEE) measuring emission levels from these enterprises and creating a reference point for emission levels for comparison.
MSMEs contribute over 30% 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.
Content Source: economictimes.indiatimes.com