The Lok Sabha is scheduled to take up The Energy Conservation (Amendment) Bill, 2022, today for discussion. Union Power Minister RK Singh introduced the Energy Conservation (Amendment) Bill 2022 in Lok Sabha on August 3, 2022. The bill seeks to amend the Energy Conservation Act, 2001.
The bill, inter alia, aims to mandate the use of non-fossil sources, including green hydrogen, green ammonia, biomass and ethanol for energy and feedstock, to achieve the dual target of decreasing dependence on fossil fuels and achieving energy security. The bill specifically talks about facilitating the promotion of Green Hydrogen as an alternative to fossil fuels.

The bill also seeks to establish carbon markets. The associated provision empowers the central government to specify a carbon credit trading scheme. Carbon credit simply means a tradeable certificate which permits producing a specified amount of carbon emissions.
Under the bill, the central government (or any authorised agency) may issue carbon credit certificates to entities registered under the scheme. The entities will be entitled to buy or sell the certificate from any other entity. Any other person may also purchase a carbon credit certificate voluntarily.
The other main objectives of the bill include widening the scope of the Energy Conservation Building Code (ECBC), bringing large residential buildings within the fold of the energy conservation regime, amendment in penalty provisions, and increasing members in the governing council of the Bureau of Energy Efficiency (BEE). It also defines the minimum share of renewable energy consumed by industrial units or establishments.
It seeks to empower the state electricity regulatory commissions to make regulations to discharge functions smoothly.