World’s first particulate matter trading scheme

World’s first particulate matter trading scheme:  A recent study led by Michael Greenstone, found that the Surat Emission Trading Scheme (ETS) launched in Gujarat in 2019 cut particulate matter pollution by 20–30% while also reducing compliance costs for industries

• About Particulate Matter: It composed of microscopic solids or liquid droplets that can be inhaled.

oParticles under 10 micrometers can reach the lungs and bloodstream, causing serious health problems.

• About World’s First Particulate Matter Trading Scheme: Introduced in 2019 in Surat, Gujarat.

o Objective: Aimed to curb air pollution by trading permits for particulate matter emissions.

o Collaboration: Launched with University of Chicago, Yale University, and J-PAL.

o Global First: Recognised as the world’s first particulate matter emissions market.

o Mechanism: Allowed industries to buy/sell permits to stay within emission caps.

o Global Comparison: Similar to cap-and-trade systems in Europe (greenhouse gases) and China (carbon emissions).

• About Surat Emission Trading Scheme (ETS): Run by GPCB (Gujarat Pollution Control Board) with EPIC, J-PAL, and industry groups.

o Pollution Cap: Each plant was given a pollution limit and could trade permits to meet it.

o Trading Platform: Permits were traded via NeML platform.

o Penalty: Fines were imposed on plants failing to comply with permit norms.

o Emission Reduction: ETS plants cut particulate emissions by 20–30%.