WHAT IS ENERGY CONSERVATION (AMENDMENT BILL) 2022?

 

Rajya Sabha passed the Energy Conservation ( Amendment Bill) , 2022. The Bill amends The energy conservation act 2001.

• The bill mandates non fossil sources of energy.
• It establishes a domestic carbon markets in India .
• The was also amended in 2010.
• The bill mandates the use of non fossil sources like, Green hydrogen, Green ammonia, Biomass , Ethanol etc  for energy feed stock.
• Forming Carbon markets.
• Including Large residential buildings within the fold of the energy conservation regime.
• Improving Energy Conservation Building code
• Amend penalty provisions.
• Increasing number of members in the governing council of the Bureau of Energy Efficiency.

DETAILS

• Issuing carbon credits :  According to Global Energy Monitor , the government will issue carbon credits, Industries could sell and buy credits to meet their carbon budget.
• We can  not sell these carbon credits to another country, even if we sell it will not be added to to NDCs.
• However there is a provision to sell them to another countries , when there is a surplus or a need to finance some cutting edge technology.

• Reducing the connected loads of states.

CRITICISM

• It is said to be ultra vires of the energy conservation act 2001.
• It lacks a coordinated approach.
• Inadequate opinion in BEE.
• Legal infirmities.

WAY FORWARD

India is currently marching towards its target of reducing its carbon intensity by 45% by 2030. This goal is a part of India's updated nationally determined contributions.

India needs to align public  financial flows with announced targets on energy transition, to leverage private finance, this includes :

Shifting subsidies to clean energy,

Mandating state owned enterprises investments in clean energy and increasing targets on public finance for clean energy.

carbon markets