Union minister Raj Kumar Singh will roll out the Energy Conservation (Amendment) Bill, 2022, in the Rajya Sabha on Monday to delegate the central government to stipulate a carbon credit trading scheme.
Lok passed the bill in August to amend the Energy Conservation Act, 2 of 001. The Energy Conservation Act of 2001 was also amended in 2010 to address different new factors which appeared with the expansion of the energy market over time and to furnish for more efficient and adequate use of energy and its conservation.
The Energy Conservation (Amendment) Bill, 2022 "seeks to mandate the use of non-fossil sources, including Green Hydrogen, Green Ammonia, Biomass and ethanol for energy and feedstock" and install Carbon Markets.
It aims to bring large residential buildings within the fold of the Energy Conservation administration, improve the breadth of the Energy Conservation Building Code, and amend penalty provisions.
The bill also aspires to increase members in the Governing Council of the Bureau of Energy Efficiency and empower the State Electricity Regulatory Commissions to make ordinances for smoothly releasing its functions.
According to the bill draft, specified consumers may be needed to meet a ratio of their energy needs from non-fossil sources. The Energy Conservation Code for construction will also apply to office and residential buildings with a related load of 100 kilowatts or above. Energy consumption norms may be defined for vehicles and ships.
Carbon credit trading intends to lessen carbon emissions and hence, address climate change.
The same movement may be suitable for renewable energy, energy savings, and carbon credit certificates. The Bill does not determine whether these certificates will be substitutable.
Designated consumers must meet particular non-fossil energy use obligations. Conveyed the limited competition among discoms in any area, customers may not have an option in the energy mix.
The Bill was introduced in the Rajya Sabha last Thursday, seeking to amend the Energy Conservation Act, 2001, which furnishes a framework for handling energy consumption and facilitating energy efficient energy conservation.
The Act has set up the Bureau of Energy Efficiency to suggest regulations and norms for energy consumption.