Pilot Emissions Trading Schemefor Air Pollutants in India

A collaboration between:

Central Pollution Control Board

Maharashtra Pollution Control Board

What can pilot ETS deliver?

Environmental quality

Transparency

Cost savings

Learning

Components of Emissions Trading

RegulatorA

lloc

atio

n

PermitAllocation

EmissionsMonitoring

Allocation

Monitoring M

onit

orin

g

1. Allocation.Regulator

4. Compliance.Regulator

Pollution Source

(Industry)

Pollution Source

(Industry)

Pollution Source

(Industry)PermitTrading

PermitTrading

All

ocat

ion

Allocation Monitoring

Allocation

Monitoring M

onit

orin

g

Regulatorsets overall cap and allocates permits.

2. Trading. Industry buys more permits or sells excess and adjusts emissions to be below permit holdings.

3. Monitoring. Regulator monitors total emissions of targeted pollutant.

Regulatorchecks that all sources have enough permits for emissions.

Next steps: Moving to an ETS

Regulator

Set Quantity Standard

&

Regulator

NormSetting

EmissionsMonitoring

(for compliance

EmissionsMonitoring

(for compliance to

Pollution Source

(Industry)PermitTrading

PermitTrading

& Permit

Allocation

Pollution Source

(Industry)

Setting (for complianceto fixed norms)

(for compliance topermit holdings)

Current Regulations Emissions trading pilot

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Project Timeline• Regulatory design and CEMS planning

– January 2011 – June 2011. Enact regulatory changes, set monitoring standards, identify state samples.

• Baseline data collection and trading platform

– July 2011 – December 2011. Install CEMS, ensure data quality, set trading platform and finalize ETS design parameters.

• Randomized evaluation of trading pilot

– January 2012 – December 2012 and after. Allocate permits, begin trading and monitor emissions.

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Immediate Timeline• May 13, Technical Workgroup Meeting• May 20, MPCB Industries-Vendors Meeting• May 25, Sample Identification and Criteria• Mid June, Governing Council Meeting • Mid June, Governing Council Meeting

– Draft Regulatory Notification– Draft Technical Specifications– Samples from all three states

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GPCB: Progress and Requirements• Progress so far:

– Industry list received for Sachin, Narol Industries– Baseline surveys sent to Sachin, Narol Industries

• Requirements before May 25th:• Requirements before May 25 :– Start with Industry list for Surat and Ahmedabad districts – Finalize pilot industries based on clearly defined criteria– Send additional survey forms if needed– Receive filled baseline surveys before June 5

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GPCB: Additional Requirements

Before May 25, • State Specific Regulatory Information Data

Request• Information on subsidies for CEMS and APCM • Information on subsidies for CEMS and APCM

equipment available to Gujarat industries

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