GS Paper 3
Syllabus: Infrastructure: Energy, Ports, Roads, Airports, Railways etc
Source: TH
Context: The Union Minister of Power introduced the Energy Conservation (Amendment) Bill 2022 in Rajya Sabha.
Background:
- The bill seeks to amend the Electricity Conservation Act 2001 to include changes such as incentivising the use of clean energy through the issuance of carbon saving certificates.
- The Electricity Conservation Act 2001 –
- Specify norms and standards of energy efficiency for appliances, industrial equipment and buildings.
- Prohibit the manufacture/ sale/ purchase of equipment unless it conforms to specified norms.
- Established the Bureau of Energy Efficiency (BEE).
- Empowers the Centre to issue energy savings certificates providing for a framework for energy trading – given to industries that consume less and can be sold to industries that consume more.
- Violators attract a penalty of Rs 10 lakh and consumers will be penalised as per their excess consumption.
- Appeals will be heard by the appellate tribunal established under the Electricity Act, 2003.
Need to amend the above Act:
- To consolidate on the current Act’s success. According to BEE, measures for efficient energy use saved approx. 28 million tonnes of oil equivalent energy in 2019-20.
- To facilitate the achievement of COP-26 goals to ensure faster decarbonisation of the Indian economy.
Key features of the Energy Conservation (Amendment) Bill 2022:
- Carbon credit trading scheme: Carbon credit implies a tradable permit to produce a specified amount of CO2 or other GHG emissions.
- The central government/ authorised agency may issue tradable carbon credit certificates to entities compliant with the scheme.
- Obligation to use non-fossil sources of energy: Designated consumers (such as industries) may be asked to meet a minimum share of energy consumption from non-fossil sources.
- New Energy Conservation and Sustainable Building Code: Unlike the old code, this will also apply to the office and residential buildings with consumption above a threshold.
- Standards for vehicles and vessels: Apart from equipment and appliances, the Bill expands the scope to include vehicles and vessels (ships, boats).
- Strengthening BEE: By changing the composition of its governing council including representatives of industries and consumers.
- Promoting green hydrogen: As an alternative to the fossil fuels used by industries.
- Penal provisions: Failure to comply with standards will be punishable with a penalty of up to Rs 10 lakh.
Main objectives of the Bill:
- Its goal is to reduce GHG emissions and combat climate change.
- To expand India’s carbon market and promote the use of clean technology.
- To achieve its Nationally Determined Contributions (NDCs), as outlined in the Paris Climate Agreement, by 2030.
Key issues that need to be addressed:
- Appropriate Ministry to regulate the carbon credit trading scheme: The Ministry of Power/ the Ministry of Environment?
- There is no clarity on whether renewable energy, energy savings and carbon credit trading schemes involve the same or different activities.
- Meeting non-fossil energy use obligations may adversely impact the competitiveness of the industry.
Insta Links:
An Insight – The Energy Conservation (Amendment) Bill, 2022
Mains Links:
Q. Evaluate the role that the Energy Conservation (Amendment) Bill, 2022 can play in ensuring greater use of renewable energy and enforcing penalties on industrial polluters for carbon emissions. (250 words)
