
India First Pollution Trading Market in Surat Cuts Emissions by 30%
A ground-breaking cap-and-trade programme to control industrial air pollution in Surat, Gujarat, has led to a significant 20–30% reduction in particulate matter emissions while lowering costs for factories and boosting regulatory compliance a new study has revealed.
Published in the May 2025 issue of The Quarterly Journal of Economics, the study evaluated the Surat Emissions Trading Scheme (ETS) the world’s first market-based initiative for trading in particulate matter emissions and India’s first pollution trading scheme of any kind.
Developed by the Gujarat Pollution Control Board (GPCB) in partnership with the Energy Policy Institute at the University of Chicago, the Surat ETS required 318 large coal-based industrial plants to install real-time emissions monitoring systems. Instea...