Page 331 - Low Carbon Development in China and India
P. 331
cement, iron and steel, pulp and paper, and chloralkalis consume
around 65 per cent (TERI 2013) of the total industrial energy.
Performance, Achieve, and Trade (PAT) is a market-based
mechanism that was launched under the National Mission on
Enhanced Energy Efficiency (NMEEE). The mechanism has a goal to
mandate specific energy efficiency improvements for industrial units
known as Designated Consumers (DC) (see Box 2.7 for an overview on
PAT mechanism).
Box 2.7: Performance, Achieve, and Trade (PAT) Mechanism
The Government, in March 2007, identified certain units in nine industrial sectors,
namely aluminium, cement, chlor-alkali, fertilizers, iron and steel, pulp and paper,
railways, textiles and thermal power plants as DCs. The DCs in the industrial sectors
were shortlisted based on their annual energy consumption expressed in terms of
tonnes of oil equivalent (TOE). A total of 478 DCs across eight sectors were notified
in the first phase. Each DC has been mandated to achieve a prescribed reduction in
its specific energy consumption. The reduction targets were notified in March 2012.
Overall, all the plants together are to achieve a 4.05 per cent reduction in the average
energy consumption by 2014-15.
At present, the second phase of the scheme is under progress wherein empanelled
accredited energy auditors (EmAEA) perform independent evaluation of each activity the
DC undertook to comply with energy reduction targets.
PAT is expected to accelerate the adoption of low carbon technologies among Indian
industries. The policy will also complement the efforts being made under various
multilateral/bilateral processes to promote adoption of low carbon technologies. The
unit-specific Specific Energy Consumption (SEC) benchmark established under PAT
can serve as a baseline for new international mechanisms and schemes.
While large industry sub-sectors such as cement, iron and steel,
aluminium, and fertilizers have made significant progress in terms of
improved efficiency in energy use and adoption of cleaner technologies,
there is a need to focus on the challenges faced by the Micro, Small, and
Medium Enterprises (MSMEs) in terms of access to technology and
finance and therefore, their challenges in pursuing green growth. The
MSME sector have been playing a pivotal role in the country’s overall
economic growth. They have achieved steady progress over the last
couple of years. This sector contributes 8.7 per cent of the country’s
GDP, 45 per cent of the manufactured output, and 40 per cent of its
exports. The MSMEs provide employment to about 60 million persons,
through over 26 million enterprises, producing over six thousand
products (MSME 2011). They can make a substantial contribution to
296 Low Carbon Development in China and India
around 65 per cent (TERI 2013) of the total industrial energy.
Performance, Achieve, and Trade (PAT) is a market-based
mechanism that was launched under the National Mission on
Enhanced Energy Efficiency (NMEEE). The mechanism has a goal to
mandate specific energy efficiency improvements for industrial units
known as Designated Consumers (DC) (see Box 2.7 for an overview on
PAT mechanism).
Box 2.7: Performance, Achieve, and Trade (PAT) Mechanism
The Government, in March 2007, identified certain units in nine industrial sectors,
namely aluminium, cement, chlor-alkali, fertilizers, iron and steel, pulp and paper,
railways, textiles and thermal power plants as DCs. The DCs in the industrial sectors
were shortlisted based on their annual energy consumption expressed in terms of
tonnes of oil equivalent (TOE). A total of 478 DCs across eight sectors were notified
in the first phase. Each DC has been mandated to achieve a prescribed reduction in
its specific energy consumption. The reduction targets were notified in March 2012.
Overall, all the plants together are to achieve a 4.05 per cent reduction in the average
energy consumption by 2014-15.
At present, the second phase of the scheme is under progress wherein empanelled
accredited energy auditors (EmAEA) perform independent evaluation of each activity the
DC undertook to comply with energy reduction targets.
PAT is expected to accelerate the adoption of low carbon technologies among Indian
industries. The policy will also complement the efforts being made under various
multilateral/bilateral processes to promote adoption of low carbon technologies. The
unit-specific Specific Energy Consumption (SEC) benchmark established under PAT
can serve as a baseline for new international mechanisms and schemes.
While large industry sub-sectors such as cement, iron and steel,
aluminium, and fertilizers have made significant progress in terms of
improved efficiency in energy use and adoption of cleaner technologies,
there is a need to focus on the challenges faced by the Micro, Small, and
Medium Enterprises (MSMEs) in terms of access to technology and
finance and therefore, their challenges in pursuing green growth. The
MSME sector have been playing a pivotal role in the country’s overall
economic growth. They have achieved steady progress over the last
couple of years. This sector contributes 8.7 per cent of the country’s
GDP, 45 per cent of the manufactured output, and 40 per cent of its
exports. The MSMEs provide employment to about 60 million persons,
through over 26 million enterprises, producing over six thousand
products (MSME 2011). They can make a substantial contribution to
296 Low Carbon Development in China and India
