Emission Trading Scheme

The Gujarat government launched country’s first ‘Emissions Trading Scheme (ETS)’ which is being described as world’s first market for trading in Particulate Matter (PM) emissions. It was launched in Surat as a pilot project to encourage and incentivize the industrial units to cut air pollution.

Why Surat was chosen?

• The quality of air in Surat has deteriorated in the last decade. In 2013, when the project was conceptualized, the PM10 level at Air India Building in Surat was 86 micrograms per cubic meter. The industrial associations in Surat agreed to run the pilot scheme. Also, industries in Surat had already installed Continuous Emission Monitoring Systems, which makes it possible to estimate the mass of particulate matter being released.

Significance

• A trading scheme will ensure monitoring, reporting and verification of emissions from the industries.
• It will effectively reduce pollution levels at the industrial level. Putting a “carbon price” through emissions trading will encourage businesses to identify low-cost methods of reducing emissions.
• It can be a source of fiscal revenue for the government, which can be used to fund other climate action programs.