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Background of Energy Conservation Act:
The Energy Conservation Act, 2001 is an energy consumption regulatory and promoting act.
The Bureau of Energy Efficiency provides regulations and standards concerning energy consumption.
Need for Amendment to the Act:
India undertakes the commitment to cut down the total projected carbon emission by one billion tonnes by 2030, and carbon intensity of the economy by 45% by 2030.
- The Energy Conservation (Amendment) Bill, 2022 was presented to achieve the goals of COP-26 and include concepts such as mandatory use of non-fossil sources and carbon credit trading.
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Important Provisions of the Bill:
- Carbon Credit trading: The central government may prescribe a carbon credit trading scheme.
- Mandatory use of non-fossil sources of energy: The Act enables the central government to prescribe standards for energy consumption.
- Energy Conservation Code for buildings: The Act prescribes energy consumption standards in terms of area.
- Standards for vehicles and vessels: The Act extends the scope to include vehicles and vessels.
Criticism against the Bill, 2022:
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- Unclear about who would regulate the carbon credit market.
- It is unclear which Ministry will regulate carbon credit trading.
- Vagueness regarding different types of activities.
- States are underrepresented in the Bureau of Energy Efficiency.
About Bureau of Energy Efficiency (BEE):
- Set up in March 2002 to help reduce India’s energy intensity.
- Collaborates with Identified Consumers, Agencies and Organizations to identify, recognize, and use existing resources and infrastructure.
