INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT PROPOSED LOAN IN THE AMOUNT OF US$350 MILLION EQUIVALENT TO INDIA FOR THE UTTAR PRADESH CLEAN AIR MANAGEMENT PROJECT (P178053) DRAFT ENVIRONMENT AND SOCIAL SYSTEMS ASSESSMENT OCT 2023 TABLE OF CONTENTS I INTRODUCTION.......................................................................................................................... 1 A. ENVIRONMENT AND SOCIAL SYSTEMS ASSESSMENT: PURPOSE AND OBJECTIVES .................. 1 B. ESSA METHODOLOGY ................................................................................................................ 3 C. ORGANIZATION OF ESSA REPORT .............................................................................................. 4 II PROGRAM DESCRIPTION AND POTENTIAL ENVIRONMENTAL AND SOCIAL EFFECTS ..................... 5 A. PROGRAM CONTEXT .................................................................................................................. 5 B. THE GOVERNMENT OF INDIA’S PROGRAM ................................................................................ 7 C. BANK FINANCED PROGRAM: SCOPE, OBJECTIVES, AND KEY RESULTS AREAS........................... 7 D. PROGRAM IMPLEMENTATION ARRANGEMENTS .................................................................... 15 E. DESCRIPTION OF PROGRAM ACTIVITIES AND IDENTIFICATION OF ENVIRONMENTAL AND SOCIAL EFFECTS ............................................................................................................................... 16 III ASSESSMENT OF ENVIRONMENTAL AND SOCIAL MANAGEMENT SYSTEMS AND IMPLEMENTATION CAPACITY ..................................................................................................... 38 A. INTRODUCTION ........................................................................................................................ 38 B. PROGRAM SYSTEMS: LEGAL, REGULATORY SYSTEMS AND FRAMEWORKS ............................ 42 C. PROGRAM CAPACITIES: INSTITUTIONAL AND ORGANIZATIONAL ASSESSMENT ..................... 49 D. ASSESSMENT OF CORE PRINCIPLES ......................................................................................... 57 IV CONSULTATION AND DISCLOSURE OF DRAFT ESSA ................................................................. 63 A. SUMMARY OF DISCUSSIONS AND MULTI STAKEHOLDER CONSULTATION WORKSHOP ......... 63 B. DISCLOSURE ............................................................................................................................. 63 V CONCLUSIONS AND RECOMMENDATIONS ............................................................................... 64 A. INTRODUCTION ........................................................................................................................ 64 B. INVESTMENT PROJECT FINANCING (IPF) COMPONENT OF THE PROGRAM ............................ 66 C. RECCOMENDATIONS FOR PROGRAM EXCLUSIONS ................................................................. 66 D. RECOMMENDATIONS TO BE INCLUDED IN THE PAP AND POM .............................................. 67 ANNEXURES ............................................................................................................................... 70 ANNEX 1: LIST OF DOCUMENTS REVIEWED .................................................................................... 70 ANNEX 2: DESCRIPTION OF ENVIRONMENTAL AND SOCIAL MANAGEMENT SYSTEM AND CAPACITY AND PERFORMANCE ASSESSMENT ................................................................................................. 71 ANNEX 3: EHS RISKS ANALYZED AS PART OF SECTOR PROGRAMS ................................................. 77 ANNEX 4: WORLD BANK SECTOR IMPLEMENTATION EXPERIENCE IN UTTAR PRADESH ................ 78 ANNEX 5: SUMMARY OF STAKEHOLDER MEETINGS ON CLEAN COOKING ..................................... 80 ANNEX 6: SUMMARY OF STAKEHOLDER MEETINGS ON MSME ...................................................... 87 ANNEX 7: SUMMARY OF STAKEHOLDER MEETINGS ON TRANSPORT ............................................. 90 ANNEX 8: SUMMARY OF STAKEHOLDER MEETINGS ON AGRICULTURE ......................................... 91 LIST OF TABLES Table 1. Disbursement-Linked Indicators and Allocated Financing ...................................................... 12 Table 2. NCAP/UCAP versus UP-CAMP Program Boundaries and Expenditure Framework ................ 13 Table 3. Summary of Program Expenditure Framework (distributed by funding sources) for FY 2023- 2029 ......................................................................................................................................... 15 Table 5. Environmental Effects from Program Activities ...................................................................... 20 Table 6. Environmental Effects by Results Areas .................................................................................. 22 Table 7:Social Risk Screening…………………………………………………………………………………………………………..31 Table 8. GoI EHS Policies Applicable to the Program ............................................................................ 42 Table 9. Institutional Capacity Gaps on EHS ......................................................................................... 49 Table 10. List of Departments, Agencies Consulted ............................................................................. 63 Table 11. Key Inputs from Stakeholder Consultation on Environment and Social Management ........ 63 Table 12. Recommended Environmental and Social Actions for PAP .................................................. 67 Table 13 Recommended Environmental and Social Actions for POM .................................................. 68 Table 14. Implementation Experience of Program States .................................................................... 78 LIST OF FIGURES Figure 1. Methodology Adopted for ESSA .............................................................................................. 3 Figure 2. Program Theory of Change ...................................................................................................... 9 Figure 3. Proposed Institutional Arrangement under UP-CAMP .......................................................... 16 Figure 3.1. The Exposure Reduction Potentials from Measures in Key Source Sectors in Uttar Pradesh in 2030 ........................................................................................ Error! Bookmark not defined. Figure 3.2. Marginal Cost Curve ............................................................... Error! Bookmark not defined. LIST OF ACRONYMS AAQM Ambient Air Quality Monitoring ACEO Additional Chief Executive Officer ACS Additional Chief Secretary AEZ Agro-Ecological Zones APR Annual Program Report AQM Air Quality Management ATMA Agricultural Technology Management Agency Scheme BC Black Carbon BS Bharat (Emission) Standard CAAQM Continuous Ambient Air Quality Monitoring CAQM Commission for Air Quality Management CBG Compressed Biogas CEED Centre for Environment and Energy Development CEEW Council on Energy, Environment and Water CEM Continuous Emission Monitoring CGD City Gas Distribution CH4 Methane CMIE Centre for Monitoring Indian Economy CO2 Carbon Dioxide CPCB Central Pollution Control Board CPF Country Partnership Framework CSS Centrally Sponsored Schemes DLIs Disbursement-Linked Indicators DLRs Disbursement-Linked Results DoEFCC Department of Environment, Forest, and Climate Change EEF Enhanced Efficiency Fertilizer E&S Environmental and Social ESSA Environmental and Social Systems Assessment FC Finance Commission FFC XVth Finance Commission GAINS Greenhouse Gas-Air Pollution Interactions and Synergies GDP Gross Domestic Product GIZ Gesellschaft für Internationale Zusammenarbeit GoI Government of India GoUP Government of Uttar Pradesh GRAP Graded Response Action Plans IAs Implementing Agencies IGP Indo Gangetic Plain IoR Institutes of Repute IPF Investment Project Financing IVA Independent Verification Agency LPG Liquified Petroleum Gas MAC Marginal Abatement Cost MPA Multi-Phased Approach MT Metric Tons M&E Monitoring and Evaluation MOEFCC Ministry of Environment, Forest, and Climate Change MRV Monitoring, Reporting, and Verification MSME Micro, Small & Medium Enterprises OHS Occupational Health and Safety NACs Non-Attainment Cities NCAP National Clean Air Program NCDs Non-Communicable Diseases NCR National Capital Region NKN National Knowledge Network PAP Program Action Plan PDO Program Development Objective PforR Program for Results PM Particulate Matter PMU Program Management Unit PMUY Pradhan Mantri Ujjwala Yojana PNG Piped Natural Gas POM Program Operations Manual SAAPs State Air Action Plans SOA Secondary Organic Aerosol SOP Series of Projects SPM Secondary Particulate Matter SPV Special Purpose Vehicle SRLM State Rural Livelihood Mission TERI The Energy Resources Institute UPCAMPA Uttar Clean Air Management Program Authority UPCAMP Uttar Pradesh Clean Air Management Program UCAP UP Clean Air Plan ULB Urban Local Bodies UP Uttar Pradesh UPNEDA Uttar Pradesh New and Renewable Energy Development Agency UPPCB Uttar Pradesh Pollution Control Board VOC Volatile Organic Compound WB World Bank EXECUTIVE SUMMARY 1. Air pollution in India is multi-sector and linked to a wide range of economic activities where investments in the control and management of emissions have lagged economic development and growth. Integrated solutions aligned with a clean air transition across multiple sectors of the economy with related investments and behavioural changes are required. While the transportation sector has long been recognized as a high pollution emitter, especially in large urban areas, nationwide poor agricultural practices are an overlooked and significant contributor to PM2.5 too stemming from over-application of fertilizers, poor management of animal waste, and crop residue burning. 2. Addressing air quality challenges rests with changing many practices within urban, industrial, households, energy, transportation, and agricultural/rural areas that contribute to poor ambient air quality across a wider airshed. One of the most significant sources of PM2.5 in India is “secondary� emissions that form when gases from various sources mix to create PM2.5, and then travel far away from the original source, often crossing the boundaries of states. Almost 50 percent of the PM 2.5 emissions affecting Indian cities are secondary particulate matter (SPM), making air pollution a sub-regional, national, and even an international challenge for some Indian states. 3. Uttar Pradesh (UP), the most populated state in India and of the Indo Gangetic Plain (IGP) (around 230 million people, ~17 percent of India’s total population) has until now been most determined in developing a multi-sectoral state air action plan, advocating for regional AQM cooperation, and applying airshed management. Findings from air quality modelling supported through the Bank analytics using cost-effectiveness analysis identified four priority sectors that contribute to air pollution in UP. The highest contributing sectors from this analysis are (i) residential cooking, (ii) agriculture sources, (iii) transportation, and (iv) medium and small Industries (MSMEs). The GoUP, with technical assistance from the World Bank, has developed a comprehensive UP Clean Air Plan (UCAP) that prioritizes actions to reach Air Quality µg/m3 targets in the 2024 to 2030 timeframe throughout the state of UP based on a scientific evidence base. 4. The proposed Uttar Pradesh Clean Air Management Program (UPCAMP) will support the GoUP to implement its ambitious multi-sector statewide UCAP and bolster institutional mechanisms needed to enable such implementation. The World Bank financed program for results (“P�) will support a specific slice of the UP’s Clean Air Plan (“p�) focused on high priority measures for air pollution reductions and foundational enabling work that will enhance the strength and impact of the government capability longer into the future. The UCAP program relies on the convergence of funds from various devolved central and state programs for the reduction of air pollution. Three Program result areas proposed for PforR support are: Result Area 1: Strengthening State Capabilities for Air Quality Management and Planning. This will support (i) increase in staff trained for work on AQM and build institutional capacity for nested airshed management planning with cost effectiveness tools; (ii) expand stakeholder and citizen engagement programs to increase awareness, behaviour change, and incentives for stakeholder driven R&D and solutions. (iii) Strengthening the air quality monitoring infrastructure will build a foundation of a spatially and statistically representative measurement systems through an integrated monitoring infrastructure including expansion of the Continuous Ambient Air Quality Monitoring (CAAQM) network, the National Manual Air Monitoring Program (NAMP) network, both a manual and real-time Source Apportionment network and “Supersites�.1 (iv) support a network on Universities to help develop the next generation of practitioners while expanding local monitoring capacity; and (v) Road dust, construction, and MSME emission controls and monitoring interconnected with a centralized monitoring and surveillance system using IT tools and devices like Pan-Tilt-Zoom (PTZ) cameras and smart meters. 3. Result Area 2: Advancing Sector Interventions. Implementing a multi-sectoral pollution reduction strategy is key to reducing air pollution in UP. This includes (i) Reducing air pollution through progress on universal access to clean cooking. (ii) Reducing air pollution through improved agriculture and livestock management practices; (iii) Reducing air pollution from transport sector, including expanding the electric bus fleet (e-buses and e-3wheelers) in two model cities i.e., Lucknow and Varanasi; and (iv) Promoting Cleaner Technology in industries with interventions to curb industrial air pollution focus on reductions from the brick sector and boilers – which contribute significantly to the air pollution. 4. Result Area 3: IGP Airshed Cooperation. Under this RA the focus will be on accelerating UP’s vehicle scrapping program through financial and policy incentives to remove the oldest most polluting heavy-duty vehicles first and work progressively to accelerate scrapping of next oldest diesel models. Since Heavy duty vehicle emissions in UP stem from other neighbouring states at an equal level to those generated from within UP, work will be undertaken for this topic in parallel at the airshed level with other states to promote more harmonized programs and emission control policies. On Clean cooking while emissions generated from within UP alone are large, Bihar faces similar challenges with high emissions that spill over into UP and vice versa. Work under this RA will promote inter-state knowledge sharing and dialogue to help stimulate development of common solutions. 5. The Department of Environment, Forest, and Climate Change (DoEFCC) is the nodal agency in UP’s administrative structure for air quality management and will be the nodal agency for the proposed program. The state will establish the Uttar Pradesh Clean Air Management Project Authority (UP CAMPA) as a Special Purpose Vehicle (SPV) embedded in the DoEFCC to implement the program. A UP-CAMPA- Chief Executive Officer (CEO) will be appointed from the DoEFCC and will be responsible for the management, coordination, and M&E of the program. The DOEFCC UPCAMPA SPV will work closely with all sector departments primarily responsible for different DLIs. 6. An Environmental and Social Systems Assessment (ESSA) was conducted to determine the GoUP’s capacity and systems to manage the E&S effects under this Program. Technical documents were reviewed, multiple consultations with the IAs were undertaken, consistency with the core principles and exclusion of activities ineligible for PforR financing were confirmed. Overall, the Program’s activities offer multiple environmental benefits such as a reduction in air pollution, better health and quality of life, climate co- benefits and increasing adoption and use of cleaner technologies across sectors. The applicable legislation crosscutting and those relevant to sectors support sound environmental health and safety management to address any of the impacts of the Program. 1 Supersites are defined as a site with a combination of concentration and source instrumentation, which have different levels of advancement including a hybrid of technical instrumentation retrieving integrated data. 7. The environmental risks associated with the program have been rated as Moderate. These include (i) scrapping of vehicles which leads to generation of several waste streams including hazardous wastes (e.g. batteries) for which sound management of recyclable materials is critical (ii) worker health and safety in vehicle scrapping centers and industrial enterprises; (iii) E-vehicles require battery changes which can have negative environmental impacts if not properly managed in the long term if recycling and recovery is not handled adequately; (iv) inadequate infrastructure and supervision for collecting and storing manure which is directly left in the open causes contamination of the air and surface water; (v) the installation and operation of biogas digestors may have long-term operational impacts if not managed properly, these include the disposal of sludge, odour control, and combustion risks; (vi) construction of small scale infrastructure impacts the surrounding environment with dust, noise, soil contamination and waste; and (vii) in-appropriate use of monitoring equipment procured. All these risks were assessed as limited, localized, generic, and reversible and can be mitigated effectively. The respective departments have the capacity to manage these limited construction-related impacts with the support of external consultants as necessary. The Program will not support construction of large new infrastructure (such as vehicle scrapping facilities, large boilers, and landfills) nor does it support activities that may lead to heavy emissions or to generation and discharge of large volumes of waste and wastewater. The UPCAMPA Structure will help in bridging gaps in environment management capacity and good practices in the DoEFCC and implementing departments and aligning with the sector experiences. There are some gaps in capacity, and environmental management for which recommendations for strengthening systems have been made in the Program Action Plan (PAP) in Chapter V. 8. The social risks and impacts of the Program investments are expected to be low, reversible, localized and most of them can be managed through the mitigation strategies built into the program design, PAP as well as additional management measures. The Program is not expected to lead to land acquisition. Land requirements, if any, are expected to be met from the existing government premises or public lands. In the absence of information about the exact locations on which new infrastructure for air quality monitoring, testing laboratories and offices will be created, there is likely risk of such lands not being unencumbered and may potentially have presence of squatters or encroachers, who may get displaced during infrastructure development. The scale of construction supported by the Program is of moderate scale and is not expected to deploy large labour workforce for prolonged durations. Most of the labour used will be local and in largely urban and peri-urban areas and is not likely to lead to labour influx and its related SEA/SH risks. There are likely OHS risks for workers engaged in construction activities, vehicle scrapping, brick- kilns, EV charging facilities, apart from CHS risks for those operating cook-stoves, decentralized bio-gas plants and using EVs. While the Program’s intent to mainstream stakeholder engagement will contribute to increased general awareness and positive behaviour change around pollution reduction and air quality improvement, there are risks of women, smallholders, small dairy farmers, members of poor households from getting excluded from receiving benefits of investments proposed under Result Area 2 if effective measures to ensure their inclusion and for grievance redressal are not in place. The shifts towards cleaner and efficient energy sources and solutions are also likely to adversely impact the livelihoods of those engaged in the traditional or business as usual value chains – domestic fuelwood suppliers, workers in traditional brick-kilns, single truck owners and hired drivers. 9. The ESSA concluded that the underlying legal and operating systems for environment, health and safety management support the program and are adequate to manage environment and social risks arising from the project financed results areas. However, there are some gaps and capacity strengthening measures identified are part of the assessment which are addressed in the Program Action Plan (see Annex 5 below) including a full-time program environmental specialist and a social specialist; occupational health and safety monitoring and training of the program activities; an environmental audit of vehicle scrapping facilities to help capture any gaps; Occupational health and safety management in the construction and maintenance of biogas digestors at household level and livestock shelters; and development of an environmental and social screening checklist for use in planning for investments to ensure no direct, indirect or residual risks to the environment and sensitive receptors, an assessment of the livelihoods related impacts on brick-kiln workers, fuelwood suppliers and single truck owners/ drivers and incorporation of safe work related labour obligations for contractors in the bids floated by DoE and UPPCB. As the environmental sector/DoEFCC is not integrally connected with the sector departments the SPV structure will help bridge these gaps. These recommendations shall be further detailed in the Program Operation Manual (POM). It will be important that the project undertakes a project wide assessment of livelihoods losses that may result owing to energy transitions attributable to project investments and propose measures for the restoration of the livelihoods or incomes lost. This will help in either prioritizing the selection of those impacted while providing project benefits, engaging them in the new value- chains or for linking them with other beneficiary-oriented schemes and programmes of the government. I INTRODUCTION A. ENVIRONMENT AND SOCIAL SYSTEMS ASSESSMENT: PURPOSE AND OBJECTIVES 1. The air pollution challenge in India is multi-sector and linked to a wide range of economic activities where investments in the control and management of emissions have lagged economic development and growth. Several measures have been taken by the Government of India (GoI) over the past decade to improve air quality, but more is needed to shift to an “airshed� approach and deeper mobilization of integrated sector actions. Uttar Pradesh is one of the first state in India to pioneer airshed management and has actively worked with the World Bank and technical partners for the development of an UP Clean Air Plan (UCAP). Findings from air quality modelling supported through the Bank analytics with cost- effectiveness analysis identified four priority sectors that contribute to air pollution in UP. The highest contributing sectors from this analysis are (i) residential cooking, (ii) agriculture sources, (iii) transportation, and (iv) Medium and Small Industries. The government of Uttar Pradesh has requested the Bank to help implement its ambitious shift to an airshed management approach and the present operation is being developed to support this. World Bank has supported GoUP in the development of UCAP, one of the first state action plans in India underpinned with rigorous analytics, which forms the boundary of their state government program for clean air. 2. The GoUP, with technical assistance from the World Bank, has developed a comprehensive UCAP that prioritizes actions to reach Air Quality ug/m3 targets in the 2024 to 2030 timeframe throughout the state of UP based on a scientific evidence base. UCAP provides a prioritized strategy for meeting AQ reduction targets throughout the state in both urban and rural areas. The current City Clean Air Action Plans (CAAPs) under the NCAP do not identify and outline regional emissions beyond city jurisdictions. UCAP estimates that city-based sources only account for 30-40 percent of pollution sources in the cities, while substantive air pollution sources (around 40 percent) come from outside the states indicating that IGP states must also cooperate with each other. The CAAPs for the 17 NACs are integrated into the UCAP to ensure complementarity between city and state-wide AQM. The broad objectives set for UCAP include: (i) Reach Air Quality targets in the 2024 to 2030 timeframe throughout UP, set for achieving WHO interim target 1 of 35 µg/m3 for PM2.5 and (ii) outline most cost-effective sectors and largest opportunities for sub-sector interventions, through source-wise prioritization (including through leverage of existing policies, programs, and institutions) to reach clean air commitments and targets. 3. An Environment and Social Systems Assessment (ESSA) was carried out for the Program. This was undertaken to (a) identify the possible benefits, risks, and environmental and social impacts applicable to the interventions of the Program; (b) review the policy and legal framework related to the management of the environmental and social impacts of Program interventions; (c) assess the institutional capability regarding environmental and social management systems within the Program system; (d) assess the performance of the Program system with respect to the basic principles of the PforR instrument and identify gaps; and (e) submit recommendations and Program Action Plan (PAP) to address gaps and improve performance during the Program's implementation. 4. This is a Program for Results (PforR) lending operation. Implementation of activities under the Program will rely on the existing national and state legal framework and institutional systems that the counterpart uses to manage environmental and social safeguards issues. The purpose of this Environmental and Social System Assessment (ESSA) is to provide a comprehensive review of relevant 1 environmental and social safeguards systems and procedures in Uttar Pradesh (UP) state, identify the extent to which the state systems are consistent with the PforR Bank Policy and the PforR Bank Directive and recommend necessary actions to address eventual gaps as well as opportunities to enhance performance during implementation. 5. The ESSA covered an assessment of Department of Environment, Forest and Climate Change (DoEFCC), State of Uttar Pradesh which is a crucial department in leading and coordinating with other sector departments for the implementation of UPCAMP project. The ESSA identified opportunities for strengthening the existing institutional, operational, and regulatory systems and capacities pertaining to environment and social issues in all sectors (agriculture, industry, household coking, transport) pertaining to delivery of project. 6. This ESSA assesses or considers the extent to which the Program’s environmental and social management systems are adequate for and consistent with six core environmental and social principles (hereafter, Core Principles), as may be applicable or relevant under PforR circumstances. The Core Principles are listed below and further defined through corresponding Key Planning Elements in Chapter III. • Core Principle 1: Environmental and Social Management. Environmental and social management procedures and processes are designed to (a) avoid, minimize, or mitigate against adverse impacts; (b) promote environmental and social sustainability in program design; and (c) promote informed decision-making related to a program’s environmental and social effects. • Core Principle 2: Natural Habitats and Physical Cultural Resources. Environmental and social management procedures and processes are designed to avoid, minimize, and mitigate any adverse effects on natural habitats and physical and cultural resources resulting from the program. • Core Principle 3: Public and Worker Safety. Program procedures ensure adequate measures to protect public and worker safety against the potential risks associated with (a) construction and/or operations of facilities or other operational practices developed or promoted under the program and (b) exposure to toxic chemicals, hazardous wastes, and otherwise dangerous materials. • Core Principle 4: Land Acquisition. Land acquisition and loss of access to natural resources are managed in a way that avoids or minimizes displacement, and affected people are assisted in improving, or at least restoring, their livelihoods and living standards. • Core Principle 5: Indigenous Peoples and Vulnerable Groups. Give due consideration to the cultural appropriateness of, and equitable access to, program benefits, giving special attention to the rights and interests of Indigenous Peoples/Sub-Saharan African Historically Underserved Traditional Local Communities and to the needs or concerns of vulnerable groups. • Core Principle 6: Social Conflict. Avoid exacerbating social conflict, especially in fragile states, post-conflict areas, or areas subject to territorial disputes. 7. An additional purpose of this ESSA is to inform decision-making by the relevant authorities in the borrower country and to aid the World Bank’s internal review and decision process associated with the Uttar Pradesh Clean Air Management Program (UPCAMP, P178053). The findings, conclusions, and opinions expressed in this document are those of the World Bank and the recommended actions that flow 2 from this analysis will be discussed and agreed with counterparts in Department of Environment, Forest and Climate Change, State of Uttar Pradesh and will become legally binding agreements under the conditions of the new loan. B. ESSA METHODOLOGY 8. The ESSA refers both to the process for evaluating the acceptability of a borrower’s system for managing the Program’s environmental and social risks in the operational context and to the final report that is an output of that process. 9. The World Bank team prepared this ESSA report that provides an overview and analysis of state of Uttar Pradesh government’s including sector departments (Transport, MSME, Agriculture, and Rural) and Department of Environment, Forest and Climate Change policies and regulatory frameworks for understand the impact of UPCAMP project on environmental and social aspects. The ESSA discusses relevant environmental and social national legislations and several state level environment regulations which are also considered prior to implementing activities in any state. 10. The methodology focused on the understanding the Program activities, benefits, and risks associated with various activities, environmental and social conditions, the existing institutional mechanism at various levels for implementation, management, policies, and regulatory aspects. It also focused on understanding the gaps and recommending an action plan to not only address the gaps but also ensure sustainable environmental and social effects under the Program. 11. The following tasks were involved in shaping the report. Figure 1. Methodology Adopted for ESSA 12. During the appraisal mission, the draft ESSA, and its findings—benefits, risks, gaps, and recommendations (environmental and social)—will be shared with DoEFCC, UP. A consultation will be undertaken to gather feedback and the report will be updated accordingly for final disclosure. Details of stakeholders consulted in the state are presented in Table 10. The methodology for ESSA preparation is presented in figure 1. 3 C. ORGANIZATION OF ESSA REPORT 13. Chapter I: Introduction presented the overall Program context and the details of the Government’s program. This Program would support scope and results areas of the World Bank-financed PforR, the Program implementation arrangements, and identification of environmental and social effects of Program activities. 14. Chapter II: Program Description and Potential Environmental and Social Effects introduces the ESSA and its methodology. Potential environmental and social effects discuss results area-wise environmental effects (benefits, risks, and opportunities to manage these). 15. Chapter III: Assessment of Environmental and Social Management Systems and Implementation Capacity discusses the guidance on environmental and social management in the PforR Policy of the World Bank. It also discusses the systems, regulatory aspects, gaps, and proposed actions to bridge the gaps through a systematic description of environmental and social effects to be considered for each of the ESSA’s six Core Principles It presents an assessment of the adequacy and consistency of the Program’s environmental and social management systems and related implementation capacity against the Core Principles and Key Planning Elements. 16. Chapter IV: Consultation and Disclosure describes the key formal and informal consultations undertaken as part of the ESSA process, important input and recommendations received, and how and when the ESSA was disclosed. 