$600 Million Airshed Fund: World Bank Backs Major Clean Air Programs in Haryana and UP

by | Dec 14, 2025 | Business

In a major boost for environmental and public health in the Indo-Gangetic Plain, the World Bank has approved approximately $600 million in financing for two critical, multi-sectoral clean air projects in Uttar Pradesh (UP) and Haryana. The programs aim to improve air quality for over 270 million people and are explicitly linked to improving the business climate and job creation in the region.

The Two Strategic Programs

The financing is split between two state-led initiatives, both adopting an “airshed approach”—meaning they address air pollution across a regional area rather than just city-by-city, to control transboundary emissions:

  1. Uttar Pradesh Clean Air Management Program (UPCAMP) ($299.66 Million):
    • Transport & Energy: Aims to help 3.9 million households gain access to clean cooking and deploy 15,000 electric three-wheelers and 500 electric buses in major cities like Lucknow and Kanpur. Incentives will also be provided to replace 13,500 polluting heavy-duty vehicles.
    • Industry & Agriculture: Incentivizes farmers to adopt better practices for fertilizer use and agricultural waste management, and helps MSMEs transition to cleaner technologies.
  2. Haryana Clean Air Project for Sustainable Development ($300 Million):
    • Monitoring & Transport: Will invest heavily in air quality and emissions monitoring systems to strengthen data collection. It will also support investments in clean transport, including e-bus services and e-three wheelers in Gurugram, Sonipat, and Faridabad.
    • Waste Management: Focuses on promoting machinery and technologies for the productive reuse of paddy stubble and supporting MSMEs in adopting cleaner industrial processes.

Business and Health Impact

The World Bank emphasizes that these are the first multi-sectoral programs of their kind in India and will demonstrate how air quality initiatives can simultaneously increase productivity and create green jobs, particularly for youth and women. The financing is intended to accelerate both states’ goals of becoming more attractive business destinations by mitigating the “severe health impacts, loss of productivity and reduced quality of life” caused by air pollution.


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