In a Minute! : The Emissions Trading Scheme

An ETS, or “cap-and-trade” system, caps the amount of pollution allowed from regulated industries and allows permits to plants. Plants that can inexpensively cut pollution can then make money by selling their permits to other factories. In this way, the system uses the power and flexibility of markets to deliver the win-win-win of simultaneously (i) reducing total cost
of regulation, (ii) increasing firm profits, and (iii) protecting citizens from air pollution.
The Gujarat Pollution Control Board launched India’s first ETS—and, the world’s first cap-and-trade market in particulate pollution—on July 15, 2019, in the form of a large-scale pilot programme in Surat, Gujarat