17. Chapter V: Conclusions and Recommendations lists environmental and social inputs for mitigating impacts risks and enhancing environmental and social benefits and management. This section also discusses the actions that the ESSA team recommend addressing the system and capacity gaps and shortcomings identified, which are grouped into two categories: (a) those that have been mainstreamed into Program design and (b) those that are to be included in the PAP. 4 II PROGRAM DESCRIPTION AND POTENTIAL ENVIRONMENTAL AND SOCIAL EFFECTS A. PROGRAM CONTEXT 18. The air pollution challenge in India is multi-sector and linked to a wide range of economic activities where investments in the control and management of emissions have lagged economic development and growth. Integrated solutions aligned with a clean air transition across multiple sectors of the economy with related investments and behavioural changes are required. While the transportation sector has long been recognized as a high pollution emitter especially in large urban areas, nationwide poor agricultural practices are an overlooked and significant contributor to PM2.5 too stemming from over- application of fertilizers and poor management of animal waste. Addressing air quality challenges rests with changing many practices within urban, industrial, households, energy, transportation, and agricultural/rural areas that contribute to poor ambient air quality across a wider airshed. One of the most significant sources of PM2.5 in India are “secondary� emissions that form when gases from various sources mix to create PM2.5, and then travel far away from the original source, often crossing the boundaries of states. Almost 50% of the PM2.5 emissions affecting Indian cities are secondary particulate matter (SPM), making air pollution a sub-regional, national, and even an international challenge for some Indian states. 19. Several measures have been taken by the Government of India (GoI) over the past decade to improve air quality which have been a good start, but more is needed such as a shift to an “airshed� approach and deeper mobilization of integrated sector actions. In January 2019, MoEFCC launched the National Clean Air Program (NCAP) to consolidate fragmented air quality management (AQM) efforts into one national program with an ambitious goal: Compared to 2017, 20%–30% reduction in PM2.5 and PM10 concentration by 2024. The program’s target was increased in 2022 to a reduction of 40% by 2026. It has initially focused on 132 Non-attainment Cities (NACs) where air pollution standards are not being met and has more recently begun broadening the approach to the state level. In 2020 the XVth Finance Commission (FFC) allocated INR 12,139 crores (1.6 billion US$) in first of its kind performance-based fiscal transfers for air pollution to India’s 42 mega-cities for the next 5 years (2021-26). Sixteen (40%) of these mega-cities lie in the IGP (Indo Gangetic Plain) with seven alone in UP. In August 2020, the Commission for AQM for the National Capital Region (NCR) and adjoining areas (CAQM) was established to coordinate, regulate, and manage poor air quality for Delhi and 5 surrounding states and urban territories. This was India’s first shift toward multi-sector, multi-jurisdictional airshed management to tackle air pollution. A National Knowledge Network (NKN) to complement NCAP implementation has been formed with India’s Institutes of Repute (IoR) to help strengthen institutional and human resource capacity for AQM across India. 20. Under India’s federated structure there are a range of institutional responsibilities and accountabilities for AQM at the central, state, city, and increasingly regional level that require strong vertical and horizontal cooperation and coordination. In India, the central level defines national policy, regulation, guidelines and manages central financing schemes, while the states hold the responsibilities for designing and implementing their own plans, mobilize the bulk of the financing through coordination and convergence of central and state funding schemes, undertake reporting and monitoring of results to the center, and coordinate with all local bodies across the state (cities, UAs, districts, blocks, panchayats). Both the state and local bodies work with the private sector. Non-Attainment Cities (NACs) are responsible 5 for their own plans and implementation structures through recently established air cells2, and with the introduction of FFC grants these requirements have further encouraged the largest cities to expand to a wider focus on urban agglomerations. The Commission for Air Quality Management (CAQM) for Delhi and surrounding jurisdictions is India’s first regional institution with regulatory and coordination powers for multi-jurisdictional airshed management, replacing the central pollution control board functions for air quality management for the Delhi NCR in particular. 21. There is an emerging consensus that a regional air quality management approach is required for India’s entire Indo-Gangetic Plain, building on a coordinated set of State Air Action Plans (SAAPs). As air pollution levels in the IGP are the highest in India and emissions mix and travel across a nearly 2000 km wide plain, it has become increasingly clear that a broader sub-regional airshed management approach must be used to solve the air pollution problems. On average, about 74 % of the sources that generate PM2.5 concentrations in IGP cities originate from outside these cities. Typically, among the IGP states, over 50% of the PM2.5 concentrations in each state originates from sources outside its borders. Given complex atmospheric connections over the plains there is scientific evidence and a growing political demand for the need for stronger work at the state level and beyond. However, substantive socio-economic differences exist between the IGP states and challenge development of sub-regional AQM policies so far. Haryana, Delhi, and Chandigarh in the West are 3 of the top 5 Indian states/union territories (UTs) with the highest GDP per capita. On the other hand, Uttar Pradesh in the Centre has the second lowest GDP and Bihar further to the East the lowest GDP of any state in India. This dichotomy requires special attention in the design of air pollution control strategies. 22. UP is one of the first states in India to pioneer airshed management and is actively working with the World Bank and technical partners for the development of an UP Clean Air Plan (UCAP). It is also one of the first states in India to work on “nesting� AQM plans for vertical coordination across different administrative levels. The World Bank has concurrently supported the development of a tailored air quality planning tool for the entire IGP sub-region (from Punjab to West Bengal) to enable integrated airshed planning across IGP (IGP AQMmod). A special AQMmod module for UP has been established as part of this to help generate analysis on cost-effectiveness and prioritization for investments required to reduce air pollution throughout UP. This provides a common evidence-based platform for better decision making in UP and for coordination with UP’s neighbouring states across the shared airshed sub-region. Findings from air quality modelling supported through the Bank analytics integrated with cost- effectiveness analysis has pointed to 5 highest priority sectors and sub-sectors within them that contribute to air pollution in UP. The top three priority sectors are residential cooking, transport, and agriculture. Residential cooking emissions are the largest source of PM2.5 air pollution generated from within UP (around 48%) primarily due to the use of solid fuels and traditional cook-stoves. It also contributes to significant black carbon (BC) emissions. The PMUY (“Ujjwala Scheme�) in UP has provided around 17 million connections to rural households to access LPG cylinders since 2017. However, challenges remain with limited access and affordability of LPG refills, which results in PMUY beneficiaries continuing to use dirty biomass-based fuels like fuelwood and animal dung. While air pollution from biomass-based cooking is high throughout the state, it is particularly high in concentration in eastern UP (reaching about 40mg/m3). Implementation of Uttar Pradesh Clean Air Management Project (UPCAMP) will aim to strengthen systems for airshed management and contribute to the implementation of 2 Air cells are government units responsible for air quality management functions at the city level 6 selected priority measures to reduce air pollution under UCAP. 23. Implementation of UPCAMP with Government of Uttar Pradesh will lead to ambitious shift to an airshed management approach and the present operation is being developed to support this. The program design will draw significantly on the key lessons from implementation of NCAP in UP to date by addressing key challenges around insufficient financing and capacity, working toward results focused and timebound targets, and strengthening the multi-sector approach at the state-wide level. Several key lessons that the program will address are the need to move away from ah-hoc measures to more scientifically and evidence-based AQM; the need to move beyond the city-by-city approach to work on AQM at the entire state (and beyond) level; and for the full consideration of both urban and rural primary and secondary PM2.5 emission sources. B. THE GOVERNMENT OF INDIA’S PROGRAM 24. Regarding air pollution, the Central Government is implementing National Clean Air Programme (NCAP) as a first long-term, time-bound, national level strategy to tackle the air pollution problem across the country comprehensively. The original targets to achieve 20% to 30% reduction in PM10 and PM2.5 concentrations by 2024 keeping 2017 as the base year for the comparison of concentration. This is now extended to 2026 with a 40% reduction target over 2017. Under the NCAP, city specific action plans for all the non-attainment cities (NACs) are prepared that highlight the major reasons of air pollution in the respective NACs. City action plans for 111 NACs – now expanded to 132 NACs - have been prepared and approved for implementation. These action plans focus on city specific short/medium/long term actions to control air pollution from sources such as vehicular emission, road dust, burning of biomass/crop/garbage/Municipal Solid Waste, construction activities, industrial emission, etc. All sources addressed are within the boundaries of the NAC. 25. Major measures under the NCAP being taken by the Government to curb air pollution are: Strengthening of air quality monitoring network; develop City Action Plan based on Source Apportionment Studies; establish emission inventories; identification of hotspots; environmental regulatory activities; establishing Air Quality Management cells at urban local bodies (ULBs); supporting Public Grievance Redressal Portals to enable citizens to flag air quality issues in the city for appropriate actions; preparation of Emergency Response Systems, Graded Response Action Plans (GRAPs) to prevent air pollution emergencies; introduce more frequent compliance verification of emission norms; and establish awareness and capacity building programs. Three national and state level committees have been constituted: (i) Steering Committee, (ii) Monitoring Committee and (iii) Implementation Committee for overall guidance and direction for effective implementation of the NCAP, reviewing the proposed city interventions, and to evaluate progress made. UP’s efforts on implementing the NCAP was recently recognized by the National Government as three of their NACs achieved the top three positions amongst 47 million-plus cities in the first edition of the Swachh Vayu Survekshan (Clean Air Survey) – that ranked cities based on actions taken to reduce air pollution. Under the NCAP, finance has been sanctioned and released to the NACs. This includes US$ 85.6 million or Rs. 696.7 crore from 2019 to 2021 for initiating actions such as expansion of monitoring network, construction and demolition waste management facilities, non-motorized transport infrastructure, green buffers, mechanical street sweepers, composting units etc. C. BANK FINANCED PROGRAM: SCOPE, OBJECTIVES, AND KEY RESULTS AREAS 7 26. The Program for Results Finance Instrument is proposed because it directly aligns with the ongoing government multi-sector program under implementation that is being progressively strengthened over time. Both the national level (NCAP) and corresponding state level (UCAP) programs rely heavily on the horizontal convergence of funds. The PforR instrument is ideal to help strengthen the government implementation systems that need to remain in place for the long-term. 27. The proposed PforR Program will support the GoUP to implement its ambitious multi-sector statewide UCAP and bolster the underlying institutional mechanisms needed to enable such implementation. The proposed “P� program will focus selectively on result areas and measures with a combination of technical interventions related to strengthening AQM planning, monitoring, and stakeholder engagement, sector investments, and strengthening institutions and state capacity for results. The proposed Program “P� will help GoUP achieve selected investment outcomes within the top five most cost-effective sectors for largest reductions in PM2.5 concentrations, through a focus on effective geographical coverage; spending better; and moving toward a system of accountability for results. The government UCAP (“p�) program includes work already under implementation as well as a subset of priorities under new clean air program (UCAP) in terms of its sectors, scope, measures, and timeframe (to 2030). It will reflect a wider range and diversity of actions inclusive of but beyond the top 5 and link with UP state’s many subordinated clean air plans including micro-, city-, and urban-agglomeration level plans. PROGRAM DEVELOPMENT OBJECTIVE(S) 28. The “Program� aims to strengthen systems for airshed management and contribute to the implementation of selected priority measures to reduce air pollution under UCAP. PDO LEVEL RESULTS INDICATORS 29. Achievement of the PDO will be assessed based upon three results areas: (i) Strengthening State Capabilities for Air Quality Management; (ii) Advancing implementation of priority sector interventions for air pollution reduction; and (iii) IGP Airshed Cooperation. The state capabilities results area focuses on strengthening Uttar Pradesh’s core air quality management functions that require the expansion of infrastructure for data collection, analysis, and decision-making, and establishment of systems for horizontal coordination for multi-sector convergence of priority air pollution prevention and mitigation actions and mobilization of finance. Program measures have been prioritized based on a capacity- and institutional assessment and gap analysis and recommendations elaborated through the UCAP development process. Program actions for the result area (ii) sector measures have been prioritized based on a deep technical understanding of air pollution sources throughout the state, and a cost-effectiveness analysis that reviewed ~1100 control measures for actions that could reduce the most air pollution for the lowest unit cost. From this ~250 cost-effective options emerged which were then discussed and screened for implementation feasibility and needs with sector departments considering the baseline situation, sector capacities and experience. Figure 2 illustrates the program Theory of Change. 8 Figure 2. Program Theory of Change THREE KEY RESULT AREAS Result Area 1: Strengthening State Capabilities for Air Quality Management and Planning 30. Strengthening state capabilities for AQM planning and operations is a priority for effective AQM in UP. Although India, including UP, has gradually developed a more advanced governance, institutional and regulatory system for AQM (e.g., in the context of NCAP), there are still critical gaps to fill before needed state capabilities for AQM and planning are in place to ensure that UP will achieve substantive improvements in air quality by, for example. reaching its own air quality standards by 2030. International AQM reviews show that to ensure substantive improvements in air quality, the following capabilities must be in place for a state like UP: a. a sufficient legal and regulatory framework that establishes timebound reduction targets for the entire geography and jurisdictions and not only for selected cities. b. a committed executive, including a long-term AQM plan championed at the highest political level that sufficiently cover both the entire state, the IGP region and larger urban agglomerations (UAs) and not only a few selected non-attainment cities (NACs). c. nested planning including designations of airsheds at different administrative and geographic levels with a formal process to classify regions out of compliance, and not only - as at present - selected NACs. d. institutional coordination carrying out both horizontal and vertical coordination that includes fiscal and administrative autonomy where functions also include development and implementation of scientific AQM – at present institutions coordination is applied to the Commission for Air Quality Management (CAQM) that mostly cover the National Capital Region (NCR) and adjoining areas and not the entire IGP airshed. e. accountability and transparency, where a robust state-wide air quality monitoring and emission and source information system is in place throughout the state and not only in 9 selected urban areas. 31. The primary accountability for the work under RA1 lies with the Department of Environment, Forest, and Climate Change (DoEFCC) and the UP-State Pollution Control Board. Strengthening air quality monitoring infrastructure is critical to build a foundation of a spatially and statistically representative measurement infrastructure for a geographically large state airshed like UP through an integrated monitoring infrastructure including expansion of the Continuous Ambient Air Quality Monitoring (CAAQM) network, the National Manual Air Monitoring Program (NAMP) network, both a manual and real-time source apportionment network and supersites, development and operationalization of a centralized monitoring and surveillance system through a combination of tools including Pan-Tilt-Zoom (PTZ) cameras, smart meters connected to air pollution control devices (APCDs), AQ monitors must be established. Result Area 2: Advancing Sector Interventions 32. Implementing a multi-sectoral pollution reduction strategy is key to reducing air pollution in UP. It has been critical to analyse key sectors and actions through a cost-effectiveness analysis and other means of prioritization to use resources optimally. While current air pollution reduction measures are largely focused on sources within the cities, the Program recognizes the need to expand efforts geographically throughout the state while introducing a project implementation and monitoring framework to ensure the proper, on-ground implementation. Background analysis and consultations identified 4 the most cost-effective sector measures to achieve substantive reductions in PM2.5 concentrations in UP: a. Reducing air pollution through progress on universal access to clean cooking. Residential biomass burning for cooking is the single largest contributor to PM2.5, and 25 million rural households still burn solid fuels Recognizing this challenge from an air pollution perspective, GoUP has developed a sub program under UPCAMP to promote and help non-LPG users adopt clean cooking practices. Four specific solution programs be deployed: (i) improved biomass cookstoves (tier 3) targeting 3.5 million households; (ii) biogas digesters (tier 4) for households targeting 0.5 million households; and (iii) hybrid solar and electric induction (tier 5), targeting 0.5 million households for each solution. As several elements in the clean cooking program are new, a dedicated program and budget line for DoEFCC as the implementing department is being established, and DOEFCC will be the project implementing entity. DoEFCC will leverage carbon finance through empanelment of PIAs. The UPSRLM program will be utilized as service delivery platform for cooking technology distribution and after sales service. The program will invest in creating an entire market ecosystem around clean cooking. b. Reducing air pollution through improved agriculture and livestock management practices . To effectively manage ammonia and nitrous oxide emissions from excess usage of fertilizers and balance NUE, will include intervention on adoption of 4R nutrient stewardship in selected districts with customized pilots on rate, time, place, and form of fertilizer for different cropping system through Precision Nutrient Management Practices (PNMPs). Key activities will include (I) identifying demonstration clusters / plots, participating lead farmers (group of farmers), technologies to promote good agriculture practices, PNMPs with special focus on increased availability of slow and control release fertilizers, nano fertilizers, and nitrogen inhibitors applied in different crop stages in consultation with technical partners and department of agriculture. In addition, the project will promote on-farm monitoring system for NUE through available technologies and practices and establishing 3 monitoring labs at SAUs for spatial and temporal capture to NUE. To manage methane and black carbon emissions from livestock and crop residue burning, an extension service to framers will be provided to adopt livestock and manure management practices and access to farmers to machinery and other equipment to improve crop residue management. c. Promoting cleaner technology in industries. Measures to reduce air pollution from transport sector include increasing the modal share of public transport by expanding the electric bus fleet (e-buses and e- 3wheelers) in two model cities i.e., Lucknow and Varanasi which complements the ongoing UP EV Policy and converge with the GOI schemes (FAME -II, PM E-Bus Sewa). In addition, the project will also support good practices in training and capacity building of drivers, staff of various public and private operators, integrated 10 planning of passenger and freight transport which are replicable and scalable across the state. d. Reducing air pollution in the transport sector. Interventions to curb industrial air pollution under UPCAMP focus on reducing pollution from the brick sector and boilers – which contribute significantly to the pollution contribution from the overall sector. Under the brick sector, interventions include incentivization of cleaner and resource efficient technologies in brick manufacturing sector. Currently only 13% (1596) of all brick kilns in UP have adopted cleaner zig zag technology (recommended by MoEFCC). Under UPCAMP incentives will be provided for conversion of all remaining (8646) kilns to zig-zag technology. It will further provide incentives and strengthen knowledge base to support promoting mechanized, resource efficient brick making (in 50 units) and demonstrating state-of-the-art tunnel kiln technology (4 units). These incentives will complement incentives provided by the state Government under the Uttar Pradesh MSME Promotion Policy 2022. Interventions will also facilitate adoption of common steam facilities to reduce dependence of MSMEs on polluting individual boilers in both green-field and brown-field clusters by supporting policy actions and detailed feasibility studies. Support will also be provided for the development of comprehensive clean air management plans for industrial clusters. RESULT AREA 3: IGP AIRSHED COOPERATION 33. Analysis for Uttar Pradesh shows significant air and pollutant exchange both from UP to other states and from other neighbouring states to UP. As the largest state at the canter of the IGP, UP has a lot to gain by working closely with other states to accelerate emission reductions and lower of costs. While some long-range transport topics like thermal power and large industry stacks require airshed wide solutions, other topics where UP can still do a lot at home are also important for cooperation. Two most important topics are for the acceleration of scrapping oldest Heavy-duty trucks with low fuel standards, and on the promotion of clean cooking. Heavy duty vehicle emissions come into UP from other neighbouring states at an equal level to those generated from within UP particularly from the western airshed states of Punjab, Haryana, and New Delhi. A program of cooperation with these three states would yield significant additional air pollution reductions for UP. On Clean cooking the emissions generated from within UP largely dominate, however UP’s eastern border with Bihar is heavily impacted by household emissions with similar challenges as UP. It is therefore in UP’s interest to especially join hands with Bihar on this topic. Activities under this RA include participation in developing an IGP plan and activating technical thematic working groups that will deliver higher emission reductions than working along The DoEFCC together with relevant sectors are primarily responsible for this results area. Both should actively participate together in technical meetings so that the sector and AQM issues are equally well considered. Two DLIs are proposed under this RA: One DLI focused on heavy duty truck scrapping, an another focused on reaching agreement on common measures with neighbouring states. Given the IGP airshed is transboundary too this extends to UPs participation in international IGP meetings and especially working on cooperative agreements with Nepal which borders UP to the north. No specific IPF or PAP is envisioned in this RA. DISBURSEMENT-LINKED INDICATORS 34. Program resources will be disbursed based on the achievement of [10] DLIs. These DLIs (table 1) have been selected to incentivize and measure progress on the most important institutional, human resource, and management system state capacity reforms and together with specific priority cost- effective clean air measures. Program resources will be channelled through the Government of UP’s Finance Department to implementing entities involved in the Program. Table 1 details the DLIs and their allocated funding from IBRD and the ESMAP Clean Cooking Fund. 11 Table 1. Disbursement-Linked Indicators and Allocated Financing Result Area DLI Responsible Allocated Amount Agency (US$, millions) World Bank ESMAP Grant 1. Strengthening 1. A publicly available geo-referenced UPDOE/UPPCB 20.00 0.0 State Capabilities State Emission Inventory to include all for Air Quality UCAP priority sectors under the program Management and 2. Integrated state airshed network UPDOE/UPPCB 55.00 0.00 Planning (US$50 system to inform evidence-based air million) quality management through a decision support system 2. Advancing 3. 5 million households have adopted tier RDD 100.00 6.00 implementation of 3 or above clean cooking solutions priority sector 4. Number of hectares with increased DOA 45.0 specific fertilizer use efficiency (NUE) of at least interventions for 40% air pollution 5. Amount of animal manure and crop UPNEDA/RDD 20.0 0.0 reduction (US$266 residue waste used for alternative million) productive uses and diverted from mismanagement and burning (tons) 6. Conversion of all non-zigzag brick kilns DMSME 17.00 0.0 to zigzag kiln technology 7. Number of SMEs demonstrate DMSME/UPPCB 10.0 successful transition to cleaner production means and improved air pollution control 8. Improved urban mobility with an DOT 30.0 0.0 increased number of electricity based public transport vehicles (buses and 3W) and using the NCMC 3. IGP Airshed 9. Number of Heavily polluting heavy- DOT 20.0 Cooperation duty trucks (BS II or below) scrapped and taken off the road 10. Recommendations and agreements DOEFCC with 3.0 are reached on common measures that AQM Sectors help accelerate air pollution reductions in UP with other IGP states IBRD IPF 29.125 4.0 Front end fee (0.25% of IBRD loan amount) 0.875 0.0 Total 350.00 10.00 12 35. The achievement of all DLIs will be reviewed and confirmed by the independent verification agency (IVA). The program SPV will be responsible for reporting on achievement of the Program DLIs, each of which includes several disbursement-linked results (DLRs). An independent firm will be contracted by the Government of UP to conduct third party verification for all Program DLIs to be submitted as part of an Annual Program Report (APR). ALIGNMENT BETWEEN THE GOVERNMENT PROGRAM AND THE PFORR PROGRAM Table 2. NCAP/UCAP versus UP-CAMP Program Boundaries and Expenditure Framework Uttar Pradesh Clean Air Program Specific features aligning with the MTP Management Plan- supported by the UCAP (“p�) PforR (“P�) is a subset of UCAP Objective To reach Air Quality To strengthen The “P� Program funds a sub-set of the PM2.5 targets in the airshed highest contributing sectors to PM2.5 in 2024 to 2030 timeframe management selected geographic areas, enhances throughout UP through systems and state capabilities, and supports source-wise improve air quality collaboration across the India IGP States. prioritization. outcomes. Duration (2021-2030) 2024-2030 (April 1 The “P� will span the outer 6 years of the to March 31) government plan Geographic The State of Uttar Actions are both The “P� focused on a sub-set of districts coverage Pradesh state-wide and with the highest exposure to PM2.5 focused on concentration from the highest specific districts contributing sectors across Uttar Pradesh dependent on applicable sub- measures. Results areas UP’s air quality Result Area 1: “P� supports the convergence of state landscape; source Strengthening budget funds to help implement selected contributions State Capabilities interventions in highest contributing (Residential and for Air Quality sectors and for strengthening the state Commercial, Large Management and systems for air quality management Industry, Medium and Planning evidence based airshed management small-scale industry, Result Area 2: planning. Agriculture fertilizer, Advancing Sector livestock manure, crop Interventions “P� is designed to help activate and residue burning, Result Area 3: IGP transform ‘’p� to a higher impact, results, transport, waste, power Airshed and stronger convergence systems. 13 plants; road dust and Cooperation construction); PM2.5 Sector interventions under “P� focus on control strategies under scalability both within UP and to other current policies, with IGP states to amplify benefits to the UP additional policies, and population. with contributions from other states; prioritization by sector contributions, geographic origin and exposure, and cost- effectiveness; climate co-benefits; and a recommended action plan. UCAP also sets out gap filling needs for strengthening air management and monitoring systems and skills development. Overall $2873.87 million USD $728.54 million Both “p� and “P� include a combination Financing 6 USD of the State portion of Centrally years Sponsored Schemes; State Sponsored Schemes, and Fifteenth Finance Commission Grants PROGRAM EXPENDITURE FRAMEWORK 36. Program Expenditure Framework (PEF): Tables 3 summarizes the program expenditure at the level of small ‘p’ for the six-year period for UPCAMP. The expenditure framework comprises of the Air Quality schemes that are funded exclusively by GoUP through State specific schemes, convergence with National level Programs (State funded portion of the CSS schemes), and the central transfers (in the form of Finance Commission Grants – FFC). 14 Table 3. Summary of Program Expenditure Framework (distributed by funding sources) for FY 2023-2029 Sector Department Scheme FY24-25 FY25-26 FY26-27 FY27-28 FY28-29 FY29-30 FY24-30 PEF DLI Fig in Million (INR) Fig in Million (USD) Transport Urban Urban INR INR INR INR INR INR INR $ 313.97 $ 30.00 Development Transport 3,128.90 3,490.91 3,894.81 4,345.44 4,848.20 5,409.14 25,117.39 Fund Transport Subsidy on INR INR INR INR INR INR INR $ 150.00 $ 23.00 electric 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 12,000.00 vehicles MSME Industry (Small UP MSME INR INR INR INR INR INR INR $ 75.00 $ 27.00 Industries and Promotion 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 6,000.00 Export policy 2022 Promotion) Agriculture Agriculture Food and INR INR INR INR INR INR INR $ 76.92 $ 65.00 Nutrition 1,025.63 1,025.63 1,025.63 1,025.63 1,025.63 1,025.63 6,153.76 Security (state share) National INR INR INR INR INR INR INR $ 73.64 Mission on 981.87 981.87 981.87 981.87 981.87 981.87 5,891.23 Agri. Extn & and tech. (state share) Clean Cooking Rural NRLM - INR $ 4.56 $100.00 Development village 45.46 50.73 56.59 63.14 70.45 78.60 364.97 entrepreneur ship program (state share) New and National Bio INR $ 15.00 Renewable Energy 200.00 200.00 200.00 200.00 200.00 200.00 1,200.00 Energy Program (UPNEDA) Institutional Environment, Revenue INR INR INR INR INR INR INR $ 19.45 $ 75.00 Strengthening Forest and budget 212.08 229.05 247.37 267.16 288.53 311.61 1,555.80 Climate Change UP Pollution NCAP funds INR INR INR INR INR INR INR $ 0.23 Control Board 2.30 2.55 2.83 3.15 3.49 3.88 18.20 Total $ 728.77 $320.00 D. PROGRAM IMPLEMENTATION ARRANGEMENTS 37. The Department of Environment, Forest, and Climate Change (DoEFCC) is the nodal agency in UP’s administrative structure for air quality management and will be the nodal agency for the proposed program. The Uttar Pradesh Pollution Control Board (UPPCB), which remains in charge of air quality monitoring and regulation, comes under this administrative structure. The state has established the Uttar Pradesh Clean Air Management Project Authority (UP CAMPA) as a Special Purpose Vehicle (SPV) embedded in the DoEFCC. The Program will be governed and implemented by a three-layer SPV structure described in Figure 3. First, at the apex level, an already established and functional Governing Body (a multi-department committee chaired by the Chief Secretary, with representation from each of the state departments and Principal Secretary, Finance) will facilitate interdepartmental coordination, and provide strategic directions for program implementation, approve annual plans, and conduct monitoring. Learning from other multi-sector program implementation experience in India, to facilitate high-level coordination and program budgeting, and expenditure, the Principal Secretary-Finance will be part of the Governing body to facilitate financing of key activities in results areas, department / Implementing Agency budgets, review expenditure, and fund flow arrangements particularly in a timeframe to inform the annual and semi-annual budget review process. Second, at the operational level, an Executive body, chaired by the Additional Chief Secretary Officer (ACEO) - Environment, containing full time nodal officers from the sector Departments, will be responsible for achieving the results agreed under the program. 