Emission Trading Scheme Flashcards
1
Q
What is this scheme ?
A
It is a market based system where Govt sets a cap on emissions and allows industries to buy and sell permits to stay below the cap
2
Q
Who initiated this scheme ?
A
Gujarat Pollution Control Board (GPCB)
3
Q
Is it the 1st state to do this ?
A
YESS
4
Q
Explain the procedure ?
A
1) Defining the total mass of pollution that can be put into air by all factories put together
2) A set of permits are created each of which allows a certain amount of pollution and the total is equal to the cap
3) These permits are now quantities that are bought and sold. Each factory is allocated a share of permits
4) After this trading of permits can happen just like any other commodity National Commodity and Derivatives Exchange Ltd (NCDEX)
