- SFG FRC 2027 | Program starts from 19th Dec. 2026 | Admissions open for Entrance Test Click Here to know more →
- Prelims Test Series (PTS) for Prelims 2027 starts 11th Oct. 2026 Click Here to know more →
- [Pre-order] Ethics Redbook 3rd Edition: Delivery starts from 10th October onwards Click Here to Read More →
- 21 Sept. | GS Advance Program (GSAP) for UPSC 2027 Mains starts from 11th Oct. Click Here to Read More →
Source: The post is based on the article “RS passes ‘futuristic’ Energy Conservation Bill to further regulate carbon emissions” published in The Hindu on 13th December 2022
What is the News?
The Rajya Sabha has passed the Energy Conservation (Amendment) Bill,2022.
Note: Lok Sabha has already passed this Bill in August 2022.
What are the key highlights of the Energy Conservation (Amendment) Bill,2022?
The Bill amends the Energy Conservation Act, 2001 to empower the central government to specify a carbon credit trading scheme.
Designated consumers may be required to meet a proportion of their energy needs from non-fossil sources.
The Energy Conservation Code for buildings will also apply to office and residential buildings with a connected load of 100 kilowatt or above.
Energy consumption standards may also be specified for vehicles and ships.
What are the key issues with the Bill?
Firstly, Carbon credit trading aims to reduce carbon emissions, and hence, address climate change. The question is whether the Ministry of Power is the appropriate Ministry to regulate this scheme or should it be the Ministry of Environment.
Secondly, the Bill does not give clarity on how carbon credit certificates will be traded, or who will regulate such trading.
Thirdly, the Same activity may be eligible for renewable energy, energy savings, and carbon credit certificates. The Bill does not specify whether these certificates will be interchangeable.
Fourthly, meeting non-fossil energy use obligations may adversely impact the competitiveness of the industry.
Fifthly, the bill proposes only five representatives of the States, and it means that a majority of the States would not be able to register their opinion in the Bureau of Energy Efficiency.
