Soon, industries could buy and sell PM 2.5 emission permits

The Times of India , Friday, July 21, 2017
Correspondent : Jayashree Nandi
NEW DELHI: Niti Aayog is zeroing in on a "cap and trade" scheme to control air pollution from industries. This will involve a market for industries to buy and sell permits that allow them to emit a certain amount of particulate matter (PM 2.5).

Many such schemes for local pollutants like sulphur dioxide (SO2) and oxides of nitrogen (NOx) have already been implemented in the US like the Acid Rain Programme of 1995.

Energy Policy Institute at the University of Chicago is conducting a feasibility study and drafting the policy for Niti Aayog. According to EPIC-India, such a scheme can be implemented in any industrial cluster or a city with a number of industries like those in NCR, which have a direct impact on pollution levels in Delhi.

The scheme works like this: Central Pollution Control Board (CPCB) sets a cap on total emissions of PM 2.5 from industries in a city. This can be the total load of PM 2.5 in the form of, say kg/hour. Each industry is issued permits on the basis of how much of PM 2.5 emissions they can reduce. Some industries may be able to bring down their emission level even lower than the permits allotted to them, while some may find it difficult and expensive to meet the limits based on permits. Those who have over-achieved their emission reduction targets can sell their excess permits to industries, which are unable to meet the requirements. Such trading can be intermediated through a stock exchange.

According to EPIC researchers, some industries will find it cheaper to meet the emission cap by investing in technology upgradation but others like power plants may find it expensive and difficult to meet the targets. "This scheme can bridge the gap between environmental regulation and economic growth. It can also make the emissions from industries significantly transparent. This is one of the cheapest methods of reducing emissions from industries. Besides, there will be additional advantages in terms of reducing other pollutants because to reduce PM 2.5 emissions, most industries will have to change their fuel," said Anant Sudarshan, India director at EPIC.

The energy institute suggests that CPCB should implement continuous emissions monitoring systems (CEMS) in cities where such a scheme will be operational. This will help keep tabs on polluting industries and slap them with heavy fines in case they fail to meet the cap.

This may be a cheaper method of cutting emissions, but questions were raised over efficacy of such schemes in the past because they apparently delay the fundamental shifts by some large industries to cleaner technologies. Also, the prices can be volatile and lead to crashes as has happened with carbon trading.

The pilot scheme was launched in 2011 covering 1,000 industries in Tamil Nadu, Maharashtra and Gujarat, but the programme didn't take off then. A senior Niti Aayog official told TOI, "We have a framework with us. We, as a think tank, are just undertaking a study to understand whether pricing emissions helped the West. We will still have to study how beneficial it is and then advise the ministry of environment on it. It's up to the government whether they apply it to a large economy like ours."

Sudarshan said a similar programme for CO2 was being implemented in China. CEMS is in place in Gujarat, so the trading programme could start with Surat, Sudarshan added.

 
SOURCE : http://timesofindia.indiatimes.com/city/delhi/soon-industries-could-buy-and-sell-pm-2-5-emission-permits/articleshow/59718548.cms
 


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