India's National Mission for Enhanced Energy Efficiency (NMEEE) remains active through the Perform, Achieve and Trade (PAT) mechanism and the broader Indian carbon market framework. The government confirmed that the PAT scheme, which sets energy reduction targets for large industrial units, will continue to drive efficiency improvements alongside the new carbon trading system. For carbon credit watchers, this means India is maintaining a dual approach: mandatory energy efficiency targets under PAT and a voluntary carbon market for trading surplus reductions. The overlap between PAT and the carbon market could create both opportunities and complexity for industrial participants. Companies that overachieve on PAT targets can sell credits, but the rules around double counting and additionality remain key details to watch. The practical impact will depend on how the Bureau of Energy Efficiency and the new carbon market regulator coordinate. If the frameworks align well, India could see faster industrial decarbonization. If they conflict, participants may face conflicting reporting requirements.
