Energy conservation bill introduced to meet COP26 targets

05 Aug 2022 CW Team

In line with the climate commitments made by India at the 26th session of the Conference of the Parties, commonly called COP26, the Centre has introduced amendments to its the Energy Conservation Act, 2001, to meet the targets for green fuels, industrial energy efficiency, and building the country’s own carbon credit market.

The text of the Energy Conservation (Amendment) Bill, 2022, was tabled in the Lok Sabha this week. It said the amendments have been proposed in the context of energy transition being planned by India, with the focus on promotion of renewable energy and the National Green Hydrogen Mission. It said the bill will help meeting the five targets announced by Prime Minister Narendra Modi at COP26 in Glasgow in 2021.

The Bill proposes a mandatory threshold for consumption of green fuels such as green hydrogen, green ammonia, and biomass in all industries.

“It is considered necessary to have legal provisions to prescribe minimum consumption of non-fossil energy sources as energy or feedstock by designated consumers. This will help in the reduction of fossil fuel-based energy consumption and resultant carbon emissions to the atmosphere,” said the proposal in the bill.

The government also plans to bring in a legal framework for the country’s first-ever carbon trading market.

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