Decarbonising MSMEs: Roadmap for Green Transition

NITI Aayog unveiled the roadmap titled “Decarbonising MSMEs: Roadmap for Green Transition” on 21st January 2026.

The 10-year action plan aims to guide nearly 69 million MSMEs toward India’s 2070 net-zero target through energy efficiency, green electricity and alternative fuels.

Aspect	Details
Objective	The roadmap seeks to support MSMEs in transitioning toward low-carbon growth and align them with India’s net-zero emissions target for 2070.
Core Transition Levers	The action plan focuses on energy efficiency, green electricity, and alternative fuels.
Export Competitiveness	Decarbonisation is considered necessary to maintain export competitiveness against emerging global standards such as the European Union’s Carbon Border Adjustment Mechanism (CBAM).
Climate and Cost Benefits	Green investments are expected to reduce climate risks and improve cost efficiency, with many investments recovering costs within five years.
NPMA Recommendation	The report recommends creating a National Project Management Agency (NPMA) for cluster-level implementation and subsidy management.
Financial Support	A proposed Climate Sister Impact Fund (CSIF) would provide concessional hybrid capital for adoption of low-carbon technologies.
Demand Aggregation	The roadmap suggests demand aggregation mechanisms to reduce the cost of solar equipment for MSMEs.
MRV Tools	Standardised Monitoring, Reporting and Verification (MRV) tools are proposed for systematic emission tracking.
Regulatory Safeguards	A Regulatory Impact Assessment (RIA) committee has been proposed to prevent excessive economic burdens on small enterprises.

PT Facts

CBAM: EU’s Carbon Border Adjustment Mechanism is linked to carbon pricing in trade.
Net-zero Target: India aims to achieve net-zero emissions by 2070.
NITI Aayog: Premier public policy think tank of the Government of India.
MRV: Stands for Monitoring, Reporting and Verification.
Green Transition: Helps improve export competitiveness and climate resilience.
MSME Coverage: The roadmap targets nearly 69 million MSMEs across India.

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