Maharashtra MSMEs Target 4 Million Tonne Carbon Cut by 2031

Maharashtra’s MSMEs aim to cut 4 million tonnes of CO2 emissions by 2031, per a June 2025 Outlook Business report, despite financing hurdles. The initiative supports India’s net-zero 2070 goal, leveraging the state’s 159.5 GW renewable capacity.

Maharashtra’s 1.5 million MSMEs, contributing 15% to India’s manufacturing GDP, emit 20 million tonnes of CO2 annually. The 2031 target requires 50% adoption of green technologies, like solar rooftops and energy-efficient machinery, costing $1 billion. The 2025 Budget’s $1 billion for green manufacturing supports 10,000 MSMEs, but 70% face financing gaps, with loans at 12% interest rates.

Pilot projects in Pune, with 1,000 MSMEs using 10 MW solar, cut emissions by 15,000 tonnes annually. Gujarat’s 5 GW renewable clusters, integrating AI-based energy management, offer a model, achieving 20% cost savings. Challenges include low awareness, with 60% of MSMEs unaware of green incentives, and 80% import reliance for equipment, raising costs by 10%. The Green India Mission, enhancing forest cover, offsets 2.5 billion tonnes of CO2, supporting MSME efforts.

Scaling requires $500 million in subsidies and 20,000 skilled workers by 2030. Posts on X highlight MSME green initiatives, though some note funding delays. Global benchmarks, like Germany’s 50% MSME green adoption, show 25% efficiency gains, guiding Maharashtra’s path.

Conclusion

Maharashtra’s MSMEs’ 4 million-tonne carbon cut by 2031 advances India’s net-zero goals. Addressing financing and awareness barriers is critical for success.

Source: Outlook Business