Funding Clean Air: Strategies For Pollution Reduction

Air pollution is a pressing global health issue that affects millions of people worldwide. It is caused by a variety of factors, including transport, the power sector, industrial emissions, and crop burning. While there are organizations and initiatives dedicated to tackling this issue, such as the Clean Air Fund, and funding and grants provided by the US EPA, air pollution continues to be a challenge, with many countries struggling to fund their air quality ambitions. This is especially true for low-income, heavily polluted countries, which often have limited access to funding and assistance. To address this, it is crucial to develop innovative, high-impact measures and mobilize partnerships with finance and investment actors to maximize health, climate, and economic benefits.

Philanthropic foundations

Trends and Statistics

According to the Clean Air Fund's analysis, outdoor air quality funding accounts for less than 0.1% of all philanthropic foundation funding. Between 2015 and 2021, only 1% of international development funding ($17.3 billion) and 2% of international public climate finance ($11.6 billion) was allocated to tackling air pollution. However, there is a growing trend of regranting and using pooled funds in philanthropy. In 2021 and 2022, over $30 million of philanthropic foundation funding was invested through regranters, allowing foundations to leverage their capital and expertise to scale up proven solutions.

Leading Philanthropic Funders

The Clean Air Fund itself was the largest philanthropic funder dedicated to tackling air pollution globally in 2022. Other top air quality funders include the Bezos Earth Fund and Impact on Urban Health. Foundations focusing on climate, energy, and the environment (CEE) provided the highest amount of funding to air quality initiatives, accounting for 77% of overall funding between 2015 and 2022. Foundations motivated by enhancing social equity and public health also contributed significantly, providing the second and third highest funding amounts.

Geographic Distribution of Funding

The distribution of philanthropic funding for air quality varies significantly across different regions. The US, China, and India have attracted the majority of philanthropic funding, cumulatively receiving 83% of total funding between 2015 and 2021. However, Africa, Latin America, and parts of Asia (excluding China and India) receive relatively low funding despite having the greatest potential gains. These regions, which account for half of the global population in 2021, only received 3.7% of total foundation funding for air quality in the same year.

Strategies for Foundations

• Increase Funding Allocation: Foundations can commit a larger proportion of their funding to air pollution initiatives, specifically targeting regions and communities that are most vulnerable to the impacts of air pollution.
• Collaborative Approaches: Collaborating with diverse partners, including industry, civil society, and academics, can create momentum and lead to long-lasting legislative and policy changes. This collaboration also brings together different expertise and perspectives to address the complex challenges of air pollution.
• Focus on High-Impact Areas: Foundations can prioritize funding for projects that have the potential to deliver the greatest impact. This includes investing in proven solutions, such as those that address the interconnected issues of air pollution and climate change, as well as initiatives that improve public health, childhood development, social justice, and sustainable cities.
• Leverage Regranting and Pooled Funds: Foundations can utilize regranting and pooled funds to engage with a wider range of initiatives and leverage their resources more effectively, especially in underfunded areas like air quality.
• Address Funding Gaps: Identify geographic funding gaps and prioritize regions that are often left behind, such as Africa, Latin America, and underfunded areas of Asia. Ensure that funding reaches the most affected communities and vulnerable populations.

By implementing these strategies, philanthropic foundations can make a significant and lasting impact on tackling air pollution and improving the lives of people around the world.

Government grants and projects

For example, the Environmental Protection Agency (EPA) in the United States offers various grant programs that fund projects addressing air pollution through research, community engagement, and technological innovation. The EPA's Office of Air and Radiation (OAR) announces grant and rebate opportunities for projects related to air quality, transportation, climate change, and indoor air, among other related topics. The EPA generally invites all eligible applicants to submit applications and evaluates them based on disclosed criteria.

In August 2022, the Inflation Reduction Act provided the EPA with $41.5 billion to support new and existing programs, with over $11 billion allocated to the OAR to secure clean and healthy air for all Americans. The Clean School Bus Program, funded by the Bipartisan Infrastructure Law, is another example of EPA funding, providing $5 billion over five years to replace existing school buses with zero-emission and low-emission models.

International grants are also essential for NGOs working on air pollution mitigation. Organizations such as the United Nations Environment Programme (UNEP) and the World Bank offer funding opportunities for projects addressing global environmental challenges, including air quality improvement. These grants often focus on cross-border initiatives requiring collaboration between multiple countries or regions. The Global Environment Facility (GEF), for instance, provides funding for projects that reduce air pollution in developing countries, promoting cleaner technologies and sustainable practices in high-emission industries.

Additionally, private foundations play a pivotal role in supporting air pollution initiatives through grants. These foundations often focus on specific areas of interest, such as environmental conservation or public health, and provide financial resources to NGOs that align with their mission. For example, the Rockefeller Foundation has funded projects aimed at improving urban air quality through sustainable transportation initiatives, contributing to reducing vehicular emissions in major cities worldwide.

