India has taken an interesting step recently. The passage of the Oilfield (Regulatory and Development) Amendment Bill in India’s Lok Sabha marks a pivotal shift in the nation’s energy strategy. A core component of this legislation is its strong focus on promoting Carbon Capture, Utilisation, and Storage (CCUS) technologies. This initiative signals India’s growing commitment to mitigating the environmental impact of its oil and gas sector.
The recent bill aims to facilitate the capture of carbon emissions from oilfield operations, enabling their utilisation for industrial purposes or safe, long-term storage. This move underscores India’s efforts to balance its energy needs with its climate goals, potentially setting a precedent for sustainable resource management in the region.
What’s the Big Deal About CCUS in This Bill?
A notable feature of the amended bill is the direct inclusion of CCUS within the regulatory framework governing oilfields. The Oilfield (Regulatory and Development) Amendment Bill focuses on:
* Strengthening oilfield regulation with stricter environmental standards.
* Promoting Carbon Capture, Utilisation, and Storage (CCUS) through clear guidelines and incentives.
* Encouraging innovation in CCUS with financial incentives like tax breaks.
* Fostering international collaboration for advanced CCUS technology.
* Driving CCUS deployment through public-private partnerships.
The legislation encourages oilfield operators to adopt practices that capture and either utilise or safely store carbon emissions. This inclusion signifies a move towards integrating these technologies into standard operational procedures. The Government of India has shared the intent that it is not just a suggestion anymore; it’s built right into how they are supposed to operate. This means they’ll be encouraged to find and use technologies that can trap carbon emissions.
If this leads to more CCUS being used, it could mean cleaner air in the long run. It could also indicate that India is taking a more serious stance on climate change, which affects us all. Additionally, the bill mentions CCUS alongside other green initiatives, such as producing hydrogen without fossil fuels, showcasing a holistic approach to making things cleaner.
There’s a Reason to Pay Attention: Penalties Are Involved
To ensure compliance, the government has also established rules regarding the consequences for companies that do not adopt these cleaner methods. They could face fines, which may increase the longer they fail to comply. This is a clear signal that the government is serious about encouraging the use of carbon capture technologies.
The bill promotes cleaner and greener oilfield operations. To keep things moving in the right direction, there are provisions for penalties—up to ₹25 lakh initially, and ₹10 lakh per day for ongoing non-compliance.
A Step Forward, But Not the Whole Journey
The Oilfield (Regulatory and Development) Amendment Bill’s strong emphasis on CCUS represents a significant step towards a potentially greener future for India’s energy sector. While this new bill won’t solve all our environmental problems overnight, it looks like a positive move.
The passage of these amendment bills marks a significant milestone in India’s journey towards a more sustainable and environmentally friendly energy sector. With a strong focus on CCUS technologies, the country is poised to lead the way in reducing carbon emissions and promoting sustainable development in the oil and gas industry.
(Pradeep Singhvi, Executive Director, Energy and Climate Practice at Grant Thornton Bharat LLP.)
Views are personal, and do not represent the stand of this publication.
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