Emissions trading in particulate matter takes off

Will the market-based approach to controlling air pollution prove more effective than enforcement methods used by pollution control boards? After failing to check air pollution through the usual enforcement methods, the Union Ministry of Environment and Forests (MoEF) has introduced a market-based mechanism to reduce air pollution. It is called the Emissions Trading Scheme (ETS). The ministry has initiated a pilot ETS in industrial areas of three states—Gujarat, Maharashtra and Tamil Nadu—with the aim of improving overall ambient air quality. These states were chosen because they have maximum number of industries and critically polluted areas. The scheme allows the regulators—Central and state pollution control boards—to set a cap on the aggregate level of pollution permitted in an industrial area, and then allows the industries to self-regulate to ensure that pollution does not exceed this cap. Industries that emit excess pollutants can buy points from industries that overachieve targets just like in the carbon trading system. for full text:

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