Power Ministry introduces Bill to begin carbon market in India

Power Minister RK Singh on Wednesday introduced the Energy Conservation (Amendment) Bill, 2022 in Parliament, which provides for setting up Carbon markets. Further, the Bill also seeks to mandate the use of non-fossil sources, including green hydrogen, green ammonia, biomass, and ethanol for energy and feedstock.

The amendments aim to promote renewable energy and the development of a domestic carbon market to fight climate change and help in achieving sustainable development goals in line with the Paris Agreement. Other amendments in the Bill include bringing large residential buildings within the fold of the energy conservation regime, enhancing the scope of the Energy Conservation Building Code, and strengthening the governing council of the Bureau of Energy Efficiency.

Amidst growing energy needs and changing global climate landscape, the Centre has identified new areas to achieve higher levels of penetration of renewable energy. Another key amendment is empowering the State Electricity Regulatory Commissions to make regulations for the smooth discharge of its functions.

For example, the Energy Conservation (Amendment) Bill aims to make it mandatory for buildings with a minimum connected load of 100 KW to meet their energy requirements from renewable sources. By adopting energy efficiency measures, India holds the potential to reduce about 550 tonnes of carbon dioxide equivalent by 2030.

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