India is aiming to achieve the net-zero target by 2070, which was recently emphasized during the COP27 conference held in Egypt. Indian Environment Minister Bhupendra Singh delivered the official statement at the COP27 summit, and highlighted that PM Modi announced India’s aim of achieving net zero emissions by 2070 at Glasgow, and that India is escalating its efforts towards achieving the same. “Within one year, India has submitted its Long-Term Low Emissions Growth Strategy indicating low carbon transition pathways in key economic sectors”, he added.
In order to accomplish the target, India has been employing several climate actions. The Rajya Sabha passed the Energy Conservation (Amendment) Bill on December 12, 2022, with the goal of promoting the efficient use of energy and reducing the country's carbon emissions. The Energy Conservation (Amendment) Bill 2022 is aimed to improve energy efficiency and encourage the use of clean energy sources in India. The Bill focuses on two components of non-fossil sources: renewable energy (solar, wind, hydropower and biomass), and other is nuclear energy. The new amendment bill builds upon the existing Energy Conservation Act of 2001 and includes a range of provisions designed to reduce energy consumption and lower carbon emissions.
What are the new provisions?
Mandatory use of renewable energy sources: The bill seeks to mandate the use of non-fossil sources by certain entities to meet some portion of their total energy needs. These non-fossil sources include green hydrogen, green ammonia, biomass, and ethanol for energy and feedstock. The entities which will have to adhere include specific kinds of industries, transportation, and commercial buildings.
Carbon credit certificate trading scheme: The major highlight of the amendment is the introduction of a carbon credit certificate trading scheme, which empowers the Union Government to issue carbon credit certificates to registered entities to encourage reductions in carbon emissions in the economy. While "carbon credit" is not defined in the amendment, it is generally considered a credit provided to an entity for reducing or avoiding a specified amount of carbon emissions from its activities.
Carbon credit certificates issued by the Government of India or its authorized agency under this scheme could be traded with other entities. Additionally, these certificates are voluntarily available for purchase by other individuals.
It is anticipated that the issuance of these certificates and their trade on the open market will encourage organizations to invest in technologies or environment friendly solutions to lower their overall energy use and, consequently, their carbon emissions.
According to Mr. RK Singh, Minister of New and Renewable Energy, the Central Electricity Regulatory Commission will oversee this market, and market forces will determine prices. A governing body will also be established to regulate this scheme, comprising officials and experts from relevant sectors.
Energy Conservation Building Code: One of the key provisions of the bill is the establishment of an energy conservation building code, which sets out requirements for the design and construction of new buildings to ensure they are energy efficient. In the amendment, the Energy Conservation Code for buildings will also apply to office and residential buildings with a connected load of 100 kilowatts or above. This includes measures such as the use of energy-efficient appliances and lighting, and the incorporation of solar panels and other renewable energy systems. The goal is to reduce the energy consumption of buildings, which accounts for a significant portion of the country's total energy use. The building code is expected to have a significant impact on the energy efficiency of new construction, as it will ensure that buildings are designed with energy conservation in mind from the outset.
The energy efficiency of industrial processes: This includes the implementation of mandatory energy audits for large industries, which will help identify opportunities for energy savings and the adoption of more efficient technologies. The bill also establishes performance standards for a range of industrial equipment, such as motors and pumps, which will help to reduce energy consumption and improve the efficiency of industrial operations.
Transportation sector: This is another area where the Energy Conservation (Amendment) Bill 2022 aims to improve energy efficiency. The bill promotes the use of electric and hybrid vehicles and provides incentives and subsidies to encourage their adoption. This includes the expansion of charging infrastructure and the development of policies to encourage the use of electric buses and other low-emission vehicles in public transportation. By reducing the energy consumption of the transportation sector, the bill aims to help lower India's overall carbon emissions and improve air quality in the country's cities.
In addition to these measures, the bill includes provisions to promote the use of clean energy sources, such as solar and wind power. This includes the expansion of the National Solar Mission, which aims to increase the use of solar energy in the country, and the establishment of a renewable energy fund to support the development of clean energy projects. The bill also includes incentives for individuals and businesses to invest in renewable energy technologies, such as solar panels and wind turbines. By encouraging the use of clean energy sources, the Energy Conservation (Amendment) Bill 2022 aims to reduce the country's reliance on fossil fuels and help it transition to a more sustainable energy mix.
The Energy Conservation (Amendment) Bill 2022 represents a significant step forward in India's efforts to improve energy efficiency and reduce its carbon emissions. By promoting the use of clean energy technologies and encouraging energy conservation in key sectors, the bill aims to create a more sustainable future for the country and its people. The bill is expected to have a significant impact on the energy landscape in India and could serve as a model for other countries looking to promote energy efficiency and the adoption of clean energy sources.
Manvender is a passionate content creator with a journalism degree who has a knack for developing human-interest content. In the past, he was involved with a National News Channel and a video production company and has experience in writing, designing and video production.
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