Emission trading scheme (ETS) is a pilot project began by the Gujarat government and executed by the Gujarat pollution control board. It is a market-based idea; the idea depends on the methodology of boosting ventures assuming they can lessen pollution discharge. Every industry will be given a parameter to which it can emit pollution. Furthermore, in the event that the industry can decrease pollution, the excess quota can be sold by that industry to another industry, in this manner making a framework where the business would be compensated for diminishing pollution. Along these lines, the business would put more in creating strategies and procedures to diminish pollution so it can sell its overflow amount and doesn't have to burn through the means to purchase extra quota.

Cap on pollution and exchange of units will empower the market to track down the most ideal way to cut emissions. The cap on pollution per industry would be chosen by the state government in discussion with the pollution board. The essential measures for concluding the cap of pollution would be the classification the particular business falls in and the total of money invested into an undertaking by the specific business. The cap on pollution would get stricter throughout the years expecting businesses to diminish pollution consistently. The business missing these set models would be penalized intensely, hence driving it to purchase extra quantity from an industry which has decreased its pollution, making it more costly for weighty polluting businesses.

The emission trading units will be sold on trading stages and will work like a stock exchange where trading of ETS units will be worked with; the units would be traded on National product and derivatives exchange limited.

The plan depends on the idea of Polluter pay guideline. The particulate emanation by the business will be determined on the kilogram of pollution per annum. What's more units to be set apart as standard will likewise be as per the kilogram pollution formula. The idea is as yet in the underlying stage, and the Gujarat pollution board will disinfect and illuminate industries about the idea. In the underlying stage, the idea is in its preliminary premise, and just 150 ventures have been involved in the state with additional consideration of businesses in a phase shrewd manner. The pollution board will coordinate courses for industry pioneers and authorities so they know about the idea and information between industry staff and government official will be held with the goal that the plan can be made more straightforward and proficient and the idea can be changed over into a completely useful program.