In news: The Gujarat government has launched world’s first market for trading in particulate matter emissions.
- While trading mechanisms for pollution control do exist in many parts of the world, none of them is for particulate matter emissions.
- For example, the CDM (Clean development mechanism) under the Kyoto Protocol allows trade in ‘carbon credits.
About Emissions Trading Scheme (ETS)
- Emissions Trading Scheme (ETS) is a regulatory tool that is aimed at reducing the pollution load in an area and at the same time minimising the cost of compliance for the industry.
- ETS is a market in which the traded commodity is particulate matter emissions. The Gujarat Pollution Control Board (GPCB) sets a cap on the total emission load from all industries.
- Various industries can buy and sell the ability to emit particulate matter, by trading permits (in kilograms) under this cap. For this reason, ETS is also called a cap-and-trade market.
The Clean Development Mechanism (CDM)
It is one of the Flexible Mechanisms defined in the Kyoto Protocol (IPCC, 2007) that provides for emissions reduction projects which generate Certified Emission Reduction units (CERs) which may be traded in emissions trading schemes.
Perform Achieve and Trade (PAT)
- The scheme is a flagship programme of the Bureau of Energy Efficiency under the National Mission for Enhanced Energy Efficiency (NMEEE).
- NMEEE is one of the eight national missions under the National Action Plan on Climate Change (NAPCC) launched by the Government of India in the year 2008.
- PAT is a regulatory instrument to reduce specific energy consumption in energy intensive industries, with an associated market-based mechanism to enhance the cost effectiveness through certification of excess energy saving which can be traded.