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

Gujarat’s pioneering Emissions Trading Scheme (ETS) is gaining international recognition, with Rio de Janeiro preparing to adopt a similar market-based approach to tackle industrial air pollution.

Rio Mayor Eduardo Cavaliere announced the initiative during London Climate Week in June, highlighting Gujarat’s experience as an inspiration for the Brazilian city’s proposed pollution-control strategy.

The Gujarat model was first piloted in Surat in 2019 to control particulate matter emissions from industrial units. Instead of relying solely on conventional command-and-control regulations, the system uses a market-based mechanism that allows industries to manage emissions while creating financial incentives to reduce pollution.

The approach is designed to enable factories to achieve environmental targets at lower costs without significantly affecting industrial production.

The Surat experiment delivered notable results. Compliance with emissions standards increased to 99%, while particulate matter emissions from participating industries declined by roughly one-third compared with conventional industrial clusters. The trading mechanism also helped reduce the overall cost of pollution control for participating industries.

The success of the initiative has attracted attention beyond India. Gujarat’s emissions trading approach was shortlisted for the 2025 Earthshot Prize, recognising its potential as an innovative solution to major environmental challenges.

Rio de Janeiro’s move to replicate the model demonstrates the growing international interest in market-based environmental regulation. Such systems can provide industries with greater flexibility in meeting pollution targets while maintaining strict overall emission limits.

Gujarat’s experience also provides an example of how industrial regions in developing economies can pursue economic growth alongside cleaner air and stronger environmental regulation.

With Rio preparing to implement a similar approach, Surat’s emissions trading programme could serve as a reference for other cities seeking cost-effective solutions to industrial air pollution.