ICRA Research has said that the major amendments in the Energy Conservation Bill, passed in the Lok Sabha recently is a positive step in the right direction. The bill has set a minimum usage clause for non-fossil fuel in certain sectors with high emissions. On the other hand, to ensure faster decarbonisation of the Indian economy and help achieve sustainable development goals, carbon trading has been introduced in the amendment. The bill specifies the details regarding issuing authority, entitlement, and trading details for carbon credits. With India being the fourth largest emitter of CO2 in the world, ICRA foresees carbon trading opening up opportunities.
Many states are making significant efforts to adopt the Energy Conservation Building Code and are front-runners in energy saving in commercial and public buildings. The scope of the bill has been expanded to include residential buildings, which account for 4 per cent of the CO2 emissions.
Commenting further, Rohit Ahuja, Head of Research and Outreach, ICRA, has said, “Heavy penalties and widening the scope of the types of vehicles and buildings covered would help restrict carbon emissions. The bill has also increased the manpower of the governing council and empowered the State Electricity Regulatory Commissions (SERCs) for better control over energy transition goals. Overall, the amendment is a step in the right direction but the execution of the same and quantifying the results to meet the climate goal vision will be a key monitorable.”
