Climate Change Policy Instruments for Diffusion of Cleaner Technologies in the Small Scale Industries in India

The small-scale industries (SSIs) have a direct relevance for national and local socioeconomic development. However, SSIs that use fossil fuels also contribute not only local pollution, but also greenhouse gas (GHGs) emissions that are associated with the global problem of climate change. Select cleaner technologies can help not only in reducing local pollution and GHG emissions, but also providing benefits like improvements in cost-effectiveness and working conditions, along with employment generation and poverty alleviation. The climate change instruments that have been introduced or are being developed, under the emerging global regime for climate protection, provide an opportunity for promote cleaner technologies in developing countries. The question that arises is; can the climate change instruments be utilized effectively by developing countries such as India as a lever for the technological upgrading of their SSI sectors, and in turn can the SSIs assist in the global effort of reducing GHGs. This paper aims to examine this linkage, which may foster sustainable development at the global, national and local levels. The focus is on an analysis of the international climate change instruments and the role they can play in the diffusion of cleaner technologies in the SSIs in India.