Clean Energy Access for Tamil Nadu's MSMES

The global commitment to decarbonize the economy in response to the climate crisis is driving the energy transition, which involves shifting away from fossil fuels towards renewable energy sources. The European Union (EU) is taking significant steps to accelerate decarbonization, including the introduction of the Carbon Border Adjustment Mechanism (CBAM) in 2021. CBAM aims to reduce greenhouse gas emissions by placing restrictions on goods produced with high carbon and greenhouse gas emissions at EU borders. Sectors such as iron and steel, cement, chemicals, and textiles are initially targeted, and other countries like Canada, the United Kingdom, the United States, Japan, and South Korea are considering similar mechanisms.

India, particularly the state of Tamil Nadu, relies on the EU as a key export market. Compliance with the EU CBAM will require Indian companies to monitor, calculate, and disclose the greenhouse gas emissions embedded in their products covered under CBAM. Tamil Nadu, with its goal of becoming a USD 1 trillion economy by 2030, has a significant presence of Micro, Small, and Medium Enterprises (MSMEs) contributing to its industrial sector. However, the growth of the MSME sector has been affected by the COVID-19 pandemic and remains stagnant. As Tamil Nadu aims to become a leading export state, the decarbonization of production becomes crucial for export-oriented industries and the MSME sector. Access to affordable and clean energy is vital for MSMEs to achieve decarbonization, and the state needs to fine-tune regulations and policies to support the MSME sector in obtaining affordable clean energy and remaining competitive.


Read the report here:

Clean-Energy-Access-for-MSMEs.pdf (aurovilleconsulting.com)

Visit the website to know more:

Clean Energy Access for Tamil Nadu's MSMEs - Auroville Consulting

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