State implements pilot emission trading scheme

PUNE: The state is implementing a pilot project of an 'Emission Trading Scheme' (ETS) as an alternative instrument of environment regulation. As part of the project, the Maharashtra Pollution Control Board (MPCB) has started mapping emissions of industrial units via online monitoring and will put a cap on emissions within a cluster, and on individual units."If the units exceed their cap, they will be forcedto pay for the excess emissions. Units with excess emission can buy points fromother units who have emitted less than the permissible limit. It is like thecarbon credit mechanism used globally, and a self-regulation method for units toreduce emissions," environment secretary Valsa Nair Singh toldTOI.The ETS, also known as cap and trade, may work from bothregulatory and economic perspective and cut down the overall cost of compliance,Nair Singh added.She said that it would be an area-basedenvironmental management approach having lower cost of compliance for achievingthe health-based ambient air quality standards. Nair said a cap will be laid onthe emissions made by a cluster and also on individual units operating withinthe cluster."Suppose unit A is allowed to emit pollutants up to 100points, but is emitting 150 and the unit B is permitted up to 150 but isactually emitting only 100, then unit B can sell his points to unit A. For thenext six months, we will be tracking the emissions of industries such as thermalplans, cement factories, etc which are responsible for ambient air pollution.Based on the six-month findings, we will determine the capping limit," NairSingh said.The pilot projects are being implemented in Maharashtra,Gujarat and Tamil Nadu, in association with a group of scientists fromMassachusetts Institute of Technology, US.The plan comes following anational consultation that was organised by the Ministry of Environment andForests (MoEF) to discuss the 'market-friendly' emissions scheme for airpollutants, which the central government is working on introducingnationally.According to the minutes of the national consultation,published by the MoEF on its website, this would be a first step in clusterlevel approach for developing green industrial estates."Themarket-based scheme is targeting local pollutants that have damaging healthconsequences. A pilot scheme is essential to address the practical concerns overmonitoring, the permit allocation process, abatement costs and other matters.Running a two-year experiment will enable MoEF and the state pollution controlboards to determine what role market based instruments will take in Indianenvironmental regulation in the future," the minutes said.It alsostated that the market-based scheme is innovative and India needs to make astart in this direction to ensure growth."We need to move to a wayof regulating without regulators. Market-based schemes achieve this by providingfirms with flexibility. We will spend the next two years in pilot for learninghow this regulatory instrument could be used. Monitoring, determination of thecap and other issues are crucial to the success of the pilotscheme."