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The Energy Conservation (Amendment) Bill, December 2022

The Rajya Sabha on Monday cleared the Energy Conservation (Amendment) Bill, 2022 aimed at putting in place provisions to make the use of clean energy mandatory.

The Energy Conservation (Amendment) Bill, 2022 seeks to mandate the use of non-fossil sources along with the use of green energy and clean energy.

The bill also proposes to enhance the scope of the Energy Conservation Building Code and bring large residential buildings within the ambit of the energy conservation regime.

Highlights of the Bill

  • The Bill amends the Energy Conservation Act, 2001 to empower the central government to specify a carbon credit trading scheme.

  • Designated consumers may be required to meet a proportion of their energy needs from non-fossil sources.

  • The Energy Conservation Code for buildings will also apply to office and residential buildings with a connected load of 100 kilowatt or above.

  • Energy consumption standards may be specified for vehicles and ships.

Key Issues and Analysis

  • Carbon credit trading aims to reduce carbon emissions, and hence, address climate change. The question is whether the Ministry of Power is the appropriate Ministry to regulate this scheme. A further question is whether the market regulator for carbon credit trading should be specified in the Act.

  • Same activity may be eligible for renewable energy, energy savings, and carbon credit certificates. The Bill does not specify whether these certificates will be interchangeable.

  • Designated consumers must meet certain non-fossil energy use obligation. Given the limited competition among discoms in any area, consumers may not have a choice in the energy mix.


  1. Energy Conservation Act, 2001

  2. Energy Conservation (Amendment) bill, 2022

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