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The Gujarat government has started an emissions
trading programme. The programme aims to reduce particulate air pollution and
facilitate robust economic growth.
Under the programme, the government sets a cap
on emissions and allows industries to buy and sell permits to stay below the
cap.
The Gujarat state pollution control board (GPCB)
will define the total mass of pollution that can be released into the air over
a certain fixed period by all industrial units together. This will be
equivalent to the cap.
The programme is the first market-based approach
to regulate pollution emissions in India. Further, it is also the first in the world
to regulate particulate air pollution. Globally, the cap-and-trade system has
been used to reduce other forms of emissions such as sulphur dioxide (SO2) and
nitrogen oxides (NOx) in the US.
At present, the programme is being piloted in
Surat to understand its impact on emissions, industry costs and regulatory
costs.
GPCB has collaborated with researchers from Energy
Policy Institute at the University of Chicago (EPIC) and other institutions
like the Harvard Kennedy School, Yale University and the Abdul Latif Jameel
Poverty Action Lab to evaluate the programme’s benefits and costs.
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