Compared to the global average and other emerging countries, India’s greenhouse gas (GHG) emissions and income per capita remain low. Nevertheless, this working paper shows that India is making important efforts to decouple energy consumption and GHG emissions from growth, pushed in particular by the challenges of energy security and poverty. The paper details the mechanisms of two innovative, market-based support schemes: Renewable Energy Certificates (REC) to enhance flexibility and improve the efficiency of Renewable Purchase Obligations (RPO); and Perform Achieve and Trade (PAT), an energy savings market, to improve energy efficiency in the Indian industry, which is characterised by a big diversity in energy performances.