{"id":2251,"date":"2019-09-26T11:40:00","date_gmt":"2019-09-26T06:10:00","guid":{"rendered":"https:\/\/www.classiciasacademy.com\/blog\/?p=2251"},"modified":"2024-06-06T15:38:49","modified_gmt":"2024-06-06T10:08:49","slug":"gujarat-worlds-first-market-for-particulate-matter-emissions","status":"publish","type":"post","link":"https:\/\/www.classiciasacademy.com\/blog\/gujarat-worlds-first-market-for-particulate-matter-emissions\/","title":{"rendered":"Gujarat &#8211; World\u2019s First Market for Particulate Matter Emissions"},"content":{"rendered":"\n<h3 class=\"wp-block-heading\">In News<\/h3>\n\n\n\n<p>Gujarat became the fist state in the world to become a market for\nparticulate matter emissions. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">In-Detail<\/h3>\n\n\n\n<ul>\n<li>Emissions trading is not a new concept. Under\nthe Carbon development Mechanism allowed by Kyoto Protocol, carbon emissions\nare allowed to trade in the form of carbon credits. <\/li>\n\n\n\n<li>Entities that reduce carbon emissions will get\ncarbon credits and they can trade them in the market. <\/li>\n\n\n\n<li>European Union has Emission Trading system for\ngas emissions, and India has a mechanism to trade energy units.<\/li>\n\n\n\n<li>But, so far there is no trading mechanism for\nparticulate matter (PM) emissions and Gujarat became the first government to\nlaunch a scheme promoting PM trade.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">The Scheme <\/h3>\n\n\n\n<ul>\n<li>The scheme, known as the Emission Trading Scheme\n(ETS) is a regulatory tool to check PM emissions and an incentive for\nindustries as it reduces compliance costs. <\/li>\n\n\n\n<li>It is launched in Surat.<\/li>\n\n\n\n<li>The Gujarat Pollution Control Board (GPCB) will\nput a cap on emission load on all industries. <\/li>\n\n\n\n<li>Various industries can buy and sell the ability\nto emit PM by trading permits (in kilograms) under the cap. <\/li>\n\n\n\n<li>This is why ETS is also known as the\ncap-and-trade market. <\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Participating Industries&nbsp; <\/h3>\n\n\n\n<ul>\n<li>So far, 155 industries have joined the ETS, out\nof which 88 started trading.<\/li>\n\n\n\n<li>Emission permits worth Rs. 2.78 lakh were\ntraded. <\/li>\n\n\n\n<li>The participating industries are from sectors\nlike textiles, sugar, and chemicals. They are spread over an area of 50-30 sq\nkm in and around Surat. <\/li>\n\n\n\n<li>Due to their reliance on coal or baggage for\nenergy, these industries release a high amount of ash. <\/li>\n\n\n\n<li>The GPCB selected the participants based on the\nsize of their chimney. Those with a chimney diameter of 24 inches or more are\nselected.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Why Surat? <\/h3>\n\n\n\n<ul>\n<li>When the project was conceptualised in 2013, the\nair quality of Surat was deteriorated. <\/li>\n\n\n\n<li>The PM 10 levels were at 89 micrograms per cubic\nmetre. <\/li>\n\n\n\n<li>By 2018, this increased to 189 micrograms per\ncubic metre.<\/li>\n\n\n\n<li>Also, Surat was chose because the industrial\nassociation there agreed to take up the pilot project. <\/li>\n\n\n\n<li>With many of the industries having installed\ncontinuous emission monitoring systems, that allows for estimating the mass of\nparticulate matter being released, made things easier.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">The Trading <\/h3>\n\n\n\n<ul>\n<li>The GPCB puts the cap at 280 tonnes. At the\nbeginning of every one-month compliance period, the pollution board gives\npermits for 80 per cent of the 280 tonnes for free and are distributed among\nall the participants. <\/li>\n\n\n\n<li>The rest 20% permits are auctioned at a floor\nprice of Rs. 5 per kilogram. <\/li>\n\n\n\n<li>Participating units must buy and sell the\npermits among each other during the period. <\/li>\n\n\n\n<li>The price per permit is not allowed to cross Rs.\n100 per kilogram and sell below Rs. 5 per kilogram. After a review, the price\nwill be adjusted. <\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">The Auctioning <\/h3>\n\n\n\n<ul>\n<li>Permit auctions are carried out on the\nETS-platform hosted by the National Commodities and Derivatives Exchange\ne-Markets Limited (NeML). <\/li>\n\n\n\n<li>Participants must register a trading account\nwith the NeML. The accounts are linked to the bank accounts of the participants\nand they can check their transactions. <\/li>\n\n\n\n<li>There are two types of auctions: first, on every\nTuesday, the week\u2019s permit price is discovered through bidding by participating\nmembers. Second, there is a continuous market between Wednesday to Monday (2 pm\nto 5 pm) where members buy and sell permits whose prices were fixed on Tuesday.