Bill to set up carbon credit trading passed

  • December 13, 2022
  • Posted by: OptimizeIAS Team
  • Category: DPN Topics
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Bill to set up carbon credit trading passed

Subject : Environment

Context:

  • The Rajya Sabha passed the Energy Conservation (Amendment) Bill, 2022. The Lok Sabha had passed the amendment in August, 2022.

What is  Energy Conservation (Amendment) Bill, 2022:

  • The Bill seeks to amend the 2001 Act to
    • Facilitate the achievement of COP-26 goals.
    • Introduce concepts such as mandated use of non-fossil sources and carbon credit trading to ensure faster decarbonisation of the Indian economy.

What are the key features of the bill:

  • Carbon credit trading:The Bill empowers the central government to specify a carbon credit trading scheme. Carbon credit implies a tradable permit to produce a specified amount of carbon dioxide or other greenhouse emissions.
  • Obligation to use non-fossil sources of energy: The Act empowers the central government to specify energy consumption standards for designated consumers to meet a minimum share of energy consumption from non-fossil sources.
    • Designated consumers include:
    1. industries such as mining, steel, cement, textile, chemicals, and petrochemicals,
    2. transport sector including Railways,
    3. commercial buildings, as specified in the schedule.
  • Energy conservation code for buildings: The bill empowers the central government to specify norms for energy efficiency and conservation, use of renewable energy, and other requirements for green buildings.
  • Under the Act, the energy conservation code applies to commercial buildings:
  1. Erected after the notification of the Code, 
  2. Having a minimum connected load of 100 kilowatt (kW) or contract load of 120 kilo volt ampere (kVA).
  • Standards for vehicles and vessels: Under the bill, the energy consumption standards may be specified for equipment and appliances which consume, generate, transmit, or supply energy.  The Bill expands the scope to include vehicles as defined under the Motor Vehicles Act, 1988, and vessels like ships and boats.
  • Composition of the governing council of BEE: The Act provides for the setting up of the Bureau of Energy Efficiency (BEE).  The Bill proposes to increase the number of members of the BEE from 20-26 to 31-37.

What is Bureau of Energy Efficiency (BEE):

  • The Government of India had set up the Bureau of Energy Efficiency (BEE) in March, 2002 under the provisions of the Energy Conservation Act, 2001.
  • The objective of BEE is to assist in reducing the energy intensity of the Indian economy.
  • BEE coordinates with designated consumers, designated agencies and other organizations and recognizes, identifies and utilizes the existing resources and infrastructure, in performing the functions assigned to it under the Energy Conservation Act.
  • BEE comes under Ministry of Power
Bill to set up carbon credit trading passed Environment