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The CII Climate Action Charter (CCAC) State level initiative awareness was Insights
was launched in September 2022, at held in Indore (Palda Cluster, Polo
• Due to limited information access, it was found
the 17th Sustainability Summit. Ground Cluster, Sanwer Road
that these MSME clusters are unaware of the
Cluster) in January 2023 and two
Under the Charter, development of CCAC awareness workshops were issues caused by climate change and how to
climate action plan at the conducted in Jaipur (Bagru alleviate them. The clusters' industrial
industrial cluster level has been Industrial Cluster and Sitapura processes produce a significant amount of
initiated in the states of Tamil Industrial Cluster) in January and greenhouse gases (GHG). The majority of
Nadu, Madhya Pradesh, and February 2023 respectively, where sectors in these clusters do not actively seek to
Rajasthan. This initiative focuses on 80 MSMEs stated their interest and mitigate the impacts of climate change, and
implementing the CCAC toolkit for committed to join the Climate also lack the necessary technological
industrial clusters such as Action Charter. The sessions infrastructure.
engineering, textiles, auto discussed opportunities, gaps and
• There aren't many regulations, plans, or
component manufacturers, food challenges faced by the MSME
strategies in place for these clusters to handle
processing, recyclers, and mining clusters with respect to
threats that climate change poses. Only a
industries. Outputs of the toolkit will sustainability and climate change.
small number of businesses keep track of their
inform the development of a The importance of developing
GHG emissions inventories. Additionally, only a
climate action plan at the cluster capacity for reporting on Scope 1
small portion of the sectors within the clusters
level that will help MSMEs in and Scope 2 was explained to the
have committed to achieving Net Zero
addressing climate-related risks to participants.
emissions.
their businesses. 150+ industries
MSMEs are particularly at risk from
are being targeted as a part of the • A lack of awareness of regional, national, and
the impacts of climate change
initiative. international efforts to mitigate climate change
since they typically operate at the
was observed. Only a small number of
margins and rely primarily on
industries in the clusters have embraced
natural resources that are
current practices, programmes, or initiatives to
The Charter has 204 susceptible to those effects. Some manage climate risk. These clusters do not
intriguing findings from the in-depth
signatories from a variety of contribute to regional or national efforts to fight
analysis of the MSME clusters in
sectors ranging from climate change.
Rajasthan (Sitapura and Bagru in
hard-to-abate sectors
Jaipur), Tamil Nadu (Tiruppur and • Renewable energy is used by a tiny percentage
(cement, steel, and metals & Coimbatore), and Madhya Pradesh of the industries in these clusters. An informal
mining), multi-sector (Sanwer Road, Palda, and system dominates both the supply and
diversified businesses, Pologround in Indore) are described demand sides of travel. The general industrial
MSMEs (tanning, textiles, in detail below: population is not well-versed in
consultancies) and service energy-efficient industrial motors.
sectors (IT and ITeS).
44 Commitment Towards a Sustainable Future
