World Bank Approves $600m for UP & Haryana Clean Air Programs to Aid 270 Million

“Air pollution is causing severe health impacts, loss of productivity, and reduced quality of life across South Asia,” said Paul Procee, Acting Country Director for World Bank India.

The World Bank Board of Executive Directors has approved two major financing packages to help improve air quality across Uttar Pradesh and Haryana, benefiting an estimated 270 million people. These initiatives are designed not only to reduce pollution but also to enhance the states’ attractiveness as investment destinations and engines of job creation.

The two new operations mark India’s first-ever airshed-based, multisectoral programs, signaling a shift toward coordinated regional action to combat one of South Asia’s most persistent public health and economic challenges.

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Air Pollution: A Severe Threat to Health and Productivity

“Air pollution is causing severe health impacts, loss of productivity, and reduced quality of life across South Asia,” said Paul Procee, Acting Country Director for World Bank India.

He emphasized that these programs will demonstrate how integrated, cross-sectoral air quality strategies can reduce pollution while generating green jobs, particularly for women and youth.

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1. Uttar Pradesh Clean Air Management Program (UPCAMP)

Financing: $299.66 million Cities targeted: Lucknow, Kanpur, Varanasi, Gorakhpur

Building on the Government of UP’s Clean Air Plan, UPCAMP will invest in the transport, agriculture, and industrial sectors to reduce pollution and support low-carbon development.

Key Components:

• Clean cooking access for 3.9 million households

• Introduction of 15,000 electric three-wheelers

• Deployment of 500 electric buses across major cities

• Incentives to replace 13,500 polluting heavy-duty vehicles

• Support for farmers to improve fertilizer efficiency and manage livestock waste

• Assistance to MSMEs in adopting cleaner technologies

• Promotion of urban e-mobility and green infrastructure

Task team leads Ana Luisa Lima and Farah Zahir noted that using an airshed approach—rather than focusing only on city-specific measures—will enable faster, more cost-effective pollution reduction across state borders.

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2. Haryana Clean Air Project for Sustainable Development Operation

Financing: $300 million Cities targeted: Gurugram, Sonipat, Faridabad

This program supports Haryana’s multisectoral Clean Air Action Plan, targeting pollution sources across transport, industry, agriculture, and urban development.

Key Components:

• Expansion of air quality and emission monitoring systems

• Investments in e-buses and electric three-wheelers

• Improved access to jobs, especially for women, through clean transport systems

• Adoption of cleaner industrial technologies by MSMEs

• Promotion of machinery for agricultural waste management and productive reuse of paddy stubble

Haryana has established ARJUN, a specialized coordination body, to harmonize efforts across agencies and ensure effective delivery.

Task team leaders Sharlene Chichgar, Laghu Parashar, and Saumya Srivastava highlighted that the program aims to mobilize over $127 million in private capital, underscoring strong market interest in clean technologies.

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A Regional Strategy for the Indo-Gangetic Plains and Himalayan Foothills

The two operations form part of the World Bank’s Regional Air Quality Management Program in the Indo-Gangetic Plains and Himalayan Foothills (IGP-HF)—one of the most polluted regions globally.

The programs will also receive grants from:

• World Bank’s Resilient Asia Program (supported by the UK and Switzerland)

• Energy Sector Management Assistance Program (ESMAP)

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Loan Terms

• Uttar Pradesh program: 10-year maturity, including 2-year grace period

• Haryana program: 23.5-year maturity, including 6-year grace period

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Toward Cleaner Air and Stronger Economies

By combining clean transport, improved waste management, agricultural reforms, and industrial modernization, these programs aim to deliver:

• Measurable reductions in PM2.5 levels

• Enhanced public health outcomes

• Greater green investment and job creation

• Stronger regional collaboration on air quality

• Sustainable urban and rural development pathways

The World Bank initiatives are expected to pave the way for scalable, airshed-wide reforms capable of reducing pollution for millions across northern India.