The government introduced The Energy Conservation (Amendment) Bill, 2022, the bill which is aimed to act as a facilitator to achieve India’s climate change targets, in Lok Sabha on August 3.
The bill seeks to mandate use of non-fossil sources, including green hydrogen, green ammonia, biomass and ethanol for energy and feedstock to achieve the twin target of reducing dependence on fossil fuel and achieving energy security.
Other salient features of the bill includes establishing carbon markets and bringing large residential buildings within the fold of energy conservation regime.
“It is considered necessary to have legal provisions to prescribe minimum consumption of non-fossil energy sources as energy or feedstock by the designated consumers. This will help in reduction of fossil fuel-based energy consumption and resultant carbon emissions to the atmosphere. Similarly, a need is also felt to provide legal framework for a carbon market with the objective of incentivizing actions for emission reduction leading to increased investments in clean energy and energy efficiency areas, by the private sectors,” the government said in a statement introducing the bill.
The key objectives of the bill also include enhancing the scope of energy conservation building code, amendment of penalty provisions, and increasing members in the governing council of Bureau of Energy Efficiency. It also aims to empower the state electricity regulatory commissions to make regulations for smooth discharge of its functions.
India enacted the Energy Conservation Act, 2001 which has at its core efficient use of energy
and its conservation. This act made way for establishment and incorporation of the Bureau of Energy Efficiency. The act was subsequently amended in 2010 to address
various new factors which emerged with the development of the energy market.
With the 2022 amended the government helps to support Prime Minister Narendra Modi’s stance of offering 'Panchamrit', or five nectar elements, as a part of the country’s commitment towards low-carbon development strategy. The so-called 'Panchamrit' includes India’s commitment to install 500 gigawatts (GW) of non-fossil energy capacity by 2030, reduce emission intensity of GDP by 45 percent over 2005 levels, source 50 percent of the electricity from non-fossil sources by 2030, reduce carbon emission by 1 billion tonnes till 2030 and achieve net-zero by 2070.
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