Council on Energy, Environment and Water Integrated | International | Independent
Every winter, like clockwork, Delhi-NCR finds itself engulfed in hazardous smog, with air quality indices (AQI) often crossing 450 and falling into 'Severe' and ‘Severe+’ categories. Even this year, AQI in NCR fell in the ‘Severe+’ category, causing the enforcement of GRAP-IV measures like restrictions on construction and transport activities. While crop stubble burning, vehicular emissions and construction dust continue to be the usual suspects, one significant yet overlooked contributor is industrial pollution. According to research by the Council on Energy, Environment and Water (CEEW), industrial activities account for 21-38 per cent of India’s air pollution. Despite this substantial impact, as of September 2024, less than 1 per cent of the INR 11,200 crore cumulatively released under the National Clean Air Programme (NCAP) and Fifteenth Finance Commission’s Million Plus Cities Challenge Fund (XV-FC’s MCF) has been utilised to address industrial emissions.
This discrepancy highlights a critical gap in India’s air quality strategy: managing industrial emissions at scale. A more targeted approach, combining technology, market-based incentives, and regulatory improvements, is essential for addressing this challenge.
First, scale up Continuous Emissions Monitoring Systems (CEMS). In 2014, the Central Pollution Control Board (CPCB) mandated CEMS installation for around 3,000 industries. This mandate led to a thriving market worth INR 2,000 crore with over 30,000 installations across 11,000 industrial units. Despite significant investment, data transparency, accuracy, and enforcement remain challenges due to the poor calibration and regulation of these systems. Replicating successful state models – like efforts made by the Madhya Pradesh Pollution Control Board and the Himachal Pradesh Pollution Control Board – can significantly enhance CEMS integration and compliance across the country. Higher data availability enables State Pollution Control Boards (SPCBs) to identify defaulters and enforce regulations more effectively, even aiding in court cases and combustion efficiency calculations.
Second, leverage market-based instruments for emission compliance. Market-based mechanisms, such as Emissions Trading Schemes (ETS) and carbon credits, offer a promising alternative to command-and-control regulation. The market benefits promote self-regulation and reduce enforcement burdens. Gujarat’s Surat-ETS programme, which achieved a 29 per cent reduction in annual particulate matter emissions, serves as a testament to the potential of such mechanisms. However, their adoption remains limited to Surat and Ahmedabad. Globally, EU’s ETS and California’s Cap-and-Trade Program demonstrate how trading emission allowances incentivise pollution reduction and spur innovation in pollution control technologies. Expanding ETS to India’s critically polluted industrial clusters could have similar outcomes. This hybrid regulatory model would also allow SPCBs to prioritise enforcement on the most non-compliant industries, thereby optimising resources.
Third, strengthen the capacity of India’s State Pollution Control Boards. SPCBs are the frontline agencies that manage industrial emissions. Yet, their nationwide vacancy rate of 50.9 per cent (rising to 55 per cent in the critically polluted Indo-Gangetic Plain states) severely undermines their capacity to regulate industrial emissions. These staffing shortages hinder field inspections, emissions data analysis, and timely enforcement actions. There should be structured recruitment drives to fill vacant positions, with an emphasis on hiring scientific and technical personnel. Establishing competitive career pathways, implementing time-bound promotions, and creating an Indian Environmental Service (IES) under the All India Services Act can attract and retain skilled professionals. Further, despite being responsible for nearly a fourth of the actions outlined in City Action Plans, SPCBs do not receive dedicated funds under NCAP and the 15th Finance Commission’s Million Plus Cities Challenge Fund. The entire quantum of air quality intervention funds is channelled to urban local bodies, which have limited control over industrial pollution. SPCBs need direct funds in alignment with their responsibilities. This will enable them to modernise laboratories, obtain NABL accreditation, expand monitoring infrastructure and pursue litigation. A proportion of the CPCB-managed Environment Protection Charge Fund can also be used for these, since INR 187 crore from this fund remained unutilised as of May 2024.
Fourth, ensure dedicated funds for industrial pollution control. Industrial pollution remains one of the least-funded aspects of India’s air quality governance regime despite its significant contribution to overall emissions. Addressing this gap requires a dedicated funding mechanism. These funds should be focused on providing targeted financial support to micro, small and medium enterprises (MSMEs), enabling them to adopt cleaner fuels and technologies and install pollution control devices. Funds under Startup India can also be used to support innovations in energy efficiency, cleaner fuels, emission monitoring, and industrial waste management, with specialised incubators under research organisations and SPCBs fostering these initiatives.
Enforcing industrial compliance measures is sometimes more feasible than managing dispersed sources like stubble burning, household fuel use or open burning because industries are point sources and hence, easily identifiable. Further, industrial emissions can be regulated through CEMS or by promoting the adoption of market-based approaches in a particular cluster, whereas regulating other kinds of sources of emissions often requires behavioural interventions. Reducing India's industrial pollution burden is key to ensuring cleaner air for all.
Aishwarya Tiwari is a Research Analyst and Sunita Patra is a Programme Associate at the Council on Energy, Environment and Water (CEEW). Views are personal. Send your comments to [email protected].
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