38. Third, to support day-to-day program implementation, an UP-CAMPA-CEO will be appointed from the DoEFCC and will be responsible for the management, coordination, and monitoring and evaluation 15 (M&E) of the program. The CEO will be supported by Additional CEO (A-CEO) for Finance, Admin, and the Sectors and the SPV will collaborate and coordinate with all departments and IAs (horizonal coordination) through UP CAMPA Cells in Agriculture, Transport, MSMEs, Urban and Rural Development Departments. Project management consultancy services will support the SPV for day-to-day program implementation. 39. Technical staff for procurement, finance, environment, and social functions will also be responsible for the delivery of the IPF component. The staff will also report to the CEO. They will also be responsible, either directly or through coordination and oversight, for ensuring compliance with the relevant fiduciary, environmental and social (E&S) assessment findings, Program Action Plan (PAP) requirements, grievance redressal, labor management, procurement, and financial management. The DoEFCC would hire an Independent Verification Agency (IVA) to verify the DLIs and results under the program. Each of the IAs will have a role in the implementation of interventions and achievement of results under the Program. Figure 3. Proposed Institutional Arrangement under UP-CAMP E. DESCRIPTION OF PROGRAM ACTIVITIES AND IDENTIFICATION OF ENVIRONMENTAL AND SOCIAL EFFECTS 40. As required by PforR financing Bank Policy, an ESSA has been conducted by the World Bank during Project preparation. It was prepared in collaboration with Department of Environment, Forest and Climate Change, Govt. of UP to assess potential adverse risks and impacts associated with the Program, and adequacy of the environmental and social systems of the program implementing and operating agencies, to identify specific measures to strengthen environmental and social systems and to outline the steps to 16 be followed by the borrower to mitigate potential adverse impacts associated with the Program. An initial environmental and social screening of all NCAP and UCAP activities was undertaken during the early stages of the dialogue. The purpose of the screening was to: (i) identify activities likely to have significant adverse impacts on the environment and/or affected people (those activities are not eligible for financing and should not be included under the Program); and (ii) determine the priority areas for further attention during the environmental and social system assessment. 41. The ESSA emphasizes appropriate institutional arrangements and coordination, systems, and capacity for the overall management of environmental and social risks and social inclusion aspects under the Program. Activities that are likely to have significant adverse impacts on the environment and/or affected people will be excluded. ASSESSMENT OF ENVIRONMENTAL EFFECTS 42. This section describes the activities to be implemented under each of the results areas followed by a discussion of the potential environmental and social effects that could arise from each activity. The sections below summarize the environment and social risks of the Program, followed by the environmental and social effects grouped under each results area. ENVIRONMENTAL AND SOCIAL SCREENING 43. As per the World Bank Guidance on ‘Program for Results Financing Environmental and Social Systems Assessment’, the proposed PforR operation was screened to determine whether, from an environmental and social perspective, the proposed Program is suitable and eligible for PforR financing. The first step in the screening exercise was to identify any activities within the Proposed program of expenditures that, under the exclusionary principle of the policy, should be excluded because of their inherently high risk. The second step was to review the proposed Program activities to determine whether the potential environmental and social effects (which may not meet the policy’s criteria for exclusion) include unacceptable adverse risks. LIST OF EXCLUDED ACTIVITIES FROM WITHIN THE PROGRAM BOUNDARY 44. The following activities are excluded from support under the proposed PforR Program, these could fall under the category of activities that are judged to be likely to have significant adverse impacts that are sensitive, diverse, or unprecedented on the environment and/or affected people. • Establishment of vehicle scrapping facility • Major/ Large scale centralized industrial boiler plants/systems. • New Landfill/ dumpsites • Any electric vehicles using lead acid batteries. • Construction of new buildings or any construction beyond the existing footprint of buildings • Activities involving asbestos containing materials (AC roofing sheets, AC pipes, and so on) such as construction, demolition, and dismantling. • Any activity that may lead to potential involuntary resettlement will be excluded (screened out) from the Program boundary. • Any activity involving land acquisition. 17 ENVIRONMENTAL BENEFITS AND OPPORTUNITIES 45. The Program will result in several benefits and opportunities for better environment, health, and safety and social performance. This includes systemic benefits such as (i) better transparency on environmental/air quality data (ambient and industry) and implications on people based on environmental health risk (ii) boosting manpower in DoEFCC for better management of air pollution, and stakeholder engagement, (ii) institutional development and the better investment planning has the potential to deliver significant environmental benefits e.g., curb solid waste burning. Traditional cooking methods which produce high levels of indoor air pollution, will be replaced with clean cookstoves; efficiencies in small and medium industrial enterprises, dust mitigation practices scaled up, old and polluting heavy duty trucks scrapped and off the road or replaced with new and cleaner fuel trucks, increased number of electric transport modes available for public transport. 46. In the rural areas, efficiencies in fertilizer application, and productive reuse of crop residue will have a positive implication on soil health and nutrient losses. Alternative sources of energy such as biogas, bioCNG generated through livestock manure management practices can power household stoves and transport modes. The program is overall beneficial to human health, environmental quality, and climate change. LIKELY ENVIRONMENTAL EFFECTS 47. The Program activities will have localized, reversible, and limited risks to environment, worker safety and the public. These impacts are not within eco-sensitive or culturally sensitive areas. All of these can be mitigated through management measures for which the systems were found to be satisfactory. There are some gaps for which recommendations for strengthening systems have been made in the Program Action Plan. The Program will not create an additional environmental impact as will support neither construction of large new infrastructure nor the extraction of natural resources. It does not include any activities that may lead to heavy emissions or to generation and discharge of large volumes of waste. The Program activities do not require Environmental Impact Assessments as per the regulatory system, but environmental considerations are managed through contractors getting permits and consents from the SPCB as required. These are simple, standard, and well-established regulatory requirements. 48. The environmental sector /DoEFCC are not integrally connected with the sectoral environmental issues and the sector departments. Therefore, their expertise is not reaching the sectors. Also, their own expertise is not aligned with the sector experiences being adopted, and the performance being achieved. The SPV Structure will help in bridging these gaps between the environment department and the sectors. While most of this infrastructure (Small scale infrastructure such as AQM monitoring stations, offices, e- vehicle charging etc, retrofitting kilns) across the state will take place in existing facilities, it may involve excavation, and levelling, and generation of localized waste which needs to be dealt with using appropriate contractual agreements on environment health and safety management. It is also critical that DoEFCC has adequate agreements for Extended Producer responsibility for e-waste management in place to minimize environmental impacts from adopting advanced technologies and data systems. 49. Environmental risks associated with the program include (i) scrapping of vehicles which leads to generation of several waste streams including hazardous wastes such as batteries and the sound management of recyclable materials (ii) worker health and safety in vehicle scrapping centers and brick kilns (iii) E-vehicles require battery changes which can have negative environmental impacts if not 18 properly managed in the long term if recycling and recovery is not handled adequately (iv) inadequate infrastructure and supervision for collecting and storing manure which is directly left in the open causes contamination of the air and surface water (v) The installation and operation of biogas digestors for manure and crop residue may have long-term operational impacts if not managed properly, these include the disposal of sludge, the need for wastewater treatment, odour control, and other impacts associated with the operation and maintenance of such as fire and explosion (vi) environmental impacts of dust, noise, soil contamination and localised waste generator relating to conducting small scale infrastructure improvements . 19 Table 4. Environmental Effects from Program Activities Key Areas Potential Environmental Level of Government Policies and Systems to Address These Relevant to Institutional Responsibilities Effects Concern Risks EHS and OHS Implications for Fugitive emissions (dust, Low Environment Protection Act 1986 Regulated by SPCB- through permits and environmental odour noise) construction The Air (Prevention and Control of Pollution) Act 1981, licenses for construction of civil works, and quality and demolition waste) Amended 1987 and Rules regular inspection. from minor civil works Construction and Demolition Waste Management Rules 2016 Solid and plastic waste Low Solid Waste Management Rules, 2016 Regulated by SPCB- through permits and generation Plastic Waste Management Rules 2016 licenses for construction of civil works, and regular inspection. Liquid waste Low Water (Prevention and Control of Pollution) Act, 1974 Regulated by SPCB- through permits and (Wastewater; chemicals) licenses for construction of civil works, and regular inspection. e-Waste Low E-waste (Management) Rules, 2016 OEMs collect back e-waste and channelize for collection/disposal; producer will arrange end- of-life disposal. Collection centers established by producer. Hazardous Waste from Moderate The Hazardous and Other Waste Management Rules, Regulated by SPCB- through permits and Batteries 2016 licenses for construction of civil works, and Guidelines for Environmentally Sound Facilities for regular inspection. Handling, Processing and Recycling of End-of- Life Vehicles (ELV) Emissions from brick kilns Moderate Regulated by SPCB- through permits and MoEFCC Emission Standards for Brick Kilns licenses for construction of civil works, and regular inspection. Health and Occupational health and Moderate The Building and Other Construction Workers Labour Commissionerate Safety of safety of workers (Regulation of Employment and Conditions of Service) Workers Act, 1996 The Occupational Safety, Health, and Working Conditions Code, 2020 20 Key Areas Potential Environmental Level of Government Policies and Systems to Address These Relevant to Institutional Responsibilities Effects Concern Risks EHS and OHS Life and Fire Safety in Low National Building Code (NBC) of India, 2016, 'Fire and Chief Fire Officer for obtaining clearances and buildings/ offices Life Safety compliance. 21 Table 5. Environmental Effects by Results Areas Program Activities/Inputs Risks Mitigation/Risk Management Benefits/Opportunities RA#1: STRENGTHENING STATE CAPABILITIES FOR AIR QUALITY MANAGEMENT AND PLANNING Establish AQM units and Integrated Air Information Explore energy-efficient Better Transparency on Center, upgrade manual monitoring stations Setting up an air quality monitoring technologies and consider environmental/air quality data (MMSs) and Continuous Ambient Air Quality programs, offices, and knowledge centres renewable energy sources for (ambient and industry) collected Monitoring stations (CAAQMs) often requires the installation of monitoring powering the monitoring within districts and stations, offices, labs etc across a region or infrastructure. communicate implications for Strengthen AQM Knowledge Centres at select city. While most of this infrastructure will people based on environmental academic Institutions, support development of take place in existing facilities, it may involve Follow e-waste management health risk. software for AQM monitoring across departments. excavation, and levelling, and generation of practices in place to minimize QA/QC studies on operational efficiency of CEMS, localized waste and other types of environmental impacts. Dedicated AQM staff in DoEFCC setting up of construction impacts. and SPCB with clear roles and Careful consideration of the responsibilities for AQM will Technology challenge fund on innovative air Some AQM strategies, such as operating air monitoring station locations assist in better management of pollution measures quality monitoring stations, implementing and implementing measures to air pollution, and stakeholder Training needs assessment and training of staff in pollution control technologies, and running minimize localized pollution engagement. DoEFCC and implementing dept. enforcement programs, setting up new and disruption to communities. offices, require energy inputs. It is important Establishing a state-wide AQM to ensure that energy for AQM operations is Training of manpower and Infrastructure that addresses sourced sustainably, such as from experts and robust analysis primary and secondary sources. renewable sources to the extent possible. frameworks to ensure proper interpretation and appropriate The adoption of advanced technologies for decision-making based on the air pollution monitoring such as installation AQM collected data. and maintenance of monitoring equipment may have localized environmental impacts. It is important to carefully assess the life cycle environmental impacts of these technologies (considering e-waste etc) for 22 Program Activities/Inputs Risks Mitigation/Risk Management Benefits/Opportunities widespread implementation. It is crucial to have appropriate e-waste management practices in place to minimize environmental impacts. CEMS systems often rely on enforcing regulations and policies to ensure compliance with air quality standards. This can result in potential environmental trade- offs, as certain companies may resort to cost-cutting measures that could compromise environmental sustainability in other areas. Air quality monitoring programs generate a vast amount of data that needs to be interpreted and used for decision-making. Accurate data analysis is needed to have policies and actions. It is crucial to have trained experts and robust analysis frameworks to ensure proper interpretation and appropriate decision-making based on the collected data. RA#2: ADVANCING SECTOR-SPECIFIC INTERVENTIONS FOR AIR POLLUTION REDUCTION CLEAN COOKING Supply of Improved Cookstoves (tier 3); Cookstoves Sustainability of clean cookstove programs UPCAMP to strengthen Traditional cooking methods using pellets (tier 4); cookstoves using household relies on the adoption and sustained use of Cookstove and battery recycling produce high levels of indoor air biogas (tier 4); Hybrid solar and electric induction the improved stoves by households. including refinancing for pollution, primarily from the 23 Program Activities/Inputs Risks Mitigation/Risk Management Benefits/Opportunities (tier 5). However, behavioral change can be replacement and smoke emitted during Cookstove technology criteria and vendors for challenging to achieve, and if households enhanced incentives for combustion. Clean cookstoves empanelment under each of the four business revert to traditional cooking methods or manufacturers for collection of reduce indoor air pollution and models misuse the stoves, the expected old cookstoves and expired associated health risks for Training and developing SHGs and local environmental benefits may not be realized. batteries. households. Entrepreneurs on clean cooking business models and how to leverage their existing program with finance The use of cylinders for bottling; and new Mass awareness/behaviour and credit products to facilitate clean cooking supply improved cookstoves can create waste change communication chain development and jobs. management challenges if proper program on clean cooking for SHG Community Incentive Fund Start-up and Results infrastructure for refilling or recycling gas delivery with Self Help Groups Based Grants (through SLRM) for Clean Cooking cylinders and stoves is lacking. (SHGs); Anganwadis and ASHA funded to incentivize SHG entrepreneurs. workers. Supply chain market facilitation among stakeholders Risk of lead contamination from An annual environment audit by for each of the 4 business models by existing RD improper disposal/ recycling of storage independent third parties will programs batteries used in Solar cookers. be undertaken to assess the adequacy of the use of new cookstoves, and mechanisms for ensuring proper replacement of parts, and recycling of batteries and spare parts. MSME The conversion to more Reduction in Particulate Matter Bricklin upgradation to zigzag technology designed Traditional brick kilns often expose workers efficient kiln technologies can pollution from Brick kilns and and rolled out in select pollution hot spots. to harsh working conditions. Workers in reduce worker exposure to MSMEs in the state these kilns face health and safety risks from these hazards by improving Zig zag technology changes the Knowledge sharing sessions on India’s early high temperatures, exposure to coal ash and ventilation systems, reducing way coal is loaded to redirect the experiences with conversions to tunnel kiln brick silica dust, and heavy physical labor. the intensity of physical labor, air flow, which leads to better, making. and implementing better safety more efficient fuel combustion 24 Program Activities/Inputs Risks Mitigation/Risk Management Benefits/Opportunities Brick kilns generate various types of waste, measures. This can lead to and increases energy efficiency. Policy on development of common steam facilities including ash, sludge, and kiln dust, which improved occupational health A zig zag kiln can reduce the coal for all new, greenfield MSME clusters designed. can have negative environmental impacts if and safety for the workers. needed by 20 per cent. not properly managed in the long term. Incentive program for adoption of clean fuel (PNG) Zig Zag conversion projects Knowledge base for upgrading to and better air pollution control devices in MSMEs Although the individual MSME units are often include improved waste more advanced technology for designed. expected to have relatively small management systems to brick kiln sector increased. environmental impacts due to their size of minimize the release of these Training and awareness program on good practices operations, it is also to be noted that these wastes into the environment. Greater number of MSMEs for dust control in construction and at industrial site industries generally do not use the most Proper handling, treatment, relying on common steam to be deployed through DoEFCC Stakeholder energy efficient or advanced clean and disposal of waste can facilities and reduced use of Engagement Program technologies due to various reasons prevent contamination of soil individual boilers including the challenges related to the and water resources, protecting DoEFCC to deploy training and awareness program awareness of current cutting edge both the environment and A higher share of construction on cleaner technologies through their Stakeholder technologies, availability of these human health. permitted in UP is applying good Engagement Program technologies for such small scale dust mitigation practices. operations, reluctance of technology Include an environmental vendors to service such small scale compliance report as part of the operations as the transaction costs are condition to disburse subsidy to relatively higher for small ticket clients and the enterprises/ industries. lack of after sales service and the associated costs and access to finance to procure. Moreover, the management and workers require capacity building and customized training to operate new and improved technologies. 25 Program Activities/Inputs Risks Mitigation/Risk Management Benefits/Opportunities TRANSPORT The elimination of old HD trucks through To mitigate this environmentally safe disposal needs to be risk, the DLI related to replacing Preparation and implementation of a ensured. Improper dismantlement, reuse, old requires evidence that the Old and polluting heavy duty program/scheme for disposing/phasing-out / recycling, and disposal of vehicle trucks were disposed of in trucks scrapped and off the road replacement of HD trucks of BS III & below replacing parts/wastes/ batteries may result in official. or replaced with new and with the new trucks (BS VI & above) adverse environmental impacts of soil, air, dismantling enterprises. The cleaner fuel trucks, positive and water, as well as health. activities supported under the impacts on air quality and safety. Drivers training on fuel efficient driving & clean impacts on plant workers involved in Program do not include any operation and maintenance. dismantling vehicles. construction/upgrading of Increased number of electric dismantling. transport modes available for Preparation of Comprehensive Mobility Plan (CMP) At present, there are over 30 licensed enterprises. public transport- reduction in combining Electric Mobility Planning (CEMP), Freight vehicles. There is already a process in pollution, road dust, and vehicle management planning (FMP), and route dismantling enterprises in UP. The fitness improved. place to verify scrapping of rationalization plan for public transport & IPT for 2 compliance with the latest HDVs. When the official cities (Lucknow & Varanasi) standards/technical specification will be scrapping facilities receive a assessed through audit in this program. vehicle, they issue a Deployment of e-buses for intracity transport in 2 cities on Gross Cost Contract (GCC) certificate of deposit. When Vehicle scrapping produces a significant the vehicle is scrapped, the amount of waste, including metals, plastics, Preparation of fleet modernization plan, scheme & facility issues a certificate of glass, and other non-recyclable materials, program for induction of the electric 3wheeelers (e- contributing to landfill wastes. scrapping against the vehicle 3W). registration, which is Expanding electric vehicle and bus charging connected to the central Deployment of electric three wheelers in 2 cities with infrastructure can require land use changes, portal of government of women as beneficiaries construction impacts, and increased energy india (VAHAAN) to verify the demand for infrastructure development- vehicle is scrapped. Rolling out of the National Common Mobility Card such as new parking spaces for charging (NCMC) in 2 cities stations, optimize the placement of charging Encourage the use of certified stations to reduce congestion and demand recycling facilities to maximize 26 Program Activities/Inputs Risks Mitigation/Risk Management Benefits/Opportunities Capacity building and training of UPSRTC, for public spaces. the recovery of valuable department of transport, directorate of urban materials from end-of-life transport, Bus SPVs, metro corporations. vehicles. Scrapping facilities should implement measures to Operationalization of a State level Unified ensure proper waste sorting, Metropolitan Transport Authority (UMTA) with recycling, and disposal, enhanced capacity and control over the urban reducing the amount of waste transport fund budget allocation to oversee urban sent to landfills. Promote the mobility in the metropolitan areas. proper recycling and disposal of fluids, such as oil, coolant, and brake fluid, through certified recycling programs. Introduction of pedestrian alert systems and other devices on electric vehicles and buses to enhance safety. Raise awareness among road users about the new electric vehicles. Introduce an environmental screening mechanism for selection of sites for e-vehicle infrastructure development. 27 Program Activities/Inputs Risks Mitigation/Risk Management Benefits/Opportunities AGRICULTURE Increase availability of slow and control release Livestock waste management in rural areas The activities supported under Best practices in improved fertilizers and nitrogen inhibitors in select areas and cow sheds is mostly handled by the Program will address fertilizer, livestock and manure individual farmers and is not this issue by focusing on management extended to Provide extension services to farmers to adopt normally supervised by the departments/ livestock waste management farmers. efficient fertilizer use based on soil testing and officials. There is inadequate infrastructure practices. This should be improved varieties. for collecting and storing manure. Waste is supported through active Efficiency of fertilizer application directly left in the open and causes supervision by department minimizes nutrient losses to the Provide access to farmers to modern livestock and contamination of the air and surface water. officials, and capacity building environment and have positive manure management practices, to store manure. programs to the farmers to effects on crop productivity. The installation and operation of biogas reduce pollution levels from Provide access to farmers to machinery and other facilities for livestock waste and crop livestock waste storage. Alternatives to crop residue equipment to improve crop residue management. residue may have long-term operational burning, including biogas impacts if not managed properly. These Adverse environmental impacts production reduce air pollution, Promote the adoption of alternatives to crop residue include the disposal of sludge, the need for and risks can be adequately and soil degradation burning, including biogas production. wastewater treatment, avoided, minimized odor control, and other impacts associated and mitigated with good Odour management through Promote on-farm monitoring system for NUE with the operation and maintenance of management practice and improved practices and storage through available technologies and practices biogas facilities and pipelines. The potential mitigation measures in of manure risks associated with the biogas facilities are accordance with State fire and explosion. regulations. This needs to be supported with training and There are no risks associated with the capacity building for operators adoption of slow and control release of the biogas plants. fertilizers and nitrogen inhibitors. Nitrogen- based fertilizers release ammonia which Fertilizer use efficiency these contributes to the formation of secondary can be complemented with (PM2.5), this reduction will have a positive precision agriculture, proper 28 Program Activities/Inputs Risks Mitigation/Risk Management Benefits/Opportunities impact on air quality. The Program will timing and placement of support the adoption by farmers of fertilizers, soil testing, and environment-friendly, slow-release nutrient management planning. formula fertilizers based on the results of Additionally, adopting soil testing and nutrient needs. sustainable agricultural practices like organic farming, crop rotation, and cover cropping can reduce the reliance on synthetic fertilizers and minimize their environmental footprint RA#3: IGP AIRSHED COOPERATION DOT to develop a program for scrapping most As this Results Area will mainly finance The success of these initiatives Improvement in data collection, polluting BSIII and below HDVs technical assistance activities, knowledge depends on effective policy monitoring, reporting, and UP DOT and UP DoEFCC designate and fund technical sharing and human resource capacity the design, implementation, and knowledge sharing on air quality and government official representatives for environmental risks are low. The objectives enforcement. Additionally, management issues participation in an IGP Airshed technical working of the studies, working groups and monitoring and evaluation are group on long range emissions from transportation. governance arrangements will positively critical to assessing the actual Such programs that incentivize DoEFCC to participate in an IGP working group on impact environmental parameter on air environmental impacts and the adoption of cleaner AQM, including a governance process around state quality, public health, and fuel quality. adjusting strategies as needed. technologies/ transportation emission inventories. may stimulate innovation and UP Department of Rural Development Implementing a vehicle job creation in the clean energy and Department of Environment Forest and Climate scrapping program also involves and transportation sectors. Change to designate both technical and government managing the disposal of official representatives to participate in an IGP scrapped vehicles. Proper Airshed technical working group on clean cooking recycling and disposal practices are essential to prevent environmental contamination 29 Program Activities/Inputs Risks Mitigation/Risk Management Benefits/Opportunities and ensure that hazardous materials are handled safely. 30 ASSESSMENT OF SOCIAL MANAGEMENT SYSTEMS 50. This section describes the activities to be implemented under each of the results areas followed by a discussion of the potential environmental and social effects that could arise from each activity. The sections below summarize the environment and social risks of the Program, followed by the environmental and social effects grouped under each results area. SOCIAL BENEFITS AND OPPORTUNITIES 51. The operation is expected to result in improved air quality in select sectors and pollution hotspots, energy efficiency and cost saving, reduction in emissions, dust and air pollution, long term climate benefits, reduction in household level health expenditure which will lead to improved health and overall wellbeing of the state’s residents and those living in the Indo- gangetic plains. It will also contribute to mitigation of any adverse CHS impacts related to the intervened sectors. The program is also expected to improve public awareness about air quality issues through awareness generation, proactive public disclosure of air quality related information for improved transparency. Access to efficient cooking solutions at the household level is expected to contribute to the health of women members of the household, , including those belonging to tribal communities and overall time saving for use in other productive engagements, while the interventions in the agriculture and animal husbandry sectors is likely to improve farm level efficiencies, enhanced farm and livestock productivity and alternate uses of crop residue resulting in likely improvements in incomes. In addition, shifting to cleaner energy by micro-enterprises which will be incentivized by the project is expected to result in reduced OHS risks for workers, reduction in production costs and improved incomes for the enterprise owners, while project investments in the transport sector are expected to improve public transport infrastructure leading to improved mobility for commuters and income earning opportunities for the women owners of electric three-wheelers. LIKELY SOCIAL EFFECTS 52. The social risks and impacts of the project investments are expected to be low, reversible, localized and most of them are expected to be managed through the mitigated strategies built into the project design as well as additional management measures. The project is not expected to lead to land acquisition and land requirements, if any, are expected to be met from the existing government premises or public lands. In the absence of information about the exact locations on which new infrastructure for air quality monitoring, testing laboratories and offices will be created, there is likely risk of such lands (especially in the transport sector) not being unencumbered and may potentially have presence of squatters or encroachers, who may get displaced during infrastructure development or create restrictions to access. The scale of construction supported by the project is of moderate scale and is not expected to deploy large labour workforce for prolonged durations. Most of the labour used will be local and in largely urban and peri-urban areas and is not likely to lead to labour influx and its related SEA/SH risks. There are likely OHS risks for workers engaged in construction activities, vehicle scrapping, re- configuration of brick- kilns, creation of EV charging facilities, apart from CHS risks for those 31 operating cook-stoves, decentralized bio-gas plants and using EVs. While the project’s intent to mainstream stakeholder engagement will contribute to increased general awareness and positive behaviour change around pollution reduction and air quality improvement, there are risks of women, smallholders, small dairy farmers, members of poor households from getting excluded from receiving benefits of investments proposed under result area 2 if effective measures for their inclusion and grievance redressal are not in place. The shifts towards cleaner and efficient energy sources and solutions are also likely to adversely impact the livelihoods of those engaged in the traditional or business as usual value chains –domestic fuelwood suppliers, workers in traditional brick-kilns, single truck owners and hired drivers. 