In a short span of 2 months since live trading was initiated in September 2019, NeML’s Emissions Permit Trading System (EPTS) platform developed for Gujarat Pollution Control Board (GPCB) has started delivering tangible results in the form of reduced air pollution and increased profits for the textile cluster. Launched in Surat, Gujarat, NeML’s EPTS platform is the World’s First Particulate Trading System.
In the first evaluation report that was released on October 18, 2019 by the Energy Policy Institute At The University Of Chicago (EPIC) India, it was found that EPTS had achieved a commendable 29% drop in suspended particulate matter generated by Surat’s textile plants. The report, co-authored by Michael Greenstone and Anant Sudarshan from the University of Chicago and Rohini Pande and Nicholas Ryan from Yale University further highlights that EPTS had significantly lowered the costs of reducing particulate emissions and increased the average industry profits in Surat.
As seen in our earlier post, under the ‘cap-and-trade’ scheme, GPCB caps the total amount of emissions allowed for each industrial unit and allots them ‘emission permits’. Industrial units that restrict their emissions below their allotted cap can then sell their remaining permits through NeML’s EPTS platform like any other commodity.
The evaluation report has predicted that a vast majority of textile plants in Surat will see their profits increase by greater than Rs. 5.5 lakh per annum with an average increase in profits approximating Rs. 8.6 lakhs per year.
Leveraging the power and flexibility of open markets to deliver a win-win-win situation of protecting citizens from air pollution and increasing the profits of Surat’s industrial units, NeML is happy to be doing its bit to contribute to India’s growth story in a sustainable way.