World's First Emission Trading Scheme: India's New Approach to Combat Air Pollution

India has embarked on a groundbreaking initiative to tackle air pollution, an issue affecting its 1.4 billion residents, by piloting the world's first emission trading scheme (ETS). This innovative approach has shown promising results, yielding a 20% to 30% reduction in emissions from participating coal-burning plants.

The initiative, developed in collaboration with economists and the Gujarat Pollution Control Board, utilizes a market-based tool reminiscent of carbon trading methods. Operating since 2019, the results indicate a significant decrease in pollution, lower abatement costs for industries, and improved government compliance in enforcing pollution controls.

Despite the scheme's early success, experts caution against over-reliance on market-based solutions, advising their use only when other pollution reduction methods are ineffective. The challenge lies in scaling up the model, particularly in resource-strapped developing nations lacking the infrastructure for effective regulatory enforcement.

(With inputs from agencies.)