| Introduction: Contextual introduction. Body: Explain the rationale behind the recently introduced Energy Conservation (Amendment) Bill. Conclusion: Write a way forward. |
Recently Ministry of New and Renewable Energy introduced the Energy Conservation (Amendment) Bill, with an objective to support energy transition. The Bill amends the Energy Conservation Act, 2001. It provides for the regulation of energy consumption by equipment, appliances, buildings, and industries.
Rationale behind the Energy Conservation (Amendment) Bill:
- To address the transition to clean energy as the non-fossil fuel capacity was 42% of the total energy generation.
- To facilitate the achievement of COP-26 goals to ensure faster decarbonisation of the Indian economy.
- To specify a carbon credit trading scheme for expand India’s carbon market and promote the use of clean technology.
- To specify energy consumption standards for designated consumers (industries, transport sector, commercial buildings etc.) to meet a minimum share of energy consumption from non-fossil sources.
- To specify norms for energy efficiency and conservation, use of renewable energy, and other requirements for green buildings.
- To consolidate on the current Act’s success. According to BEE, measures for efficient energy use saved approx. 28 million tonnes of oil equivalent energy in 2019-20.
- To replace natural gas and stop carbon emission, green hydrogen gas will be used. It will provide energy-efficiency in the construction sector.
- To enhance the scope of Energy Conservation Building Code to include sustainability aspects.
The establishment of a domestic carbon market is a progressive step. However, the actual benefit will depend upon the effectiveness of the market. For this, the Government must ensure that proper regulations are established.
