The main instrument to increase energy efficiency in industry is the Perform, Achieve and Trade (PAT) Mechanism, which is implemented under the 'National Mission on Enhanced Energy Efficiency’. PAT resembles an emissions trading scheme (ETS) and has been in place since 2012. PAT differs from traditional cap-and-trade systems as it sets intensity-based energy targets.
The target is to achieve an average 4.8% reduction of Specific Energy Consumption (SEC) of the participating facilities in 2015 (below the 2007-2010 baseline level).
The seventh PAT cycle aims to achieve a total energy savings of 6,627 Mtoe by the end of 2025.