New Delhi: Amid rising concerns over climate change, the Centre has proposed amendments to Energy Conservation Act, 2001 with an aim to enhance demand for renewable energy in sectors like industry, buildings, transport, etc.
The proposal has been prepared by the Ministry of Power after consultations with stakeholders. It includes defining minimum share of renewable energy in the overall consumption by the industrial units or any establishment. The proposed amendments will also incentivise efforts to use clean energy sources by means of carbon saving certificate.
Power Minister RK Singh had reviewed the proposal and directed his team to seek comments and suggestions from concerned Line ministries and departments and state governments.
The proposed amendments will facilitate development of carbon market in India and prescribe minimum consumption of renewable energy either as direct consumption or indirect use through grid. This will help in reduction of fossil fuel-based energy consumption and carbon emission to the atmosphere.
India has committed to an ambitious Nationally Determined Contributions (NDCs) of reducing emission intensity by 33-35 per cent in 2030 against the levels of 2005. Also, the country is committed to achieve more than 40 per cent cumulative electric power installed capacity from non-fossil-fuel energy resources by 2030.
The proposed changes to the EC Act will boost the adoption of clean technologies in various sectors of economy and facilitate promotion of green hydrogen as an alternate to the existing fossil fuels used by the industries.
The additional incentives in the form of Carbon credits against deployment of clean technologies will result in private sector involvement in climate actions. The proposal also includes expanding the scope of Act to include larger residential buildings, with an aim to promote sustainable habitat.
To read the latest news in Gujarati click here