Energy Conservation (Amendment) Bill 2022 to get COP26 Goals

Energy Conservation (Amendment) Bill 2022 introduced in the parliament to to amend Energy Conservation Act, 2001. It intends to incentivise the use of clean energy through the issuance of Caron credit and further help to get COP26 Goals.

• It will facilitate achievement of COP26 goals.
• Promote renewable energy and further development of domestic carbon market to fight against climate change.
• It introduces concepts such as carbon credit trading which was part of Kyoto Protocol to ensure faster decarbonisation of Indian economy.

• Carbon trading : The bill empower the union government to specify a carbon credit trading mechanism to boost carbon market. Carbon credit means a tradable permit to produce a specified amount of carbon dioxide or other greenhouse emissions.
• Obligation to use non fossil source of energy : The Government may require designated consumers to meet a minimum share of energy consumption from non-fossil source of energy.
• Energy conservation and sustainable building code for green buildings : While Energy conservation Act 2001 with its code applicable only to commercial building meeting some certain criteria, but 2022 bill extend this to office and residential buildings too.
• Standards for vehicles and vessels : Bill expands the scope to include vehicles (as defined under Motor Vehicle Act, 1988), ans vessels including ships and boats.
• Increase members in the Governing Council of Bureau of Energy Efficiency (BEE), a statutory body under Ministry of Power.

• Bureau of Energy Efficiency (BEE) was set up under the provisions of the act. BEE is ring responsible for the implementation of policies and programmes related and energy and coordinates the implementation of energy conservation activities.
• Standard and labelling has been identified as the key activity for improvement of energy efficiency. It includes dissemination of information on the benefits of energy conservation and energy efficiency to consumers. It introduces a mandatory labelling scheme for notified appliances to enable the consumers to make informed choices.
• Centre Energy Conservation Fund to be set up at centre level to deliver large scale adoption of energy efficient services, to give thrust to R&D and support the creation of testing facilities.