Energy Conversation Bill
- The Energy Saving Act of 2001 encourages energy saving and efficiency.
- It makes it possible to control how much energy is used by machinery, home appliances, buildings, and commercial operations.
The Energy Conservation (Amendment) Bill’s main clauses are as follows:
- The bill will call for the use of non-fossil fuels such biomass, ethanol, green hydrogen, and green ammonia.
Creating carbon markets:
- Bring large residential buildings under the Energy Conservation regime’s purview, modify the sanctions, broaden the membership of the Bureau of Energy Efficiency (BEE) governing council, and broaden the reach of the Energy Conservation Building Code;
- Give the State Electricity Regulatory Commissions the authority to create rules in order to ensure that their duties are completed successfully.
- creating the regulatory environment necessary to mandate the use of renewable energy, such as green hydrogen, and to create carbon markets.
Significance:
- Climate Change and the Paris Agreement: Because climate change is a reality, countries around the world are increasing their pledges to climate action.
- As part of the Paris Pact, a binding international pact on climate change, India made a pledge.
Revised NDCs:
- India’s most recent Nationally Determined Contribution (NDC) states that the country now intends to get 50% of its electricity from non-fossil sources and cut the intensity of its GDP’s emissions by 45% from 2005 levels by 2030.
- The new Bill will serve as a facilitator for accomplishing the goals and is in keeping with the nation’s obligations.
Market for carbon:
- The Bill gives the federal government the authority to select a carbon credit trading mechanism.
- By establishing the framework for the issuance of carbon credits in exchange for the use of clean technologies, the proposed changes seek to promote the growth of a carbon market.
- Businesses can go green by investing in clean technologies, and the associated carbon credits will generate additional money.
- Therefore, the suggested changes aim to close a sizable gap in the narrative of climate change regarding the participation of the corporate sector.
Carbon offsets:
- Each mass that emits one tonne of carbon dioxide is eligible for one credit.
- As a market-based approach to lowering greenhouse gas emissions, these were developed.
- A fixed quantity of credits are given to businesses; these credits go smaller over time.
- Any surplus can be sold to another business.
Way Forward:
- To attract private financing, India must match its public funding flows with its transparently stated energy transition objectives. This entails shifting financial support in favour of renewable energy, requiring SOE (state-owned enterprises) participation in clean energy, and raising the bar for public financing of sustainable energy.
- With the upcoming COP and the G20 conference in India the following year, these actions may improve India’s negotiating position. This is especially relevant when considering climate financing coming from the northern hemisphere.
- It is a global agreement on climate change that is enforceable by law.
- It took the place of the previous climate change agreement known as the Kyoto Protocol.
- Since it brings all nations together for the first time to take decisive action to combat climate change and get ready for its effects, the agreement is historic.
- At COP 21 in Paris, it was approved by 196 Parties, and it entered into effect in November 2016.
- Contributions made at the national level are known as NDCs.
- Member nations must propose their own targets that they feel will result in appreciable advancement toward the Paris temperature goal in order to meet the requirements of the agreement.
- These goals were formerly known as Intended Nationally Determined Contributions (INDCs).
- Once the nation has ratified the agreement, they are designated as NDCs.
Panchamrit approach:
- The COP 26 conference in Glasgow saw the unveiling of the “Panchamrit” policy.
- By 2030, India’s non-fossil energy capacity will reach 500 GW.
- By 2030, it will be using 50% of renewable energy.
- Between now and 2030, global carbon emissions are anticipated to decline by 1 billion tonnes.
- It will cut its economy’s carbon emissions by under 45%.
- By 2070, India will have reached its net zero goal.