53. The scale of livelihoods related adverse impacts will emerge from the type and location of the interventions proposed, especially in the transport and industry sectors. Once the scale and sites are clear, it will be important that the project undertakes a project wide assessment of livelihoods losses that may result owing to energy transitions attributable to project investments and propose measures for the restoration of the livelihoods or incomes lost. This will help in prioritizing the selection of those impacted by the operation for providing project benefits, engaging them in the new value- chains or for linking them with other beneficiary-oriented scheme and programmes of the government. 32 Table 7. Social Effects by Result Areas Proposed Investments/ activities Potential Social Risks Mitigation Measure/s RA#1: STRENGTHENING STATE CAPABILITIES FOR AIR QUALITY MANAGEMENT AND PLANNING Establish AQM units and Integrated Air Establishment of units, upgradation of Information and All potential sites need to be screened for adverse resettlement Information Center, upgrade manual Knowledge Centers will require setting up of new offices, impacts, including physical and economic displacement. monitoring stations (MMSs) and construction of buildings likely to be situated within Ensure effective contract management to ensure worker safety Continuous Ambient Air Quality existing premises. However, since exact sites are not and fair working conditions. Code of Conduct for workers to Monitoring stations (CAAQMs) known at this stage, these sites may not be encumbrance prevent SEA/SH risks and training of workers on safe practices. free leading to risk of displacement of squatters and Strengthen AQM Knowledge Centres at encroachers on these public lands. Public awareness generation around issues of poor air quality select academic Institutions, support and its adverse health impacts. development of software for AQM Occupational Health and Safety (OHS) risks for workers monitoring across departments engaged in building (offices, labs, monitoring stations) Support to resettlement of persons displaced owing to setting construction, facility upgradation and installation of up of new AQM infrastructure and buildings. QA/QC studies on operational efficiency equipment. of CEMS, setting up of Low awareness among community members about Technology challenge fund on innovative importance of air quality and its relation to well-being. air pollution measures Training needs assessment and training of staff in DoEFCC and implementing departments RA#2: ADVANCING SECTOR-SPECIFIC INTERVENTIONS FOR AIR POLLUTION REDUCTION 33 Proposed Investments/ activities Potential Social Risks Mitigation Measure/s CLEAN COOKING Supply of Improved cook stoves using Switch to household level clean cooking solutions has been Effective public awareness and behaviour change campaigns pellets/ household biogas /Hybrid solar challenging and unsustainable in the past, owing to addressing the cultural and behavioural issues to prevent and electric induction. cultural, supply chain and technological reasons. slippage to traditional methods. Setting criteria for cook stove technology, Risk of social benefits of this project component not being Ensure adequate incentives and credit support for SLRM- SHG vendor empanelment, establishing testing sustained beyond the project cycle. networks and frontline workers to work as a viable and sustained protocol for vendor cook stove product delivery model. Community Health and Safety (CHS) risks for beneficiaries, testing especially women, in case of poor O&M. Adoption of cook stove models which are safe and simple to use Train and support SHGs and and maintain by members of vulnerable communities. Risk of exclusion of women headed or poor- vulnerable entrepreneurs on clean cooking business households owing to low affordability in a market based Ensure inclusive measures to support economic access for poor models, market facilitation; leverage delivery model or sub-optimal targeting of financial and vulnerable households and effective targeting. existing program with finance and credit incentives. products (Community Incentive Fund, Project wide assessment of livelihoods losses owing to energy Results Based Grants) to incentivize the Risk of livelihood losses for headload/ fuelwood suppliers transitions attributable to project investments and adoption of supply chain. to targeted households owing to switch to cleaner sources measures for their livelihood’s restoration. MSME Brick-kiln technology upgradation Higher OHS risks for brick kiln workers due to shift to new All potential sites need to be screened for any adverse E&S designed and rolled out in select pollution technology and for workers operating the CSFs in MSME impacts, including economic displacement. hot spots and knowledge sharing on clusters as well as the energy receiving units. Training and awareness of brick kiln workers to adapt to new technology conversions. Potential loss of livelihoods for traditional brick kiln technology and safety measures to minimize OHS risks. Policy on development of common steam workers if new technology requires lesser worker Project wide assessment of livelihoods losses owing to energy facilities – CSF for MSME clusters; design deployment as compared to traditional methods. transitions attributable to project investments and adoption of incentive program for adoption of clean Risk of exclusion of micro- enterprises in the clusters measures for their livelihood’s restoration. fuel (PNG) and better air pollution owing to inability to afford switching or pollution controlling devices. controlling costs Training and awareness on good practices Training and awareness of workers engaged in CSFs, client units for dust control in construction and 34 Proposed Investments/ activities Potential Social Risks Mitigation Measure/s industrial site, cleaner technologies to adapt to new technology and minimize OHS risks. through engagement with stakeholders Ensure inclusive measures to improve clean energy access for micro-enterprises TRANSPORT Preparation and implementation of a Livelihood loss for single truck owners identified for phase All potential sites need to be screened for any adverse E&S program for disposing/phasing-out out and drivers of fleet operators. impacts, including economic displacement. /replacement of old HD trucks and drivers OHS risks for workers engaged in vehicle scrapping. Project wide assessment of livelihoods losses owing to energy training on fuel efficient driving, transitions attributable to project investments and adoption of operation, and maintenance. Risk that mobility plans may not adequately consider measures for their livelihood’s restoration. needs of women, people with disabilities (PWD) or other Preparation of Comprehensive Mobility vulnerable commuters (migrant and daily wage workers, , Training and awareness of workers engaged in scrapping Plan (CMP) and route rationalization plan, domestic workers) facilities, EV battery charging stations on safe practices. including induction of e-buses for intra- city transport, electric three wheelers SEA/SH risks for women operators of 3-wheeler EVs Comprehensive mobility planning to ensure consultations with with women as beneficiaries, roll-out of EV charging and associated infrastructure may require all stakeholders, including those from vulnerable groups and National Common Mobility Card (NCMC) spaces within existing public or private facilities that are women, to incorporate their mobility needs. for 2 cities. not unencumbered. Stakeholder engagement strategies to include a) awareness and Capacity building and training of OHS risks related to installation of charging stations, EV sensitization of commuters on GBV and SEA/SH issues, b) government stakeholders in transport maintenance and CHS risks due to thermal runway or poor awareness of women drivers on SEA/SH risk prevention and sector and Operationalization of State battery use, maintenance, or disposal. referral pathways, c) awareness and orientation of EV drivers on level Unified Metropolitan Transport safe driving and battery O&M, d) public awareness on benefits Authority (UMTA) to oversee urban Exclusion of poor and vulnerable from the NCMC pilot/ of NCMC. mobility in metropolitan areas. roll-out due to low awareness AGRICULTURE Increase availability, extension services Exclusion of small agri /dairy farmers and vulnerable Build measures and incentives to ensure inclusion of for adoption of Nano fertilizers and farmers (tribal, women, small & marginal) a) due to smallholders and small dairy farmers. nitrogen inhibitors in select areas inability to pay for more efficient fertilizers & related Ag- Agricultural extension supports and handholding as well as 35 Proposed Investments/ activities Potential Social Risks Mitigation Measure/s through promotion of 4R nutrient inputs, modern AH, and manure management practices, farmer’s capacity building to ensure no adverse impacts on farm stewardship and Precision Nutrient accessing machinery and equipment for crop residue and dairy productivity due to changed practices. Management Practices (PNMPs) management (due to unviability or low affordability), b) Stakeholder engagement and project strategies to include from adopting alternate crop residue management Provide farmers access to modern awareness and capacity building on handling of decentralized practices due to low awareness. livestock and manure management bio-gas plants and their safe transportation. practices. Adverse impact on farm productivity owing to shift to new nutrient management system or due to changes in Increase access to farm machinery, traditional farming practices. equipment to improve crop residue management and promote adoption of Adverse CHS impacts of household level biogas plant’s alternatives to crop residue burning and O&M and transport/ supply of CBG by farmers to promote on-farm monitoring systems for neighbouring industries and communities nitrogen use efficiency RA#3: IGP AIRSHED COOPERATION UP DOT and UP DoEFCC designate and fund technical and government No adverse social impacts assessed, since these largely Better coordination among agencies and improved diagnostics is official representatives for participation in relate to improved coordination mechanisms and studies likely to improve accountability around AQM an IGP Airshed technical working group on for improved air quality management and its governance. long range emissions from transportation. DoEFCC to participate in an IGP working group on AQM, including a governance process around state emission inventories. UP Department of Rural Development and Department of Environment Forest and Climate Change to designate both technical and government official representatives to participate in an IGP 36 Proposed Investments/ activities Potential Social Risks Mitigation Measure/s Airshed technical working group on clean cooking 37 III ASSESSMENT OF ENVIRONMENTAL AND SOCIAL MANAGEMENT SYSTEMS AND IMPLEMENTATION CAPACITY A. INTRODUCTION 54. This section provides a summary assessment of whether the Program’s environmental and social management systems are adequate for and consistent with the Core Principles and Key Planning Elements set out in the PforR Bank Policy and Directive, as relevant to the Program. It also assesses whether the involved institutions have the requisite capacity to implement these systems’ requirements. An in-depth description and analysis of the Program’s systems and implementation capacity and gaps are in annex 2. 55. As noted earlier, the PforR Policy requires the proposed Program to operate within an adequate environmental and social management system that can manage environmental and social effects (particularly adverse impacts and risks) identified during the ESSA process. This includes (a) an adequate legal and regulatory framework and institutional setting to guide environmental and social impact assessment and the management of environmental and social effects and (b) adequate institutional capacity to effectively implement the requirements of the system. 56. This section assesses whether the Program’s environmental and social management systems are consistent with the Core Principles and Key Planning Elements contained in the PforR Policy and whether the involved institutions have the requisite capacity to implement these systems’ requirements. Both elements (for example, Program systems and capacity) are necessary toward ensuring that the environmental and social effects identified in Chapter II are effectively managed. Through both analyses, the ESSA team has identified gaps in both areas, which are addressed in Inputs to the PAP and Supplemental actions. 57. Program systems constituted by the rules and “arrangements within a Program for managing environmental and social effects,� including “institutional, organizational, and procedural considerations that are relevant to environmental and social management� and that provide “authority� to those institutions involved in the Program “to achieve environmental and social objectives against the range of environmental and social impacts that may be associated with the Program.� This includes existing laws, policies, rules, regulations, procedures, and implementing guidelines, and so on that are applicable to the Program or the management of its environmental and social effects. It also includes interagency coordination arrangements if there are shared implementation responsibilities in practice. 58. Program capacity is the ‘organizational capacity’ of the institutions authorized to undertake environmental and social management actions to achieve effectively ‘environmental and social objectives against the range of environmental and social impacts that may be associated with the Program’. This ESSA has examined the adequacy of such capacity by considering, among other things, the following factors: • Adequacy of human resources (including in training and experience), and other implementation resources allocated to the institutions. • Adequacy of institutional organization and the division of labor among institutions • Effectiveness of interagency coordination arrangements where multiple agencies or jurisdictions are involved. • The degree to which the institutions can demonstrate experience in effectively managing 38 environmental and social effects in the context in projects or programs of similar type and magnitude. 59. This ESSA examines and discusses only those aspects of the proposed Program’s environmental and social management systems and related capacity that the ESSA team found to be relevant considering its identified environmental and social effects. This section provides a summary assessment of the Program’s systems and capacity as they relate to each of the Core Principles and Key Planning Elements. The text and tables below clarify the instances in which one or more of the Core Principles or Key Planning Elements are not relevant to the Program and are thus inapplicable. More in-depth discussion and analysis of the Program’s systems and capacity are found in Annex 2. 60. Overall, the applicable environmental regulatory environment is comprehensive to address underlying environmental and social risks, and noteworthy strengths are Environmental Protection Act 1986; Air (Prevention and Control of Pollution) Act, 1981 (to take measures to mitigate air pollution) and Water (Prevention and Control of Pollution) Act, 1974 ( to prevent and control water pollution by regulating the discharge of pollutants into water bodies) and the Occupational Safety, Health and Working Conditions Code, 2020. 61. Some of the key environmental laws and regulations include the Environment Protection Act (EPA) of 1986, the Water (Prevention and Control of Pollution) Act of 1974, the Air (Prevention and Control of Pollution) Act of 1981, and the Forest (Conservation) Act of 1980, among others. They aim to protect and improve the quality of air, water, and land, as well as safeguard biodiversity. These laws establish the regulatory framework for pollution control, environmental impact assessments, waste management, and conservation of natural resources. While the legal framework is comprehensive, its implementation has faced challenges. Improving enforcement mechanisms by the UPPCB, and enhancing public participation are key areas that require continuous attention and improvement to achieve better environmental outcomes, that will be done through the Program. 62. Environmental regulations, for air and water pollution, waste management, are institutionalised for management all MSME, industrial and biogas plants ensuring sound environmental management of these facilities. Agriculture policies promote a circular economy approach through sustainable practices for managing crop residues for various purposes like composting, bioenergy, and fodder ensuing that surplus agriculture waste is not burned. The government has also mandated periodic fitness testing for commercial vehicles at authorized testing centers and fitness certificates are required for all vehicles on the road. 63. There are also policy-based incentives and guidelines that support better environmental outcomes in each sector linked to the project results these include: • Agriculture: Nutrient-Based Subsidy (NBS) Scheme. Under this scheme, the government provides subsidies based on nutrient content rather than specific fertilizers. It promotes the balanced use of fertilizers by considering the nutrient requirements of different crops and regions. The NBS scheme aims to encourage the use of secondary and micronutrients along with major fertilizers. The government of India has encouraged the use of organic and biofertilizers as an alternative to chemical fertilizers. The National Project on Organic Farming (NPOF) and the National Program on Organic Production (NPOP) promote the production and use of organic inputs. The Fertilizer control order also defines standards for organic and biofertilizers. The government provides subsidies and financial assistance for the production, promotion, and use of organic and biofertilizers. Various schemes like the National Mission for Sustainable Agriculture (NMSA) support organic farming practices. 39 • Transport: The government has mandated periodic fitness testing for commercial vehicles at authorized testing centers. Fitness certificates are required for vehicles to operate legally on Indian roads. All vehicles, including both old and new, undergo regular emission testing and obtain a valid Pollution Under Control certificate ensuring that vehicles comply with the prescribed emission norms. The Central Pollution Control Board (CPCB) in India has issued guidelines and regulations for the management and disposal of end-of-life vehicles. These regulations aim to promote environmentally friendly dismantling, recycling, and disposal of vehicles. Guidelines for authorized scrap dealers and dismantlers who handle the scrapping and recycling of vehicles ensure that the process is carried out safely and in an environmentally responsible manner. • MSME: MSMEs are required to obtain environmental clearances before commencing operations, especially if they fall under industries classified as highly polluting or having potential environmental impacts. In industrial clusters where multiple MSMEs are located, the establishment of Centralized effluent treatment plants is encouraged. These treatment plants help in the centralized treatment and disposal of effluents generated by MSMEs, ensuring compliance with environmental standards. MSMEs generating hazardous waste need to comply with the Hazardous and Other Wastes (Management and Transboundary Movement) Rules, 2016. These rules provide guidelines for the collection, storage, transportation, treatment, and disposal of hazardous waste generated by MSMEs. MSMEs are encouraged to implement environmental management systems (EMS) such as ISO 14001. These systems help MSMEs in identifying and managing their environmental impacts effectively and promoting continuous improvement in environmental performance. • Clean cooking: Government of India has made several efforts in approaching both rural and urban population with clean cooking solutions. The Pradhan Mantri Ujjwala Yojana (PMUY) provided subsidized LPG cylinders to semi-urban and rural households in entire nation. Uttar Pradesh has alone has provided 17 million LPG connections in the state. After success of Ujjwala, focus has been now shifted to electric cooking and is a key pathway to Mission LiFE (Lifestyle for Environment), an India-led global mass movement to nudge individual and community action to protect and preserve the environment. Launched by Prime Minister Narendra Modi at the 26th UN Climate Change Conference of the Parties (COP26) in Glasgow in 2021. Other than this, schemes like National Biogas and Organic Manure Programme (NBOMP) provides financial assistance to beneficiaries for installation of biogas digestor (2-4 m3) in their household. Indian Oil Corporation Ltd. (IOCL) is providing Surya Nutan, an indigenous indoor solar cooking system design, developed and patented by IOC R&D Centre. Pilot trial of 50 numbers of Surya Nutan in 5 different cities (i.e., Leh, Lakshadweep, Gwalior, Udaipur, and Delhi-NCR) of India with varying solar radiation intensity and cooking habits are in progress. Energy Efficiency Services Limited (EESL) plans to initiate market-based interventions for electric and solar Induction cooking solutions by leveraging carbon financing for a financially and environmentally sustainable market model. • Green Financing: Financial institutions and banks in India offer green credit and preferential loans to MSMEs engaged in environmentally friendly practices or adopting eco-friendly technologies. These incentives help MSMEs in implementing green initiatives and reducing their environmental footprint. The Ministry of Micro, Small and Medium Enterprises (MSME) promotes sustainable manufacturing practices among MSMEs. It provides guidelines, workshops, and training programs to create awareness and encourage MSMEs to adopt cleaner production techniques and resource-efficient practices. The MoEFCC and CPCB promote the adoption of Zigzag Firing Technology in brick kilns. This technology optimizes the firing process, reducing fuel consumption and emissions. It involves a specific pattern of 40 placing bricks in the kiln, allowing for more uniform heat distribution and improved combustion efficiency. 64. Overall, the national and state level policies were found to be adequate to address the social risks related to the project investments, including those for ensuring occupational safety for workers and fair working conditions, grievance redressal and access to information. These prominently include the Building & Other Construction Workers (Regulation of Employment & Conditions of Service) Act, 1996, Minimum Wages Act, 1948, Payment of Wages Act, 1936, Payment of Gratuity Act, 1972, Workmen’s Compensation Act, 1923, Maternity Benefit Act, 1961, Inter-State Migrant Workmen (Regulation of Employment & Conditions of Service) Act, 1979, Motor Transport Workers Act, 1961 and the Right to Information Act, 2005. 65. Relevant policies and procedures of the implementing agency and the participating institutions were largely found to be supportive of people’s participation, transparency, promoting equity and aimed at avoidance of resettlement, although there are gaps that may need to be filled. Some of the relevant schemes and their social intent is discussed below: • Agriculture: Developed as part of the National Mission on Sustainable Agriculture (NMSA), the Paramparagat Krishi Vikas Yojana (Traditional Farming Improvement Programme) aims to support and promote organic farming, reduction in dependence on fertilizers and agricultural chemicals, improvement in soil health and yields to promote production of Organic foods. This is encouraged through demonstration, dissemination and adoption of eco-friendly, low- cost technologies and through partnership with public agricultural research system. The scheme targets rural youth, smallholders, traders and consumers for promotion of organic farm products. • Transport: The Uttar Pradesh EV Subsidy Scheme provide fixed incentives for scrapping of conventional four and two wheelers as well as purchase of EVs for which a fixed incentive is provided to owners (one per vehicle) and fleet operators (ten per operator) and is applicable to 2W, 3W and 4 Wheelers (excluding trucks). The UP EV Policy promotes expansion of 3W for use in passenger and freight transport and incentivises both scrappage and purchase. However, the eligibility criteria for buyers have not been clearly defined and no preference has been provided for BPL households, People with Disabilities (PwDs) or women buyers. These schemes also do not provide any special (additional) incentive or support for single truck owners of end of life vehicles (BSI or BSII) scrapped. • MSME: Uttar Pradesh Industrial Investment & Employment Promotion Policy 2022 aims at creating land banks for industrial use by pooling of available non-agricultural, barren and uncultivable land after meeting the village requirements, simplifying land use management, unlocking land owned by government/ state public sector and development of web-based platform for private parties (including farmers) interested in lease or sale of encumbrance free land for industrial purposes. Service providers in industrial clusters are provided space on annual lease. • Clean cooking: The Pradhan Mantri Ujjwala Yojana provides access to clean energy in the form of LPG connections targeting poor households across the country with women members of 41 the households as its primary beneficiary. However, scheme is challenged by issues of sustainability and supply- chain bottlenecks. Ministry of Drinking Water & Sanitation’s Galvanizing Organic Bio-Agro Resources Dhan (GOBARdhan) scheme aims to support villages in effectively managing their cattle, agricultural and other organic waste/residue, contributing to income and energy savings and in the process also create livelihood opportunities, enhance farmer’s incomes and promote entrepreneurship among SHGs and rural youth by targeting dairy farmers, members of dairy cooperative societies and farmers collectives. The National Biogas and Manure Management Program (NBMMP) promotes adoption of biogas technology for efficient waste management and clean cooking through people’s participation, awareness campaigns and technical- financial support to bio-gas plant installation. National Rural Livelihoods Mission (NRLM) also supports women’s collectives to establish enterprises promoting clean cooking products and solutions by using their existing 3-tier cooperative structure for market facilitation and delivery. B. PROGRAM SYSTEMS: LEGAL, REGULATORY SYSTEMS AND FRAMEWORKS 66. The GoI and the state government have enacted a range of laws, regulations, and procedures relevant to managing the environmental and social effects of the proposed Program. Table 8 lists legal instruments that manage the pollution streams, wastes, wastewater, infrastructure, labor, OHS, community/public health and safety, and building safety (life and fire safety) related aspects relevant to the Program results areas. Table 8. GoI EHS Policies Applicable to the Program Sl. Applicable Act/ Relevance to the Program and Key Objective and Provisions No. Regulation/ Policy Findings Environment Protection laws/ pollution prevention 1 Environment Protection The Environment (Protection) Relevant to the Program as this act has Act 1986 Act was enacted in 1986 with the mandate of preventing pollution in all its objective of providing for the forms. The program focuses on air protection and improvement of the pollution as of the main challenge in environment. It empowers the Uttar Pradesh state and program Central Government to establish supports for an implementation program authorities [under section 3(3)] both in strengthening all sectors and charged with the mandate of institutional capacity of the state. preventing environmental pollution in all its forms and to tackle specific environmental problems that are peculiar to different parts of the country. The Act was last amended in 1991. 2 The Air (Prevention and To provide for the prevention, Relevant to all the sectors that are dealt Control of Pollution) Act control, and abatement of air with such as biomass burning in 1981, Amended 1987 pollution in India residential sector, NOx and SOx and Rules produced from transport, roadside dust emissions, disposal of municipal waste 42 Sl. Applicable Act/ Relevance to the Program and Key Objective and Provisions No. Regulation/ Policy Findings and leading to unnecessary waste burning, excessive fertilizer use in agriculture sectors leading to formation secondary particulate matter, agriculture residue burning, emissions from power plants, emissions from MSME using technology leading to non- cleaner production. 3 Water (Prevention and This act addresses water pollution Brick kilns, biodigesters and small-scale Control of Pollution) by regulating the discharge of enterprises all generate slurry and Act, 1974: pollutants into water bodies, wastewater discharges that could setting up standards for water contaminate water bodies. The policy quality, and establishing central sets the standards and monitoring and state pollution control boards protocols for effluent management to monitor and enforce compliance. 4 National Ambient Air To combat air pollution, it is Relevant as the program aims to achieve Quality Standards required to identify the pollutants, the proposed target of 35ug/m3 for (NAAQS) its source of emission and Uttar Pradesh which is below set investigate the effects of living and national standard of 40 ug/m3 the environment. The Central Pollution Control Board has notified the revised National Ambient Air Quality Standards Gazette of India, Extra-ordinary Part-II Section 3, sub section (ii), dated Nov 18, 2009 5 Solid Waste Apply to every municipal authority Waste generated in urban and rural Management Rules, responsible for the collection, areas will be managed though SWM 2016 segregation, storage, interventions. Storage, transport, transportation, processing, and handling, recycling/reuse, disposal of disposal of municipal solid wastes. solid wastes including packaging materials under all Program activities. 6 Plastic Waste All institutional generators of Relevant as one of the sectors dealt is Management Rules plastic waste shall segregate and treating municipal waste in planned 2016 store the waste generated by them manner and waste burning which will in accordance with the Solid Waste include plastic waste. Management Rules and hand over segregated wastes to authorized waste processing or disposal facilities or deposition centers, either on its own or through the authorized waste collection agency. 