Gujarat plans a cap-and-trade market for carbon emissions

The Gujarat government is planning to set up a cap-and-trade market for carbon emissions from large sources. The move will provide the state a growth-friendly approach to cut its carbon footprints and provide a model for other states in collectively taking India towards its ‘net zero’ goal.
The market will allow industries and power plants in the State to trade CO2 permits whereas an overall cap on quantum of emission, set by authorities concerned, will provide the government a flexible tool to meet climate goals. The idea behind the cap-and-trade market is to make it possible for industries to reduce carbon emission with minimal disruption to their businesses and output.