World’s first particulate Emission Trading Market in Gujarat cut pollutants by 20-30 % | Current Affairs | Vision IAS
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World’s first particulate Emission Trading Market in Gujarat cut pollutants by 20-30 %

Posted 22 Apr 2025

1 min read

A new study has revealed that the Surat Emission Trading Scheme (ETS) launched in 2019 has been successful in controlling particulate matter emissions.

  • Pollution abatement costs also dropped by over 10 %, and compliance with environmental laws rose among participating plants.

About Surat ETS

  • Overview: It is the world’s first-ever market for trading in particulate matter emissions.
    • It is also India’s first pollution trading scheme of any kind.
    • The concept of ETS first originated in US, targeting sulfur dioxide (SO2) pollution. 
  • Objective: To curb air pollution in accordance with the polluters pay principle.
  • Working Mechanism:  It is based on market-linked ‘cap and trade’ mechanism (Refer Image). 
    • This approach has been used in Europe for greenhouse gases and in China for carbon emissions.
    • ETS uses Continuous Emissions Monitoring Systems (CEMS) devices for monitoring.
  • Trading: Industries trade permits on a platform developed by NeML (National Commodities and Derivatives Exchange e-Markets).
  • Participating units are also required to submit an 'Environmental Damage Compensation' amount (rate varies according to size of industry).
Image showing Working Mechanism of ETS
  • Tags :
  • ETS
  • Particulate emissions
  • Surat Emission Trading Scheme (ETS)
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