New Delhi Union Energy Minister Raj Kumar Singh on Wednesday introduced amendments to the Energy Conservation Act in the Lok Sabha to make it mandatory to use clean energy, including green hydrogen, and to set up a carbon market.
The Energy Conservation (Amendment) Bill, 2022, seeks to mandate the use of green hydrogen and green ammonia as well as non-fossil sources, including biomass and ethanol, for energy and feedstock.
It also proposes to widen the scope of Energy Conservation Building Code and bring large residential buildings under the purview of energy conservation regime.
On 18 July, Mint had reported that the government plans to introduce amendments to the Energy Conservation Act in the monsoon session of Parliament.
The Energy Conservation Act, 2001 was last amended in the year 2010 to address various new factors that emerged with the development of the energy market over a period of time and provide for more efficient and effective use of energy and its conservation. to be done.
In its statement of purpose and reasons for amending the Act, the Ministry of Power said that with the passage of time, and in the context of energy transition with special focus on promotion of new and renewable energy and the National Green Hydrogen Mission, there is a need The COP26 summit committed to ensure the use of non-fossil sources to facilitate the climate goals, promote the development of renewable energy and domestic carbon market to fight climate change and ensure rapid decarbonization of the Indian economy and It has arisen to further amend the said Act to help achieve the sustainable goal. Development Goals in line with the Paris Agreement
“It is considered necessary to have a legal provision for prescribing minimum consumption of non-fossil energy sources as energy or feedstock by specified consumers. This will help reduce the consumption of fossil fuel based energy and reduce carbon emissions in the atmosphere.”
Similarly, a need has also been felt to provide a legal framework for the carbon market with the aim of encouraging actions for emission reduction to increase investment in clean energy and energy efficiency sectors by the private sector, the statement said. has gone.
In an effort to empower the State Electricity Regulatory Commissions, the Bill will allow State Commissions to make rules regarding applications and fees payable to the Commission.
The Bill will also empower the State Governments to make rules regarding the efficient use of energy and its conservation as well as the fees to be levied for the services provided by the nominated agency to prepare the budget of the nominated agency.
Along with a proposal to increase the members on the Governing Council of the Bureau of Energy Efficiency, the bill seeks to empower the Bureau to make rules regarding the agency that may be authorized to carry out the functions and technical qualifications of the Bureau. . test samples.
The Bill further states that the State Governments shall constitute a fund called ‘State Energy Conservation Fund’ with the objective of promoting efficient use of energy and its conservation within the State. The fund will be credited by grants and funds from the State Government, the Center and any other organization or individual.
Under the regulatory framework for carbon credit trading, the central government or any agency authorized by it may issue a carbon credit certificate to a registered entity that complies with the requirements of the Carbon Credit Trading Scheme. The registered entity shall be entitled to buy or sell the Carbon Credit Certificate as per the Carbon Credit Trading Scheme.
On August 1, Mint had reported that Prime Minister Narendra Modi may launch a national carbon trading platform on August 15 as India moves forward with its climate commitments.
The push for carbon markets comes as India aims to become carbon-neutral by 2070.
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