Climate Change and MSMEs

"You’re committed to taking your father’s business to the next step, aren’t you?"

Tashi asks Lalima they walk alongside the river. The weather was pleasant with the evening sun hovering above the horizon.

"I’m sure there are a lot of opportunities, and it is time that my father takes the business beyond Lalalistan."

"Good. So, where were we? Ummm…"

"You were going to tell me more about the roles MSMEs can play in this changing the climate landscape."

"Oh yes! MSMEs should prepare themselves to be climate resilient. But I don’t think we can finish discussing that today – maybe some other day. But…ummm… let's talk about some examples of how new and existing MSMEs can contribute to climate solutions. There is no ‘one’ sector and ‘one’ approach to climate change solutions. Solutions have to emerge across different sectors and by different approaches.

For example, as urban floods intensify and become more prevalent, approaches to urban planning will require improved stormwater management systems. Riverbanks in urban areas may also need to be redesigned to minimize flood risks. Construction standards of houses in urban areas may need to be revisited to make them flood-proof. Furthermore, to increase the percolation of water, more green spaces need to be planned. These urban planning aspects will require a new set of skilled workforces, construction materials, and equipment for effective implementation. MSMEs can emerge to cater to this need. There can be businesses that specialize in climate-resilient residential building designs. Similarly, there can be businesses that supply materials required for stormwater management systems and so on. This example falls more towards the ‘adaptation’ side of things – where climate risks are already expected, and measures need to be taken to ‘adapt’ to the risks.

Now let's take another example that is close to your father’s business. Say, in a rural village in Lalalistan which is in a hilly region with no access to electricity, erratic seasonal rainfall has resulted in the loss of crops because farmers can no longer rely on rainwater irrigation. Farmers want a reliable source of water for irrigation. There is a river that is approximately 80m vertically below the village, but no electricity can run a water pump. One option is to use a diesel pump or drive an electric pump using a diesel generator. Another alternative is a water pump run by solar power. Energy harnessed from the sun can run the pump during the day that can be stored in a reservoir tank. MSMEs that design, supply, and install solar water pumps can cater to this opportunity. By doing so, they are promoting solar power solutions which are a renewable source of energy and will mitigate greenhouse gases that would have otherwise been emitted by diesel-powered solutions.

These are just some specific examples, but there are solutions across different sectors for MSMEs to contribute to lessening the climate-related impacts. Just to name a few others, there may be solutions in waste management, sustainable fashion, green transportation, services related to climate risk assessments and planning, sustainable packaging, and renewable energy technologies. A process can be established by which new and existing MSMEs can find a pathway to establish climate-resilient reforms."

Tashi and Lalima kept talking as they strolled and headed towards Lalima’s father’s shop.