MSMEs lack adaptation funds
– Vivek Venkataramani, Senior Manager, Climate Resilience Practice, WRI India
My area of focus revolves around mainstreaming adaptation as a priority agenda for government. We provide assistance in framing policies and offer technical support for their implementation. In one of our projects, we focus on specific MSME clusters like the textile cluster in Gujarat and the automobile cluster in Tamil Nadu. Our project aims to assess the vulnerability of these clusters to climate hazards, such as cyclones, floods and droughts, and identify their resilience-building needs and capability.
Comprehensive assessments and strategies
We’re conducting detailed vulnerability assessments at multiple levels, including city-wide vulnerability, high-resolution hazard mapping and enterprise-level vulnerabilities. Additionally, we’re documenting the required skills, financing options, technological innovations, and upgrades necessary to enhance resilience within these clusters.
The scarcity of liquid cash and insurance
Through our research, we’ve observed various challenges faced by MSMEs, particularly regarding access to liquid capital for coping with sudden climate-related disasters. Additionally, we’ve found that many small enterprises lack insurance coverage for structural damages caused by climate-related disasters. There is a gap in policy responses at both state and central levels regarding resilience-building and adaptation for MSMEs. While there are incentives and funding available for skilling, mitigation and environment-friendly technologies, dedicated schemes for adaptation and resilience-building are lacking. To address these gaps, we’re collaborating with MSME associations and larger manufacturers to advocate for such focussed schemes. We’re also exploring how circular economy principles can alleviate the financial burden on MSMEs by promoting reuse of materials and resource efficiency.