7 E-waste (Management) Applies to every manufacturer Relevant as it is applicable for consumers Rules, 2016 producer, consumer, bulk or bulk consumers. The disposal of E- 43 Sl. Applicable Act/ Relevance to the Program and Key Objective and Provisions No. Regulation/ Policy Findings consumer, collection centers, wastes to be done at the specified dealers, e-retailer, refurbisher, collection centers and reported annually. dismantler, and recycler involved applicable to all programs, where e- in manufacture, sale, transfer, waste is generated including purchase, collection, storage, and electrical/electronic equipment. processing of e-waste or electrical and electronic equipment listed in As per rules, the manufacturer must Schedule I, including their collect back e-waste and channelize for components, consumables, parts, collection/disposal; producer (seller of and spares which make the the assembled product under own product operational but shall not brand) shall arrange end-of-life disposal apply to under extended producers’ (a) used lead acid batteries as responsibility and create awareness on covered under the Batteries this; collection centers established by (Management and Handling) Rules, producer/dealer (lighting 2001 made under the Act; (b) micro agencies/dealers) can also collect e- enterprises as defined in the Micro, waste on behalf of dismantler, Small and Medium Enterprises refurbisher, and recycler including those Development Act, 2006 (27 of arising from orphaned products. 2006); and (c) radioactive wastes as covered under the provisions of the Atomic Energy Act, 1962 (33 of 1962) and rules made thereunder. 8 Construction and The rules shall apply to every waste Relevant for any small-scale civil works Demolition Waste resulting from construction, re- carried out to ensure that dust Management Rules modelling, repair, and demolition generated from construction and 2016 of any civil structure of individual demolition waste is managed or organisation or authority who appropriately at each work site. generates construction and demolition waste such as building materials, debris, rubble. Transport 9 Motor Vehicle Act, 1988 An Act to consolidate and amend Relevant as there will be change in the law relating to motor vehicles. existing HDV fleet and public buses to cleaner emission (BS VI or better) buses and trucks replacing an old fleet which is scrapped. This law would regulate the new fleet on the road including updating Number of 10 Voluntary Vehicle Fleet The V-VMP is a policy aimed at Interventions under the project will be Modernization Program incentivizing the replacement of consistent with the policy objectives and (V-VMP) and Vehicle old, polluting vehicles with new will aim at incentivising further to Scrappage Policy: ones. Under this program, vehicles achieve good air quality outcomes. older than 15 years are eligible for voluntary scrapping, and vehicle owners receive incentives or 44 Sl. Applicable Act/ Relevance to the Program and Key Objective and Provisions No. Regulation/ Policy Findings discounts when purchasing new vehicles. The Indian government announced a new Vehicle Scrappage Policy in 2021 to promote the scrapping and recycling of old vehicles. The policy primarily targets commercial vehicles such as trucks and buses. It proposes mandatory fitness testing for vehicles aged 20 years for personal vehicles and 15 years for commercial vehicles. Non- compliant vehicles will be liable for higher fees and penalties. 11 The Motor Transport Provides for the welfare of motor Applicable, as the project will support Workers Act, 1961 transport workers, regulates the capacity building of workers for safe conditions of their work, including driving, scrapping of polluting vehicles hours of work and their health- and switch to EVs that are operated by provision of canteen, restrooms, these workers. Compliance with medical and first-aid facilities, daily provisions of this act will be monitored. and weekly rest, prohibition of child labour, compensatory leave in motor transport undertakings with more than 100 workers. Agriculture/ Rural 12 The National Policy for This policy aims to promote Interventions under the project will be Management of Crop sustainable and environmentally consistent with the policy objectives and Residue, 2014: friendly practices for managing incentive structures. crop residues, especially the residues from paddy and wheat crops. It encourages the use of residue for various purposes like composting, bioenergy, and fodder. 13 Uttar Pradesh State Bio- Under this policy, Bio-Energy units The policy is relevant to the Energy Policy,2022 will be established by the management of the Bio-Manure construction, operation, and obtained as a by-product from Bio-CBG ownership through private plants can be distributed as organic investors/developers based on manure produced by Bio Energy units. attraction by various facilities and incentives provided by the state government. 14 Environmental BioCNG plants need to comply with Biogas facilities in India need to comply 45 Sl. Applicable Act/ Relevance to the Program and Key Objective and Provisions No. Regulation/ Policy Findings Guidelines for national and local regulations with various environmental regulations, Compressed Biogas/ related to air and water pollution such as those related to air and water bioCNG plants control. This includes monitoring pollution, waste management, and and controlling emissions from environmental impact assessments biogas production, storage, and These regulations are enforced by the utilization processes. Adequate Ministry of Environment, Forests and measures should be taken to Climate Change (MoEFCC) and State minimize air pollutants, such as Pollution Control Boards (SPCBs). State methane, volatile organic Renewable Energy Development compounds (VOCs), and odorous Agencies (REDA) are responsible for gases. Wastewater generated implementing these policies. during the process should also be treated before discharge. Occupational Health and Safety 15 Factories Act 1948 Provides regulations for the safety, Applicable for labour employed in larger health, and welfare of workers in enterprises such as vehicle scrapping factories, including provisions for facilities- Sets limits on working hours, cleanliness, ventilation, lighting, overtime, and employment of young and drinking water. workers. Requires factories to take Mandates the appointment of safety measures to prevent accidents and officers and constitution of safety ensure the use of safety devices committees in certain cases. and protective equipment. Provides for the inspection and enforcement of safety standards by factory inspectors 16 The Building and Other Regulates the working conditions Relevant for worker welfare and safety. Construction Workers and welfare of construction the act Mandates the establishment of (Regulation of workers. safety committees and the adoption of Employment and Requires the registration of safety measures at construction sites. Conditions of Service) construction workers, provision of Provides for the inspection and Act, 1996 welfare measures, and safety enforcement of safety standards by training. inspectors. State has a functional BOCW Welfare Board and offers a host of schemes related to maternity and girl child support, scholarships; skilling support; critical illness treatment, death and disability assistance, family pension and schemes to create awareness on entitlements and benefits. The Board tracks schemes access through a Labour Management Information System- LMIS. 17 The Occupational This is a recently enacted Relevant for worker welfare and safety Safety, Health, and comprehensive code that The code provides for the appointment Working Conditions consolidates and modernizes of safety officers, constitution of safety 46 Sl. Applicable Act/ Relevance to the Program and Key Objective and Provisions No. Regulation/ Policy Findings Code, 2020 existing labor laws related to committees, and the establishment of occupational safety, health, and occupational safety and health advisory working conditions. boards. It covers various aspects, including It also introduces provisions for the safety, health, welfare, working protection of workers in hazardous hours, leaves, and social security occupations and enhances penalties for for workers in all establishments non-compliance with safety standards 18 MoEFCC Emission The MoEFCC and CPCB have set Brick kilns are required to obtain Standards for Brick Kilns emission standards for brick kilns environmental clearance from the to limit air pollutants released relevant authorities before establishing during the brick-making process. or expanding their operations. This These standards specify the clearance process ensures that maximum allowable environmental considerations are concentrations of pollutants such considered, including air pollution as particulate matter (PM), sulphur control measures, waste management dioxide (SO2), nitrogen oxides practices, and compliance with emission (NOx), and carbon monoxide (CO). standards. 19 Right to Information Provides a practical regime of right Provides framework for disclosing Act, 2005 to information for citizens to information to the public including air secure access to information under quality data, financial information, and the control of public authorities. environmental clearances. The act (a) sets out obligations of public authorities with respect to provision of information; (b) requires designating a Public Information Officer; (c) sets out process for any citizen to obtain information/disposal of request, and so on; (d) provides for institutions such as Central Information Commission/State Information Commission. 20 The Hazardous and The Hazardous and Other Waste Relevant to program for disposal of Other Waste Management Rules, 2016 provide hazardous waste streams particularly Management Rules, for generation, collection, from vehicle scrapping facilities. 2016 treatment, transport, import, storage, and disposal of hazardous wastes. Improper storage, handling, transportation, treatment, and disposal of hazardous waste result in adverse impact on ecosystems including the human environment. Important Guidelines relevant to the Program 1 XV-FC Technical and The operational and fiscal Relevant to the program as Uttar 47 Sl. Applicable Act/ Relevance to the Program and Key Objective and Provisions No. Regulation/ Policy Findings Operational Guidelines guidelines are intended for urban Pradesh state contains seven urban agglomeration cities. NCAP non- agglomeration cities (Agra, Allahabad, attainment cities follow the Ghaziabad, Kanpur, Lucknow, Meerut, guidelines of the XV-FC. This Varanasi) which is part of the program provides the target for forty-two and is part of result area 2. urban agglomeration (million plus population) cities based upon performance-based grants based on improvement in air quality for period FY 2020-21 to 2025-26 under Million-Plus Cities Challenge Fund (MPCCF) and Rs. 12,139 crores have been allocated. 2 CPCB Guidelines for The CPCB has issued guidelines to Relevant to all vehicle scrapping facilities Environmentally Sound ensure the environmentally sound linked to vehicle scrapping under the Facilities for Handling, management of end-of-life project. The guidelines emphasize the Processing and vehicles in India. These guidelines need for authorized collection centers Recycling of End-of- Life aim to minimize the environmental and storage facilities for ELVs. These Vehicles (ELV) and health risks associated with facilities should adhere to safety and the handling, processing, and environmental standards to prevent any recycling of ELVs. potential hazards or pollution. ELVs should be dismantled and shredded The guidelines outline measures in designated facilities. The guidelines for the treatment and disposal of provide recommendations for safe various waste streams generated dismantling practices, including the during ELV processing. These removal of hazardous materials such as include the management of non- batteries, fuel, and oil. Shredding should metallic waste, plastics, rubber, be carried out using appropriate glass, and fluids. Treatment technologies to maximize resource methods should focus on recycling, recovery and minimize environmental recovery, and safe disposal to impact. The guidelines also highlight the minimize waste generation and its proper management of hazardous impact on the environment. materials found in ELVs, such as lead- acid batteries, mercury switches, and airbags. 3 Guidelines for The Central Pollution Control These guidelines aim to ensure accurate Continuous Emission Board (CPCB) in India has and reliable monitoring of emissions Monitoring Systems developed guidelines for from various industries and facilitate Continuous Emission Monitoring compliance with environmental Systems (CEMS). These guidelines regulations. provide a framework for the installation, operation, and maintenance of CEMS in industries to monitor and control their emissions effectively. 48 C. PROGRAM CAPACITIES: INSTITUTIONAL AND ORGANIZATIONAL ASSESSMENT ENVIRONMENT AND SOCIAL Table 9. Institutional Capacity Gaps on EHS and Social Risk Management Government Program Institution Institutional Capacity for Capacity Gap Analysis EHS Rural Department / State Rural Livelihoods SRLM recognizes the significance of SRLM mission natural resource management in rural Swachh Bharat (Rural) livelihoods. It promotes activities such as watershed management, soil and water conservation, afforestation, and sustainable agricultural practices, and enterprises such as (clean cookstoves, energy devices, biomass pellets) SRLMs focus on building the capacity of community institutions, including SHGs, this includes training and awareness programs on sustainable resource use, conservation practices, and climate change adaptation strategies. The SRLM program encourages convergence with other government programs and initiatives related to environment. This helps in leveraging resources, sharing knowledge, and implementing integrated approaches to address environmental challenges at the grassroots level. Their Capacity can be expanded to include risks and impacts in associated with the operations of SHG enterprises for clean cookstoves and pellets. Their capacity to access microfinancing can be increased by greater visibility on business lines/ operations that are environmentally friendly. SRLM works entirely through women’s collective to ensure the economic and political empowerment of women. However, their capacities will need to be augmented to ensure targeting of project based incentives to vulnerable and poorest households. MSME MSME Sustainable (ZED) Given that the environmental effects are Certification overall positive, the program is also supporting interventions that are already Entrepreneurship Skill underway (conversion to zig zag kiln) The Development Programme MSME department collaborates with 49 Government Program Institution Institutional Capacity for Capacity Gap Analysis EHS (ESDP) various agencies and organizations to promote energy efficiency and cleaner production in the sector, consistent with project results areas. It is already conducting energy audits, awareness programs, and capacity building activities to help MSMEs adopt energy-efficient technologies and practices. The assessment concluded that (i) foundational environment management training and capacity building for staff involved with operationalizing of solid waste management investments was needed and (ii) application of an environmental and social screening checklist in the planning phase to ensure that site selection does not result in any risk to the environment and human health. Uttar Pradesh New and National Biogas and UPNEDA plays a crucial role in identifying Renewable Energy Manure Management suitable sites for renewable energy Development Agency Programme (NBMMP) projects/ Biogas project and facilitating (UPNEDA) their development. The agency conducts Bio Energy Program feasibility studies, resource assessments, and site surveys to determine the viability of renewable energy projects. It also assists project developers in obtaining necessary approvals and clearances from relevant authorities. UPNEDA conducts training programs and workshops to build the capacity of various stakeholders, including government officials, industry professionals, and local communities. These capacity-building initiatives aim to enhance awareness and understanding of renewable energy technologies, energy conservation, and environmental sustainability and are relevant to the project result areas. Occupational health and safety in management of biogas plants is one area where UPNEDA can build up capacity and awareness. The assessment concluded that UPNEDA will have a planning and supervisory role 50 Government Program Institution Institutional Capacity for Capacity Gap Analysis EHS in the project, but since they would not be implementing investments no separate capacity on EHS would need to be built. Largely their core functions are consistent with positive environmental outcomes. Agriculture Paramparagat Krishi Vikas Given that the nature of environmental Department Yojana (PKVY) effects is positive and intrinsically Rashtriya Krishi Vikas embedded in the Program, there is no Yojana (RKVY) need for a separate environmental cell or National Project on Organic independent stream of environmental Farming (NPOF) management activities. Though there are Pradhan Mantri Krishi no substantial environmental risks Sinchai Yojana (PMKSY) associated with agriculture led Biogas Development and interventions under UPCAMP there are Utilization Program opportunities to integrate the environmental management in the National Mission for capacity building – occupational health Sustainable Agriculture and safety in management of livestock (NMSA) waste and biogas plants. In terms of environmental performance, the Department of Agriculture is clearly committed to promote environmentally responsible practices, e.g., the Department is supporting organic farming and similar initiatives to reduce the use of fertilizers and chemicals in agriculture. The assessment concluded that their environment capacity is adequate for the typology of investments to be conducted. While the focus of all major agriculture and dairy programmes is on smallholders and small dairy farmers, level of awareness and access to benefits is lowest among them. Capacities of agri- extension cadres will need to be improved to support improved awareness, adoption of NUE-based Package of Practices and efficient manure management among marginal and women farmers. Transport Department/ Motor Vehicle Act, 1988 The assessment concluded that no UPSRTC addition cell or unit was needed for EHS Voluntary Vehicle Fleet management within Transport. The SPV Modernization Program (V- capacity along with the inhouse capacity in 51 Government Program Institution Institutional Capacity for Capacity Gap Analysis EHS VMP) and Vehicle DoT were found to be satisfactory. DoT Scrappage Policy has in-house capacity in the sector as most high-risk transport projects require EIA and EMP. The ongoing initiatives on EHS capacity building, with the current World Bank Project requires to be continued, and modules of environmental management training should be integrated with all capacity building initiatives through the Program period. Development and implementation of vehicle scrapping program, will be supported under the PAP through a detailed environment audit to ascertain if corrective actions are needed for EHS management. Application of an environmental and social screening checklist in the planning phase of electric vehicle infrastructure has been included to ensure that site selection does not result in any risk to the environment and human health, and resettlement related adverse impacts The department will need to create capacities on stakeholder engagement and inclusion to ensure development of inclusive mobility plans that address the needs of vulnerable category of commuters, creating awareness on SEA/SH and GBV related risks for women drivers and passengers and for adopting more inclusive measures aimed at PwDs, BPL and women in the State EV policies. Urban Development Swachh Bharat Mission The nature of investments is on technical Finance Commission Solid assistance and here will be no civil works Waste Management Grants or subprojects. A separate environmental cell/ PMU will be established under the project to ensure necessary manpower for investment planning and design and to ensure AQM outcomes. The assessment concluded that (i) foundational 52 Government Program Institution Institutional Capacity for Capacity Gap Analysis EHS environment management training and capacity building for staff involved with operationalizing of solid waste management investments was needed and (ii) application of an environmental screening checklist in the planning phase to ensure that site selection does not result in any risk to the environment and human health. Adequacy and capacity of Environment management systems 67. The majority of implementing agencies of the Program do not have experience with the implementation of World Bank operations. However, as the program intended result areas are largely consistent with positive environmental outcomes and have low- moderate effects. The environmental sector /DoEFCC are not integrally connected with the sectoral environmental issues and the sector departments. Therefore, their expertise is not reaching the sectors. Also, their own expertise is not aligned with the sector experiences being adopted, and the performance being achieved. The SPV Structure will help in bridging these gaps between the environment department and the sectors. The establishment of the UPCAMP SPV/ authority will close many capacity gaps in the management of multi sector EHS systems (with the full-time environmental specialist in place) between environment and the sector departments. 68. There is no separate environmental cell or division in the Program departments that will be associated with the Program activities. Environmental effects are generally managed within the functions at the various levels of the Departments. The UPCAMPA cells established in the implementing entities/departments can mainstream EHS and OHS monitoring and training. Overall, in terms of environmental performance, the Departments (Agriculture, MSME, Transport and Rural) are clearly committed to promote environmentally responsible practices. Their capacity was found to be adequate and can be further strengthened as outlined in the PAP and POM. SOCIAL Adequacy and capacity of social management systems 69. The implementing agency and most of the participating institutions (other than rural development and to some extent agriculture departments) have low capacities related to social risk management and limited experience of engaging with communities on social issues. These include capacities for ensuring inclusive measures within project interventions, stakeholder and citizens engagement, participatory planning, gender, and social inclusion. The project will need to engage with vulnerable groups of stakeholders like small agriculture and dairy farmers, women members of marginalised and poor households, migrant brick- kiln workers, single truck owners and truck drivers as well as commuters using public transport for intra as well as inter- city travel. To ensure that the social risks and effects flagged in the ESSA are mitigated, reasonable capacities will need to be incorporated within DoEFCC and the participating institutions. The project will deploy a full-time social development specialist in the PMU- UPCAMP SPV, assess the capacity gaps and undertake regular training of the staff and consultants of the IA and the participating institutions on identified themes. 70. Grievance Redressal Mechanism - The state has a robust grievance redress mechanism (GRM) that 53 is being used by most of the departments and agencies of the state. Since 2018 the Integrated Grievance Redressal System (IGRS) of the Government of Uttar Pradesh integrates the several portals/ software that were independently being used by different agencies of the state and has led to the creation of a unified grievance redressal system. The IGRS also integrates the Samadhan portal (http://samadhan.gov.in) of the state government that preceded the IGRS. Under IGRS any grievances, information or suggestions can be sought or registered through a) the toll-free CM Helpline no. 1076 which is managed through a centralised call center3, b) petitions submitted during public interaction with the CM, c) petitions received by various public offices and civil servants as physical letters, e-mails and fax, d) requests received during the Samadhan Day organized at the sub-divisions, e) requests received at the Common Service Centers and Lokwaani Centers, f) grievances received through the national grievance portal- CPGRAMS and g) grievances directly registered by citizens on the portal or through the Jansunwai Samadhan Android Application.4 71. All grievances received as letters and petitions during Samadhan Day are to be necessarily uploaded on the Samadhan portal within a fixed timeframe by the concerned agency/ office. Once the grievances are registered on the portal, they are automatically directed to the First Level Grievance Officer (L-1) of the concerned department, who either accepts the grievance or returns it if it is not related to the department. Once accepted, a 14-digit unique grievance ID is generated by the portal and sent to the registered mobile no. of the aggrieved, to enable them to track their grievance on the Samadhan portal. Based on the nature of grievance, it is directed to the L-1, L-2, L-3, or L-4 level Grievance Officers and pending grievances at these levels are periodically tracked by each Head of Department (HoD). In addition, a senior officer of each department has also been made the Nodal Officer for the IGRS with overall responsibility for the department’s performance and coordination with State IGRS Cell. Once redressed, it is mandatory for the grievance officer to upload information on action taken on the portal. The call center then seeks feedback on the resolution from the aggrieved. The grievance is ‘closed’ only after the latter is satisfied with the nature of information or resolution provided. If they are not satisfied, the grievance is sent back to the L-1 Grievance Officer. In case of dissatisfaction, the grievance is escalated to the higher levels, till L-4. 72. The main responsibility of L-3 and L-4 officers is to review the status of grievances received by the department and ensure timely redress of pending grievances. HoDs review the grievance status on a weekly or monthly basis and it is monitored periodically by State IGRS Cell at the Chief Minister’s Office. A centralized dashboard is also maintained on which the real-time status of grievance redress at the state level is maintained. The portal also generates monthly reports that reflect the department and officer-wise performance and rankings and are send to the HoDs to ensure accountability. 73. So far about 45,467,750 grievances have been received under the IGRS, of which 45,065,839 have been redressed and 401,620 are pending.5 Within the last one-year (October 2022 to September 2023) DoEFCC has received 11,200 grievances of which 10,894 have been resolved and closed 3 This helpline is also integrated with other state level helplines like UP 100, UP 102, UP 108, UP 1090 and UP 1912 for seamless operation. 4 Govt Order No 01/2016/01/34 PG-05/2016 of January 2016 and GO No 12811-78-1-2018-66IT/2017TC of October 2018. 5 Data as on 13th October 2023. 54 while 142 are pending resolution. Out of these unresolved grievances, 93 are pending resolution at L1 level, 36 at L2, 12 at L3 and 1 at the L4 level. 74. In addition to IGRS, the state Pollution Control Board (SPCB) also operates its own grievance redressal system (http://www.uppcb.com/public_grievances.htm.) through which it receives complaints against industries and individuals. Upon receiving public complaints, the SPCB scrutinizes these complaints and takes necessary action as appropriate. SPCB also has a citizen’s charter which commits to, among other things, reviewing and redressing public grievances, bringing transparency in its functioning, and ensuring people’s participation. Under IGRS a total of 2150 grievances have been received by UPPCB, of which 2130 have been redressed and 20 are pending resolution at different stages.6 75. All grievances received physically at the government offices, outside the Samadhan Day, are registered in office level complaint registers that are redressed and their status is periodically monitored by the respective Heads of Departments. The current statewide GRM is robust, enjoys widespread public awareness, has high political ownership and was found to be effective. The same will be utilized by the project for receiving grievances and feedback related to the project. 76. The DoE has a 4-member Internal Complaints Committee (ICC) constituted under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) – POSH Act, 2013 and has been freshly reconstituted in October 2023. In the period October 2022- September 2023 no related complaints have been received by DoE. Under the project, the ICC members will be oriented on the key provisions of the Act, their roles and responsibilities and will also be trained on securing the complainant’s identity, ensuring anonymity and confidentiality of complaints, investigations and supporting individuals in reporting incidents of GBV, SEA/SH and ensuring tested referral pathways. DoE wide trainings will also be supported to create awareness and sensitize the staff about the Act, its key provisions, and responsibilities of staff members. 77. Management of Workers- Uttar Pradesh Clean Air Management Project Authority (UPCAMPA) SPV and its PMU Directorate will serve as the project implementation arm of the Authority. UPCAMPA SPV is expected to hire a large pool of technical and staff and will be staffed with personnel and experts drawn on deputation from State departments and on contract-basis (post retirement and from the market) apart from other support staff. While the DoEFCC staff and the civil servants are governed by GoUP service rules, the conditions of work and terms of recruitment of workers and consultants hired by the DoE are spelt in their respective contracts. At present very brief contracts are provided to the contractual staff hired by DoE and do not clearly spell out the terms and conditions of their engagement.7 The SPV will need to ensure that all specialists and support staff contractually hired have clearly laid out terms and conditions of work spelling out the applicable emoluments and benefits, work hours, leave entitlements, travel allowances, grievance redress mechanism, apart from provisions to ensure non- discrimination and safety at workplace. The SPV will also need to have in place an HR policy that ensures inclusive hiring, transparent procedures for separation or termination of contract, smooth staff onboarding and orientation, clear roles and responsibilities at different levels and positions, standard contract templates for consultants, Office Code of Conduct along with provisions for periodic sensitization of workers on GBV and SEA/SH related topics. 6 Data as on 25th October 2023 7 Existing contracts only mention the salary, the fact that no other monetary benefits, earned & medical leave or pension would be available to the incumbents; entitlement to travel and dearness allowances for local and outstation travel (without mentioning the details of such allowances). 55 78. In addition to the SPV, UPCAMP also plans to provide to some participating institutions and departments human resource in the form of project support units and UPCAMP Cells to support technical and administrative work related to the project. While these subject matter specialists and consultants will be hired directly by the respective departments, for the purpose of uniformity, SPV will need to define and share with the participating institutions the experience and pay-scales of these consultants, the standard terms and conditions for their engagement. 79. DoE is presently understaffed and is challenged by high staff vacancy. Against a total of 66 approved positions in the DoE, about 32 positions are vacant at present. About 10 out of the 34 filled posts are occupied by female staff. Among the 9 technical and managerial positions (Group ‘A’ and ‘B’) that are occupied, 3 have women staff members. The project will need to ensure that the SPV also has adequate women’s representation across the SPV hierarchy, including in decision-making roles. 80. While the project will not entail large scale construction, moderate scale works will be undertaken for setting up AQM Stations, revamping existing AQM infrastructure of different institutions, installation of testing equipment and machinery, manual monitoring infrastructure, setting up of super-sites and mini-supersites across the state. This will involve engagement of workers for construction, installation of plant, machinery and equipment and also primary supply workers providing these equipment and component for clean cooking solutions including solar cookers. There are adequate legal safeguards at the national and state level to ensure safe and fair working conditions for workers. The state has a BoCW Welfare Board that looks after the welfare of construction workers and links them to relevant schemes and entitlements- including maternity and child benefit, access to loans, pension, health assistance and insurance and disaster relief. GoUP also has a statewide Labour Management Information System (https://uplmis.in) that tracks the number of labourers registered in the state, accessing different schemes and provides a helpline to support workers in distress. 