What is Energy Conservation (Amendment) Bill, 2022

The Energy Conservation (Amendment) Bill, 2022 was an Indian proposal to update the Energy Conservation Act, 2001 and encourage cleaner energy use. Parliament passed it in August 2022, and it received presidential assent in December that year, becoming the Energy Conservation (Amendment) Act, 2022.

The amendment gave the central government powers to establish a carbon credit trading scheme and issue carbon credit certificates. It also allowed the government to set non-fossil energy consumption requirements for designated energy users, such as certain industries.

Other provisions expanded building energy rules through an Energy Conservation and Sustainable Building Code, including coverage for qualifying residential buildings. The law also enabled energy efficiency standards for vehicles and vessels, as well as penalties for failing to meet specified obligations.

In short, the Bill aimed to broaden India’s energy-efficiency framework and support a shift toward lower-carbon energy. It set out powers and obligations; the detailed rules for how these measures operate are made separately.

On August 9, 2022, the Lok Sabha approved the Energy Conservation (Amendment) Bill 2022. To encourage energy efficiency and conservation, the bill proposes a number of changes to the Energy Conservation Act 2001.

The legislation favours green hydrogen and renewable energy sources as part of the energy transition.

It follows the five recommendations made by India at the United Nations Framework Convention on Climate Change Conference's 26th Conference of Parties (CoP 26), which was held in Glasgow in 2021.

In order to accomplish de-carbonisation and the Sustainable Development Goals as specified in the Paris Agreement, the law focuses on deploying renewable energy sources, establishing the national carbon market, implementing carbon trading, and authorising the use of non-fossil energy resources.

So, what does this bill do?

The bill gives the government permission to implement a carbon trading programme. Carbon certificates may be issued by the government or any authorised body to registered units that follow the scheme's requirements. The certificates may be purchased or sold by the units.

The standards for energy use per square metre are laid out in the code. In addition to other requirements for eco-friendly and sustainable buildings, the new code sets standards for energy efficiency and the use of unconventional energy sources.

Extension of the Energy Conservation Building Code's application to homes

The Energy Conservation Code is applicable to commercial buildings built after the code's announcement that have a connected load of 100 kW or a contractual demand of 120 kW-A or more.

Who will come under this code?

Office and residential structures that meet the requirements for commercial buildings are subject to the new Energy Conservation Building Code. The state governments are also permitted to lower the load limit under the bill.

The measure specifies that the Motor Vehicles Act of 1988 and Vessels (ships and boats) are now included in the scope.

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