The National Mission on Enhanced Energy Efficiency (NMEEE) has been initiated by the Government of India (GOI) with the objective of enhancing energy efficiency in the country. One of the initiatives under NMEEE is development of a market based mechanism to drive delivery of additional energy savings cost-effectively. Following on from this, the Ministry of Power (MOP) has outlined a proposed Perform, Achieve and Trade ‘PAT’ scheme for Mandatory Trading in energy saving certificates for energy intensive industries.
FCO / DFID India commissioned Camco, the Confederation of Indian Industry and ABPS Infrastructure Advisory to provide support to GOI’s policy development by making recommendations based on a detailed operational review of international trading schemes, analysis and engagement with industry and international stakeholders, and economic / financial appraisal. The project also aimed to support the GOI by providing analysis on the potential benefits and issues from linking the proposed PAT scheme to the international carbon markets, and the range of options through which this could be achieved. The findings of the project have been presented in the report.