Parliament approves Energy Conservation amendment bill

Parliament passed a bill requiring the use of non-fossil fuels such as biomass, ethanol and green hydrogen, and allowing carbon credit exchange across the country.

The Rajya Sabha passed the Energy Conservation (Amendment) Bill 2022 by a single vote. The law was passed by the Lok Sabha at its previous session in August this year.

The bill imposes fines on manufacturers if a vehicle fails to meet fuel economy standards, as well as fines for violations by industrial units or vessels.

The adjustments are also intended to encourage the use of renewable energy sources and the creation of a local carbon market.

The bill aims to help the nation meet its international climate change responsibilities.

To enable faster decarbonisation of the Indian economy and support the achievement of sustainable development goals in line with the Paris Agreement, it aims to introduce new ideas such as carbon trading and mandate the use of non-fossil resources.

RK Singh, the Minister of New and Renewable Energy, in response to a discussion on the bill, stated that it is environmentally friendly and will enable carbon trading in the country.

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