The World Bank Punjab Clean Air Program (P508222) Concept Environmental and Social Review Summary Concept Stage (ESRS Concept Stage) Public Disclosure Date Prepared/Updated: 12/23/2024 | Report No: ESRSC04641 Jan 08, 2025 Page 1 of 7 The World Bank Punjab Clean Air Program (P508222) I. BASIC INFORMATION A. Basic Operation Data Operation ID Product Operation Acronym Approval Fiscal Year P508222 Program-for-Results Financing (PforR) P-CAP 2025 Operation Name Punjab Clean Air Program Country/Region Code Beneficiary country/countries Region Practice Area (Lead) (borrower, recipient) Pakistan Pakistan SOUTH ASIA Transport Borrower(s) Implementing Agency(ies) Estimated Appraisal Date Estimated Board Date Islamic Republic of Punjab Energy Efficiency and 03-Feb-2025 28-Mar-2025 Pakistan Conservation Agency, Transport and Mass Transit Department, Government of Punjab, Planning and Development Board, Government of Punjab, Public Disclosure Agriculture Department, Government of Punjab, Industries Department, Government of Punjab Estimated Concept Total Project Cost Review Date 09-Dec-2024 300,000,000.00 Proposed Development Objective To strengthen air quality management and reduce emissions from targeted sectors affecting Greater Lahore B. Is the operation being prepared in a Situation of Urgent Need of Assistance or Capacity Constraints, as per Bank IPF Policy, para. 12? No C. Summary Description of Proposed Project Activities The Punjab Clean Air Program will reduce PM2.5 concentration in Greater Lahore, Punjab province, Pakistan, with transboundary impact on PM2.5 concentration in India. The program will be organized along three results areas - air Jan 08, 2025 Page 2 of 7 The World Bank Punjab Clean Air Program (P508222) quality management governance and awareness raising, transport sector abatement measures, and agriculture sector abatement measures. The project will strengthen air quality management governance across sectors, and support a public awareness campaign on air quality issues. Sectoral abatement measures will focus on transport and agriculture. The IPF component will support assessments on transport to support Program implementation, capacity building activities for the transport sector, as well as assessments on industries and cleaner cooking to inform subsequent operations in the series of projects supporting the clean air agenda. D. Environmental and Social Overview D.1 Overview of Environmental and Social Project Settings The project is located in the province of Punjab with most project activities targeted in Lahore District. Major sectors responsible for air pollution in Punjab include industry (industrial boilers operating on solid fuel, typically coal, without air pollution control technologies, power plants, and brick kilns and steel melting and re-rolling mills); transport (trucks and buses, two- and three-wheelers, and cars are the main contributors to PM2.5); agriculture (farmers burn straw and stubble on fields with citizen in cities such as Lahore affected by resulting smoke drifts); and domestic cooking (open fires or cookstoves). No high-biodiversity settings have been identified within the program areas and the biodiversity hotspots are not as prominent as in some other regions of the country, but they still hold important ecological and conservation value. Female uptake of project-supported infrastructure and services is likely to lag men due to social norms that constrain women’s agency, and lack of institutional capacity to design and deliver gender-inclusive transport infrastructure and services. Women’s exposure to SEA/SH and GBV in public is high and closely linked to mobility. In Lahore, 82% of women experience harassment at bus stops and 90% report incidents on buses. Per the 1998 census, most persons with disabilities in Pakistan reside in Punjab (around 56%). Public Disclosure D.2 Overview of Borrower’s Institutional Capacity for Managing Environmental and Social Risks and Impacts The institutions involved in project implementation are likely to include Punjab Energy Efficiency and Conservation Agency (PEECA), Punjab Transport and Mass Transit Department (TM&TD), Punjab Planning and Development Board, and Punjab Agriculture Department. The Borrower has experience in managing ES risks in the WB-financed Punjab Green Development Program (PGDP) where implementing agencies included TM&TD, Environment Protection Department (EPD), and PEECA, and initiatives such as the 2023 Clean Air Policy and 2024 Smog Action Plan. Implementation performance on ES Systems was consistently rated Moderately Satisfactory in PGDP. TM&TD has experience under PGDP in Vehicle Inspection and Certification System and standardizing three-wheeler operations but will need capacity building to implement ESS related IPF. Experience from PGDP also reveals challenges in enforcement, monitoring, and institutional coordination due to limited resources in implementing agencies. The Agriculture Department has experience of managing ES risks in the WB-financed