At the centre of this shift is the Emissions Market Accelerator (EMA), a platform that builds on India’s pioneering experience in emissions trading and helps governments design, implement, and scale market-based approaches for cleaner air, anywhere and for any pollutant.

From Surat to the Global South: Origin of a policy innovation

The EMA model began in Surat, Gujarat, where the world’s first particulate matter Emissions Trading Scheme (ETS) for industrial pollution was piloted. Instead of imposing uniform emissions limits, the ETS allowed industries to trade pollution permits within an overall cap.

The results were transformative. Field evaluations found that industrial particulate emissions fell by 20–30%, while firms achieved compliance at significantly lower costs, 11% less compared to traditional regulation. The innovation received global recognition when the Gujarat ETS was selected as a finalist for the 2025 Earthshot Prize—one of the world’s most prestigious awards for environmental solutions—signalling its potential to guide air-quality policy in cities across the Global South. The pilot demonstrated a powerful insight: markets can align with climate goals while remaining economically efficient.

This success expands the model to other states. Maharashtra and Rajasthan are now implementing ETS programs for pollutants such as sulfur dioxide. These state-led innovations drew global attention. This growing momentum created the foundation for a broader effort to support governments seeking similar tools.

To meet the rising demand from countries seeking similar approaches, Energy Policy Institute at the University of Chicago (EPIC) and its partners launched the Emissions Market Accelerator (EMA), a global platform designed to scale this proven model across the Global South.