In its report titled ’Roadmap for Green Transition of MSMEs’, the Aayog highlighted that the proposed national project management agency (NPMA) should operate as an independent consultative and advisory body, overseen by an inter-ministerial committee.
The NPMA is expected to spearhead the practical implementation of the program by actively collaborating with MSME clusters, ensuring a robust and transparent cluster selection process.
“The NPMA should target interested MSME clusters and industrial associations by issuing an expression of interest (EoI) that outlines the cluster selection methodology for implementing the identified solutions,” stated the report. It also indicated that MSME clusters could establish Special Purpose Vehicles (SPVs) to engage in the green transition program.
In a different report titled ’Roadmap for Cement Sector Decarbonisation’, the Aayog advocated for the increased utilization of Refuse Derived Fuel (RDF) from municipal solid waste as a substitute for coal in thermal heating.
Additionally, it proposed a greater use of supplementary cementitious materials or clinker alternatives and emphasized the scaling up of Carbon Capture, Utilisation and Storage (CCUS) in the cement sector to capture CO2 emitted during processes.
“Through these three solutions, the Indian cement industry could potentially reduce GHG emissions by 80-85% by 2070,” the report noted.
In another related report titled ’Roadmap for Aluminium Sector Decarbonisation’, a three-phase approach was suggested to decrease the sector’s carbon footprint.
“This entails a transition to renewable energy round-the-clock (RE RTC) power and grid connection in the short term until 2030, followed by a shift to nuclear power in the medium term (between 2030 and 2040), and the integration of Carbon Capture Utilisation and Storage (CCUS) with captive coal-based generation in the long term beyond 2040,” the report revealed.
The micro, small, and medium enterprises (MSME) sector in India encompasses 69 million (6.9 crore) units, with roughly 68.6 million classified as micro entities.
MSMEs contribute 45.7% of India’s total exports, account for 30% of Gross Value Added (GVA) in GDP, and hold a 36.2% share in manufacturing. Furthermore, the sector employs approximately 250 million (25 crore) individuals.
MSMEs heavily depend on fossil fuels for their energy and processing needs, contributing around 135 million tonnes of carbon emissions (MtCO2e) in 2022.
These enterprises encounter various hurdles, including limited capacity to pursue green initiatives, challenges in securing reliable financing for energy transitions, a lack of awareness concerning policies and programs, the absence of scalable models, and niche market dynamics that lead to investment uncertainties.
During the 26th UN Climate Change Conference (COP26), India made commitments to reach net-zero emissions by 2070, cut carbon intensity by 45% by 2030, and boost non-fossil energy capacity to 500 GW by the same year.
Achieving these ambitious goals will necessitate considerable efforts across all sectors, with industrial decarbonisation playing a pivotal role.
Considering the diverse industrial landscape, a sector-specific strategy has been adopted to guide the pathway towards a green transition.
