Skip to main content

IFC withdraws funding for waste-to-energy incinerators in Gujarat: A win for civil society

By Jag Jivan   
In a significant victory for environmental activists and local communities, the International Finance Corporation (IFC), the private lending arm of the World Bank, has decided not to invest in the proposed $40 million funding for waste-to-energy (WTE) incineration plants in Gujarat, India. The decision comes after strong opposition from civil society organizations, which highlighted concerns over pollution, health risks, and violations of sustainable waste management practices.
The funding was intended to support Abellon Clean Energy Limited (ACEL) in building four WTE incinerators in Rajkot, Vadodara, Ahmedabad, and Jamnagar, processing 3,750 tons of unsegregated municipal solid waste daily. However, opposition groups, including 174 networks of activists worldwide, raised concerns that the project would worsen air and water pollution, endanger public health, and undermine India’s environmental regulations.
"We were initially told that these plants would convert waste into power, but instead, they have increased pollution and health issues in our communities," said Ker Jayendrasinh, an activist in Jamnagar. Another activist, Asmita Chavda from Ahmedabad, expressed relief at IFC’s decision but called for broader action: “This is a major victory, but other financial institutions must follow IFC’s lead and stop funding harmful WTE projects.”
Financial concerns also played a role in the IFC’s withdrawal. ACEL has been struggling with mounting losses, with its net profit falling from ₹11.1 crore in 2021 to a ₹19 crore loss in 2023. The company’s inability to cover its loan interest payments further raised doubts about its economic viability.
Environmental advocates now urge India’s Power Finance Corporation (PFC) and the Indian Renewable Energy Development Agency (IREDA) to reconsider their loans to ACEL. "This is an opportunity to shift towards more effective and sustainable waste management strategies," said Jay Vyas, an activist from Vadodara.
While the IFC’s decision marks a victory for environmental justice, campaigners emphasize that the fight is not over. They are calling for a complete shutdown of polluting WTE plants and a transition to decentralized, eco-friendly waste management solutions.

Comments

Post a Comment

NOTE: While there is no bar on viewpoint, comments containing hateful or abusive language will not be published and will be marked spam. -- Editor

TRENDING

Manufacturing, services: India's low-skill, middle-skill labour remains underemployed

By Francis Kuriakose* The Indian economy was in a state of deceleration well before Covid-19 made its impact in early 2020. This can be inferred from the declining trends of four important macroeconomic variables that indicate the health of the economy in the last quarter of 2019.
Post a Comment
»

The soundtrack of resistance: How 'Sada Sada Ya Nabi' is fueling the Iran war

​ By Syed Ali Mujtaba*  ​The Persian track “ Sada Sada Ya Nabi ye ” by Hossein Sotoodeh has taken the world by storm. This viral media has cut across linguistic barriers to achieve cult status, reaching over 10 million views. The electrifying music and passionate rendition by the Iranian singer have resonated across the globe, particularly as the high-intensity military conflict involving Iran entered its second month in March 2026.
Post a Comment
»

Incarceration of Prof Saibaba 'revives' the question: What is crime, who is criminal?

By Kunal Pant* In 2016, a Supreme Court Judge asked the state of Maharashtra, “Do you want to extract a pound of flesh?” The statement was directed against the state for contesting the bail plea of Delhi University Professor GN Saibaba. Saibaba was arrested in 2014, a justification for which was to prevent him from committing what the police called “anti-national activities.”
Post a Comment
»