Sansad TV Perspective: The Energy Conservation (Amendment) Bill, 2022

In the series Sansad TV Perspective, we bring you an analysis of the discussion featured on the insightful programme ‘Perspective’ on Sansad TV, on various important topics affecting India and also the world. This analysis will help you immensely for the IAS exam, especially the mains exam, where a well-rounded understanding of topics is a prerequisite for writing answers that fetch good marks.

In this article, we feature the discussion on the topic: The Energy Conservation (Amendment) Bill, 2022.

Anchor: Vishal Dahiya

Guests:

• N.K. Premachandran, MP, Lok Sabha
• Dr Vibha Dhawan, Director General, TERI
• Narendra Taneja, Energy policy expert

Context: Energy Conservation Amendment Bill, 2022. It aims to facilitate the commitments of India’s green energy drive. 

Introduction: 

• India has made a commitment that it would become a net zero country by the calendar year 2070. This is an ambitious target, which would require a dedicated policy towards promoting the use of renewable sources of energy. 
• India has promised to cut emission intensity by 45% and achieve 50% of the installed capacity of electricity generation from non-fossil fuel sources.
• This present amendment bill aims to work in that direction and thus “mandate use of non-fossil sources”, including green hydrogen, green ammonia, biomass and ethanol for energy and feedstock and establish carbon markets in the country. 
• The Bill was termed futuristic and it would give an impetus to India’s efforts to go for greener sources of energy.
• With the help of this bill, India would be able to decarbonise its economy as promised at the climate summit. 

Features of the bill: 

• The present Amendment Bill seeks amendment to the Energy Conservation Act, 2001.
• The Bill aimed to bring large residential buildings, with a minimum connected load of 100 kilowatts (kW) or contract demand of 120 Kilovolt Ampere (kVA), within the fold of the Energy Conservation regime.
• The proposed bill empowers the state to lower the above limit in order to cover a larger number of buildings. 
• The bill also seeks to:
  • Enhance the scope of the Energy Conservation Building Code.
  • Alter penalty provisions.
  • Increase the number of members in the Governing Council of the Bureau of Energy Efficiency. 
  • Empower the State Electricity Regulatory Commissions to make regulations for the smooth discharge of its functions.
• The bill also suggests that the designated consumers may be required to meet a proportion of their energy needs from non-fossil sources.
• The proposed bill aims to set up carbon credit markets in India. 

What is a carbon credit?

• A carbon credit is a tradable permit or certificate that provides the holder of the credit the right to emit one ton of carbon dioxide or an equivalent of another greenhouse gas.
• The carbon credit restricts the emission to one tonne of carbon dioxide or the mass of another greenhouse gas with a carbon dioxide equivalent corresponding to one tonne of carbon dioxide. 
• For instance, 1 carbon credit corresponds to 1 metric tonne of carbon dioxide prevented from entering the atmosphere.

Concerns with the bill: 

• The bill does not promote the integrated role of the centre and the state government. It rests certain responsibilities in the hands of the state governments without taking their consent. 
• The Bill proposes only five representatives of the States which means that a majority of the States would not be able to register their opinion in the Bureau of Energy Efficiency. This would dent the spirit of cooperative federalism. 
• The Bill proposes the setting up of carbon credit markets but does not mention how carbon credit certificates will be traded and how such trading would be regulated. 
• The Bill does not make any provision for those buildings under the 100KW threshold limit or any person who wants to voluntarily submit to the energy conservation mechanism.
• Instead of making it mandatory for DISCOMs to work out an energy mix plan the bill reposes the responsibility on the designated consumer. This can turn out to be counterproductive. 

Conclusion: Climate change is spreading fast and thus creating a potential challenge for the survival of human beings. Unless the issue of climate change is countered with proper policy and robust implementation things would get worse in the future. So it is in the long-term interest of humanity to take climate seriously and make a dedicated effort to protect its sanctity.

Read all the previous Sansad TV Perspective articles in the link.

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