Surat Emission Trading Scheme (ETS)

According to a study report the Surat ETS resulted in significant pollution reductions by 20–30% while also lowering the costs of compliance for industries.

• The success of this initiative presents a model for other regions seeking to reduce industrial pollution through market-based mechanisms.

About Surat Emission Trading Scheme (ETS)

• The Surat Emission Trading Scheme (ETS), launched in 2019 in Gujarat, is the world’s first market-based approach for trading particulate matter emissions.
• Objective: This  aims to reduce air pollution in Surat, a highly industrialized city where industrial activities contribute to nearly a third of the particulate matter in the air.
• Cap-and-Trade System: Each industrial plant is given an emission cap (a limit on the amount of particulate matter it can emit). 
  • Plants that stay below their cap can sell unused permits to others that exceed their limits.
• Mechanism: The market for trading permits is hosted on the National Commodities and Derivatives Exchange e-Markets Limited (NeML) platform.
• Collaboration: The Surat ETS is run by the Gujarat Pollution Control Board (GPCB) in collaboration with the Energy Policy Institute at the University of Chicago (EPIC), J-PAL, and industry associations.

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