India’s MSME sector is the largest after China. But no one is talking about its role in emissions

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IIndia was recently ranked as the country with the highest amount of atmospheric particulate matter 2.5 – 40 microns per cubic metre, making it one of the deadliest countries due to air pollution. And yet, not many people are talking about the role of our MSME sector in mitigating climate change.

With over 64 million merchants, manufacturers and retailers, India’s small business community is the second largest after China. But rarely is their role in reducing emissions, decarbonizing and thus mitigating climate change considered.

We have been studying the relationship between air pollution and global small business communities for many years. We have worked with many of them in India as well, especially in Surat, where air pollution levels have exceeded national air quality standards. Our association with them has led to many practical and viable solutions.

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Dangers of PM 2.5

World Health Organization’s latest air quality guidelinesThe s, released after a gap of 15 years, confirms the deleterious effects of pollutants in the atmosphere. It points to new findings on the dangers of 2.5 micron (PM₂.) particulate matter._.) or smaller. WHO says “PM”_.can even enter the bloodstream, resulting primarily in effects on the heart and respiration, and also affecting other organs.”

India has world’s highest concentration PM’s_., about 40 microns per cubic metre, making it one of the deadliest countries in terms of air pollution. It’s no surprise as New Delhi’s air pollution is going global Headlines In the last few years. Global Burden Disease (GBD) Study It turns out that this accounts for one-fifth of all deaths in the country annually – nearly two million people died in 2019.

Air pollution also significantly affects the quality of life and health of people, especially industrial workers. This adversely affects industrial productivity, which ultimately affects the economy. Another 2020 WHO study estimates the economic cost of air pollution at Rs 14 lakh crore, about $188 billion, or 7 percent of India’s GDP.

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Small businesses’ pollution burden

half of all outside air Pollution Industrial emissions in India and a third are due to automobiles. A common catalyst contributing to both industrial and vehicle emissions is fossil fuels. As a subgroup of industries classified as Micro, Small and Medium-sized Enterprises (MSMEs), India has a vast small business landscape. There are 63.4 million small businesses in the country. The second largest small business community globally after China, and a third of them are manufacturing companies. this field Contribution More than 40 percent of the country’s exports and one-third of the country’s GDP.

There are over 200 energy-intensive manufacturing clusters in the country. Energy usage of MSMEs in India is estimated to be equal to 50 million metric tons of oil are used per year. Therefore, this often overlooked sector’s adoption of clean energy measures can significantly reduce air pollution, mitigate climate change and boost the economy. In China, improvements in energy use resulted in an 11 percent savings in electricity supply between 2000 and 2014. It also saved 1.2 gigatonnes of carbon dioxide (CO2) emissions in 2014 alone – the equivalent of planting nearly 20 million trees in a decade. These gains in energy efficiency and subsequent reductions in air pollution were achieved through industry-mandated programs, a building retrofit and a consumption metering reform.

To address air pollution, India has ambitious plan To enhance renewable energy generation and energy efficiency of a wide range of infrastructure including the grid and construction sector. However, there is a lack of mass adoption of these clean energy measures in the MSME sector. Some of the key reasons include lack of capital to invest in renewable resources such as rooftop solar, and lack of energy use profiles, and benchmarking of the production process.

MSMEs in India depend on a range of fossil fuels, most of which are coal. Others include light diesel oil, high-speed diesel, natural gas and biomass fuels such as wood and bagasse. WRI analyzed MSME clusters in Surat, Gujarat to study the relationship between energy and air pollution. Surat is one non-receipt cityThat is, its air quality is worse than the national ambient air quality standards. Taking 2017 as the base year, the city has been selected under the National Clean Air Program (NCAP) to reduce PM emissions by 20-30 percent.

Surat is one of the oldest textile and diamond processing centers in India. Industrial development in Surat is attributed to the presence of these units along with chemical and petrochemical industries.District Industrial Profile – Surat (2018-2019)) WRI analyzed the data provided by Gujarat Pollution Control Board (GPCB) and laid down the pattern of energy consumption in MSMEs. We have identified interventions that have the potential to improve air quality and accelerate the transition to clean energy sources. These interventions may well be implemented in other similar areas.

The biggest challenge in the MSME sector is the lack of data To evaluate energy consumption and emissions. A large number of MSMEs neither install meters nor monitor their energy and fuel consumption. They need to start with simple automation, which can revolutionize work practices, improve process productivity and reduce energy use.

MSMEs often lack technical expertise and are unaware of the recent progress. They usually use small to medium sized boilers to generate energy. Currently, the fuel used to burn these boilers is mainly coal, which is a major emitter of particulate matter. Small boilers are 30–35 percent more inefficient than larger boilers, and consume more energy. Loss. In addition, small enterprises often do not maintain air pollution control equipment or APCDs. Our study in Surat revealed that more than 70 per cent of the industries either had insufficient APCDs, or were poorly maintained. replacement of small boilers Energy-Efficient Common Units Connected to Sophisticated APCDs Surat will reduce air pollution in the cluster by 60-70 percent, and cut fossil fuel use by 25-30 percent. This in turn will improve efficiency and reduce CO . will reduce₂ and PM emissions.

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Technology Priority

Why do small businesses not prioritize adopting technology? Capital limits, market dynamics, profit pressure and owners’ attention to sales. in many government departments programs and subsidies to enable clean energy measures and provide technological up-gradation for the sector. However, pollution control boards, sector-specific ministries and industrial development authorities should collaborate to create cluster-specific ‘Resource Efficiency Plan’ To address clean energy concerns.

In addition, any external crisis like earthquakes and epidemics can be fatal for us. small businesses. disease burden study states That workers’ lungs have already been damaged due to reduced use of personal protective equipment from exposure to workplace pollutants such as PM, carbonic compounds fumes, dust, and oxides of nitrogen and sulphur. We now have more information that damaged lungs are more vulnerable to the Covid-19 virus, which has led to a serious situation among daily wage workers in India. (Occupational health and safety practices at the workplace during the COVID-19 pandemic, A. Veeramgami et al, 2020)

Since India is one of the most vulnerable countries to climate change, it is imperative to address clean energy measures to combat it. The adoption of bold measures by India’s small businesses to transition to clean energy will not only mitigate the impacts of climate change, but will also enable them to compete in the global market, as increased awareness of corporate practices will help consumers loyalty is affected.

Kajol @kajol19 and Zaheer Sheikho @ZGSHAIKH WRI are researchers for India’s energy and cities programs, respectively. Kunal Shankar @ Kunalshankar WRI leads India’s communications for energy programme. Thoughts are personal.

(Edited by Anurag Choubey)

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