The Centre on Wednesday introduced The Energy Conservation (Amendment) Bill 2022 in the Lok Sabha. The bill provides for the creation of a carbon credits trading regime. The Bill says the central government, or any agency authorised by it, may issue a carbon credit certificate to a registered entity which complies with the requirements of the carbon credit trading scheme.

The registered entity shall be entitled to purchase or sell the carbon credit certificate. In its statement of objects and reasons, the government has said the need to amend the existing Act arose to promote renewable energy and develop a domestic carbon market to battle climate change; The bill aims to mandate the use of non-fossil sources to ensure faster decarbonisation of the Indian economy and help in achieving sustainable development goals in line with the Paris Agreement and various other actions related to climate change.

Power minister R.K. Singh introduced the bill, which has provisions to establish carbon markets and empower state electricity regulatory commissions to make the regulations. “It means whoever moves to green energy, carbon credits can be bought from them, and financing green energy will be easier. Our emissions will go down.” he said. Singh said the bill has provisions to make big residential buildings more energy efficient and sustainable.