There exists a large potential in India as far as achievement of energy efficiency is concerned and it is up to the Indian policy-makers, regulators and obligated entities to ensure that India realizes this potential to the fullest. A deep commitment towards this effect is not only beneficial for the country as a whole through reduction in its carbon foot print and reduced dependence on fuel imports but will also increase the competitive edge of our industries vis-à-vis other countries. One of the instruments for improving the overall energy efficiency that has emerged in recent times is energy saving certificates (ESCerts). The staying power of European examples in Italy, UK and France has demonstrated that ESCerts can help initiate more efficiency projects. This paper discusses ESCerts as an instrument for reducing the energy intensity of the high energy intensive Indian industries under the light of the Energy Conservation Act, 2001 and Perform Achieve and Trade scheme (under NMEEE) and suggests a way forward for the ESCerts market in India.
