This Bill is an amendment to the Energy Conservation Act, 2001. It empowers the Centre to specify a domestic carbon credit trading scheme and makes it mandatory for big power consumers to meet a portion of their energy needs from renewable sources.
This Bill seeks to mandate the use of non-fossil sources, including green hydrogen, green ammonia, biomass and ethanol, for energy needs and feedstock and establish carbon markets.
In addition, it also includes provisions for establishing a legal framework to oversee carbon credit trading. Further, non-adherence to the obligation to use non-fossil fuel energy will attract a fine of up to 10 lakhs.
There is an energy conservation code for large buildings. This new code provides standards for energy conservation, utilisation of non-conventional sources of energy and other necessities for green and sustainable buildings.
The Bill expands the scope to include vehicles (as defined under the Motor Vehicles Act, 1988) and vessels (including ships and boats). In addition, under the Act, energy consumption standards may be specified for equipment and appliances which consume, generate, transmit, or supply energy.