Brief Context
Context A study found that the Surat Emission Trading Scheme (ETS) in Gujarat, delivered both environmental and economic benefits. About The Emission Trading Scheme (ETS) in Surat, launched in 2019, is the world’s first market-based trading system for particulate matter (PM) emissions and India’s first pollution trading scheme of any kind. It represents a cap-and-trade system, where total emissions are capped and emission permits can be traded among industrial units.
Source Content
Syllabus: GS3/ Environment
Context
- A study found that the Surat Emission Trading Scheme (ETS) in Gujarat, delivered both environmental and economic benefits.
About
- The Emission Trading Scheme (ETS) in Surat, launched in 2019, is the world’s first market-based trading system for particulate matter (PM) emissions and India’s first pollution trading scheme of any kind.
- It represents a cap-and-trade system, where total emissions are capped and emission permits can be traded among industrial units.
- It was developed by the Gujarat Pollution Control Board (GPCB), in collaboration with the Energy Policy Institute at the University of Chicago.
How does the Scheme Work?
- Continuous Emissions Monitoring Systems (CEMS): 318 coal-using industrial units were mandated to install CEMS to enable real-time tracking of PM emissions.
- This marked a shift from the earlier system of periodic spot checks.
- GPCB set a cap of 170 tonnes/month based on real-time CEMS data.
- Auctioning: The GPCB issued about 80% of the emissions cap in free permits, distributed in proportion to a plant’s emissions potential (e.g., boiler size), while the remaining 20% were auctioned weekly.
- Firms failing to hold enough permits to match their emissions were penalised proportionally.
Key Achievements of Surat ETS
| Parameter | Impact |
| Pollution Reduction | 20–30% reduction in PM emissions |
| Cost Efficiency | Over 10% decrease in pollution abatement costs |
| Compliance | 99% compliance with environmental norms |
Significance of the Programme
- Environmental Innovation: being the first cap-and-trade system globally for PM emissions it showcases India’s leadership in market-based environmental regulation.
- Data-Driven Policy: The use of real-time CEMS data allowed for evidence-based regulation and gradual tightening of caps to match actual emissions levels.
- Scalability: The success in Surat paves the way for similar schemes in other Indian cities and for other pollutants, including NOx and SO₂.
| What is Particulate Matter (PM)? – Particulate matter (PM) refers to the wide variety of tiny substances that float in the air in the form of either solid particles or liquid droplets or both. – Based on particle size, PM is divided into four groups: 1. PM10, known as the coarse particulate matter, which is ≤10 μm in size; 2. PM2.5, known as the fine particulate matter, which is ≤2.5 μm in size; 3. PM0.3 particles with a diameter of <0.3 μm are known as quasi-ultrafine particles; 4. PM0.1, known as the ultrafine particulate matter, which is ≤0.1 μm in size. Sources of Particulate Matter |
Source: DTE