The passing of bill to curb carbon emission could prove to be revolutionary

Carbon Credit trading has now been allowed in the country. In a major move for climate control, The Energy Conservation (Amendment) Bill, 2022 has been passed by the parliament. The Rajya Sabha passed the bill with a voice vote. The Lok Sabha had passed the bill last year in August. The bill is significant as it gives a mandate to use non-fossil energy sources such as biomass, ethanol and green hydrogen and allow carbon credit trading in the country for the first time. In a significant move to arrest greenhouse gases, the bill provides for penalties for violations by industrial units, automobiles, and on manufacturers, if they fail to comply with fuel consumption norms or use unscrupulous means to lower their carbon emissions. However the biggest change that the bill is going to make is in allowing the carbon credit trading in the country. It would promote renewable energy and help the development of domestic carbon which would go a long way in lowering the carbon footprint of the country.

The bill fulfills India’s commitment in the Paris agreement to reduce the use of non-fossil fuels for energy requirements and speed up de-carbonization of Indian industry and manufacturing units. Indeed the bill is a step towards reducing carbon emissions. Besides, the Energy Conservation Code for buildings will also apply to office and residential buildings with a connected load of 100 kilowatt or above. Presently, 24 percent of the energy consumption is by the housing sector. Though the state governments could use their discretion in lowering the load up to 50 kilowatt. The country is likely toachieve over 50 percent of its power generation capacity from non-fossil fuels by 2030. The opposition has rightly criticised the government for not consulting them and not sending it to the parliamentary standing committee finalize it. Besides, it has also pointed out that the bill would have been even better than its present form had it been introduced after taking inputs through sharing the bill draft. They have also pointed out that it is not clear who will be responsible for the carbon credit certificate and who will regulate it. But overall the government has done a decent job which is timely and apt, minor hiccups could be taken care of in due course of time. A beginning has been made in the right direction.