International development funding

Clean Air Fund, a philanthropic foundation, plays a pivotal role in addressing this issue by providing the only global analysis of international development funding for tackling air pollution. Their reports highlight international public funding trends and offer recommendations for governments and development finance institutions (DFIs). The research identifies areas where funding can be maximised to benefit people, the planet, and economies.

The Clean Air Fund's analysis reveals that only a fraction of international development funding and public climate finance is allocated to air pollution initiatives. This disparity between pledges and actual funding underscores the urgency for increased investment in clean air projects. The underinvestment in clean air initiatives is particularly concerning given the substantial economic benefits associated with air pollution control. The US Environmental Protection Agency estimates that every $1 spent on air pollution control yields approximately $30 in economic returns.

To address the funding gap, development finance institutions (DFIs), private funders, philanthropies, and other stakeholders must step up their efforts. Prioritising projects that directly improve air quality and incorporating health and economic benefits is essential. Additionally, encouraging DFIs to utilise de-risking funds and mechanisms can help attract private capital for clean air projects. The Multilateral Investment Guarantee Agency's pledge of $1 billion towards de-risking air quality projects is a positive step in this direction.

Furthermore, collaboration between DFIs, impact investors, philanthropic project sponsors, and the private sector is vital to catalyse more air quality projects. By sharing risks and leveraging the strengths of each funding party, more comprehensive solutions can be developed. It is also important to strengthen air quality monitoring systems and increase data transparency, as this information is crucial for understanding the scope of the problem and informing the public about the air they breathe.

Investment pathways

The Clean Air Fund is a philanthropic initiative that works with governments, funders, businesses, and campaigners to tackle global air pollution and deliver clean air for all. The fund provides grants to support diverse organisations and individuals committed to driving change across the globe. It also offers the only global analysis of international development funding for tackling air pollution, highlighting international public funding trends and providing recommendations for governments and development finance institutions.

The Clean Air Fund's analysis reveals that international public funding for clean air projects falls short of addressing the scale of the challenge. From 2018 to 2022, only 1% of international development funding and 3% of global public climate finance were allocated to clean air initiatives. This underfunding persists despite the severe health, climate, and economic consequences of air pollution.

To address this funding gap, organisations like the UN Environment Programme (UNEP) are working to mobilise resources and develop investment pathways in air pollution. UNEP aims to maximise health, climate, and Sustainable Development Goal (SDG) co-benefits by partnering with finance and investment actors. They also support the private sector in assessing and reducing their air pollution footprint, adopting higher standards, and leveraging resources for clean air.

In addition to philanthropic and governmental initiatives, multilateral financial institutions play a crucial role in funding air pollution reduction efforts. For example, the World Bank's Multilateral Investment Guarantee Agency (MIGA) pledged $1 billion in financial guarantees to de-risk air quality projects in low- and middle-income countries. This initiative increases the creditworthiness of such projects, attracting much-needed private sector investment.

Furthermore, development finance institutions are integrating air quality improvements into their projects across various sectors. The Asian Development Bank and the Inter-American Development Bank have collaborated to launch a toolkit that provides practical guidance for integrating air quality considerations into development initiatives. This holistic approach ensures that the economic, social, and environmental benefits of clean air are realised across multiple sectors.

Research grants

One notable source of research grants in this field is the US Environmental Protection Agency (EPA). The EPA's Office of Air and Radiation (OAR) offers grants and rebates for projects related to air quality, transportation, climate change, and indoor air quality. The EPA's Science to Achieve Results (STAR) program is another initiative that supports air pollution research through grants in three broad areas. Additionally, the EPA provides a range of resources and tools to assist applicants in the grant application process, including application forms, regulations, and guidance on budget preparation and work planning.

The Clean Air Fund is another significant organization in the fight against air pollution. It works with governments, funders, businesses, and campaigners to promote clean air and tackle global air pollution. The fund provides grants and projects that focus on improving air quality data, raising public awareness, and influencing policy. They also offer recommendations and analysis to help guide funding decisions, highlighting international public funding trends for clean air projects.

Various federal grant programs also support air pollution research and initiatives. The Healthy Communities Grant Program, for example, is a competitive grant program that funds community-based projects aimed at reducing environmental risks and improving human health and quality of life. The Ozone Transport Commission (OTC) grant facilitates collaboration among state environmental officials and staff to assist in reducing air pollution. Additionally, the Senior Environmental Employment Program utilizes the talents of Americans aged 55 and over to provide technical assistance to federal, state, and local environmental agencies for pollution prevention and control projects.

Overall, research grants play a vital role in addressing air pollution challenges by providing the necessary financial support for innovative projects, community initiatives, and policy developments aimed at improving air quality and protecting public health.

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