New Delhi, Oct 18 (IANS): The emissions trading scheme for trading greenhouse gas emissions allowances that has been adopted by Surat in Gujarat can reduce pollution 29 per cent while increasing profits for a majority of industrial plants, international researchers said on Friday.

Companies can trade their allowances, enabling them to further reduce their emissions. With the festival of lights Diwali approaching, the need to confront pollution becomes even more critical.

In a move that is revolutionising India”s approach to pollution policies, Surat is the world”s first city that, on September 15, adopted an emissions trading scheme for particulate pollution.

An analysis by researchers from the University of Chicago and Yale University quantifies the significant potential the programme offers to reduce pollution while allowing continued economic growth.

“This first look at the programme finds that the Gujarat Pollution Control Board”s emissions trading scheme 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,” said Michael Greenstone, a co-author of the report.

He is the Milton Friedman Distinguished Service Professor in Economics and director of the Energy Policy Institute at the University of Chicago.