Rio to Follow Gujarat’s Green Model to Curb Industrial Pollution.

Surat’s Emissions Trading Success Inspires Rio to Adopt Market-Based Air Pollution Controls.

Gujarat’s pioneering emissions trading scheme (ETS) is gaining international recognition, with Rio de Janeiro planning to adopt a similar market-based approach to tackle air pollution. Rio Mayor Eduardo Cavaliere announced the initiative during London Climate Week in June, drawing inspiration from Gujarat’s experience. The model was first tested in Surat in 2019 to control particulate matter emissions from industrial units. It uses market mechanisms to encourage factories to reduce pollution at lower costs while maintaining production. The Surat experiment delivered significant results, raising compliance with emissions standards to 99% and reducing particulate matter emissions from participating industries by roughly one-third compared with conventional industrial clusters. The trading mechanism also helped lower pollution-control costs. Gujarat’s approach has attracted global attention and was shortlisted for the 2025 Earthshot Prize, recognising innovative solutions to environmental challenges. With Rio now preparing to replicate the model, Gujarat’s experience demonstrates how developing economies can combine industrial growth, market-based regulation and cleaner air. Gujarat’s pioneering emissions trading scheme (ETS) is gaining international recognition, with Rio de Janeiro planning to adopt a similar market-based approach to tackle air pollution. Rio Mayor Eduardo Cavaliere announced the initiative during London Climate Week in June, drawing inspiration from Gujarat’s experience. The model was first tested in Surat in 2019 to control particulate matter emissions from industrial units. It uses market mechanisms to encourage factories to reduce pollution at lower costs while maintaining production. The Surat experiment delivered significant results, raising compliance with emissions standards to 99% and reducing particulate matter emissions from participating industries by roughly one-third compared with conventional industrial clusters. The trading mechanism also helped lower pollution-control costs. Gujarat’s approach has attracted global attention and was shortlisted for the 2025 Earthshot Prize, recognising innovative solutions to environmental challenges.With Rio now preparing to replicate the model, Gujarat’s experience demonstrates how developing economies can combine industrial growth, market-based regulation and cleaner air. Gujarat’s pioneering emissions trading scheme (ETS) is gaining international recognition, with Rio de Janeiro planning to adopt a similar market-based approach to tackle air pollution. Rio Mayor Eduardo Cavaliere announced the initiative during London Climate Week in June, drawing inspiration from Gujarat’s experience. The model was first tested in Surat in 2019 to control particulate matter emissions from industrial units. It uses market mechanisms to encourage factories to reduce pollution at lower costs while maintaining production. The Surat experiment delivered significant results, raising compliance with emissions standards to 99% and reducing particulate matter emissions from participating industries by roughly one-third compared with conventional industrial clusters. The trading mechanism also helped lower pollution-control costs. Gujarat’s approach has attracted global attention and was shortlisted for the 2025 Earthshot Prize, recognising innovative solutions to environmental challenges. With Rio now preparing to replicate the model, Gujarat’s experience demonstrates how developing economies can combine industrial growth, market-based regulation and cleaner air.