Reducing particulate pollution through the power of markets
An unprecedented collaboration that proves it’s possible to reduce pollution, enhance profitability, and deliver vital health benefits to the people of India.


The Government of Gujarat launched the world's first market for particulate pollution in Surat in 2019, providing a model for reducing air pollution while growing the economy.

The Government of Gujarat announced in June 2021 that they will expand their pilot to reduce particulate pollution from 240 industrial units in Ahmedabad.

What they're saying

T Sumathy

Member of Parliament, Lok Sabha

Pollution markets in developing or under-developed countries are a source of hope for us, as they encourage cost-effective pollution reduction by allowing companies to trade emission allowances. Clean Air Markets can definitely equip us to tackle air pollution by fostering economic growth.

Heena Gavit

Member of Parliament, Lok Sabha

I come from Maharashtra; a state adorned with a myriad of industries. The effectiveness of initiatives such as the Emissions Trading Scheme (ETS) in promoting economic growth while simultaneously protecting the environment has been noteworthy. It is particularly commendable to witness states like Gujarat expanding the ETS to scale up to more cities, supported by tangible data that attests to their success. I express my hope that more states will embrace these innovative solutions to address and combat the pervasive issue of pollution.

Lavu Sri Krishna Devarayalu

Member of Parliament, Lok Sabha

Market-based approaches are an innovative instrument to address growth without compromising the environment. I am glad that researchers at the University of Chicago and their partners have worked closely with GPCB to roll out the world's first pollution market in Gujarat. Incentivizing rather than punishing is the way to get more industries to full fill their obligations to the environment and the communities. This model totally unlocks that. I hope we see more pollution markets in different parts of the country so that industrial growth does not come with a price that human health pays for!

Rahul Kaswan

Member of Parliament, Lok Sabha

Pollution markets, the economic architects of environmental responsibility, wield the power of market forces to forge a sustainable future. With economic efficiency as their guiding principle, these markets incentivize innovation, grant flexibility, and establish clear limits, fostering a dynamic landscape where businesses thrive while emissions decline. However, their success hinges on meticulous design and vigilant implementation, ensuring that the delicate balance between economic interests and environmental stewardship remains unwavering.

Mulubhai Bera

Minister of Forest & Environment, Government of Gujarat

Gujarat has been a flagbearer of taking innovative initiatives to ensure a balance between economic development and environment preservation. The Emissions Trading Scheme for Particulate Matter, the first in the world for PM emissions, is one of the examples of the unique initiatives being taken by the Government of Gujarat to contain its emissions.

Sanjay Jaiswal

Member of Parliament

The Gujarat government has started the world’s first emissions trading scheme for industries. Those industries which pollute less can sell emission caps and big industries which pollute more can buy those caps. This enables smaller industries to make a profit. I congratulate the Gujarat government for taking these steps.

Siddharth Goel

Founder & CEO, Rethinking Public Policy

The scheme is a departure from the traditional command and control approach to environment regulation. The past approach failed to curb emissions and instead bred a culture of non-compliance among companies. The pilot’s success could lead to the adoption of market-based approaches in tackling India’s other environmental challenges.

Rohini Pande

The Henry J. Heinz II Professor of Economics; Director, Economic Growth Center at Yale University

The implementation of the pilot ETS demonstrates remarkable foresight and imagination from Indian regulators and industry who are now using cutting-edge technology and economic techniques to balance the twin objectives of economic growth and air quality improvement.

Michael Greenstone

Milton Friedman Distinguished Service Professor in Economics; Director, Energy Policy Institute at the University of Chicago

A first look at the programme finds that the Gujarat Pollution Control Board’s ETS is projected to both foster economic growth by reducing industries’ compliance costs and improve people’s health by reducing particulate air pollution. It is bringing Indian environmental policy to the global frontier.

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