Perform, Achieve and Trade (PAT) is a market based mechanism to enhance cost effectiveness of improvements in energy efficiency in energy intensive large industries and facilities, through certification on energy savings that could be traded.

Targets for improvements in energy efficiency are set under section 14 of the Energy Conservation Act, 2001 in a manner that reflects fuel usage and the economic effort involved. The Government, in March 2007 notified units in nine industrial sectors, namely aluminium, cement, chlor-alkali, fertilizers, iron and steel pulp and paper, railways, textiles and thermal power plants, as Designated Consumers(DCs).