What's Happening?
India is implementing an emissions trading scheme (ETS) for particulate matter pollution, piloted in Gujarat. The scheme allows businesses to trade emission permits, offering flexibility in reducing emissions cost-effectively. The pilot in Surat showed a 20-30% reduction in emissions among participating firms compared to those under conventional regulations. The ETS is part of India's broader strategy to achieve net zero emissions by 2070, aligning economic growth with environmental sustainability.
Why It's Important?
The ETS represents a significant shift in India's approach to balancing industrial growth with environmental protection. By allowing businesses to choose between buying permits or investing in clean technologies, the scheme offers financial benefits and encourages participation. This market-based approach could serve as a model for other low- and middle-income countries facing similar challenges. The success of the pilot in Gujarat highlights the potential for emissions trading to reduce pollution while supporting economic growth.
What's Next?
Following the success of the pilot, Gujarat plans to expand the ETS to cover additional industrial clusters and launch similar schemes in other states. The government is considering the feasibility of ETS for other pollutants, such as sulphur emissions. The expansion of real-time air quality monitoring and digital infrastructure will support the effective implementation of these schemes, potentially leading to improved air quality and public health outcomes.
