HomeNewsMajor amendments proposed to EC Act to promote clean energy consumption

Major amendments proposed to EC Act to promote clean energy consumption

The government is proposing certain amendments to Energy Conservation Act, 2001 to enhance demand for renewable energy at the end- use sectors such as buildings, industry and transport. The new proposal comes amidst the growing energy needs and changing global climate landscape. The proposal also includes expanding the scope of Act to include larger Residential buildings, with an aim to promote Sustainable Habitat.

The proposed amendments would 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.

By adopting energy efficiency measures, India holds a potential to reduce about 550 MtCO2 by 2030. The proposed changes to the EC Act will boost the adoption of clean technologies in various sectors of economy. The provisions would 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.

Ministry of Power has prepared amendments, after consultations with stakeholders. The proposal includes defining minimum share of renewable energy in the overall consumption by the industrial units or any establishment. There will be provision to incentivise efforts on using clean energy sources by means of carbon saving certificate. The Power Minister, Shri R.K. Singh has already reviewed the proposed amendments recently and has directed to seek comments and suggestions from concerned Line ministries / departments and State Governments.

Ministry of Power has stated that the need for energy is inevitable and with the changing business landscape, it has become even more imperative to address the nation’s need to become energy-efficient without putting further pressure on the environment. With the amendment to EC Act, 2001, the focus is to empower institutions to contribute for our Paris commitments and fully implement our NDCs in a timely manner.

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