World Bank Approves Rs 7.7 Billion for Nepal’s Clean Air Project to Reduce Industrial Pollution

The World Bank has approved Rs 7.7 billion in credit to support Nepal’s Clean Air and Prosperity Project, an initiative designed to reduce industrial air pollution and strengthen the country’s air quality management system.

The funding was approved by the World Bank’s Board of Executive Directors and will be used to address one of Nepal’s most serious environmental and public health challenges—air pollution.

The project primarily focuses on reducing emissions of fine particulate matter (PM2.5), which are tiny air pollutants that pose serious risks to human health. These emissions largely come from industrial and commercial boilers and furnaces, which are widely used in factories and manufacturing units.

By introducing cleaner technologies and improving industrial practices, the initiative aims to significantly reduce pollution levels while encouraging sustainable industrial development.

According to David Sislen, Division Director for Maldives, Nepal and Sri Lanka at the World Bank, air pollution remains a major challenge for Nepal not only in terms of health but also economically.

He noted that air pollution costs Nepal more than six percent of its Gross Domestic Product (GDP) every year due to healthcare expenses and loss of labour productivity caused by pollution-related illnesses.

The Clean Air and Prosperity Project aims to protect millions of people by helping Nepali businesses adopt cleaner, more efficient technologies. These technologies can reduce pollution while also lowering operational costs and improving the competitiveness of industries.

In addition to supporting industries, the project will also strengthen national air quality monitoring and management systems, enabling the government to better track pollution levels and implement effective policies to control emissions.

Officials believe the initiative will play a significant role in improving air quality across Nepal while supporting sustainable economic growth and environmental protection.