Gujarat Named Earthshot Prize Finalist For Fighting Air Pollution

Photos: Earthshot

India-West News Desk

AHMEDABAD/CHICAGO — The state of Gujarat has been named a finalist for the prestigious 2025 Earthshot Prize for its groundbreaking efforts to combat air pollution through the world’s first particulate emissions trading market, developed in partnership with U.S.-based researchers.

The initiative, launched in the city of Surat, was designed by the Gujarat Pollution Control Board (GPCB) in collaboration with researchers from the Emissions Market Accelerator (EMA)—a joint effort between the Energy Policy Institute at the University of Chicago (EPIC) and the Abdul Latif Jameel Poverty Action Lab (J-PAL). The market-based approach, modeled on successful U.S. emissions trading programs, allows industries to buy and sell pollution permits, encouraging compliance and innovation while cutting costs.

The Earthshot Prize, founded by Prince William in 2020, recognized EMA and the Gujarat government as one of three finalists in the Clean Our Air category. EMA’s  team—including Michael Greenstone, Rohini Pande, Nicholas Ryan, and Anant Sudarshan—worked closely with the state to implement and test the pilot program. The experiment revealed a sharp reduction in particulate pollution, greater industry compliance, and even increased profits for participating firms.

“The Gujarat Emissions Trading Scheme is an excellent testament to how financial market-based approaches can address severe pollution challenges in rapidly developing economies,” said Jason Knauf, Chief Executive of the Earthshot Prize.

Greenstone hailed the recognition as proof that emissions markets can succeed outside the U.S. and Europe. “For decades, these markets were seen as tools for rich countries. Gujarat’s success shows they can also thrive where economic growth is an urgent priority,” he said.

Following Surat’s success, Gujarat launched a second market in Ahmedabad, and plans are underway for sulfur dioxide and wastewater trading programs. Together, these initiatives are improving air quality for an estimated 20 million people across the state.

“This recognition validates over a decade of commitment to building a regulatory system that protects public health while enabling industries to thrive,” said Devang M. Thaker, Member Secretary of the GPCB.

The EMA team is now helping expand the model to Maharashtra, Rajasthan, and other regions in India—and potentially beyond. “Gujarat’s leadership shows how emerging economies can deliver solutions that benefit people, the economy, and the planet,” said Nobel laureate Esther Duflo, co-founder of J-PAL.

The winners of the 2025 Earthshot Prize will be announced on November 5 in Rio de Janeiro.