The state of Gujarat, an Earthshot Prize 2025 finalist, is taking its pioneering emissions trading model global through a new partnership with the City of Rio de Janeiro, Brazil.

The Emissions Market Accelerator (EMA) will help Rio explore South America’s first particulate matter emissions market, adapting proven lessons from India to cut pollution while supporting economic growth.

The announcement was made at The Earthshot Prize Impact Assembly, co-hosted with Bloomberg Philanthropies during London Climate Action Week.

“The Rio de Janeiro City Hall is taking a bold step forward in spearheading this innovative approach to reducing pollution,” said EMA Co-Chair Michael Greenstone, Milton Friedman Distinguished Service Professor in Economics at the University of Chicago.

“We are thrilled to work with government leaders to ensure this market successfully reduces pollution while fostering continued economic growth.”

Once launched, Rio’s emissions market would be the first of its kind in South America.

Gujarat’s groundbreaking work on market-based pollution control spurred the launch of the Emissions Market Accelerator. The state has since launched a second market and is developing two more for sulfur dioxide and wastewater pollution. The EMA is also working with other Indian states and expanding globally.

“This partnership with Rio marks an exciting step toward globalizing the success of market-based pollution control,” said Kaushik Deb, Executive Director of the EMA. “In Gujarat, we demonstrated that emissions trading can dramatically reduce pollution without compromising industrial productivity. Now we can take those lessons global.”

Eduardo Cavaliere, Mayor of Rio de Janeiro, said: “Rio de Janeiro is proud to partner with the Emissions Market Accelerator (EMA) to bring market-based solutions to air pollution in South America for the first time. Gujarat’s emissions trading scheme, recognized by the Earthshot Prize, proves cities can harness innovative tools to protect people and the future.”