Strengthening Markets for Agriculture and Rural Transformation (SMART) and Punjab Resilient and Inclusive Agriculture Transformation (PRIAT). In SMART (a PforR activity which is now closed), the department had Satisfactory ES performance in the implementation of the ESSA and PAP including successfully carrying out extensive field trainings with farmers in Punjab and assisting women farmers to access program benefits. PRIAT is an IPF with Satisfactory ES performance and a network of field ES staff in the 36 districts of Punjab. The TA activities are intended to build the capacity of program implementation agencies to manage environmental, health and safety risks. During Appraisal, a detailed institutional capacity assessment will be conducted and relevant measures and actions incorporated in the ESCP including the hiring of ES experts to implement the ES instruments. Jan 08, 2025 Page 3 of 7 The World Bank Punjab Clean Air Program (P508222) II. SCREENING OF POTENTIAL ENVIRONMENTAL AND SOCIAL RISKS AND IMPACTS A. Environmental and Social Risk Classification (ESRC) Substantial A.1 Environmental Risk Rating Substantial Environmental impacts primarily arise from the provision of TA through feasibility and technical studies, capacity building, and research. The TA itself will not involve the procurement of goods, services, or civil works. However, the nature of TA can lead to significant downstream impacts. Additionally, the deployment of e-buses is expected to reduce noise and air pollution by eliminating tailpipe emissions. Within 10 years, the batteries of e-buses supported under the PforR will require replacement, raising concerns about their disposal and recycling. To address these challenges, the IPF component incorporates TA for the development of battery waste management rules and the identification of strategies for ecosystem development. This approach will also tackle the risks associated with informal recycling practices in Punjab, which are environmentally hazardous and poorly regulated, potentially causing significant environmental and health risks due to the release of heavy metals and toxic materials. The technical studies encompass activities with substantial environmental risks, which require complex mitigation measures, as well as technological and regulatory solutions, to adequately address them. With relation to the institutional capacity, the lessons learnt from the implementation of PGDP for ES Management will also be considered. Moderate A.2 Social Risk Rating The Social Risk Rating is Moderate due to the following factors: (i) lacking attention to livelihood impacts and exclusion of vulnerable groups (e.g., low-income communities, women, small farmers, persons with disability, youth, Public Disclosure and elderly) in stakeholder consultations and studies which inform the design of Program activities (e.g., e-bus deployment, vehicle buyback schemes, electric two- and three-wheeler adoption schemes, and clean cookstove technologies); and (ii) low institutional capacity for management of social risks in line with the ESF. Poorly designed technical and feasibility studies may result in downstream impacts such as the loss of livelihoods due to tightened emission standards and retirement of vehicles, adverse impacts on farmers due to crop burning abatement measures, and exclusion of vulnerable groups from project benefits. The project will ensure that terms of reference for such studies incorporate screening for accessibility and safety of services for female users and aspects of Just Transition, for example, by examining the impacts of introducing e-buses on bus drivers and poor and vulnerable groups. The Social Risk Rating will be revisited during project preparation when more detailed information on project design is available and based on detailed assessments for downstream social impacts of technical assistance activities presented in the Environmental and Social Systems Assessment (ESSA) under the PforR. B. Relevance of Standards and Policies at Concept Stage B.1 Relevance of Environmental and Social Standards ESS1 - Assessment and Management of Environmental and Social Risks and Impacts Relevant The IPF component comprises TA activities which may have downstream ES impacts, detailed assessments for which will be outlined in the ESSA under the PforR and duly consulted on and disclosed prior to appraisal. Downstream impacts include e-waste generation and soil and water contamination due to the leakage of toxic substances (oil and Jan 08, 2025 Page 4 of 7 The World Bank Punjab Clean Air Program (P508222) heavy/toxic metals) resulting from the improper disposal of large number of scrapped vehicles, replacement of boilers/furnaces in industries, e-buses/electric 2,3 wheelers adoption. Bus drivers and poor and vulnerable groups are at risk of being excluded from consultations and studies, and consequently the design of vehicle buy-back schemes, electric two- and three-wheeler adoption programs, and clean cookstove technologies. There may be