India moves ahead with carbon credit program

Energy conservation bill gets Rajya Sabha (India parliament) nod

India News: Hindustan Times link

Unedited — Dec 13, 2022 05:28 AM IST

India’s parliament on Monday approved the Energy Conservation (Amendment) Bill, 2022, which 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.

The domestic carbon market []will be a key step in achieving India’s nationally determined contributions under the Paris climate pact, according to the power ministry, which had tabled the bill.

The bill was passed by the Lok Sabha on August 8.

There was a lengthy debate in the Rajya Sabha on various issues related to the carbon trading scheme.

Opposition MPs asked why the carbon market scheme was envisaged under the power and not the environment ministry, which is the key nodal agency to implement India’s climate commitments. There were also questions on the structure of the trading scheme and benefits accruing from it.

Jurisdictional questions

Some MPs also said the bill has a centralised structure, despite the fact that each state has its own dynamics of energy production and consumption. The legislation places the onus of regulation on the Bureau of Energy Efficiency, a centrally governed organisation.

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