Salient features of the Gujarat scheme:
- Launched in Surat, the Emissions Trading Scheme (ETS) is a regulatory tool that is aimed at reducing the pollution load in an area and at the same time minimising the cost of compliance for the industry.
- ETS is a market in which the traded commodity is particulate matter emissions.
- The Gujarat Pollution Control Board (GPCB) sets a cap on the total emission load from all industries.
- Various industries can buy and sell the ability to emit particulate matter, by trading permits (in kilograms) under this cap. For this reason, ETS is also called a cap-and-trade market.
