Himal Press 
KATHMANDU: The World Bank has approved a $52 million credit for the Nepal Clean Air and Prosperity Project to reduce air pollution and strengthen air quality management.
Issuing a statement, the project will help reduce fine particulate matter (PM2.5) emissions, particularly from industrial and commercial boilers and furnaces, while strengthening national systems for air quality management. The project will focus on the Kathmandu Valley, the Tarai districts, and the surrounding foothill regions where air pollution poses severe risks.
“Air pollution is not only a public health crisis but also a significant economic burden in Nepal, costing the country more than six percent of GDP each year through health costs and lost labor productivity,” said David Sislen, Division Director for Maldives, Nepal, and Sri Lanka. “This project aims to protect millions of people from harmful pollution by helping Nepali enterprises adopt cleaner and more efficient technologies that, at the same time, also lower operating costs, improve competitiveness, and support sustainable industrial growth.”
According to the World Bank, industrial emissions are projected to become the largest source of air pollution in the coming years as the country continues to industrialize, underscoring the urgency of cleaner production technologies. The project will support around 400 industrial and commercial enterprises to adopt electric boilers/furnaces, modern biomass boilers/furnaces, or advanced emission control technologies through a combination of clean technology financing, incentives, and technical assistance.
“The adoption of clean technology is limited in Nepal due to a combination of high upfront investment costs, constrained access to long-term financing, and low technical capacity among enterprises,” said Martin Heger, World Bank Senior Environmental Economist, South Asia Region. “This project addresses these barriers by pairing long tenor financing and targeted capital incentives with hands-on technical assistance, helping industries to transition to cleaner production.”
The project will be implemented by the Department of Industry and the Department of Environment, while Rastriya Banijya Bank will serve as the handling bank for the clean technology financing facility.
According to the World Bank, this financing is complemented by a $5 million grant from the World Bank’s Resilient Asia Program—funded by the United Kingdom’s Foreign, Commonwealth and Development Office and Swiss Agency for Development and Cooperation.
