Ludhiana Clean Air Market
Cleaning the air while facilitating robust economic growth.
The government of Punjab announced the launch of India's second market for particulate pollution in June 2021 to confront the twin problems of cleaning the air while facilitating robust economic growth.

The Government of Punjab’s Department of Industry & Commerce and the Department of Science, Technology & Environment announced on June 5, 2021 that they will pilot a clean air market, or Emissions Trading Scheme (ETS) to reduce particulate pollution and greenhouse gas (GHG) emissions in Punjab. As a first step, the Government of Punjab and the Punjab Pollution Control Board (PPCB) will launch a market to regulate particulate pollution from 200 dyeing industries in Ludhiana.

The ETS offers a market-based approach to reduce air pollution in which governments set a cap on emission levels and distribute emissions permits among firms. The approach uses continuous emissions monitoring systems (CEMS) to send real-time and continuous readings of particulate emissions and enable better and more targeted regulatory oversight standards.

“The Government of Punjab is keen to combat environmental pollution through regulation that promises a win-win situation of cleaner production, coupled with lower compliance costs for industries. ETS is one such initiative that can help regulate critically and severely polluted industrial belts in Punjab.”

Shri Alok Shekhar, IAS Principal Secretary Industries & Commerce

The Government of Punjab will work with J-PAL South Asia and EPIC India to design and establish pollution markets in Punjab. The partnership includes providing technical assistance and capacity building to public officials to effectively use data and research evidence from the country’s first trading market in Surat, Gujarat.

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The Clean Air Markets team consists of a collaboration of government and research partners who are implementing the programme.

Pollution Facts

Learn more about particulate air pollution, its impacts on human health, and how governments have successfully confronted it.


Browse evaluations of trading markets, as well as Indian guidelines and more associated with setting up a market.