Gujarat’s emissions trading-scheme for particulate pollution, developed with the help of researchers from the Emissions Market Accelerator (EMA), has been named a finalist for the 2025 Earthshot Prize, one of the world’s most-prestigious environmental awards.
The EMA, a joint initiative of the Energy Policy Institute at the University of Chicago (EPIC) and the Abdul Latif Jameel Poverty Action Lab (J-PAL), helped Gujarat design and launch the world’s first cap-and-trade market for particulate pollution in the industrial city of Surat.
The initiative has been selected as one of the three finalists under the “Clean Our Air” category of the Earthshot Prize.
Researchers affiliated with the EMA worked closely with the Gujarat Pollution Control Board (GPCB) to implement the market-based approach, which replaced traditional pollution-control methods with a cap-and-trade system, allowing industries to buy and sell emission permits. The experiment led to a sharp fall in particulate pollution, better compliance and higher profits for industries.
“The Gujarat emissions-trading scheme is an excellent testament to how financial market-based approaches can address severe pollution challenges in rapidly-developing economies around the world,” said Jason Knauf LVO, Chief Executive of The Earthshot Prize.