Q. Consider the following statements about Surat’s Emission Trading Scheme (ETS):
1.Surat ETS, launched in 2019, is the world’s first market for trading particulate matter emissions with a cap-and-trade mechanism.
2.The scheme aims to curb air pollution by limiting the amount of particulate matter emissions allowed per industry and allowing trading of unused permits.
3.The trading of emission permits in Surat ETS takes place on a platform run by the National Stock Exchange (NSE).
Which of the above statements are correct?
Quarterly-SFG-Jan-to-March
Red Book

[A] 1 and 2 only

[B] 2 and 3 only

[C] 1 and 3 only

[D] 1, 2, and 3

Answer: A
Notes:

Explanation:

  • Statement 1 is correct: Surat ETS, launched in 2019, is indeed the world’s first market for trading in particulate matter emissions, using a cap-and-trade system.
  • Statement 2 is correct: The scheme works by giving each plant a pollution limit. Plants that stay within the limit can sell unused permits to those exceeding their pollution limits, which is the essence of a cap-and-trade system.
  • Statement 3 is incorrect: The trading of emission permits in Surat ETS occurs on a platform run by NeML (National Commodities and Derivatives Exchange e-Markets), not the National Stock Exchange (NSE).

Source– IE

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