On December 4, 2024, EPIC India hosted an engaging dialogue that brought together experts and enthusiasts to discuss how India can learn from emissions trading experiences in the Asia-Pacific region to address pressing environmental challenges.
The event’s highlight was an insightful conversation led by Professor Shreekant Gupta, an eminent scholar in environmental economics. Professor Gupta, currently a Visiting Senior Fellow at the Centre for Social and Economic Progress and the Lee Kuan Yew School of Public Policy, shared lessons drawn from his recent research which underscores how emissions trading systems (ETS) in the Asia-Pacific region, though still evolving, offer valuable insights for India and other nations seeking to mitigate air pollution through innovative market-based mechanisms.
Prof. Gupta was joined in the conversation by Dr. Kaushik Deb, EPIC India’s Executive Director, who added depth with his expertise in policy and market strategies. Together, they explored how ETSs can balance economic development with environmental sustainability. He further shared about EPIC India’s groundbreaking Emissions Trading Scheme (ETS) that was launched in Surat in 2019 in collaboration with the Gujarat Pollution Control Board and J-PAL South Asia, an initiative that set a global precedent as the first pollution market for particulate matter. Its expansion to Ahmedabad and other regions reflects EPIC India’s commitment to pioneering scalable solutions for a cleaner, sustainable future.
Prof. Gupta shared some key strategies to strengthen Emissions Trading Systems (ETS) such as:
– Establishing Clear Goals: Setting long-term plans with net-zero targets, expanding sectoral coverage, and phasing out exemptions like emissions-intensive trade-exposed (EITE) industries.
– Enhancing Administrative Systems: Building robust monitoring, reporting, and verification (MRV) frameworks, supported by third-party audits to ensure transparency and accountability.
– Complementary Policies: Providing subsidies to mitigate carbon pricing impacts on energy costs, is crucial for developing economies navigating energy transitions.
The interactive session was followed by some interesting questions from the audience, enriching the dialogue with diverse perspectives. Participants, including representatives from organizations such as WRI, Ashoka University, CSE, Mongabay, and ICRIER, left with actionable insights and a renewed enthusiasm for advancing market-based solutions to environmental challenges.