Lok Sabha Passes Energy Conservation Amendment Bill 2022

It empowers the central government to specify energy consumption standards and require designated consumers to meet a minimum share of energy consumption from non-fossil sources.

It also seeks to provide legal framework for a carbon market with the objective of incentivizing actions for emission reduction, leading to increased investments in clean energy and energy efficiency areas, by the private sectors.

For this purpose, it proposes to:

(a) mandate use of non-fossil sources, including Green Hydrogen, Green Ammonia, Biomass and Ethanol for energy and feedstock;

(b) establish Carbon Markets and specify a carbon credit trading scheme;

(c) bring large residential buildings within the fold of Energy Conservation regime and empower the state governments to lower the load thresholds;

(d) enhance the scope of Energy Conservation Building Code and prescribe consumption standards in terms of area;

(e) specify energy consumption standards for vehicles and vessels;

(f) increase members in the Governing Council of Bureau of Energy Efficiency;

(g) empower the State Electricity Regulatory Commissions to make regulations for smooth discharge of its functions.

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