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News- A recent study published in The Quarterly Journal of Economics validated that Surat’s Emissions Trading Scheme (ETS) led to a 20–30% reduction in pollution and brought down compliance costs by 11%. Surat Emission Trading Scheme (ETS).
About Surat Emission Trading Scheme (ETS)
- Launched in 2019 in Gujarat, the Surat Emission Trading Scheme (ETS) is the world’s first market-based system for trading particulate matter (PM) emissions, and India’s first pollution trading scheme of any kind.
- It was developed by the Gujarat Pollution Control Board (GPCB), in collaboration with the Energy Policy Institute at the University of Chicago.
- Purpose: To tackle air pollution in Surat.
- How It Works – Cap-and-Trade:
- The system follows the cap-and-trade principle, where a total emissions limit is set across all participating industries.
- Each industrial unit receives a fixed limit (cap) on the amount of particulate matter it is allowed to emit.
- Units that emit less than their assigned cap can trade their unused emission allowances with others that exceed their limits.
- Trading Platform: Industries trade permits on a platform by NeML (National Commodities and Derivatives Exchange e-Markets).