81. Apart from minor civil works and supply of testing equipment that are commissioned directly by DoE and UPPCB, most civil works are undertaken through other executing departments and entities like State Public Works Department (SPWD) or Uttar Pradesh Jal Nigam (UPJN). Review of sample tender documents of UPPCB for similar works like ‘Supply of testing equipment and supply-installation-operation of Continuous Ambient Air Quality Monitoring Stations’ (CAAQMS) shows that only broad community and occupation health and safety related legal provisions are covered in bid documents. These provisions only relate to fencing/barricading, putting up of signages, contractor’s liability for ‘personal injury, death or disability of workers’, statutory insurance of Contractor’s personnel and provision for manufacturers and subcontractors to meet similar liabilities and overarching provisions to abide by all national laws and regulations without specifying the obligations.8 82. However, such provisions are specified in much greater detail by other executing agencies, including contractor’s liability for OHS and CHS, compliance requirements under specific national labour laws, including minimum wage payment, need for labour license/ registration, labour group 8Tender Sample No 1 - E-Tender Specification No. 55-56/EDC(Bh)/2023-24 Supply of testing equipment for Works pertaining to Purvanch Al Vidyut Vitaran Nigam Ltd (DISCOM), VARANASI and Tender Sample No 2- NO. UPPCB/293/CAAQMS/ 2019-20 UPPCB International Competitive Bidding For supply, installation, commissioning, operation & maintenance services of Continuous Ambient Air Quality Monitoring Stations (CAAQMS). 56 insurance, boarding and lodging arrangements for workers, compliance with Contract Labour Regulation & Abolition Act, responsibilities of Principle Employer, provision of safety equipment and materials, regular health check-ups, obtaining safety work-permits, facilities for labour at worksites.9 83. DoE will need to ensure that labour requirements and contractor’s responsibilities related to terms of work, health and safety, compliance with labour laws, prevention of forced or child labour, workers Code of Conduct, prevention of GBV and SEA/SH risks at worksites and presence of a GRM for workers are clearly spelt in their works requests to executing agencies. They will also need to undertake due diligence to ensure that such responsibilities are actually outlined in the bid documents and contracts. 84. One of the clean cooking solutions proposed to be offered under the project will be incentive based adoption of solar cookers. About 100,000 households are planned to be reached through these solar cookers. The Surya Nutan model of Solar Cookers that will be adopted under UPCAMP is indigenously designed, developed, and patented by Indian Oil Corporation and promoted by Energy Efficiency Services Limited EESL (both are Public Sector Undertakings). The cost of solar panels for these cookers is expected to be a much smaller part of the proposed investment of USD 6 million on this sub-component. 85. India has a growing supply chain around clean energy and solar solutions, which aims to improve self-sufficiency and reduce dependence on exports. Government of India has recently entered the partnership for Resilient and Inclusive Supply Chain Enhancement (RISE) 10 to strengthen and diversify the supply chain for clean energy products and incentivize production of solar and wind power equipment. This is in addition to the Product Linked Incentive (PLI) Scheme which supports similar products. However, in light of the recent concerns regarding the usage of forced labour in the manufacture of solar panels, and in line with India’s legislation on Bonded Labor System (Abolition) Act, 1976 and Article 23 of Indian Constitution prohibiting traffic in human beings and similar forms of forced labour, DoE would require its contractors and suppliers to prohibit use of forced labor in the supply of solar cookers. It will also need to include in its contracts the requirements that their solar panel suppliers neither have nor will engage or employ forced labor. D. ASSESSMENT OF CORE PRINCIPLES CORE PRINCIPLE 1 - ENVIRONMENTAL AND SOCIAL MANAGEMENT Program environmental and social management systems are designed to (a) avoid, minimize, or mitigate adverse impacts; (b) promote environmental and social sustainability in the program design; and (c) promote informed decision-making relating to a program’s environmental and social effects. Summary findings: Consistent 9 Tender Sample No 3- Tender Document No: ST-01/EMCC-II/JTPS/2023-24 of Uttar Pradesh Rajya Vidyut Utpadan Nigam Limited (State Power Generation Corporation) on Biennial Contract For Mechanical Maintenance (Preventive & Routine, Bd & Oh) And Operational Support Of Equipment Of Main Plant Boiler & Aux, Tg & Aux And Bop (Excluding Major Overhauls Of Boiler And Turbine) at 2x660 MW Jawaharpur Thermal Power Station, Malawan 10 RISE partnership is an initiative of World Bank and G-7 for enhanced collaboration on diversification of supply chain for clean energy products and tackling climate change. 57 86. The current regulatory systems under the Environment (Protection) Act, 1986, are comprehensive to cover air, water, and waste management. The Forest (Conservation) Act, 1980, The Wildlife Protection Act, 1972 and The National Green Tribunal (NGT) Act, 2010 empowers the government to take measures for protecting and improving the environment. It provides the legal framework for controlling pollution and conserving natural resources. It empowers the central and state pollution control boards to take measures to improve air quality, regulate emissions from industries, and enforce emission standards. 87. The environment regulatory framework (laws and regulations) - environmental, forests and pollution control acts and rules - were assessed and found to be adequate to manage the environmental effects of the Program activities. Most activities under the Program have low and moderate environmental effects they do not require EIA. However, environment specific capacity building activities is presently insufficient and nodal environmental officers are expected to ensure compliance with required environmental standards. The national and states governments have well- developed environment legislations. However, the implementation setup to address environmental challenges of UPCAMP needs to be further strengthened through monitoring and supervision by UPPCB. 88. The national policy framework and state systems are largely adequate to manage social risks emerging from the project investments. Inter-agency coordination mechanisms around AQM are in place in the state to ensure accountability and role clarity for different agencies. DoE has some experience of conducting annual, state-wide campaigns a) to create environmental awareness among school children, rural communities and community institutions and b) also around Mission LIFE. This will be further bolstered by the Social Behaviour Change Communication campaign to be supported by UPCAMP under the clean cooking component for improved engagement and outreach among community stakeholders, especially women. GoUP’s Integrated Grievance Redressal System (IGRS) is robust and was found to be effective in addressing citizen’s grievances in a time-bound and accountable manner. DoE’s systems for handling GBV, SEA- SH grievances in in place, but will need to be further strengthened to ensure systematic redressal and referrals. Social capacities of DoE and participating institutions are limited and would need to be improved through periodic trainings and refreshers. Key gaps and recommendations: • Non-compliance with the environmental permits, exceeding discharge limits, (particularly for transport and industry), poor monitoring and enforcement by government authorities, and improper technology selection may impact the environment. • The Program also includes spending on financial assistance related to incentives for adopting household biogas, adoption of zig zag technologies in brick kilns, scrapping of old heavy-duty vehicles and purchase of electric vehicles. Currently there is no EHS criteria/procedures used for approving and monitoring of these financial assistance packages. The program proposes to have EHS performance criteria to be included in selection of MSMEs for financial assistance under UPCAMP • There is no mechanism for environment or social screening conducted on detailed project reports and other feasibility studies for early determination of impacts and alternative analysis. As part of the ESSA recommendations, an environmental screening checklist should be developed and utilized in investment planning where any civil works is involved to ensure no direct, indirect, or residual risks to the environment and sensitive receptors. • There are risks of small-marginal agriculture and dairy farmers, single truck-owners, brick-kiln workers, and women belonging to vulnerable communities being excluded from access to 58 project benefits. • Regular trainings of concerned staff and consultants of DoE and participating institutions on social and gender inclusion and stakeholder engagement will be needed during the project cycle. This will include use of participatory approaches, especially for urban mobility planning, design of value-chains for improved cook-stoves and agri-dairy extension services. CORE PRINCIPLE 2 - NATURAL HABITATS AND PHYSICAL CULTURAL RESOURCES Program environmental and social management systems are designed to avoid, minimize, and mitigate adverse impacts on natural habitats and physical cultural resources resulting from the program. Program activities that involve the significant conversion or degradation of critical natural habitats or critical physical cultural heritage are not eligible for PforR financing. Summary findings: Consistent 89. The Program activities do not include environmental effects on natural habitats or cultural heritage sites. There is clearly no significant conversion or degradation of critical natural habitats or physical cultural heritage is envisaged. National laws such as The Forest Conservation Act, 1980 regulates the diversion of forest land for non-forest purposes. The Ancient Monuments and Archaeological Sites and Remains Act (or AMASR Act) provides for the preservation of ancient and historical monuments and archaeological sites and remains of national importance. In the unlikely case of any such environmental effects, the respective Departments were found to have adequate capacity in addressing the regulatory requirements. The consistency to this principle was confirmed. Key gaps and recommendations: • There is no mechanism for environment or social screening conducted on detailed project reports and other feasibility studies for early determination of impacts and alternative analysis. As part of the ESSA recommendations, an environmental screening checklist should be developed and utilized in investment planning where any civil works is involved to ensure no direct, indirect, or residual risks to the environment and sensitive receptors. CORE PRINCIPLE 3 - PUBLIC AND WORKER SAFETY Program procedures ensure adequate measures to protect public and worker safety against the potential risks associated with (a) the construction and/or operation of facilities or other operational practices under the program; (b) exposure to toxic chemicals, hazardous wastes, and otherwise dangerous materials under the program; and (c) reconstruction or rehabilitation of infrastructure located in areas prone to natural hazards. Summary findings: Consistent 90. India has established a comprehensive management and supervision system for work safety. This system ensures the screening of safety issues and occupation hazards, assessment of work safety and hazard during operations, design, and construction. There is government organisational set up with the Labour Commissionerate and the Uttar Pradesh Pollution control board to manage environment, occupational health and work safety management and supervision with established laws, regulations, procedures, and enforcement arrangement. The regulatory systems include the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act 1996, Factories Act 1948 and The Occupational Safety, Health, and Working Conditions Code, 2020. 91. These acts provide for better safety, health, and welfare of workers in factories, including provisions for cleanliness, ventilation, lighting, and drinking water. They require factories and 59 worksites to take measures to prevent accidents and ensure the use of safety devices and protective equipment. Other attributes relevant in the policies include (a) limits on working hours, overtime, and child labour (b) the appointment of safety officers and constitution of safety committees (c) inspection and enforcement of safety standards by factory inspectors. 92. While the systems are in place, the enforcement needs to be strengthened by the Departments as well as the Pollution Control Boards. Worker and public safety are generally managed through provisions in the bid / contract documents that the respective Departments – having civil works. The provisions are made part of agreements with contractors and will be monitored. However, there are several other options on the rural side such as livestock waste management, and biogas production that also need awareness, monitoring and supervision on occupational health as safety. 93. The DoE is understaffed and the contracts of consultants currently hired by the Directorate do not spell out the terms and conditions of employment. The contracts and Letter of Appointments of consultants and subject specialists need to clearly specify the terms, conditions of engagement, emoluments and benefits apart from work hours and leave entitlements. 94. The project will only utilize existing vehicle scrapping facilities, and these facilities ensure safe disposal of such vehicles along with protection of environment. However, there are several other factors relating to environment and human health and safety in the recovery and recycling of hazardous waste materials (batteries and auto parts) and their transport to landfills. This needs to be regularly monitored. With this further strengthening, consistency to this core principle was also ensured in the Program design. 95. The bidding documents for civil works, procurement of AQM equipment and testing facilities need to clearly spell out the worker related obligations of the contractors and also ensure compliance with forced and bonded labour related labour laws. Key gaps and recommendations • Environment health and safety standards, and procedures for vehicle scrapping centres need to be regularly monitored and audited to ensure recovery and recycling of wastes takes place in an environmentally sound manner. • Occupational health and safety management in the construction of biogas digestors at household level as well as in livestock shelters require regular monitoring and training of safety measures for human health. • Given the OHS and CHS risks related to different sectors identified by the assessment, DoEFCC will also need to develop safety protocols, ensure clearly outlined obligations of the contractors/ sub- contractors in the tender documents related to worker safety as well as Workers Code of Conduct to mitigate any potential SEA/ SH risks. The projects monitoring mechanism will need to regularly monitor the compliance with the protocols and safe practices to mitigate any risks to the project workers and the adjacent communities. CORE PRINCIPLE 4 - LAND ACQUISITION System and capacity assessment: Avoid or minimize land acquisition and related adverse impacts: Avoid or minimize displacement, and assist the affected people in improving, or at the minimum restoring, their livelihoods and living standards. Summary findings: Consistent 60 96. All project related physical interventions are planned to be undertaken on existing lands, land pools or within the premises of existing government offices and academic- research institutions. Land for Common Steam Facilities (CSF) within select industrial clusters will be provided on lease to the service providers. Land for creating depot infrastructure and charging facilities for e-buses will be provided by the Urban local bodies and development authorities from their existing land pools and no land acquisition is foreseen. Space for setting up 3-wheeler EV charging and battery swapping facility will also be provided by local governments or will be created within existing public spaces. The project will not support creation of vehicle scrapping facilities and will only incentivize scrappage. Key gaps and recommendations • Since the actual sites for physical intervention are not known at this stage, impacts on non- titleholders, encroachers, and squatters are not clear. While the industrial clusters are ring-fenced that prevent unauthorized occupation, the status of land-pools available with the local bodies in the cities of Lucknow and Varanasi, where EV infrastructure will be created for the transport sector, is unknown. • For all activities requiring creation of expansion physical infrastructure, an environment and social screening will be undertaken by the executing agencies in consultation with the concerned IAs. This will ensure that all infrastructure development leading to land acquisition or displacement is screened out. • In case of sites that are unencumbered, IAs in coordination with the local bodies will need to ensure that occupants of these lands are resettled following the World Bank guidance. CORE PRINCIPLE 5 - INDIGENOUS PEOPLES AND VULNERABLE GROUPS System and capacity assessment: Give due consideration to the cultural appropriateness of, and equitable access to, program benefits, giving special attention to the rights and interests of Indigenous Peoples/Sub-Saharan African Historically Underserved Traditional Local Communities and to the needs or concerns of vulnerable groups. Summary findings: Consistent 97. As per the last Census (2021) the Schedule Tribe (ST) population of Uttar Pradesh was 1.1 million, which is about 0.56 percent of the total population of the state. The project will have a statewide footprint with some select works related to AQM, transport and industries focussed on Noida- Ghaziabad, Lucknow, Varanasi as well as select industrial clusters located across the state. No direct interventions in areas with ST population are planned as part of the project. Interventions related to clean cooking solutions are expected to benefit the tribal communities owing to higher dependence on forest based biomass for household use. Key gaps and recommendations • The project will need to ensure that beneficiary selection under the clean cooking and transport sector is inclusive and there are specific social criteria in place for targeting tribal communities as beneficiary households/ entrepreneurs and their inclusion in women’s collectives engaged in the cook-stove supply chain. • For securing higher engagement of ST women and their collectives in the cook-stove supply chain, the project may need to explore linking entrepreneurs belonging to scheduled tribes to additional concessional finance, incentives, marketing, and skill development assistance available through State Finance and Development Corporation and National Scheduled Tribes Finance and 61 Development Corporation (NSTFDC).11 CORE PRINCIPLE 6 - SOCIAL CONFLICT System and capacity assessment: Avoid exacerbating social conflict, especially in fragile states, post- conflict areas, or areas subject to territorial disputes. Summary findings: Consistent 98. UPCAMP will be implemented across select locations within the state and the project footprint does not include any areas that are considered fragile or disputed. The nature of program investments is such that they are not likely to lead to or exacerbate social or resource conflicts. 11 Schemes like Adivasi Mahila Sashaktikaran Yojana (AMSY), Tribal Forest Dwellers Empowerment Scheme, Margin money and Micro-credit schemes (MCS) for ST SHG members and ST entrepreneurs. 62 IV CONSULTATION AND DISCLOSURE OF DRAFT ESSA A. SUMMARY OF DISCUSSIONS AND MULTI STAKEHOLDER CONSULTATION WORKSHOP 99. To develop a better understanding of implementation practices, procedures, standards, and the approach for this Program, in the period from January- September 2023, the Bank team carried out meetings with various stakeholders, including technical staff in Departments, private sector and independent experts. These initial stakeholder consultation meetings informed key ESSA findings, contributed to formulating the ESSA Program Action Plan, and impacted the design of the Program. 100. The consultative workshops were instrumental in securing information to support the major findings and recommendations emerging from the ESSA process. DoEFCC, participating state officials, and other stakeholders contributed to the emerging recommendations of the draft ESSA report A summary of the consultations is included in Annex 7, 8, 9 and 10. Table 10. List of Departments/Stakeholders Consulted Sl. No. List of Departments 1 Department of Transport 2 Uttar Pradesh State transport Corporation 3 Department of MSME 4 Department of Rural Development 5 Department of Environment Forests and Climate Change 6 Department of Panchayati Raj, 7 UP New and Renewable Energy Agency 8 UP Food and Civil Supplies Department 9 Department of Animal Husbandry. 10 Directorate of Urban Transport 11 UP Industries Development Corporation 12 Indian Oil Corporation Ltd 13 State Nodal officer- Gobardhan Scheme 14 Energy Efficient Services Ltd 26 HCL Foundation 27 Finovista 28 Renew Power 29 National Thermal Power Corporation 30 National Bank for Agriculture and Rural Development B. DISCLOSURE 101. A State level consultation workshop will be organised during appraisal and participating officials and departments is included in table 9. The draft ESSA report is being disclosed by the World Bank and DoEFCC for receiving feedback from government officials, and other relevant stakeholders. The key inputs received during the consultation workshops is included in table 11. Table 11. Key Inputs from Stakeholder Consultation on Environment and Social Management (to be completed after consultation) Sector Suggestions and Good Practices from How the Program Design Can Participating Stakeholders Addresses These 63 V CONCLUSIONS AND RECOMMENDATIONS A. INTRODUCTION 102. The ESSA concludes that the Program has a moderate environmental risk. Based on the assessment of the environmental and social management system applicable to the proposed Program, it is concluded that (i) there is an existing policy framework to mitigate environment, social, and occupational health and safety risks and (ii) institutional set up on environmental and social management and capacity systems to address the environment, health and safety are well aligned to the proposed activities under the Program, but need further training and capacity building for enforcement. The program intended result areas are largely consistent with positive environmental outcomes and have low- moderate effects. The PforR offers opportunity to strengthen environmental performance in the different sectors through the multisector approach, and integrated planning. The systems are principally well-aligned with the core principles and key planning elements as defined in the Bank Policy for PfoR. 103. There remain certain gaps from the perspective of actual implementation of such systems identified through this ESSA, based on which the following recommendations are proposed to Program Action Plan or DLI. Environment Gaps • The environmental sector /DoEFCC is not integrally connected with the sectoral environmental issues and the sector departments. Therefore, their expertise is not reaching the sectors. Also, their own expertise is not aligned with the sector experiences being adopted, and the performance being achieved. The SPV Structure will help in bridging these gaps between the environment department and the sectors. The establishment of the UPCAMP SPV/ authority will close many capacity gaps in the management of multi sector EHS systems (with the full-time environmental specialist in place) between environment and the sector departments. • There is no separate environmental cell or division in the departments that will be associated with the Program activities. Environmental effects are generally managed within the functions at the various levels of the sector Departments. Overall, in terms of environmental performance, the Departments (Agriculture, MSME, Transport and Rural) are clearly committed to promote environmentally responsible practices. The UPCAMP cells attached in each of the implementing departments/Agencies can mainstream environment and occupational health and safety monitoring and training of the program activities and that will contribute to organizational strengthening. • Environment health and safety standards, and procedures for vehicle scrapping centres need to be regularly monitored and audited to ensure recovery and recycling of wastes takes place in an environmentally sound manner. An environmental audit of these facilities will help capture if there are any gaps in the environment health and safety processed and organisational structure. • Occupational health and safety management in the construction of biogas digestors at household level as well as in livestock shelters require regular monitoring and training of safety measures for human health. The Implementing agency (UPNEDA) should strengthen capacity to provide this training. • The Program also includes spending on financial assistance related to incentives for adopting household biogas, adoption of zig zag technologies in brick kilns, scrapping of old heavy-duty 64 vehicles and purchase of electric vehicles. DoEFCC needs to establish EHS criteria/procedures for approving and monitoring of financing incentives. • There is no mechanism for environment screening conducted on detailed project reports and other feasibility studies to early determination of impacts and alternative analysis. An environmental screening checklist should be developed and utilized in investment planning for investments to ensure no direct, indirect, or residual risks to the environment and sensitive receptors. Social Gaps • The social capacities within DoE and some of the participating institutions are weak owing to their largely technical mandates. Some institutions like Directorate of Environment, State Pollution Control Board, Department of Transport and Industry have limited public interface and mandate for public engagement, while other departments like Agriculture, Rural and Urban Development have rich experience of engaging with communities. DoE capacities will need to be augmented through staff capacity building and by placing a social development expert within the SPV, who will also be responsible for handhold and guiding other departments for ensuring engagement and inclusion in sector interventions. • There are no screening mechanisms in place within the DoE and most participating institutions to screen interventions and sites for possible social impacts. Such screening also does not take place during DPR preparation that could help assess risks or gaps, identify vulnerabilities and inform the planning process to build appropriate mitigation measures. The project will adopt a risk screening approach, where all major activities with a physical footprint will need to be preceded by a robust E&S risk screening. • The capacities of some institutions for facilitating community participation are currently weak. While DoE has some experience of engaging with communities for awareness generation through periodic campaigns, they will need higher capacities to bring air quality related awareness and discussion within public discourse on a continuing basis. Similarly, for comprehensive mobility planning DoT will need improve capacities to closely engage with commuters (and the larger community) to ensure that their needs are incorporated in those plans; for ensuring better adoption of changed NUE based PoPs and manure management practices, field staff of DoA and Animal Husbandry departments will need capacity support to closely work with farmers. • Current procedures of most participating institutions do not sufficiently address the needs of vulnerable and marginalized social groups. Needs of migrant brick- kiln workers, owners and drivers of BSI & BSII single trucks, women drivers and commuters and those with disabilities and women headed households need to be incorporated while developing DPRs for these sectors. • The project does not entail land acquisition and is not expected to lead to physical displacement, as physical sites/ locations will be identified from within existing government lands. However, since these locations are unknown at this stage, there is possibility of some of these lands not being unencumbered. The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (LARR, 2013) does not recognize the resettlement rights of non-titleholders, encroachers and squatters. If present, such informal occupants will need to be provided resettlement support in line with the World Bank policy. 65 • DoE hires consultants and subject matter specialist from the open market by advertising for positions and hiring consultants following due process. However, as per existing practice, limited information is provided to incumbents on the terms of their engagement, benefits, leave and other entitlements through these Letters of Appointments and contracts. For greater transparency, and in line with national labour laws, DoE will need to provide detailed contracts that spell out the conditions of engagement more clearly. Similarly, all tenders and works rolled out by DoE directly or through executing agencies will need to ensure that all relevant provisions of national labour laws and contractor’s obligations related to occupational health and safety, labour rights, workers conduct, and entitlements are clearly set out in the bidding documents. B. INVESTMENT PROJECT FINANCING (IPF) COMPONENT OF THE PROGRAM 104. The current Program has a hybrid form that combines two financial instruments of the World Bank: PfoR and Investment Project Financing (IPF). The IPF component will fund technical assistance (TA) for direct hand-holding support to achieve agreed results through a range of capacity-building measures (such as training, and the development of manuals and guidelines) (a) support for the UPCAMP special purpose vehicle in DoEFCC to strengthen human resources and build capacities in multi sector planning, and program implementation and coordination; (b) supporting M&E, impact evaluation, and third party assessments/validation of implementation activities and program outcomes, and (d) training, communications and capacity building activities and (d) targeted technology transfer expert support to address important implementation gaps. Since this is a multi- sector operation, capacity needs to be built across multiple state level departments to plan, coordinate, and execute investments as part of the UPCAMP. 105. In addition to the environmental and social measures to be included in the Action Plan of the PforR component of the Program, the IPF-funded component includes the development of several important Environmental and Social (E&S) plans/procedures including Labor Management Procedures (LMP) which have been agreed upon in the Environmental and Social Commitment Plan (ESCP) and key requirements summarised in the Program Operational Manual (POM). Given that the IPF/TA component only supports the larger PforR operation, and that stakeholder engagement is already embedded in the PforR program design, a separate Stakeholder Engagement Plan for the IPF/TA component is not required. C. RECOMENDATIONS FOR PROGRAM EXCLUSIONS LIST OF EXCLUDED ACTIVITIES (BASED ON ENVIRONMENTAL AND SOCIAL RISK) 106. The following high-risk activities will be excluded from support under the proposed PforR Program expenditure. • Establishment of vehicle scrapping facility • Major/ Large scale centralized industrial boiler plants/systems. • New Landfill/ dumpsites • Any electric vehicles using lead acid batteries. • Construction of new buildings or any construction beyond the existing footprint of buildings • Activities involving asbestos containing materials (AC roofing sheets, AC pipes, and so on) such as construction, demolition, and dismantling. • Any activity involving land acquisition. • Any activity that may have potential involuntary resettlement will be excluded (screened out) from the Program boundary. 