\n<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">How ETS Helps in Emission Reduction?<\/h3>\n\n\n\n<ul>\n<li>Currently, the industries in the region are\nemitting at 362 tonnes per month. <\/li>\n\n\n\n<li>The cap of 280 tonnes per month is a huge\nreduction. Authorities are planning to reduce the cap further in the future. <\/li>\n\n\n\n<li>The permits are not to encourage industries to\ncontinue polluting. They are in fact buying some time for the industries to\ninstall efficient air pollution control measures. <\/li>\n\n\n\n<li>Participants will realise that trading permits\nwill become costly eventually and will invest in APCM. <\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Will There Be Punitive Action for Non-Compliance?<\/h3>\n\n\n\n<ul>\n<li>The units will be declared compliant or\nnon-compliant based on the permits they hold at the end of the period. <\/li>\n\n\n\n<li>An environmental damage compensation of Rs.\n200\/kg will be charged for those emitting more than their permit holdings. <\/li>\n\n\n\n<li>The amount will be deducted from the\nenvironmental damage deposit that each participating member has to submit\nbefore joining the scheme. <\/li>\n\n\n\n<li>It is Rs. 2 lakh for small units, Rs. 3 lakh for\nmedium units and Rs. 10 lakhs for large units. <\/li>\n\n\n\n<li>After any deduction, the unit has to to pay to\nfill the shortfall in the deposit. <\/li>\n\n\n\n<li>To avoid permits hoarding, the scheme allows for\nholding only 1.5 times the initial permits allocated or 3 per cent of the\nmarket cap for a period. Also, no unit can sell more than 90 percent of its\ninitial allocation. <\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Conclusion <\/h3>\n\n\n\n<p>The scheme can be replicated in other parts of the country only if all the industrial units have emissions monitoring systems in place. <\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<div class=\"mh-excerpt\"><p>In News Gujarat became the fist state in the world to become a market for particulate matter emissions. In-Detail The Scheme Participating Industries&nbsp; Why Surat? <a class=\"mh-excerpt-more\" href=\"https:\/\/www.classiciasacademy.com\/blog\/gujarat-worlds-first-market-for-particulate-matter-emissions\/\" title=\"Gujarat &#8211; World\u2019s First Market for Particulate Matter Emissions\">    [read more]<\/a><\/p>\n<\/div>","protected":false},"author":1,"featured_media":2254,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[98],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Gujarat - World\u2019s First Market for Particulate Matter Emissions -<\/title>\n<meta name=\"description\" content=\"Matter Emissions - Gujarat became the fist state in the world to become a market for particulate matter emissions.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.classiciasacademy.com\/blog\/gujarat-worlds-first-market-for-particulate-matter-emissions\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Gujarat - World\u2019s First Market for Particulate Matter Emissions -\" \/>\n<meta property=\"og:description\" content=\"Matter Emissions - Gujarat became the fist state in the world to become a market for particulate matter emissions.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.classiciasacademy.com\/blog\/gujarat-worlds-first-market-for-particulate-matter-emissions\/\" \/>\n<meta property=\"og:site_name\" content=\"UPSC Current Affairs\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/classiciasacademydelhi\/\" \/>\n<meta property=\"article:author\" content=\"https:\/\/www.facebook.com\/classiciasacademydelhi\/\" \/>\n<meta property=\"article:published_time\" content=\"2019-09-26T06:10:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-06-06T10:08:49+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.classiciasacademy.com\/blog\/wp-content\/uploads\/2019\/09\/emissions.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"800\" \/>\n\t<meta property=\"og:image:height\" content=\"480\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Classic IAS Academy\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@classic_ias\" \/>\n<meta name=\"twitter:site\" content=\"@classic_ias\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Classic IAS Academy\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.classiciasacademy.com\/blog\/gujarat-worlds-first-market-for-particulate-matter-emissions\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.classiciasacademy.com\/blog\/gujarat-worlds-first-market-for-particulate-matter-emissions\/\"},\"author\":{\"name\":\"Classic IAS Academy\",\"@id\":\"https:\/\/www.classiciasacademy.com\/blog\/#\/schema\/person\/11f000d5c6a57c5e6f655dd75e8f6096\"},\"headline\":\"Gujarat &#8211; 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