We find ourselves once again in that scary season when the masks are back and the air purifiers are running non-stop. Every winter, my favorite city, the capital of India, Delhi turns into a gas chamber, with the air so thick that nothing can be seen a meter away. This cruel smog aggressively stings our eyes and chokes our lungs. The air quality index (AQI) often reaches dangerous levels, often exceeding 1,500, with values far exceeding acceptable World Health Organization (WHO) guidelines. This problem is more than a seasonal nuisance; It is a long-term disaster that harms the health of the young and the elderly, disrupting daily life. According to estimates, air pollution in India causes premature deaths of about 14 lakh people every year, resulting in a loss of more than $95 billion in the country’s productivity. This is not just an environmental problem; This is a public health crisis that requires immediate attention.
The World Bank estimates that the global economic cost of health damage from air pollution is approximately $8.1 trillion each year, a huge burden that India disproportionately bears. While there is growing momentum for action from governments, industry bodies, private players and individuals in enforcing regulations and driving innovation towards sustainable change, the lack of collective action and collaboration is one of the biggest hurdles in our fight against air pollution. One of the shortcomings remains. ,
As we realize that air pollution is a transboundary issue, going beyond borders – be it international, national or local, making it a shared challenge, we need collective accountability and action at all levels of society. Should be demanded. Delhi’s air pollution problem is an important example and lesson for millions of us in India and around the world, who are often at the mercy of pollution emanating from neighboring states. Data shows that only 31% of the pollution affecting Delhi comes from within the city, with the remaining 69% coming from neighboring states. While there is a blueprint for comprehensive state-level cooperation through various initiatives and policies such as crop residue management initiatives, common policies for vehicle emissions and financial assistance to the Central Pollution Control Board for setting up paddy straw-based pelletization and torrefaction plants. Lack of accountability and action at the state level is resulting in life-threatening crises year after year.
Air pollution in India costs about 3% of the country’s gross domestic product (GDP) in lost productivity, health care expenses and loss of life. The Reserve Bank of India has warned that by 2030, up to 4.5% of India’s GDP could be at risk due to loss of labor hours due to climate-related issues, with pollution being a significant contributor. The data also shows that air pollution not only takes a toll on businesses, with approximately 1.3 billion working days lost per year, but also has a disproportionate impact on dependents such as children and the elderly. Mongabay India highlights that children in India miss approximately 10% of school days each academic year due to climate-related events. To tackle this pollution crisis, the government launched India’s National Clean Air Program (NCAP) in 2019, which is supported by substantial funds. Rs 4,400 crore was given in 2020. However, challenges remain, for example, Punjab has used only 5% of its allocated funds. This underlines the urgent need for a streamlined financial structure with performance-based grants and accountability framework to ensure effective fund utilisation, tangible improvements in air quality and economic resilience.
As a country, we must also urgently look at stronger regulatory frameworks around the world that impose legally binding pollution limits based on WHO guidelines. Cities and corporations need to be held accountable for effectively addressing air pollution year-round, not just during high pollution seasons. Recognizing 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 mobilizing investment in clean air technologies, pushing for strong regulatory standards, and promoting public-private collaboration. This approach is not just about compliance; It is about embedding clean air in our economic and development strategies, ensuring it forms the cornerstone for the health of our communities and the resilience of our economy.
The business sector must take initiative not only as stakeholders but also as change agents. Since industries and businesses are major contributors to particulate emissions, this is an opportunity for them to innovate and lead in air quality management. With the right financial incentives, the private sector can use its knowledge to create cleaner technologies, more sustainable urban infrastructure and resilient supply chains. Surat Clean Air Action Plan, a collaboration between Surat Municipal Corporation, Gujarat Pollution Control Board and WRI India, has implemented various innovative practices and targeted measures (such as construction dust monitoring and mitigation, and capacity building of sanitation workers) to enhance air quality. is introduced. Expanding such models across the country could help businesses leverage their financial resources through green bonds, green technology and pollution-related ESG frameworks. Additionally, by linking corporate social responsibility (CSR) initiatives with clean air goals, companies can play a significant role in changing India’s air quality landscape.
Not far from India, South Korea’s Clean Air Act, based on precedents from around the world, promotes preventive environmental management using new technologies that monitor pollutants in real time. Similarly, Singapore has implemented smart air quality monitoring systems that provide real-time data to enable rapid intervention. India can greatly benefit from investments 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 change our strategy from reactive to preventive, tackling pollution at its source as well as boosting industry innovation.
Although collective action and acceleration of technology are key drivers for improving the quality of the air we share, financing and funding for clean air is another area that needs attention. In 2020, the Government of India launched the first performance-based financial transfer funding program for air quality management with an outlay of $1.7 billion. Further between 2019 to 2022, the Government of India has given States were given Rs 400 crore to reduce air pollution under the Pollution Control Scheme (but only half the amount was properly utilised). While the Indian government has stepped up with dedicated funds and initiatives to tackle the air pollution crisis, addressing it effectively requires not only funds but also dedicated alternative financing channels for clean air programs. We need to look beyond the usual funding options and explore other models such as green bonds (clean air green bonds), public-private partnerships, results-based financing mechanisms and involving communities and citizens through community funds. For example, earlier this year, India issued the first tranche of sovereign green bonds, totaling 80 billion (about $980 million), which indicates 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 consider green bond issuance specifically to address clean air solutions.
Ultimately, air pollution cannot be viewed solely through the lens of compliance or seasonal measures. Addressing this must be at the center of our economic and development policies, with a focus on the most vulnerable. Solutions are within reach, but they require collective will and coordinated efforts to make them effective. As someone deeply invested in sustainability, I strongly believe that we must shift our focus from policy rhetoric to mobilizing financial resources and collaborative actions that can turn 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, livable future to survive and thrive.
This article is written by Vaishali Nigam Sinha, Co-Founder and Chairperson Sustainability, ReNEW and Head, Alliance for Clean Air at the World Economic Forum.