66 D. RECOMMENDATIONS TO BE INCLUDED IN THE PAP AND POM 107. The assessment identified certain areas for improvement of the implementation of the environmental and social systems, which can be addressed through the following recommendations: Table 12. Recommended Environmental and Social Actions for PAP Action By Timeline Indicator for completion Appoint, on a Full-time basis, DoEFCC Within 3 Designation of qualified staff, with qualified environmental, months of the defined scope of work (including the social, and communication effectiveness preparation of E&S guidance, monitoring specialists, to strengthen date the implementation of E&S actions, and environmental and social reporting protocols). capacity of UPCAMP SPV Environment, Health, and DoEFCC, Within 24 Completion of audit/assessment and occupational safety audit of UPPCB months of the recommendations for improvement to be vehicle scrapping facilities to Effective Date implemented throughout the program. assess conformity to national standards with corrective recommendations to be implemented through the program. Undertake a project wide DoEFCC Completion of Submission of Assessment Report by assessment of livelihood or the assessment DoECC income losses attributable to within Year One Submission of Completion Report by project investments , and; of effectiveness DoEFCC and adopt or facilitate measures Implementation Reports of the IVA and AMs of the World for their restoration of proposed Bank Missions measures through the project cycle Develop an environmental DoEFCC Continuous and social screening checklist Environmental screening checklists to be used by Project developed for site selection and Implementing Agencies before commencement of any investment planning. civil works to rule out any impacts and apply appropriate PIAs trained on use of checklists. mitigation where needed. Checklists monitored by Environment Specialist in UPCAMP SPV Bidding documents for DoEFCC With Year One construction and of Tenders and Bidding documents prepared procurement of AQM related implementation and floated by the DoEFCC equipment need to clearly specify the labour management related obligations of the Contractor- Supplier, including their responsibility to ensure non- 67 Action By Timeline Indicator for completion usage of forced- bonded labour by their primary suppliers Table 13: Recommended Environmental and Social Actions for POM Action By Timeline Description of Activity EHS performance criteria to Before DoEFCC E&S Before payments are relased to selected be included in selection of disburseme Specialist MSMEs, verify key EHS parameters. MSMEs for financial nt of assistance under UPCAMP subsidy DoT needs to follow EMP and DoEFCC Within 6 Prepare and adopt EMP based on desing procedures for approving and months of the of the vehicle scrapping program. monitoring of vehicle effectiveness scrapping program date Monitoring and supervision of DOA/ Continuous UPNEDA to conduct regular monitoring of livestock waste/ manure UPNEDA biogas facilities, and examine OHS manaement biogas facilities requirements. for compliance with national EHS policies Include standard clauses in all DoMSME Within 9 Inclusion of standard clauses on suste construction contracts for DoHeavy months of the mititgation and control in contracts will dust mititgation and control in Industry effectiveness be linked to environment permits/ Industry sector. date consents. UPPCB BioCNG plant operators DoEFCC Within 12 UPPCB to preapre a guideline for basic should ensure the safety and months of the orientation training on health and safety well-being of their workers. effectiveness for oepration of biogas plants. This includes providing date personal protective equipment (PPE), implementing safety protocols, and conducting regular safety audits to minimize occupational hazards. Training and capacity building UPNEDA Within 12 UPNEDA to conduct regular monitoring of of operators of biogas plants months of the biogas facilities, and provide basic on good OHS practices effectiveness orientation to biogas facilty managers. date 68 Action By Timeline Description of Activity Selection and inclusion of DoEFCC As UPCAMP-A UPCAMP SPV to include clauses on energy efficient devices and offices are adoption of new energy efficinet devices applicances for all offices and refurbished. in new offices, and contracts. program supported infrastructure Ensure universal access to all DoEFCC Prior to the public offices to be commencemen Included in the PfoR Action Plan rehabilitated under the PforR. t of establishing new offices, labs etc. Prepare guideline for all OEMs DoEFCC Within 12 for clean cookstoves to months of the Include stove recycling clause as part of undertake certified recycling effectiveness OEM participating in the clean cooking of the project after life. date program Adopt and implement UPCAMP SPV Included in ESCP Stakeholder Engagement Plan Social Specialist (SEP) with elements of communication plan to clearly define the main stakeholders and adapt engagement communication channels and methods to specific needs of each stakeholder group. Use Technical Assistance During UPCAMP SPV under IPF to provide Program environment Not included in ESCP additional training on OHS and implement specialist and Included in the PfoR Action plan. communication including with ation Communication women and vulnerable specialist workers. through IPF /TA Capacity building of DoE and DoEFCC- During Program UPCAMP SPV to prepare a training SPV staff on E&S issues, UPCAMP implementation calendar in consultation with state including on social inclusion, SPV training institutions and report participation and stakeholder completion in periodic E&S progress engagement reports 69 ANNEXURES ANNEX 1: LIST OF DOCUMENTS REVIEWED 1. National Clean Air Program (NCAP) 2. XV-FC Technical and Operational Guidelines 3. National Ambient Air Quality Standards (NAAQS) 4. National Biomass Cookstoves Initiative (NBCI) 5. Uttar Pradesh bio-energy policy 2023 6. National Biogas and Manure Management Programme (NBMMP) 7. State Rural Livelihoods mission 8. Swachh Bharat (Rural) 9. Swachh Bharat Mission 10. Finance Commission Solid Waste Management Grants 11. Pradhan Mantri Ujjwala Yojana (PMUY) 12. Saubhagya Scheme or Pradhan Mantri Sahaj Bijli Har Ghar Yojana 13. National Policy for Management of Crop Residues (NPMCR) 14. National SO2 and NOx emission standard norms by MoEFCC 15. MoEFCC Notification on Brick Kilns 2018 16. Motor Vehicles Act 1988 17. Voluntary Vehicle Fleet Modernization Program (V-VMP) and Vehicle Scrappage Policy 18. Bharat stage emission standards 19. MSME Sustainable (ZED) Certification 20. Entrepreneurship Skill Development Programme (ESDP) 21. Plastic Waste Management Rules, 2016-amendment 2022 22. Swachh Bharat Mission - Urban & Rural 23. New Emission Standards for Power Plants under Environment Protection Act 1986 24. Galvanizing Organic Bio-Agro Resources Dhan (Gobardhan) scheme 25. Sustainable Alternative Towards Affordable Transportation (SATAT) Scheme 26. National Food Security Mission 27. Paramparagat Krishi Vikas Yojana (PKVY) 28. Rashtriya Krishi Vikas Yojana (RKVY) 29. National Project on Organic Farming (NPOF) 30. Pradhan Mantri Krishi Sinchai Yojana (PMKSY) 31. Biogas Development and Utilization Program 32. National Mission for Sustainable Agriculture (NMSA) 33. Agricultural Technology Management Agency (ATMA) Scheme 70 ANNEX 2: DESCRIPTION OF ENVIRONMENTAL AND SOCIAL MANAGEMENT SYSTEM AND CAPACITY AND PERFORMANCE ASSESSMENT Institution Roles and Responsibilities Gap analysis State Level Institutions Department of Leading UPCAMP program and coordination with different sectoral • Air quality falls under poor category in UP and no state program Environment Forests and departments for implementation of interventions/DLI is initiated to curb the same apart from NCAP program at national Climate Change Formation of a coordination committee and SPV start-up level. Therefore, a need of state level air quality program will lead Budget Tracking IT System to development of state air action plan and focused actions on air Development of a stakeholder/Citizen Engagement Program quality to deal with varied sources from different sectors. Sector AQM expenditure monitoring and results management systems established Directorate of Capacity building and strengthening of staff by identification and Insufficient Staffing: There is a significant shortage of staff, Environment mapping of an expert for each sector. hindering the effective implementation of air quality Training programs on GAINS, sectoral discussions, technical management initiatives in UP. discussion on AQM monitoring. Lack of Sector Experts: Insufficient expertise in various sectors, Toolkit to trigger behavior changes and implementation. such as industry, transportation, and agriculture, limits the state's Collaborating with the AQM Working Group and ability to address specific pollution sources adequately. academic/technical institutes and implement training and Absence of Dedicated State Unit: The lack of a dedicated and capacity-building initiatives to create a specialised workforce to capable state unit for evidence-based multi-sector air quality address air pollution-related challenges and manage/oversee management in UP results in a capacity gap. district-wise source apportionment and Inventorisation studies Staffing Shortage at UPPCB and UP Directorate of Environment: Both organizations suffer from staffing shortages, which prevent them from forming a dedicated team for comprehensive airshed management, affecting their ability to tackle air pollution effectively. UPPCB • Leading establishment of AQM monitoring infrastructure including • The monitoring network falls short of covering rural areas in UP, a state-wide network in 75 districts indicating capacity gaps in expanding coverage, equipment • Coordination with sectoral departments to update the emission maintenance, and data reliability. inventory timely and in collection of data from different sectoral • The absence of a state-of-the-art air laboratory hinders source departments. apportionment, monitoring data analysis, and Comprehensive • Provide periodic target vs achievement reports, as needed, on the Clean Air Plan (CCA) development. abatement of air pollution, to Bihar stakeholders, implementation • Inefficient coordination among departments creates a capacity agencies, as well as to the CPCB. gap in ensuring seamless data flow and data quality assurance. 71 Institution Roles and Responsibilities Gap analysis • Operation and enhancement of the AQ monitoring network to • There is a capacity gap in achieving data accuracy and translating ensure quality data. it into actionable insights for informed decision-making. • Producing reports to track Action Plan success. • A capacity gap is evident in terms of legal expertise, work force, • Regulatory enforcement of environmental laws, permits, and resources necessary for robust regulatory enforcement to inspections, and actions. combat air pollution effectively • Monitoring air, water, and noise quality for compliance and concerns. • Environmental Impact Assessment (EIA) for project impacts and mitigation. • Formulating and implementing pollution control measures and standards. • Collaborating with government, NGOs, and stakeholders for collective solutions and coordination with central bodies like the CPCB. State Level AQMC Leading and coordinating quarterly meetings with sector The existing state AQMC, led by the Secretary of Environment, departments to regularly understand the status and update of focuses solely on executing and implementing action plans in 15 various actions implemented by each department at state level non-attainment cities in Uttar Pradesh, indicating a capacity gap including 75 districts. in broader air quality management. Ensure implementation of all feasible control measures, at The absence of a dedicated Special Purpose Vehicle (SPV) unit grassroot levels, based on the target settings and priority slows down decision-making processes, affecting the state's responsiveness to air quality challenges. State Agriculture In accordance with the suggested efforts to limit the generation Limited capacity to deal with air pollution specific challenges and Department of secondary PM via NH3 emissions from fields, it is the solutions related to agriculture sector. department's obligation to restrict residue burning with stringent Strengthening of policies related to generation of secondary restrictions and encourage sustainable agricultural practises in particulate matter is needed. the state. Lack of coordination amongst department, example UPNEDA or Ban residue burning by promoting alternate business models and animal husbandry department for convergence of bio-energy subsidized farm machinery. policy in an efficient manner Promote organic farming practices with incentivized schemes. Scale-up Climate Resilient Crop Production to assess the potential of genetically modified rice crop with less water requirements, to reduce NH3 emissions from fields. 72 Institution Roles and Responsibilities Gap analysis State Rural Development Development of DPR in coordination with AQM working group No state level targets /plan to provide rural households using solid and Panchayati Raj and other sector departments to understand the overlapping of fuels with clean cooking solutions. Department actions etc. Lack of two-tiered institutional mechanism focusing on (i) policy Providing sector-specific inputs to the overall clean cooking policy and program strategy design led by state-level government and program implementation strategy for Uttar Pradesh led by agencies, and (ii) program implementation at the district level with the nodal department (DoEFCC) participation from service provider, financiers, and enterprises. Enabling access to finance for interventions through existing government schemes/programs of their specific departments Providing guidance on developing guidelines and criteria to select program implementation partners (i.e., enterprises, service providers and financiers) at the district level. Supporting implementation of ecosystem development activities like awareness generation, quality assurance, monitoring and evaluation, capacity building and gender integration among other aspects State Urban Department Development of DPR in coordination with AQM working group Need of foundational environment management training and and other sector departments to understand the overlapping of capacity building for staff involved with operationalizing of solid actions etc. waste management investments. Urban departments will have a separate environmental cell/ PMU established. The PMU will ensure necessary work force for investment planning and design to ensure AQM outcomes. 73 Institution Roles and Responsibilities Gap analysis State Transport Development of DPR in coordination with AQM working group The SPV capacity along with the inhouse capacity in DoT were Department and other sector departments to understand the overlapping of found to be satisfactory. actions etc. DoT has in-house capacity in the sector as most high-risk Establishing sufficient automated fitness facilities and PUCs, transport projects require EIA and EMP combined with phasing out older/more polluting vehicles from The ongoing initiatives on EHS capacity building, with the current the state's major cities, to ensure the fitness of all World Bank Project requires to be continued and modules of motorized vehicles plying in the state. environmental management training should be integrated with Implement the Scrapping Policy for diesel-based cabs to shift all capacity building initiatives through the Program period. towards CNG. Development and implementation of vehicle scrapping program, Establish Automated Fitness Centre for E-rickshaw and CNG should be supported with an environmental management plan, as autos. this presents several risk factors to environment and human Timely enforcement of the Electric Vehicle policy with instalment health. Current policies and guidelines are adequate, but of charging stations implementation of the policies needs strengthening. Improve public transportation facilities with increased number of city buses (CNG) Strengthen PUC (maintenance and audits) Install Emission Monitoring System for HDV at the tolls or weight bridges. State MSME Department Ensure compliance under Emissions Standards, Effluent UP MSMEs struggle with limited affordable credit, constraining Standards and Waste utilization. their growth. Retrofit all the old machineries. Skills Shortage: Capacity gap in skilled labor and management Shift industries towards low carbon and cleaner technologies. impairs productivity and innovation. Subsidize the installation of energy and resource-efficient Outdated Technology: Obsolete tech hinders competitiveness technologies to improve performance. and efficiency. Organize capacity-building program for the stakeholder personals Infrastructure Gaps: Inadequate logistics affect supply chains. and industrial workers. Regulatory Challenges: Complex regulations impede compliance Periodic reporting of emission data to UPPCB and business operations. Assess the potential for the development of an eco-friendly industrial area (with paved roads, clustered development of similar MSMEs, centralized CETP) 74 Institution Roles and Responsibilities Gap analysis UPNEDA UPNEDA plays crucial role in identifying suitable sites for Occupational health and safety in management of biogas plants is renewable energy projects/ Biogas project and facilitating their one area where UPNEDA can build up capacity and awareness. development. UPNEDA faces limited financial resources, hindering its ability to The agency conducts feasibility studies, resource assessments, invest in renewable energy projects and infrastructure and site surveys to determine the viability of renewable energy development. projects. Capacity gap in recruiting and retaining technical experts for It also assists project developers in obtaining necessary approvals project planning and implementation. and clearances from relevant authorities. Limited public awareness and engagement in renewable energy UPNEDA conducts training programs and workshops to build the adoption and sustainability practices. capacity of various stakeholders, including government officials, industry professionals, and local communities. These capacity- building initiatives aim to enhance awareness and understanding of renewable energy technologies, energy conservation, and environmental sustainability and are relevant to the project result areas. District and Sub-District Level Institutions District Level NCAP The implementation of all the proposed control measures based Limited capacity and key counterpart absence in managing committee on targets under UPCAMP at the grassroots levels, to identify specific actions related to air pollution in all districts in the state. potential drawbacks/limitations of any mitigation activity and No coordination amongst all districts of state except for 15 NACs pinpoint the individual gaps within the implementation of UPCAMP in each district Rural Local Bodies / Coordination with district level committee and sector nodal Limited Financial Resources: Rural local bodies in UP face budget Gram Panchayats departments for implementation of targets/actions assigned constraints, impeding infrastructure development and public under stipulated timeline. service delivery. Report regular updates to nodal departments on action Capacity gap in personnel with the required administrative and implementation governance skills. Inadequate rural infrastructure, including roads, sanitation, and healthcare facilities. Technology Adoption: Slow adoption of digital tools and technology for efficient governance. Challenges in engaging and empowering local communities in decision-making and development initiatives. SHG Federations and Coordination with district level committee and sector nodal SHG Federations and Village Organizations face resource 75 Institution Roles and Responsibilities Gap analysis Village Organisations departments for implementation of targets/actions on clean constraints, hindering their capacity to provide financial support cooking program assigned under stipulated timeline. and livelihood opportunities to marginalized communities. Report regular updates to nodal departments on action Capacity gaps in providing training and skill development implementation programs to empower members economically and socially. need for capacity building to enhance governance, financial management, and sustainability of these grassroots organizations. Challenges in linking SHGs with markets and value chains, affecting income generation and economic growth. Capacity gaps in robust monitoring and evaluation systems to track the impact and effectiveness of their initiatives. 76 ANNEX 3: EHS RISKS ANALYZED AS PART OF SECTOR PROGRAMS Sector Schemes / Policies EHS issues Urban Swachh Bharat Mission Uncovered construction activity. Finance Commission Solid Waste Open storage and carriage of Management Grants construction materials Open dumping of C&D waste and Municipal Solid Waste Fires at Legacy waste dumpsites and Landfills Open Burning of Waste including Plastic Older Public Transport Fleet Agriculture Paramparagat Krishi Vikas Yojana (PKVY) Stubble burning Rashtriya Krishi Vikas Yojana (RKVY) Overuse of fertilizer National Project on Organic Farming Manure storage and management (NPOF) Pradhan Mantri Krishi Sinchai Yojana (PMKSY) Biogas Development and Utilization Program National Mission for Sustainable Agriculture (NMSA) Domestic/Clean State Rural Livelihoods mission Use of solid fuels leading to indoor and Cooking Swachh Bharat (Rural) ambient air pollution in rural areas Bio-energy program Time consuming activity in collection of fuelwoods by women Gender disparity and behavioural change Severe effects on health of both women and child Transport Motor Vehicle Act, 1988 Older Polluting Vehicles Voluntary Vehicle Fleet Modernization Road paving and dust management Program (V-VMP) and Vehicle Scrappage Functional scrapping facility Policy MSME MSME Sustainable (ZED) Certification Health and safety of workers working in polluting brick kiln running on old Entrepreneurship Skill Development technologies. Programme (ESDP) Individual boilers in MSMEs leading to greater effect on air pollution. Limited responsibility of industry owners on health and safety of workers in MSME Lack of air pollution control devices in MSME MSME running on DG sets emitting higher level of air pollution 77 Sector Schemes / Policies EHS issues Biogas National Biogas and Manure Generation of secondary particulate Management Programme (NBMMP) matter from gases such as ammonia through cow dung. Therefore, use of cow Bio Energy Program dung in conversion of biogas is recommended. Stubble burning Use of fuelwood in traditional cookstoves can be converted by implementing biogas model in individual household ANNEX 4: WORLD BANK SECTOR IMPLEMENTATION EXPERIENCE IN UTTAR PRADESH Table 14 Implementation Experience of Program States Sector Project Remarks on E&S Management in ICR Agriculture Uttar Pradesh sodic Environmental safeguards: The project was classified as category B in lands reclamation accordance with the WB’s environmental safeguard policy classification, III project and the following policies were triggered: Environmental Assessment (OP (P112033) 4.01); Natural Habitats (OP 4.04); and Pest Management (OP 4.09). Against this backdrop, the government had prepared an ESMF providing appropriate mitigation actions. Under the ESMF, a specific Wetland Management Plan was implemented to prevent draining of natural wetlands. An Environmental Manager was in place throughout the project and regularly monitored and reported on safeguards compliance. Environmental safeguards compliance was satisfactory overall, and no significant adverse impacts were observed. Water Uttar Pradesh The Social and Environmental Management Plan (SEMP) was undertaken Water Sector at the time of preparation and, in conjunction with the Basin Social and Restructuring Environmental Assessment (SEA), laid out the issues and targets for the Project (P050647) project as described in the PAD. The project made significant progress on the key issues through building awareness of environmental issues and improving the knowledge base and institutional capacity within the department and through the water user associations (WUAs) among the farmers. For irrigation and drainage reform, the SEA and SEMP outlined issues related to limited knowledge of integrated pest management, soil fertility and nutrient management, lack of attention to drainage, lack of diversification and little modernization of tools and techniques. Consultation and rehabilitation issues were also identified. Generally, most of these aspects were adequately covered within the project with numerous studies, plans, demonstrations, and training materials being 78 Sector Project Remarks on E&S Management in ICR developed Health India: Uttar Prades The Environment and Social Action Plan was developed and implemented h Health Systems by the project to ensure improved access and uptake of preventive, Strengthening curative and essential public health services. Project (UPHSSP) Overall safeguards were assessed to be Moderately Satisfactory in 12 and (P100304) Satisfactory in four out of 16 Implementation Status and Results (ISR). Aside of complying with both national guidelines for management of bio- medical waste, the project also met Bank’s policies for environment assessment (EA), which were assessed to be Moderately Satisfactory in 12 of 16 missions and the remaining four were Satisfactory. The EA was assessed to be Moderately Satisfactory was on account of delayed and slow implementation of the environment action plan and due to frequent change of leadership that had resulted in delay of decision making related to implementation of EA activities that were beyond the control of DOHFW. The project undertook interesting innovations for handling bio-medical waste management using technology for effective monitoring and creating an accountability system starting from source of collection (District Hospitals) to destination (Common Treatment Facility). Rural National Rural An Environmental Assessment (EA) identified and triggered key safeguard Livelihoods Project policies: Environmental Assessment (OP 4.01), Forests (OP 4.36), Natural (P104164) Habitats (OP 4.04) and Pest Management (OP 4.09). The NRLP falls in the environmental screening category B as per Bank’s Operational Policy (OP) 4.01. The EMF assessed eligibility of SHG primary federation activities and producer collectives through a regulations list and incorporation of good natural resources management practices through environmental guidelines. The ESMF framework applied included the institutional arrangements at the national, state, district and sub-district levels that were implemented and provided capacity-building activities for project staff, community institutions and partners at all levels to address social needs and risks. 79 ANNEX 5: SUMMARY OF STAKEHOLDER MEETINGS ON CLEAN COOKING Timeline – Discussions conducted between April 2022 – June 2023 Stakeholders: A meeting with various stakeholders including Department of Environment, UP, Working Group members from UPCAMP and representatives from the World Bank and Rural Development Department, Panchayati Raj, Animal Husbandry, Food and Civil Supplies, UPNEDA, research institutions (ICAR), public sector enterprises, and social enterprises working in the clean cooking sector Summary: 1. Introduction to UPCAMP and the Clean Cooking Program: • The meeting began with an overview of the UPCAMP project and the importance of a clean cooking program to curb air pollution from residential and commercial sources. • Mr. Ashish Tiwari highlighted the fact that residential and commercial burning is the largest contributor to PM2.5 pollution in the state and hence clean cooking needs to be promoted across the state. • It was also highlighted that different clean cooking solutions such as improved biomass cookstoves, biogas, and solar cookstoves can be promoted in Uttar Pradesh but a comprehensive strategy needs to be developed. 2. Considerations in preparation of DPRs and designing pilots. • Discussions held on (a) contributions of clean cooking to air pollution in Uttar Pradesh as per the initial findings of the cost effectiveness analysis (b) Current government data on clean cooking accessibility (urban and rural households) (c) a technical study funded by the World Bank Managed ESMAP Fund to support a state strategy and recommend business models for clean cooking adoption. • The mission held detailed discussions on the study methodology and data sources for the study. The rationale for support from UPCAMP stems from the fact that residential biomass burning accounts as the number source of primary PM2.5 in UP, and while the Pradhan Mantri Ujjwala Yojana (PMUY) scheme has successfully connected millions of rural households to LPG, there remains the need to find clean cooking solutions for non-LPG households that still rely on traditional cooking methods from an air pollution management perspective. • Discussions focused on four business models that could be supported or considered for pilots through UPCAMP (a) improved biomass cookstoves using market led distribution models (b) expansion of biomass pellet cookstoves through technical and entrepreneurial capacity support for a supply chain of pellets; (c) biogas scale up through community biogas plants; and (d) electric cookstoves for households with electricity. 3. Discussion on biogas-based solutions • Representatives from ICAR highlighted that biogas can be a good alternative to replace solid fuels provided some of the challenges of availability of feedstock and management of Fermented Organic Manure (FOM) or slurry can be addressed. • The Banaskantha model was also discussed where in a 40 tonne CBG plant is being operated by the Banaskantha dairy. The biogas in currently being used as a fuel for vehicles but pipelines are also being installed to households. • A community level biogas plant (with capacity to process 1 to 10 tonnes daily feedstock) may be most suitable for Uttar Pradesh. A 10-tonne biogas plant can fulfil cooking needs of about 300 families. • According to details shared by the Department of Animal Husbandry, Uttar Pradesh currently has about 6880 cow shelters with about 500 large cow shelters having more than 500 animals. There are about 492 registered cow shelters that are already producing vermicompost. These cow shelters would be ideal to pilot a community biogas solution. • It was also highlighted that financial incentives to establish 500 CBG plants across India were announced in the Financial Budget for FY 2022-23. 80 • Feasibility studies need to be done to assess the feedstock availability and demand for Fermented Organic Manure (FOM) before establishing any biogas plant. Other factors such as temperatures, adulteration of waste, etc may also affect the output and operation of the plant. • Capacity building of beneficiaries will be critical to ensure operation and maintenance of biogas plants. The Skill Council for Green Jobs has created a training module for the operation and maintenance of biogas plants. UPNEDA can take a lead in capacity building a training for potential community institution members identified to run the community biogas plants. 4. Discussion on the solutions for improved cookstoves • Representatives from SRLM highlighted that SRLM has initiated the Prerana Ojas programme to promote clean energy solutions on similar lines as BRLPS-Jeevika in Bihar. • SRLM has also entered a partnership with TERI for the programme. • Representatives from TERI highlighted the need for identifying sources and channels for viability gap funding for the cookstoves. • Representatives from SRLM suggested that they have a cadre of Vidyut Sakhis (Community Resource Persons) who can help in initial handholding of enterprises run by women entrepreneurs. However, SRLM needs financial and technical support for developing materials for marketing and demand generation, viability gap funding for the products, and behaviour change communication. • Representatives from SRLM also suggested that they can provide a more detailed document on the current gaps in the implementation of the program and the support needed. • The financial incentives that need to be provided to end users may vary according to income levels of the households. For example, the poorest of the poor households may need a full subsidy to purchase an improved cookstove while middle income and (relatively) higher income households can afford to pay some amount for the cookstoves. Developing the exact financing model for end users will also need some hit and trials through pilots. • Uttar Pradesh currently has 7.2 lakh SHGs covering about 1.18 crore households. The state government has undertaken the Mission Antyodaya Survey to identify deprived households in the State. • It was highlighted that the other schemes that can be leveraged for clean cooking in the State are the Gram Panchayat Development Plans and the Clean Energy District programme for Unnao District. 5. Discussion on solar PV based solutions • Representatives from EESL India highlighted the economics of a solar-based induction cooking solution. The induction cooktop requires two 1KW panels and currently costs about INR 80,000 with the battery cost itself being about INR 35,000. The batteries need to be replaced every 3 to 4 years. • EESL is piloting some models without batteries to reduce the cost of the cooktop. Subsidy of about 40% (INR 32,000) can be availed through MNRE and about 25% (INR 20,000) can be generated through carbon credits over the life of the cooktop. 