workplace grievances over recruitment, harassment, and discrimination. ToRs for TA activities will include screening for ES risks. ESS10 - Stakeholder Engagement and Information Disclosure Relevant A Program-wide SEP may be considered based on the findings of the ESSA. Closely aligning the public communications plan under the PforR with the SEP can support the achievement of Program outcomes and successful management of ES risks. The SEP will: (i) identify key stakeholders and develop a strategy on how to engage with them (e.g., government, CSO, industry players, local businesses, transport sector workers, poor, women, youth, informal sector workers, persons with disabilities, elderly); (ii) include measures to facilitate citizen- government information exchanges to create citizen support/demand for project interventions and mitigate misperceptions about project impacts/benefits; and (iii) include a Grievance Mechanism (GM) which provides a variety of channels for feedback, builds on/strengthens existing formal/informal GMs, and is able to handle SEA/SH related complaints. ESS2 - Labor and Working Conditions Relevant The project involves direct workers including government officials and consultants. Potential risks include grievances over recruitment processes and selection, workplace harassment, and discrimination against vulnerable groups. The Public Disclosure ESCP will include the following LMP provisions which will be defined in the Project Operations Manual: (i) define measures to avoid discrimination; (ii) require the establishment of a worker’s grievance mechanism; and (iii) include a worker’s Code of Conduct. ESS3 - Resource Efficiency and Pollution Prevention and Management Relevant ESS3 is relevant to the program, and the TORs of the TA will account for downstream risks associated with resource use during both construction (materials, water, fuel, chemicals) and operation (electricity, water for washing, diesel for generators). Resource efficiency and pollution control are critical concerns. The E&S screening of the studies will address environmental issues related to pollution generation and resource use and will recommend the development of relevant E&S instruments as needed. A well-designed buy-back scheme will facilitate the safe disposal and recycling of vehicles, thereby minimizing hazardous waste and reducing environmental impacts. ESS4 - Community Health and Safety Not Currently Relevant ESS5 - Land Acquisition, Restrictions on Land Use and Involuntary Resettlement Not Currently Relevant ESS6 - Biodiversity Conservation and Sustainable Management of Living Natural Not Currently Relevant Resources ESS6 is not relevant. As mentioned earlier, the TA does not pose direct risks; however, the studies related to transportation improvements—such as constructing bus depots, installing battery charging stations, or managing the disposal of polluting vehicles—may indirectly affect natural habitats. For instance, land use changes or construction Jan 08, 2025 Page 5 of 7 The World Bank Punjab Clean Air Program (P508222) activities could disrupt local ecosystems, particularly if they are near green areas or water bodies. Additionally, the improper disposal of vehicle waste, hazardous materials (such as used lithium batteries), or wastewater from bus depots could result in pollution that impacts local biodiversity. These risks will be addressed under ESS1 and will be appropriately considered in the TORs for the TA. ESS7 - Indigenous Peoples/Sub-Saharan African Historically Underserved Traditional Not Currently Relevant Local Communities ESS8 - Cultural Heritage Not Currently Relevant ESS9 - Financial Intermediaries Not Currently Relevant B.2 Legal Operational Policies that Apply OP 7.50 Operations on International Waterways No OP 7.60 Operations in Disputed Areas No B.3 Other Salient Features Use of Borrower Framework No Borrowers Framework will not be utilized for the IPF component of the Program. Public Disclosure Use of Common Approach No C. Overview of Required Environmental and Social Risk Management Activities C.1 What Borrower environmental and social analyses, instruments, plans and/or frameworks are planned or required by Appraisal? The following instruments will be prepared and disclosed by appraisal: 1. Environmental and Social Commitment Plan (ESCP) 2. Stakeholders Engagement Plan (SEP) III. CONTACT POINT World Bank Task Team Leader: Shyam Srinivasan Title: Transport Specialist Jan 08, 2025 Page 6 of 7 The World Bank Punjab Clean Air Program (P508222) Email: shyamsrinivasan@worldbank.org TTL Contact: Shafick Hoossein Job Title: Senior Environmental Specialist Email: shoossein@worldbank.org IV. FOR MORE INFORMATION CONTACT The World Bank 1818 H Street, NW Washington, D.C. 20433 Telephone: (202) 473-1000 Web: http://www.worldbank.org/projects V. APPROVAL Task Team Leader(s): Shyam Srinivasan, Shafick Hoossein ADM Environmental Specialist: Nida Asif ADM Social Specialist: Kamakshi Nadisha Mubarak Public Disclosure Jan 08, 2025 Page 7 of 7