What happens to the PAT scheme and ESCerts now that India has the CCTS?
The Carbon Credit Trading Scheme, 2023 is designed to take over from PAT for energy-intensive sectors. Its compliance mechanism sets greenhouse gas emission intensity targets, in tonnes CO2e per unit of output, in place of PAT's energy targets, and issues carbon credit certificates instead of ESCerts. How existing ESCerts are treated is set by BEE and Ministry of Power notifications.
How PAT worked
Under the Perform, Achieve and Trade scheme, BEE set specific energy consumption targets for designated consumers over three-year cycles. Units that beat their target earned Energy Saving Certificates (ESCerts), one per tonne of oil equivalent saved. Units that missed bought ESCerts on the power exchanges or faced penalties under the Energy Conservation Act.
What the CCTS changes
- The legal basis is the Energy Conservation (Amendment) Act, 2022, which let the government specify a carbon credit trading scheme.
- The Carbon Credit Trading Scheme, 2023 was notified on 28 June 2023 (S.O. 2825(E)), and a December 2023 amendment added an offset mechanism for voluntary projects.
- Obligated entities get greenhouse gas emission intensity targets instead of energy intensity targets, so fuel switching now counts directly, not only efficiency.
- Units that beat their target receive carbon credit certificates, one per tonne CO2e; units that miss must surrender certificates.
What it means for a PAT unit
- Check whether your sector has notified CCTS targets and whether your unit is named as an obligated entity.
- Until your sector moves, PAT obligations under your current notification still apply.
- For unsold ESCerts, read the latest BEE notification for your cycle before you assume they can be traded, banked or converted. Do not plan cash flows on a conversion that is not notified.
- Start measuring Scope 1 and purchased electricity emissions per tonne of product now, because that is the CCTS metric.
Data that carries across
PAT already required audited production and energy data. The CCTS adds the conversion of each fuel and electricity into CO2e and a monitoring, reporting and verification cycle by accredited carbon verification agencies. Plants that kept fuel invoices, test reports for calorific values and electricity bills by month will find the switch much easier.
What Senseible does here
Senseible does not run PAT or CCTS compliance or trade certificates. It turns your fuel invoices and electricity bills into Scope 1 and 2 records, which help you track emissions per tonne of output.
Sources: BEE Perform, Achieve and Trade scheme notifications, Carbon Credit Trading Scheme, 2023, Ministry of Power S.O. 2825(E), and Energy Conservation (Amendment) Act, 2022, PIB: CCTS obligated entities
Last reviewed 2026-10-15. Transition treatment of unsold ESCerts and sector move dates depend on BEE notifications; check before each compliance cycle.