6. Discussion on next steps: As per the recent discussion in development of DPR, it has been decided that state would pilot and implement three methods as discussed above with different financing models as described below: • Improved biomass cookstoves: DoEFCC will develop and register a carbon project for clean cookstoves (ICS) in different geographies of UP and will be the coordinating and managing entity. The projects would be registered as a program of activities (PoA) combining multiple project activities with a common objective into a single program. The DoEFCC as the implementing department would empanel eligible partner organizations and select players for sub-projects for specific geographic regions of the state through an auction process, awarded to a player that can introduce the highest cost savings to beneficiaries. The partner organization would be responsible for end-to-end implementation of the activities for a specific clean cooking project (supplying technology, setting up distribution networks, providing after-sales service to issuance of carbon credits and cost of manufacturing/distributing the 81 clean cooking technology). The last-mile distribution of the clean cooking technology would be undertaken via the existing women SHG network defined under the SRLM. Bulk of the financing is being brought by the partner organizations (described further in Annex 3). The business model would be piloted tested with 50,000 households and scaled up after 1.5 years based on lessons learned. • Household Biogas systems: will be delivered using the current subsidy regime under the National Biogas and Manure Management Programme (NBMMP) that gives provisions for small scale biogas plants ranging from 1-25 cubic meters. The project will utilize the subsidy of approximately USD 170 (14350 INR) for each biogas system ranging from 2-4 cubic meter biogas per day along with upgrades of compatible improved cook stoves. The target districts/households will be shortlisted based upon two criteria; (i) Number of households with more than 3 livestock to produce feed for biogas digestor; (ii) 2 Number of districts ranging below 50% threshold of using cleaner fuel (LPG and improved stoves) as per NFHS data. • Electric induction and hybrid solar cooking: Electric induction cooking will be promoted selectively to target districts/households following three main criteria: (i) districts ranging below 50% threshold of using cleaner fuel (LPG and improved stoves) as per NFHS data; (ii) districts having electricity connection/access to at least 95 percent of households; (iii) households with per capita income criteria ranging from 305 USD - 610 USD and 610 USD – 915 USD. As per the above three eligibility criteria, 40 districts were shortlisted, based on meeting the above 3 criteria. 1 percent of the households in these 40 districts (circa 160,000) will be the target beneficiaries/households for these clean cooking technologies. The project would provide a 30 percent subsidy on the cost of an electric cookstove (estimated cost is 61 USD). The estimated expenditure for this subcomponent is approximately 2.8 M USD. Existing programs by EESL (Energy Efficiency Services Limited, Ministry of New and Renewable Energy) and Indian Oil Corporation Limited (IOCL) to promote wider adoption of electric induction and solar cooking technologies are being implemented in UP through a subsidy from Ministry of New and renewable energy. As a next step, the mission recommends DoEFCC establish agreements with EESL and IOCL about utilizing their implementation framework and business models for solar and electric cooking technologies including on additional targets household/beneficiary for UPCAMP. Draft MOUs or letters of agreements should be shared with the Bank by project appraisal. Workshop on ADVANCING SUSTAINABLE, CLEAN, AND AFFORDABLE COOKING UNDER THE MISSION LIFE AND GO ELECTRIC CAMPAIGN Date: Tuesday, May 30th, 2023, Time: 09:30 AM to 14:00 PM Venue: Camellia & Garden Grille, Hilton Garden Inn, Vibhuti Khand, Gomti Nagar, Lucknow – 226010 AGENDA TOPIC: Technologies, Policy, and Financing Options for Clean Cooking in India BACKGROUND: Residential biomass burning is the largest source of ambient air PM2.5 pollution in UP. This is due to the use of solid fuels such as wood, charcoal, dried animal dung, and crop residues with limited affordability for LPG cylinders. The ambient air quality model developed by IIASA being used for the UCAP has estimated that addressing residential sector air pollution sources in Uttar Pradesh can reduce up to 9.6 µg/m3 PM2.5 exposure by 2030. Therefore, a significant part of the UPs deadly air pollution can be solved by directing resources to tackling household emissions. While the government of India has made noteworthy progress in expanding access to LPG and electricity into rural areas, through Pradhan Mantri Ujjwala Scheme, (17 million connections in UP), the full transition to alternatives like LPG, for low-income households will take more time. The experience to date indicates that low- income households often continue to use multiple fuels even once improved fuels are available and therefore require intermediate low-cost transitional options that can meet important health and development objectives. LPG remains the most effective clean cooking solution for the long term but until challenges of affordability and accessibility can be overcome, improved/ clean cookstoves continue to offer a viable solution for the near term. TECHNOLOGIES AVAILABLE AND TO BE EXPLORED: 82 Technology Factors that may limit rapid Indicative cost of technology Parameters to be scalability adoption12 considered for effective use LPG • Lack of affordability The upfront cost for an LPG especially for low-income cylinder connection is about INR households (despite existing 4,000. An average household of PMUY subsidy). 4-5 members is likely to • Lack of delivery mechanisms consume 8-9 cylinders every in disconnected rural areas. year thus incurring a recurring • Lack of awareness about cost of about INR 10,000 government schemes and annually. processes for obtaining new connections. Advanced • Incompatible design of The cost of an advanced • Standardized biomass cookstoves withstanding cookstove may be between INR technologies that meet cookstoves (with considerations like the ease 1,500 to 3,500. the global standards for processed fuels of usage for women and The cost of pellets available in Tier 3 or above such as pellets or diversity of cooking habits the market is INR 17 to 18 per Kg cookstoves (both briquettes) and taste/preferences of but can be reduced if forced and natural Indian households manufactured at scale; draft) with low ash- • Lack of enforcement of Consumption may vary widely content specifications and standards across households (average may • Certifications regarding for cookstoves leads to poor be 3.5 to 4 kg per day). quality (such as BIS quality of products. standards/ISO standard • Prevalence of low-quality TR 19867-3:2018) cheaper solutions (such as • Suited for varied fuel Tier-2 cookstoves) which types - cow dung, have higher emissions and firewood, and biomass have created distrust about pellets the technology among end users. • High costs of advanced cookstoves that can burn 12 Indicative costs based on current market estimates. Actual costs may be lower based on factors such as scale of the programme, potential for carbon financing, etc. 83 pellets as compared to traditional cookstoves. • Poor after-sales service. Biogas • High capital expenditure with The capital cost of a household • Technology application limited financing options size biogas plant (2-5m3) is according to local from financiers about INR 52,500. The annual feedstock availability • Lack of availability of operational cost may be about • Scale of biogas plants - sufficient land at the INR 4,000-INR 6,000 depending Community biogas household level to set up a on feedstock availability and plants (10m3 to 30m3 biogas plant. maintenance. capacity) instead of • Poor design and construction The capital cost of a community household biogas often lead to lower efficiency biogas plant providing biogas to plants and higher breakdowns. 300 households could be • Lack of availability of between INR 75 lakhs to INR 1 feedstock especially during crore. periods of droughts or other weather-related events. • Operating a biogas plant can be labor intensive and requires regular upkeep. • Lack of awareness about the application of biogas for cooking. Electric/ • High upfront costs compared An induction stove may cost • Higher energy Induction to traditional cookstoves. about INR 2,700 to INR 4,000. efficiency with low cookstoves • Need for separate cooking The average annual cost of consumption of utensils and lack of suitability electricity for a household using electricity for cooking certain type of an induction cookstove will be • Easy to use for different food items. around INR 6,000.13 cooking styles. • Lack of reliable electricity • More safety features to suit unreliable 13 Cost calculations based on assuming a 1500 Watts induction cookstove running for 2 hours every day. 84 supply especially in rural electricity supply. areas. • Higher durability and • Lack of awareness about the product warranty availability and usage of the technology. Solar cookstoves • High cost of technology for The cost for a household solar PV • Technology with higher low-income households panel induction cookstove can energy efficiency to • Unreliable due to be from INR 12,000 to INR cook on minimal dependency on weather 23,000.14 Other Solar PV based sunlight conditions. conditions (makes it induction cookstoves are • Ensuring portability unsuitable for use during currently sold at INR 80,000 and • Ease of usage in areas cloudy weather or monsoon batteries may need to be with poor electricity seasons) replaced (costing around INR access • Increased cooking time 30,000) after 4-5 years. FINANCING OPTIONS: CHALLENGES IN PROVIDING AFFORDABLE FINANCE IN THE CLEAN COOKING SECTOR: Challenges in financing at the end user level Challenges in financing at the enterprise level Lack of information on credit worthiness and Diverse set of small manufacturers with lack of high default rates standardization or quality control across products Lack of mechanisms to aggregate demand and Lack of assured demand for products hence high cost of lending Small ticket size of the product Limited market information FINANCING SOLUTIONS Type of Financing Options Mechanism for financing Questions/follow up technology 14 Based on cost of ‘Surya Nutan’ cookstoves developed by Indian Oil Corporation Limited. 85 Clean Consumer financing for clean cooking solutions: The World Bank, through Can Food and Civil Cookstoves A dedicated credit line can be setup to enable a government loan, can Supplies manage this low-cost consumer financing to users. This credit help setup a dedicated using the beneficiary line can be accompanied by a technical credit line for clean lists of existing govt assistance (TA) facility for enterprises/service cooking solutions that programs (BPL families, providers (TA: Providing credible customer leads can enable FIs MNREGA workers) to FIs, building local capacities, Supporting (Development Finance For non-Ujjwala marketing/distribution of the solution) Institutions or households (not even multilateral development getting the LPG cylinder banks) to give low-cost subsidy, so a similar credit options to end subsidy may be users considered) The credit line can be Confirm if government routed through NABARD funds can be directed and other government into NABARD program institutions for on- without W. Bank for an lending to FIs. The credit added subvention line can also be levered as (compare to the cost of a part of NABARD’s SHG- LPG cylinder subsidy) Bank linkage program through an interest subvention Enterprise financing for manufacturers and The World Bank can Confirm if there an distributors: assured credit to fund working provide a dedicated existing UP program capital requirements and business development credit line (revolving under MNRE that can activities along with an interest subsidy and a credit facility) to a introduce the dedicated partial first loss default guarantee (FLDG) can designated financial credit facility? scale up manufacturing institution (such as SIDBI or IREDA) for setting up a working capital facility/fund. Biogas Enterprise financing for manufacturers and The World Bank can How to involve Animal distributors: assured credit to fund working provide a dedicated Husbandry Department capital requirements and business development credit line to a designated to work on feasibility activities along with an interest subsidy and a financial institution (such studies based on partial first loss default guarantee (FLDG) can as SIDBI or IREDA) for proximity to scale up manufacturing. This revolving credit setting up a working livestock/leverage facility can be used to provide working capital to capital facility/fund. existing cowsheds for distributors and manufacturers of Tier 3 and development of above clean cooking solutions, biogas plant New National Biogas and community biogas developers, and decentralized biomass Organic Manure Program plants and processing units. (NNBOMP) has subsidies understanding supply of 17,000-70,400 plant + chain of biogas to GoUP has an additional households? subsidy of 50 lakhs under the Gobardhan scheme implemented by the UP- Panchayat Raj Dept 86 Solar GoUP Fixed One Time Capital Subsidy; +matching Cooking IOC Subsidy; Pilot consumer incentives for the Surya Nutan- Solar Powered Indoor Cooking Solution – Hybrid Solar/Electric ADDITIONAL TOPICS FOR CONSIDERATIONS: 1. Behaviour Change Communication What to do How to do (Funding Mechanism) 1. Target segment (women, male, rural households, Leverage IEC funds under the UPSRLM /Dept Rural and urban households for primary survey on user Development; Funds of Dept o Panchayat Raj; and pain points on usage of clean cooking solutions and Poshan Abhiyan and Integrated Child Development message framing targeting end users Scheme under Women and Child Development Dept 2. On-Ground Implementation and Delivery Channels: Utilize various delivery vehicles, including both above-the-line (mass media, etc.) and below-the-line (targeted field level marketing) activities. 3. Monitoring and evaluation: collecting end user data through surveys on the use of clean cookstoves and fuels before and after the campaign as well as monitoring behaviours and attitudes. 2. Measuring impacts from clean cooking solutions and cost-effectiveness of co-benefits monitoring: • For pollutants: Evaluation through GAINS model, updating emission inventory, time to time data collection, sample survey etc. • Adoption of clean cooking solutions: Leveraging monitoring and evaluation via an integrated approach to monitoring and evaluation that combines user-level and community-level mechanisms. For example: community institutions under UPSRLM such as Village Organizations can be empowered to take up community-level monitoring, especially in rural areas where continuous monitoring is essential. • For gender via gender integration : Potential sources of resources that can be leveraged for gender integration activities are women empowerment funds under UPSRLM and Uttar Pradesh Skill Development Mission for training and entrepreneurship development. ANNEX 6: SUMMARY OF STAKEHOLDER MEETINGS ON MSME Timeline – Discussions conducted between April 2022 – June 2023 Stakeholders: A meeting with various stakeholders including Department of Environment, UP, Working Group members from UPCAMP and representatives from the World Bank and Infrastructure & Industrial Development, public sector enterprises, and social enterprises working in MSME sector Summary: 1. Key challenges facing MSMEs Sector • Key challenges in UP in managing air pollution are associated with the use of dirty fuel (primarily coal 87 and pet-coke), resource/energy inefficiencies, inadequate implementation of Air Pollution Control Devices (APCD), and poor operation, and maintenance of boilers. • Several actions are currently being taken to curb air pollution from MSMEs, including in clusters in 10 districts of UP. Under directions of the CAQM, more than 1100 units in the NCR part of UP have converted to using PNG. • VAT to be reduced, 12.5% currently, on steam. Bring down the rate to 5% like in Gujarat. • Land is an issue. Requires 3-6 acres of land for 2 boilers. • Industrial Policy, for above 50 cr projects there is capital subsidy and SGST relaxations. For above 200 cr projects, capital subsidy is increased further and the reimbursement under SGST. Centres of Excellence also in the industrial policy (incentive structure provided in the industrial policy] • Industries to shift to hydrogen-based system in the next 10 years. In the interim, industry requires subsidy on solar. • NCR region has banned coal as fuel for industries but some of the coal categories like “metall urgical coal� are less polluting. • In NCR, biomass and PNG are being promoted as options. Biomass for industries is more commercially viable than PNG. However, the guidelines/norms on pollution control are more stringent in the NCR for biomass and PNG and need to be complied with. • Paper and pulp industries, large industries, biomass is being used. The choice on the use of ‘community broilers’ and ‘biomass/PNG’ depends on the size of industry. • Enforcement is very important for the NCR region, however, in the rest of UP these guidelines do not exist (?) and norms are not properly enforced. 2. Key issues in Brick Kiln Sector: • Unorganized sector; migratory labour • Very old technology dating back to 1860’s • Only in 1995/96, there was a change in policy to replace the iron chimneys by a fitted (?) chimney/fixed technology • GoI came out with a new technology – the zig zag technology. Zig zag is more emission efficient, quality efficient. • Shifting to zig zag requires skilled and trained labour; no training institute, the unskilled workers learn from others • In NCR, coal has been banned but brick kiln requires coal, so this is an outstanding issue. Use biomass instead of coal. • This is a sector that employs large labour force. • Encourage use of “red bricks� rather than hollow brick in construction • Bring out a policy in the construction and housing sectors to use bricks made with zig zag technology. • Total ban on coal is not feasible for zig zag technology. Use a phased approach to banning of coal for zig zag adoption. 3. Solutions suggested by stakeholders in MSME: • Product Diversification (Perforated bricks, fly ash bricks, hollow bricks) • Zig zag Technology adaption • Capacity building training program for fireman, Pass the drawing for zig zag. • Forced/ induced draught. • Use of internal fuel (parali) to make it more perforated. Giver better insulation for bricks also reduce overall weight of bricks too. • For long term, Tunnel Kiln pilot and communization of sector can be thought off. • Establishing Community Boilers (Approx. 1 acre land required for 60 Ton) • Gas / biomass burners where coal is banned. Boiler feeder can also be run on municipal waste. In addition, they have been doing fuel plantation of king grass, a kind of bamboo. • APCS technology mandate • Filter for large biomass plants: ESP • APCS technology for all • Promotion of PNG uptake, where pipelines are there. • Solar technology in long term 4. Recommendation and next steps for development of DPR: 88 • Recommended areas for interventions to reduce air pollution from MSMEs in UP identified include i) shifting away from dirtiest fuels to cleaner alternatives; ii) developing common steam facilities to replace more polluting standard boilers and baby boilers; iii) promotion of resource/energy efficiency practices; iv) ramping up real-time monitoring of pollution; and v) clean energy as a service to the clusters. • Strategies to enable such interventions include i) incentives (monetary and non-monetary) to overcome cost and access barriers to cleaner fuel and equipment for MSMEs; ii) developing trained, skilled workforce to ensure adequate operations and maintenance of boilers and APCDs, and iii) deployment of virtual monitoring system around clusters along with smart metering for APCDs and Pan-Tilt-Zoom (PTZ) cameras. • Promoting Cleaner Technologies in MSMEs. Discussions with the Department of Environment discussed the draft DPR for industries sector covering: i) technology conversion for brick kilns; 2) promoting cleaner technology investment in MSMEs; 3) promotion of common steam boiler systems and 4) introduction of air action plans for industrial clusters. • Technology Conversions for brick kilns: MoEFCC, through a notification in February 2022 has, among other steps (e.g., use of cleaner fuels like PNG, Biomass, conversion of vertical shaft kilns), mandated conversion of traditional and highly polluting Fixed Chimney Bull’s Trench Kiln (FCBTK) to Zig -Zag kins. For brick kilns located within 10 km of non-attainment cities, the conversion to Zig-Zag kilns needs to be completed by 2023; the rest are required to convert by 2024. Estimated saving from these conversions can result in around 20 -25% reduction in energy consumption and around 50% reduction in black carbon emissions and particulate matter pollution. It has been identified as a technology of choice for the brick industry in UP. Despite this, only about 13% of brick kilns in the state have completed conversion to zig-zag kilns. One of the major hurdles for conversion to Zig-Zag kilns has been found to be due to high upfront costs. A total of 10,242 kilns will be targeted under the program for conversion with incentives of approximately USD 3000 from the IBRD, and USD 6000 from the UP MSME Technology Upgrade Scheme (2019). This amounts to about 25% of investment costs of around USD 40,000 (on average) required for Zig-Zag conversions. • Air Action Plans for industrial clusters and supporting pollution intensive MSMEs to adopt best available technology: The UP State Industrial Development Agency (UPSIDA) will be supported to prepare Air Action Plans for targeted industrial clusters by establishing PMUs on air pollution management and for development of air action plans fo r 5 – 7 targeted industrial clusters. Their role will include overseeing feasibility analysis and implementation of a resource efficient and circular production methods in these clusters. Pollution intensive MSMEs to adopt best available technology using the UP MSME Investment and Employment Promotion Policy Scheme. The subsidy percentage and any additional enhancements to the policy needed is to be confirmed by DOEFCC after further discussion with the MSME Department. • Demonstration of new clean technologies: A new policy will be introduced by UPSIDA to mandate adoption of common steam facilities for any new greenfield industrial cluster in the state. In addition, a detailed feasibility study for setting up common steam facilities in existing brownfield projects will be carried out financed by IPF, with $250,000 earmarked for this study. Vendors establishing common steam facilities in an industrial cluster would be provided with support from the Uttar Pradesh Investment and Employment Promotion Policy for Common steam facilities for industrial clusters which provides fiscal assistance of up to 50% of the project cost (up to USD 60,000) for a common facility serving a minimum 10 MSMEs. The program will help support piloting and adoption of up to four (4) new more highly efficient and cleaner brick kilns, based on advanced Tunnel Kiln technology – which is the mainstay for brick manufacturing in Europe and parts of Southeast Asia but not yet demonstrated in UP. Under the project, around 25% of the capital cost of the project, up to USD 300,000, will be provided as subsidy for up to four selected tunnel kiln projects. 89 ANNEX 7: SUMMARY OF STAKEHOLDER MEETINGS ON TRANSPORT Timeline – Discussions conducted between April 2022 – June 2023 Stakeholders: A meeting with various stakeholders including Department of Environment, UP, Working Group members from UPCAMP and representatives from the World Bank and Directorate of Urban Transport, UPSRTC, Department of Transport. Summary: Discussions focused on understanding the transport department's existing interventions for reducing air pollution. In addition, preliminary discussions were also held with key stakeholders to understand the challenges and ongoing initiatives for air pollution reduction including the Uttar Pradesh State Road Transport Corporation (UPSRTC), Directorate of Urban Transport (DoUT), Uttar Pradesh Metro Rail Corporation Limited (UPMRCL), Traffic Directorate, and Uttar Pradesh Motor Truck Association. Information has been summarized in a draft technical assessment report. Discussions reviewed the international Avoid-Shift-Improve (ASI) Framework to highlight potential interventions including: (i) travel demand management to reduce demand for motorized transport, (ii) strengthening availability, reliability and service quality of public transport along with improving first and last-mile connectivity, (iii) shift to cleaner and efficient fuels including implementation of the state electric vehicles policy, mainly focusing on the transition to electric mobility with charging infrastructure, (iv) developing/ enhancing non-motorized transport infrastructure; (v) fleet modernization program to phase out old and polluting vehicles; (vi) traffic management to reduce congestion; (vii) improve and strengthen inspection and maintenance of ongoing vehicles; (viii) institutional integration and capacity building. Some of these measures in the program design may be addressed outside of PforR DLIs but can be considered in the Program Action Plan and the IPF funded activities. To complete the Technical Assessment for the priority Transport sub-sectors, the team highlighted the data gaps and shared with the working group a format/template for detailed data/information requirement with DoUT and the Transport Department. Next Steps: As per discussions, follow interventions were decided for piloting and implementation. • Reducing Transportation and Road Dust Emissions: Draft DPR on transportation and road dust prepared with the support of TERI team and agreed on interventions focused on i) acceleration of the heavy-duty vehicle fleet change (see RA3); ii) Piloting urban electrification and urban mobility models iii) and implementing programs on road dust control and monitoring. • Urban Mobility and Electrification in Model Cities. The program will support Lucknow city to implement its Comprehensive Electric Mobility Plan (CEMP) while improv. as a model city for improved urban mobility planning for the implementation of eBuses, only Lucknow will be considered as model city while e3W including freight vehicles will be included in Lucknow as well as Varanasi. The mission agreed that charging stations will also be part of project funding and only lithium battery-based vehicles will be considered under the program. Interventions proposed for electric vehicles will align with the approved Comprehensive Electric Mobility Plan (CEMP) for Lucknow. The Budget line of the existing EV policy of UP under the aegis of Transport Department will be used for these interventions. Considering the complexity involved, it was agreed to drop the proposal for implementation of UMTA under the program. • Road Dust Control and Monitoring. Given the significant contribution of resuspended road dust in overall PM2.5 concentrations, the mission discussed the constitution and functions of ‘Dust Management Cells’ that have been set up under the directions of the Commission for Air Quality Management in Delhi NCR and Adjoining Regions. 17 such cells were established by the Government of UP. Under the program, strengthening of these cells will be targeted to support implement actions that help reduce contribution of road dust. These actions would include enhanced monitoring of road dust, implementation of MRS audit system in smart cities, capacity building and training programs for MRS Audit operations workers, and the development of an app for monitoring MRS Audit operations in all districts of Uttar Pradesh. Additionally, “wall-to-wall� surfacing of road shoulders with bricks to address hyper-local sources of dust will be planned in coordination with the ULBs. The mission also discussed with UP State Industrial Development Authority to ensure proper maintenance of approach roads connecting industries – which are often in a poor state and lead to significant dust resuspension as heavy vehicles ply on the same. 90 ANNEX 8: SUMMARY OF STAKEHOLDER MEETINGS ON AGRICULTURE Timeline – Discussions conducted between April 2022 – June 2023 Stakeholders: A meeting with various stakeholders including Department of Environment, UP, Working Group members from UPCAMP and representatives from the World Bank and Department of Agriculture, Department of Panchayati Raj, Department of Animal Husbandry. Summary: To manage NH3 emission from agriculture (secondary PM control), the following interventions were discussed: • For fertilizer use, increasing nitrogen use efficiency (NUE) through piloting in 18 districts in UP’s 9 agro - ecological zones, development of more comprehensive field experiment and standardized NUE calculation, conduct field monitoring of impacts of farmer field schools, and demonstration of best technologies and services for each ego-climatic zone. The area coverage initially to be experimental and based upon monitoring of impact around the 3rd or 4th year, area coverage may be increased substantively in each agro-ecological zone. • For livestock and manure management it was proposed to pilot efficient manure management strategies focusing on diet and health, storage, and treatment etc. (Pilots for livestock and manure management in the same districts as for NUE in 9 agro-ecological zones). It was also suggested to establish capacity building initiatives, and to ensure linkages with biogas generation through viable business models while promoting community benefits. For management of secondary PM due to crop residue burning, recommendations focused on leveraging crop residues such as sugarcane bagasse for biogas production and pilots to improve the supply chain of crop residues. DoEFCC also suggested including measures on afforestation. As forests reduce air pollution concentrations by avoiding emissions from energy sources and limiting secondary pollutant formation (cooling effects), and by directly absorbing air pollutants to leaf and branch surfaces, GoUP suggested complementing afforestation drives by establishing decentralized nurseries to ensure quality planting material. Next Steps Improving Agriculture and Livestock Management Practices: Discussion were held with the Department of Environment and working group on: (i) Program interventions to promote Integrated Nutrient Management (INM) practices for improvement of Agronomic Nitrogen Use Efficiency (AgNUE), and (ii) interventions to measure ammonia (NH3) and other associate green-house gas emission reductions at the pilot farmer field level. The mission discussed in detail needs for preparation of the Detailed Project Report (DPR) for Agriculture and key TORs required for appraisal readiness with assigned WG and TERI team members. As an input to the DPR, the mission presented information on approaches for measuring and implementing agronomical nitrogen use efficiency (AgNUE) in cropping systems. The suitability of a Nitrogen-balance approach in evaluating the resource and environmental performances of Nitrogen inputs in cropland at the field, airshed, and watershed levels spanning one growing season and multiple seasons was discussed. The mission also discussed tools, instruments, and models to assess and measure Nitrogen and Ammonia levels in the field, including nitrogen analyzers, leaf area meters, continuous emissions monitoring systems, and passive air samplers. Processed-based models such as Denitrification-Decomposition (DNDC) that have been previously validated for India’s cropping systems by researchers and used to capture AgNUE were discussed. It was highlighted the importance of promoting the adoption of integrated nutrient management (INM), an approach for optimizing nutrient availability and utilization in agricultural systems by combining various sources of nutrients. It was agreed that the program should establish a scientific research group (SRG) comprising scientists from renowned agricultural universities/institutes to develop INM tools, adoption protocols, fertilizer recommendations, and strengthen the extension system is the first key step to implementing INM for UP. Other activities under the Program include: 1) Digital soil mapping for precision soil nutrient assessment and budgeting; 2) Promote crop rotation and diversification with legumes; 3) Judicious application of inorganic fertilizers including slow release (nano fertilizers) and nitrification inhibitors (e.g., neem coated fertilizers); 4) Utilize organic nutrient sources; and 5) Aligning fertilizer recommendations to National/State Soil Health Card Program. The Department of Agriculture highlighted the government scheme that could be brought under the program as the National Food Security Mission (NFSM)3, with identifying approx. 1 lakh hectares across 18 districts in 9 agro-ecological zones within Uttar Pradesh. The additional interventions needed to improvise 91 AgNUE would be supported through the project under the TA component (including set-up of SRG, hiring of key technical partners, capacity building, amongst others). Livestock Interventions: The program will also target cow shelters (concentration of 5000-1000 livestock) to improve livestock waste management and will subsidize the construction of the biogas plants (up to 2 tons) while addressing comprehensive emissions and waste management systems for slurry and wastewater. The biogas offtake will be used within the shelters or fed into the grid. The program will utilize the exiting subsidy framework of Gobardhan scheme to subsidize the cost of the biogas plants. 92