IRON AND STEEL SECTORAL APPROACHES TO THE MITIGATION OF CLIMATE CHANGE PERFORM, ACHIEVE AND TRADE (PAT) IN INDIA

The document examines the Perform, Achieve and Trade (PAT) scheme, a market-based mechanism designed by the Indian government to improve energy efficiency across nine high-carbon sectors. It details the scheme's focus on energy intensity rather than absolute emissions, the use of Energy Savings Certificates (ESCerts) to incentivize performance, and the specific challenges and opportunities within the iron and steel industry. The author suggests that the PAT could help India meet its domestic GHG reduction targets and recommends a phased implementation, potentially starting with the iron and steel sector, to ensure technical and political feasibility.

• The Perform, Achieve and Trade (PAT) scheme is a market-based policy planned for implementation in 2011 to increase energy efficiency in nine high-carbon-emitting sectors, covering over 700 units that account for more than 50% of India's fossil fuel use.
• Unlike the EU Emissions Trading Scheme, the PAT focuses on energy intensity—the energy used per unit of output—rather than absolute carbon emissions, allowing India to mitigate GHG emissions without constraining economic growth.
• The iron and steel industry is critical to the PAT's success, as it accounts for 28% of India's total industrial GHG emissions, though it is estimated that the sector would take 30 to 40 years to reach current world average energy efficiency standards on its current trajectory.
• The scheme utilizes Energy Savings Certificates (ESCerts) as rewards for companies exceeding their energy efficiency targets; these certificates are intended to be traded to create a financial incentive for investment.
• Indian policymakers predict the PAT could reduce CO2 emissions by 25 million tonnes per year by 2014-15 relative to business-as-usual, representing approximately 1.4% of projected total annual CO2 emissions for 2015.
• The author recommends a phased implementation of the PAT, suggesting it begin with the iron and steel sector alone due to lower diversity in energy efficiency across companies and a strong record of responding to previous measures.
• If the iron and steel industry achieves an average year-on-year decrease in energy intensity of 3% per unit of output, it could reach the world average energy efficiency by 2020.

APA

Roy, J. (2010). IRON AND STEEL SECTORAL APPROACHES TO THE MITIGATION OF CLIMATE CHANGE PERFORM, ACHIEVE AND TRADE (PAT) IN INDIA. Climate Strategies. https://climatestrategies.org/wp-content/uploads/2014/11/pat-india-7-dec-2010.pdf

Chicago

Roy, Joyashree. IRON AND STEEL SECTORAL APPROACHES TO THE MITIGATION OF CLIMATE CHANGE PERFORM, ACHIEVE AND TRADE (PAT) IN INDIA. Climate Strategies, 2010. https://climatestrategies.org/wp-content/uploads/2014/11/pat-india-7-dec-2010.pdf.

Wikipedia

{{cite report |last1=Roy |first1=Joyashree |title=IRON AND STEEL SECTORAL APPROACHES TO THE MITIGATION OF CLIMATE CHANGE PERFORM, ACHIEVE AND TRADE (PAT) IN INDIA |publisher=Climate Strategies |date=6 December 2010 |url=https://climatestrategies.org/wp-content/uploads/2014/11/pat-india-7-dec-2010.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{roy2010iron, author = {Roy, Joyashree}, title = {{IRON AND STEEL SECTORAL APPROACHES TO THE MITIGATION OF CLIMATE CHANGE PERFORM, ACHIEVE AND TRADE (PAT) IN INDIA}}, institution = {Climate Strategies}, year = {2010}, month = dec, url = {https://climatestrategies.org/wp-content/uploads/2014/11/pat-india-7-dec-2010.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }