Particulate Matter Trading Scheme in Gujarat

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

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 – Natural Sources: Dust storms, Forest fires, Volcanic eruptions – Anthropogenic Sources: Vehicle exhaust, Industrial emissions, Construction activities and Biomass and fossil fuel burning. Health Impacts of PM – Respiratory diseases: Asthma, bronchitis, chronic obstructive pulmonary disease (COPD). – Cardiovascular issues: Increased risk of heart attacks and hypertension. – Neurological disorders: Cognitive decline and neurodevelopmental issues in children. – Premature mortality: Prolonged exposure increases the risk of early deaths due to lung and heart diseases.

Source: DTE