Creating Market Support for Energy Efficiency: India"s Perform, Achieve and Trade scheme

Energy efficiency measures can support India"s development priorities while yielding climate co-benefits. India, recognizing the challenge of pursuing rapid economic growth in a sustainable manner and the ignificant potential to improve efficiency in energy-intensive industries and the electricity sector, has developed an energy efficiency scheme to govern large energy consumers. The Perform, Achieve and Trade (PAT) scheme aims to tap into this potential. Energy efficiency measures under PAT will help reduce emissions by 26 million tonnes of carbon dioxide equivalent by 2015, thus contributing to the national target of 20-25% reduction in carbon intensity from 2005 levels by 2020. This brief provides an overview of the scheme, examines key issues related to its design and implementation, and concludes with some early lessons for countries considering similar initiatives.