Chinmaya IAS Academy – Current Affairs Chinmaya IAS Academy – Current Affairs
GS 3
The Surat Emissions Trading Scheme (ETS) has been recognized as the world’s first market-driven system specifically designed to address particulate air pollution.
What is an Emissions Trading Scheme (ETS)?
An Emissions Trading Scheme (ETS) is a regulatory mechanism that uses economic incentives to reduce air pollution. The system sets a limit or “cap” on the total allowable emissions of a pollutant.
Industries are allocated a certain number of emission permits, which can be traded in the market. Companies that reduce their emissions below the cap can sell their excess permits to those exceeding their limits. This creates a financial motivation for companies to decrease their pollution levels, promoting cost-effective pollution reduction.
This system is commonly referred to as a cap-and-trade system.
Why is the Surat ETS Important?
Launched in 2019, the Surat Emissions Trading Scheme (ETS) stands out as the world’s first system focused on trading particulate pollution (rather than CO₂) and is also India’s first emissions trading market for any pollutant.
The scheme targets 342 high-emitting industries, primarily in the textile sector, which rely on solid fuels like coal and lignite, as well as liquid fuels such as diesel. The scheme was developed by the Gujarat Pollution Control Board (GPCB) in partnership with J-PAL, EPIC, and Yale University.