(MENAFN- KNN India)
New Delhi, Jan 7 (KNN) In a significant step towards achieving India's net-zero carbon emissions target by 2070, the government is poised to unveil a policy in the upcoming Union Budget aimed at greening the operations of Micro, Small, and Medium Enterprises (MSMEs).
This initiative seeks to lower the carbon footprint of these enterprises through financial, technological, and regulatory support.
According to sources, the Ministry of MSME has proposed establishing a dedicated body under its aegis to oversee the policy's implementation.
The policy aims to facilitate the adoption of renewable energy, circular economy practices, and proper waste management by MSMEs, which collectively generate about 134 million tonnes of carbon dioxide annually.
“The new framework will support smaller businesses through a mix of fiscal incentives, technological handholding, and regulatory guidance,” said an insider.
The approach will vary based on enterprise size: while medium enterprises may require technological aid and compliance oversight, micro and small units would benefit from substantial financial support.
“Besides competitiveness, the new challenge before MSMEs is greening of their products and processes. Access in both domestic and international value chains is increasingly determined by environmental and climate change concerns underpinned by low carbon intensity, circular economy and SDGs. EU's CBAM and Deforestation legislation are
case in point. Enormous funds are needed to empower MSMEs to make green transition across sectors”, says Anil Bhardwaj, Secretary General of Federation of Indian Micro and Small & Medium Enterprises (FISME).
“MSMEs are said to generate 134 Mn Tons of CO2 annually and account for 3-4% of total CO2 emissions. But, as MSMEs account for 35~40% of industrial production, their contribution to industrial emissions is significant: 10~15%. In MSME segment with
five sub sectors accounting for 50% of these emissions namely Textiles, Steel Re-rolling, Paper, Foundry and Food Processing”, he added.
Exports constitute a substantial part of Indian MSMEs' operations, valued at over Rs 12 trillion in FY25 so far. Complying with global regulations like CBAM is crucial for maintaining competitiveness in international markets.
To complement the initiative, the Ministry of Power and the Bureau of Energy Efficiency are working on a Rs 1,000-crore scheme to enhance energy efficiency in MSMEs, alongside existing investment-grade energy audits.
The new policy could mark a pivotal moment in driving sustainable growth for India's 64 million MSMEs.
(KNN Bureau)
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