This briefing paper from
Climate Strategies on the Perform
Achieve and Trade (PAT) scheme currently being designed by the Indian
Government
. The scheme aims to increase the energy efficiency of high
carbon emitting sectors of the economy, including Iron and Steel. Whilst this
is a purely national scheme, it is also a clear example of a sectoral
approach strategy for climate mitigation. It should therefore be of interest to anyone working on emissions
trading or sectoral issues
in general.

This briefing paper
explains:

  • what the PAT is
  • what its potential might be
  • how it could work
  • and offers some Preliminary conclusions about its prospects and recommendations for its ultimate design.

The analysis is based
on a forthcoming report by Climate
Strategies: part of a series of papers that analyses the potential of sectoral
approaches to assist with mitigating greenhouse gas
emissions, with a particular focus on the iron and steel sector.