India emission trading success: Gujarat scheme cuts air pollution by up to 30%
India has implemented a pioneering solution to address air pollution the world’s first particulate emission trading scheme (ETS). Initiated in Gujarat, this market-based program has led to a 20–30% reduction in emissions from coal-burning industries since its launch in 2019, while also reducing pollution control costs by over 10%.
A new market for cleaner air
The pilot scheme was developed through a collaboration between leading economists and the Gujarat Pollution Control Board. It functions on a cap-and-trade model, where industries are assigned pollution limits and can buy or sell emission permits based on their performance. This incentivizes companies to lower their emissions and save costs, creating a dynamic balance between environmental regulation and economic efficiency.
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