Perform, Achieve and Trade

Perform, Achieve and Trade
Name	Perform, Achieve and Trade
Type	Market-based regulatory mechanism
Established	2000s
Jurisdiction	India
Related	Bureau of Energy Efficiency, Ministry of Power (India), National Action Plan on Climate Change, National Thermal Power Corporation

Perform, Achieve and Trade

The Perform, Achieve and Trade scheme was a market-based Indian energy efficiency mechanism linked to national climate change mitigation efforts, designed to engage industrial entities, electricity utilities and energy service companies in emissions reduction and performance improvement. It operated at the intersection of policy initiatives led by the Ministry of Power (India), regulatory frameworks influenced by the Bureau of Energy Efficiency, and commercial participants such as National Thermal Power Corporation, Tata Steel, JSW Steel and Reliance Industries. The programme drew attention from international actors including the United Nations Framework Convention on Climate Change, the World Bank, the International Energy Agency and bilateral partners like the Government of the United Kingdom and the Government of Japan.

Overview

Originally conceived under the National Action Plan on Climate Change and advanced via directives from the Ministry of Power (India), the scheme set sectoral targets for energy-intensive industries such as cement industry, iron and steel industry, fertilizer industry and petroleum refineries. Participating entities entered into compliance pathways overseen by the Bureau of Energy Efficiency, with trading of energy saving certificates modeled on mechanisms like the European Union Emissions Trading System and informed by market designs from the Chicago Climate Exchange, New South Wales Greenhouse Gas Abatement Certificate Scheme and California Cap-and-Trade Program. Stakeholders included state-owned enterprises such as Power Grid Corporation of India and private conglomerates like Adani Group, Larsen & Toubro, Bhushan Steel and Hindalco Industries.

Mechanism and Structure

The mechanism allocated enforceable targets for designated consumers and obligated entities, issuing tradable instruments—energy saving certificates—upon validated over-performance, a structure comparable to tradable allowance systems used by the European Union and regulatory constructs seen in the United States Environmental Protection Agency programs. Implementation relied on accredited measurement and verification bodies similar to accreditation by Bureau of Indian Standards and reporting standards influenced by ISO 50001 and methodologies used by the Clean Development Mechanism. Market participants included brokers, energy service companies and corporate compliance teams from firms like NTPC Limited, Mahindra Group, Godrej Group and GAIL (India), while secondary trading venues resembled exchanges operated by entities such as the National Stock Exchange of India and the Bombay Stock Exchange.

Governance and Regulation

Oversight combined statutory rulemaking by the Ministry of Power (India) with administrative enforcement by the Bureau of Energy Efficiency and adjudication procedures drawing on precedents from the Central Electricity Regulatory Commission and state regulatory commissions like the Maharashtra Electricity Regulatory Commission. Legal instruments referenced parliamentary enactments and administrative orders comparable in procedural role to provisions under the Energy Conservation Act, 2001 and institutional coordination with ministries such as the Ministry of Environment, Forest and Climate Change, agencies including the Central Pollution Control Board, and international partners like the International Finance Corporation for capacity building.

Implementation and Market Impact

Operational rollout engaged large industrial clusters in regions governed by state authorities including Gujarat, Maharashtra, Tamil Nadu and Karnataka, and affected supply chains involving firms such as Tata Motors, Mahindra & Mahindra, Bharat Heavy Electricals Limited, Indian Oil Corporation and Bharat Petroleum. Reported outcomes influenced corporate sustainability reporting comparable to disclosures sought by the Global Reporting Initiative and investor engagement practices used by institutions like the State Bank of India and Life Insurance Corporation of India. The trading of certificates created price signals akin to commodity markets such as those on the Multi Commodity Exchange of India and attracted interest from multinational investors including Goldman Sachs, HSBC, Asian Development Bank and JICA.

Criticisms and Controversies

Critiques invoked comparisons with controversies in the European Union Emissions Trading System and debates surrounding the Clean Development Mechanism, focusing on concerns about additionality, measurement uncertainty, allocation of obligations, and market liquidity. Civil society organizations including Centre for Science and Environment, The Energy and Resources Institute and Greenpeace India raised issues similar to disputes seen in international carbon markets involving transparency, verification rigor, and potential loopholes exploited by conglomerates like Reliance Industries and Adani Group. Legal challenges and policy debates engaged actors such as the Supreme Court of India and state governments over enforcement and penalty frameworks.

Case Studies and Outcomes

Empirical assessments referenced pilot projects and corporate case studies involving NTPC Limited’s efficiency upgrades, Tata Steel’s waste heat recovery initiatives, JSW Steel’s modernization drives, and Bharat Petroleum’s refinery energy optimization, with evaluation methods paralleling those used in studies by the International Energy Agency, World Bank and Asian Development Bank. Outcomes varied across sectors and states, with documented energy savings in installations audited by accredited bodies and policy adjustments influenced by stakeholder consultations including industry chambers like the Confederation of Indian Industry and Federation of Indian Chambers of Commerce & Industry.

Category:Energy policy in India