Topic 5

Air quality narratives have improved over the last decade, but more work is needed to deepen and expand them to drive social and political actions for cleaner air. This working group will focus on creating a cohesive plan to build a narrative connecting micro, small and medium enterprises and air pollution in India, and identifying key solutions to prioritise.

Overview

Micro, Small, and Medium Enterprises (MSMEs) are the backbone of India's economy, contributing significantly to employment and industrial output. MSMEs contribute 29% to India's Gross Domestic Product (GDP) and employ over 110 million workers[1]. Despite such a substantial role played by the sector in India's economy, its contribution to deteriorating air quality in cities and regions hasn't been thoroughly assessed, analysed or highlighted. A recent study (2023) on inventory of PM2.5 emissions for the Indo-Gangetic Plain observed that from the industry sector alone 48.5 % (1128 Gg/Year) of the total emissions in the region can be accounted for. In this sector, brick kilns, MSMEs and coal based power plants contribute the maximum emissions of 41 %, 30 % and 18 % respectively[2]. Addressing the environmental impact of MSMEs is critical for improving India's air quality. Addressing the environmental impact of MSMEs is critical for improving India's air quality.

How MSMEs Contribute To Air Pollution

MSMEs operate across various sectors that emit pollutants like particulate matter (PM), sulphur dioxide (SO2), and nitrogen oxides (NOx). Many MSMEs rely on outdated technologies, inefficient processes, and cheap, high-emission fuels, exacerbating pollution levels. Key areas of concern include:

Brick Kilns: Traditional coal-fired kilns are a major source of black carbon and PM emissions.
Textile and Dyeing Units: These industries release hazardous pollutants through inefficient energy use and untreated waste.
Agro-Processing Industries: Usually use energy inefficiently, and have outdated technology.
Small Manufacturing Units: Factories often use outdated machinery and rely on fossil fuels, contributing heavily to local air pollution.

Challenges MSMEs Face in Adopting Cleaner Practices

Financial Constraints: Many MSMEs operate on tight margins and lack the capital to invest in cleaner technologies or energy-efficient machinery.
Lack of Awareness, technical and managerial capacities: Business owners may not fully understand the environmental impact of their operations or the long-term benefits of sustainable practices. Also, even with awareness of the impact there is limited technical and managerial capacities to adopt cleaner technologies.
Limited Access to Green Technology: Even when the intent to switch to cleaner options exists, MSMEs often struggle to find affordable, locally available sustainable alternatives.
Regulatory Hurdles: Existing policies may not always support MSMEs in adopting clean practices. A successful narrative will advocate for streamlined regulations that help small businesses transition to greener methods without excessive red tape.
Bureaucracy and Red Taping: The sector is vast so without clarity and focus from the government, and added to that bureaucracy and red taping poses a serious challenge.

Opportunities For Reducing MSME Contributions To Air Pollution

Adoption of Cleaner Technologies: MSMEs can significantly reduce their emissions by adopting energy-efficient machinery, clean fuels (like natural gas or renewable energy), and better waste management practices. The introduction of green technologies and the availability of financial incentives would help MSMEs transition to cleaner operations.
Policy and Incentives: Government intervention is essential to encourage MSMEs to adopt sustainable practices. Incentives like tax benefits, subsidies, and low-interest loans for upgrading to cleaner technologies can help overcome financial barriers. Strengthened regulatory frameworks focusing on pollution control in MSME-dominated sectors are also critical.
Capacity Building and Awareness: Providing training and capacity-building programmes for MSME owners and workers is crucial. Increasing awareness about cleaner production methods, available technologies, and the benefits of sustainability—both environmentally and economically—can drive change at the grassroots level. Also capacities need to be built of the State Pollution Control Boards with regard to MSMEs and cleaner technologies and monitoring of air pollution from the sector.
Collaboration and Innovation: Partnerships between MSMEs, the government, and private sector players could foster innovation and ease the transition to sustainable practices. Green certification programmes and collaboration with technology providers can accelerate the shift towards low-emission processes. Institutions and organisations working on the ground need to provide technical support and training to MSMEs.

To Address The Connection Between MSMEs And Air Pollution, It Is Essential To:

Evidence based environment policies/ regulations: Reliable data on air pollution from MSMEs is required for policy making as well as monitoring and evaluating the policies in reducing air pollution.
Crafting a narrative that links economic growth, innovation, and sustainability for MSMEs.
Prioritise cleaner technologies and sustainable practices in pollution-heavy sectors like brick kilns and textiles.
Develop supportive policies that provide financial aid and regulatory frameworks to ease the transition for MSMEs.
Capacity-building efforts that can enable MSMEs to reduce their emissions. - Increase awareness and provide training to help MSMEs understand the benefits of clean energy and sustainable methods.
Promote collaboration between the public and private sectors to drive innovation in cleaner production technologies.
Building strategies to engage MSMEs - its owners and also its workers, policymakers, and the public, driving collective action towards a cleaner, healthier India.

Addressing the role of MSMEs in air pollution can help unlock solutions that balance economic growth with the urgent need for cleaner air.