Perform, Achieve, Trade (PAT) Under India's NAPCC

This case study examines the Perform, Achieve, and Trade (PAT) scheme under India's National Action Plan on Climate Change (NAPCC), a market-based initiative aimed at reducing industrial carbon emissions. PAT sets energy-efficiency targets for energy-intensive sectors and rewarding units that surpass their mandated goals. Through policy analysis and secondary data review across designated consumer industries, the study assesses scheme operations, compliance, and credit market performance. The notable improvements in energy efficiency, greater adoption of low-carbon technologies, and the formation of India's early energy-credit market. However, issues such as uneven sector engagement, limited trading volumes, and institutional capacity constraints reveal challenges in implementing such mechanisms in emerging economic contexts. Overall, the case spotlights how regulatory mandates combined with trading incentives can deliver measurable climate benefits while underlining the need for stronger market design and governance to drive long-term industrial decarbonization.