contribute to of the Indian As the PAT historical meeting economy. scheme is a activity. The India’s This mandatory baseline is an national represents national level emissions nearly 60 per scheme that target of a cent of sets binding measure, 2025 per India’s efficiency specified as cent primary targets for metric tonnes reduction in energy covered of oil carbon consumption. facilities, it equivalent per intensity (of The sectors does not unit of GDP) from include: matter if the production (in 2005 levels efficiency units of by 2020. thermal improvements product). power are not truly PAT is a iron and additional. Where there is steel The sum of significant the individual cement variation in mechanism fertilizer targets historical and creates pulp and ensures that activity due to liable overall net uncontrollable entities. The efficiency factors (such improves. scheme is a as volatile closed textiles exchange trading rates), this scheme with data can be no provision smoothed for for offset use in Nearly half credits from (48 per cent) establishing uncovered of the energy the baseline. sectors or savings will third parties. come from PAT The price of the thermal apportions the power sector, reduction certificates with iron and targets pro is steel rata across determined accounting by the for 22 per market. cent. sectors are Its objective Within each allocated a is to reduce sector, large more stringent the energy target. Within consumption each sector, intensity of facilities are industrial large facilities benchmarked industrial (plants or against the facilities. best facility in factories)
contribute to meeting India’s national emissions target of a 2025 per cent reduction in carbon intensity (of GDP) from 2005 levels by 2020. PAT is a mechanism and creates liable entities. The scheme is a closed trading scheme with no provision for offset credits from uncovered sectors or third parties. The price of the certificates is determined by the market. Its objective is to reduce the energy consumption intensity of large industrial facilities. of the Indian economy. This represents nearly 60 per cent of India’s primary energy consumption. The sectors include: thermal power iron and steel cement fertilizer pulp and textiles Nearly half (48 per cent) of the energy savings will come from the thermal power sector, with iron and steel accounting for 22 per cent. Within each sector, large industrial facilities (plants or factories) As the PAT scheme is a mandatory national level scheme that sets binding efficiency targets for covered facilities, it does not matter if the efficiency improvements are not truly additional. The sum of the individual targets ensures that overall net efficiency improves. historical activity. The baseline is an measure, specified as metric tonnes of oil equivalent per unit of production (in units of product). Where there is significant variation in historical activity due to uncontrollable factors (such as volatile exchange rates), this data can be smoothed for use in establishing the baseline. PAT apportions reduction targets pro rata across sectors are allocated a more stringent target. Within each sector, facilities are benchmarked against the best facility in
CCA_CFIStudyPublicReportHTMLAppendixA.docx