23 November 2024
Hindustan Times
Interviews
This article is authored by Vaishali Nigam Sinha, co-founder and chairperson Sustainability, ReNew, and head, World Economic Forum’s Alliance for Clean Air.
We find ourselves once again in that scary season when masks are back on and air purifiers are running non-stop. Every winter, my favorite city, India’s Capital, Delhi turns into a gas chamber, with air so thick, that nothing even a metre away is visible. This brutal smog aggressively stings our eyes and chokes our lungs. The Air Quality Index (AQI) frequently approaches hazardous levels, often beyond 1,500, with values well exceeding the World Health Organization (WHO)'s acceptable guidelines. This problem is more than a seasonal annoyance; it is a long-term calamity that harms the health of young ones and the elderly, disrupting daily lives. According to estimates, air pollution in India causes around 1.4 million premature deaths every year, costing the country more than $95 billion in productivity. This is not just an environmental problem; it’s a public health crisis that demands immediate attention.
The World Bank pegs the global economic cost of health damage from air pollution at around $8.1 trillion each year, a significant burden that India bears disproportionately. While there has been a growing momentum of action from governments, industry bodies, private players, and individuals in implementing regulations and advancing innovation toward a sustainable transformation, a lack of collective action and collaboration remains one of the biggest gaps in our fight against air pollution.
As we realise that air pollution is a transboundary issue, going beyond borders – be it international, national, or local, making it a shared challenge, we must demand collective accountability and action at all levels of society. Delhi’s air pollution problem is a critical example and learning for millions of us, within India and around the world, who are at the mercy of pollution that often originates from the neighbouring states. Data highlights that only 31% of the pollution affecting Delhi, comes from within the city, with the remaining 69% originating from neighbouring states. While there is a blueprint for broader state-level collaboration through various initiatives and policies like the crop residue management initiative, shared policies for vehicular emissions, and the Central Pollution Control Board’s financial assistance for establishing paddy straw-based pelletisation and torrefaction plants, there is a lack of accountability and action at the state-level resulting into a life-threatening crisis year on year.
The air pollution in India costs the country about 3% of its Gross Domestic Product (GDP), due to reduced productivity, health care expenses, and loss of life. The Reserve Bank of India warns that by 2030, up to 4.5% of India's GDP could be at risk due to lost labour hours from climate-related issues, with pollution being a significant contributor. Data also suggests that air pollution not only takes a heavy toll on businesses, with ~1.3 billion working days lost per year but also has extreme impacts on dependents such as children and the elderly. Mongabay India highlights that children in India miss ~10% of school days each academic year due to climate-related events. To combat this pollution crisis, the government launched India’s National Clean Air Programme (NCAP) in 2019, backed by substantial funds like the ₹4,400 crore granted in 2020. However, challenges remain, Punjab, for instance, utilised only 5% of its allocated funds. This underlines the urgent need for a streamlined financial structure with performance-based grants and accountability frameworks to ensure effective fund utilisation, driving tangible improvements in air quality and economic resilience.
As a country, we should also urgently look at robust regulatory frameworks across the world, which enforce legally binding pollution limits based on WHO guidelines. Addressing air pollution effectively requires holding cities and corporations accountable year-round, not just during high-pollution seasons. Recognising this critical gap, the World Economic Forum’s Alliance for Clean Air, which I chair, is bringing together private stakeholders across sectors to drive scalable solutions. We are focused on mobilising investments in clean air technologies, pushing for stronger regulatory standards, and fostering public-private collaborations. This approach is not just about compliance; it is about embedding clean air into our economic and developmental strategies, ensuring it becomes a cornerstone for the health of our communities and the resilience of our economy.
The business sector must take the initiative, not only as stakeholders but also as change agents. As industries and businesses make large contributions to particle emissions, it is an opportunity for them to innovate and lead the way in air quality management. With the correct financial incentives, the private sector can use its knowledge to create cleaner technology, more sustainable urban infrastructure, and resilient supply chains. The Surat Clean Air Action Plan, a collaboration between Surat Municipal Corporation, Gujarat Pollution Control Board, and WRI India has undertaken various innovative practices and targeted measures (like construction dust monitoring and mitigation, and capacity building of sanitation staff) to enhance air quality. Scaling such models countrywide could help businesses leverage their financial resources through green bonds, greener technology, and pollution-related ESG frameworks. Additionally, by aligning corporate social responsibility (CSR) initiatives with clean air goals, companies can play a pivotal role in transforming India’s air quality landscape.
Not far from India, South Korea's Clean Air Act, drawing on worldwide precedents, promotes preventive environmental management using new technologies that monitor pollutants in real-time. Similarly, Singapore has implemented smart air quality monitoring systems that offer real-time data to enable rapid interventions. India may greatly benefit from investing in technology such as low-cost air monitors and IoT systems, which provide data-driven insights for proactive decision-making. These technologies have the potential to alter our strategy from reactive to preventative, tackling pollution at their source while also promoting industry innovation.
Although collective action and acceleration of technology are the key drivers to improve the quality of air we share, financing and funding for clean air is another area that needs attention. In 2020, the government of India launched the first-ever performance-based fiscal transfer funding program for air quality management with an outlay of $ 1.7 billion. Further, between 2019 and 2022, the Indian government gave ₹400 crores to the states to reduce air pollution under the Control of Pollution Scheme (but only half of the amount was properly utilised). While the government of India has stepped up with dedicated funds and initiatives to tackle the air pollution crisis, addressing it effectively requires not just funding but alternative financing channels dedicated to clean air programmes. We need to look beyond typical funding options and explore other models like leveraging green bonds (clean air green bonds), public-private partnerships, results-based financing mechanisms, and engaging communities and citizens through community funds. For example, early this year, India issued its first tranche of sovereign green bonds totalling ₹80 billion (roughly $980 million), indicating a good start. Despite being a large economy, the Indian green bond market represents only 2.2% of global issuances in 2023. As we continue to grow, we should look at issuing green bonds specifically catering to clean air solutions.
Ultimately, air pollution cannot be viewed through the lens
of compliance or seasonal remedies alone. Addressing it should be central to
our economic and developmental policies, with a focus on the most vulnerable.
The solutions are within reach, but they require collective will and
coordinated efforts to be effective. As someone deeply invested in
sustainability, I firmly believe we must shift our focus from policy rhetoric
to mobilising financial resources and collaborative actions that can transform
our clean air aspirations into reality. Clean air is not just a right but a
necessity for a prosperous, sustainable future. We must act now to secure a
healthier, more resilient, liveable future to survive and thrive.
This article is
authored by Vaishali Nigam Sinha, co-founder and chairperson Sustainability,
ReNew, and head, World Economic Forum’s Alliance for Clean Air.
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