India has 63 million Micro, Small and Medium Enterprises (MSMEs), the second-highest number in the world after China. MSMEs contribute around 30% of India’s Gross Domestic Product (GDP), 40% of its exports, and employ about 110 million people. In addition, MSMEs’ energy consumption is equivalent to 20–25% of the energy consumed by India’s large industries sector. Yet despite their economic significance and their role in India reaching net-zero emissions by 2070, MSMEs are unable to secure the financing they need to decarbonise. Energy costs for the most polluting MSMEs in the manufacturing sector are 10–30% of total production costs, which creates an obvious incentive to invest in energy-efficient plants and machinery and source electricity from cheaper renewable sources. However, MSMEs lack the capacity and financial resources to do this. Read More