New Industrial Clusters Join World Economic Forum Initiative

Syllabus: GS3/Economy/Environment

Context

• 33 industrial clusters from 16 countries, including five from India, joined the World Economic Forum’s Transitioning Industrial Clusters Initiative.

About

• The new Indian clusters include Gopalpur Industrial Park, Kakinada Cluster in Andhra Pradesh, Kerala Green Hydrogen Valley, Mundra Cluster in Gujarat and Mumbai Green Hydrogen Cluster.
• Industrial clusters: They are geographically concentrated areas or hubs where interconnected industries; companies and institutions collaborate to drive economic growth.
  • These are innovative and collaborative business models, within and across clusters, including those harnessing the power of digital technologies.
  • They can advance the deployment of clean-energy infrastructure worldwide.

WEF Transitioning Industrial Clusters Initiative

• The initiative was first launched at COP26 climate summit in 2021, and developed in collaboration with Accenture and EPRI.
• Aim: Pledging to reduce their greenhouse gas (GHG) emissions while boosting economic growth and job creation.
• Partners: It now comprises 33 clusters in 16 countries and five continents.
  • The 33 signatories together represent potential carbon dioxide-equivalent emissions reductions of 832 million tonnes — approximately the annual emissions of Saudi Arabia.
• Contribution: They also make a direct contribution of USD 492 billion to gross domestic product (GDP) and support 4.3 million jobs.
  • The initiative is also strengthening its network of port-anchored clusters by adding Cluster from Europe; the Ports of Açu and the Cartagena Industrial Cluster in South America; and the port-based Jubail Industrial City, the first member in the Middle East.

Conclusion

• The initiative aims to promote economic growth and employment while striving towards ambitious CO2e emissions reductions.
• By convening leading public and private industrial entities, the initiative prepares them to apply competitively for funding, gain regulatory support, and embark on comprehensive developmental activities that support the transition of industrial clusters.

Source: LM