The Surat Emissions Trading System (ETS) is a pioneering initiative launched in 2019 in Surat, Gujarat. It represents the world’s first marketplace dedicated to trading permits for particulate matter emissions. This innovative system enables industries to manage their pollution levels more effectively by trading emission permits, thus promoting the adoption of cleaner technologies and reducing costs associated with pollution control.
An Emissions Trading System is a regulatory framework designed to reduce overall emissions. It operates by establishing a cap on total emissions and allowing industries the flexibility to buy or sell emission permits. Companies that successfully lower their emissions can sell surplus permits, while those that exceed their allocated limits must purchase additional permits to comply with regulations.
Surat was chosen for the ETS pilot due to India's traditionally command-based enforcement system, which often struggles with limited manpower. The ETS provides a market-oriented approach that enhances compliance, reduces monitoring costs, and offers economic incentives for industries to adopt cleaner practices.
Industries that fail to comply with the established norms face serious consequences, including:
As emphasized by the guiding principle, “The duty of a public servant is not to rule, but to serve — and service demands integrity, innovation, and impact.”
Q1. What are the main goals of the Surat-ETS?
Answer: The primary goals of the Surat-ETS include reducing particulate matter pollution, promoting cleaner technologies, and enhancing compliance through a market-based regulatory framework.
Q2. How does the auction mechanism work in the Surat-ETS?
Answer: In the Surat-ETS, 20% of the emission permits are auctioned to encourage price discovery, allowing industries to bid for permits based on their emission needs.
Q3. What penalties do non-complying industries face in the Surat-ETS?
Answer: Industries that do not meet compliance standards may face permit cancellations, financial deductions from security bonds, fines, or even shutdowns.
Q4. Why is the Surat-ETS considered a model for other regions?
Answer: The Surat-ETS is seen as a model due to its successful integration of market-based mechanisms that improve compliance and reduce pollution, which can be replicated in other regions.
Q5. What impact has the Surat-ETS had on air quality?
Answer: The implementation of the Surat-ETS has led to a reported reduction of pollution by up to 30% in industries involved, positively impacting air quality in the region.
Question 1: What is the purpose of the Surat Emissions Trading System?
A) To increase pollution levels in industries
B) To trade emission permits for cleaner air
C) To enforce stricter penalties on non-compliance
D) To eliminate all emissions completely
Correct Answer: B
Question 2: What percentage of permits in the Surat-ETS is auctioned?
A) 50%
B) 20%
C) 80%
D) 10%
Correct Answer: B
Question 3: What is a consequence for industries that do not comply with Surat-ETS regulations?
A) Increased emissions
B) Financial rewards
C) Permit cancellation
D) Public recognition
Correct Answer: C
Question 4: Why was Surat chosen for the ETS pilot project?
A) Its large population
B) Its command-based enforcement system
C) Its high levels of industrial pollution
D) Its limited monitoring resources
Correct Answer: B
Question 5: How much pollution reduction was reported in participating industries of the Surat-ETS?
A) 10%
B) 20%
C) 30%
D) 40%
Correct Answer: C
Question 6: What is the main benefit of the Surat-ETS for industries?
A) Increased operational costs
B) Compliance flexibility and cost reduction
C) Mandatory shutdowns
D) Higher emissions
Correct Answer: B
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