India is prepared to accelerate its carbon emission control plans and implement significant changes in energy conservation with the passage of the Energy Conservation (Amendment) Bill, 2022, which will be enacted into an Act by both houses of the Parliament.
The government has the authority to create a system for selling carbon credits and to require businesses and other facilities to source a certain percentage of their energy from non-fossil sources. The act shall also make it possible to impose requirements on vehicle energy efficiency standards and an Energy Conservation Code on big buildings with linked loads of 100 kilowatts or more.
Certain rules on consumption and promoting energy efficiency and conservation under the Bureau of Energy were included in the Energy Conservation Act of 2001. The bill was introduced in order to fulfill India’s commitment made at the 2021 COP-26 summit, including a reduction in total projected carbon emissions of one billion metric tons by 2030, a reduction in the carbon intensity of the economy of 45% by 2030, the development of 500 GW of non-fossil energy capacity, and a goal of meeting 50% of its energy needs from renewable sources by 2030.
Changes Brought From Energy Conservation Act
The Act now gives the central government the authority to specify a carbon credit trading scheme. Any approved agency may issue carbon credit certificates to organizations registered and in compliance with the plan, who can trade the certificates.
A minimum portion of energy consumption from non-fossil sources must be met by businesses including mining, steel, cement, textiles, chemicals, petrochemicals, the transportation sector, including railroads, and commercial buildings, as defined in the schedule, according to the bill's requirements. Failure to comply with this obligation will result in a fine of up to 10 lakh rupees and a second fine of up to twice the price of oil equivalent for any excess energy utilized.
Standards for green business buildings are required by the bill's "Energy Conservation and Sustainable Building Code." Commercial buildings constructed after the code's notice and having a minimum connected load of 100 kW or contract load of 120 kilovolt-amperes (kVA) are subject to the energy conservation code. The code will also apply to office and residential buildings that match the aforementioned standards; however, state governments will be able to modify the load thresholds.
The bill also includes ships and boats as well as automobiles in the scope of the energy consumption regulations. Vehicle manufacturers who violate fuel efficiency standards may be fined up to 50,000 rupees for each sold unit of their vehicles. The Act will also make it possible to create the Bureau of Energy Efficiency (BEE), which will have a 20–26 person governing council.
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