India’s Micro, Small, and Medium Enterprises (MSMEs) drive economic growth, contributing over 30% of GDP, employing 110 million people, and making up nearly half of exports. As global trade and energy challenges intensify, MSMEs must cut emissions to stay competitive. Maharashtra, home to the largest number of MSMEs, is leading this transition. The Kolhapur Foundry Cluster, with 300 units producing 600,000 tonnes of castings annually, was chosen for a decarbonisation pilot due to its energy intensity and export relevance.

The pilot, covering three units across two industrial estates, included energy and safety audits, carbon footprint estimation (Scope 1 & 2), CBAM-readiness assessment, and mitigation roadmaps. Findings show simple energy efficiency (EE) measures—such as furnace and transformer optimisation—can deliver 9–45% savings with immediate payback. Technology upgrades like high-efficiency motors and digital monitoring also offer attractive returns. Since over 70% of foundries use electricity-intensive induction furnaces, EE and renewable energy (RE) adoption are crucial. While rooftop solar faces dust constraints, off-site and ground-mounted systems remain viable.

Key learnings highlight the need for financial access, ecosystem alignment, and continuous support. Beyond emissions reduction, decarbonisation enhances competitiveness, attracts green finance, creates green jobs, and ensures global trade readiness. The Kolhapur pilot proves scalable, cluster-based models can transform MSMEs toward low-carbon, resilient growth.