What is Forbearance Price

Pursuant to the Thirteenth Conference of Parties to the UNFCCC held at Bali in 2007, based on Nationally Appropriate Mitigation Action plan, India has introduced its very own Emission Trading Scheme (ETS) called Perform, Achieve and Trade (PAT) market mechanism. The country has already achieved remarkable success in the renewable energy front. This chapter studied the existing policy regime of renewable energy and energy efficiency, and tried to understand how far the country practically can achieve the objective enshrined by PAT mechanism. This paper highlighted the background of the market based ETS, where various policies and legislation were put in place to provide energy efficient service and energy efficient system to the large energy intensive sectors of Indian economy. However it is not conducive to come to a conclusion regarding PAT's success or failure unless the First PAT cycle is completed, i.e. 2012-13 to 2014-15 compliance period is over.