World Bank nixes funding to controversial waste-to-energy project in Gujarat

In a significant win for the people of Gujarat, the World Bank has finally decided not to fund multiple waste-to-energy (WTE) incineration projects in major cities in the state.

- Jitendra Choubey @New Delhi

Sustained community protest against four such projects and the possible financial unviability were the major reasons behind the cancellation.

Various studies show that WTE's detrimental impact on people's health and the environment more than outweighs its advantages. WTE plants produce a dangerous level of particulate matter, especially PM2.5, by burning solid waste, including plastics, which pollute the air and degrade the environment.

The International Finance Corporation (IFC), the private lending arm of the World Bank, formally conveyed its decision not to invest in a private company, Abellon Clean Energy Limited (ACEL), in setting up WTE plants in Gujarat. ACEL had proposed building four WTEs in Rajkot, Vadodara, Ahmedabad and Jamnagar to burn around 3,750 tons of unsegregated Municipal Solid Waste (MSW) daily.

The IFC was considering a USD 40 million loan to help ACEL build four WTE plants. However, it observed massive on-ground resistance against the projects, as locals were apprehensive of severe air pollution in the surrounding areas. Concerted protest forced the IFC to put off its decision on the project twice in 2024.

"Finally, we received confirmation from IFC that it is not investing in the project," said Ker Jayendrasinh, an environmental activist supporting the local communities' struggle in Jamnagar.

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