Parl passes Bill to promote non-fossil energy sources

New Delhi: A bill to mandate the use of non-fossil energy sources such as biomass, ethanol and green hydrogen and allow carbon credit trading in the country was passed by Parliament on Monday.

The Energy Conservation (Amendment) Bill, 2022 was cleared in the Rajya Sabha by a voice vote on Monday. The Lok Sabha cleared the legislation in the previous session in August this year. The bill provides for penalties for violations by industrial units or vessels, and on manufacturers if a vehicle fails to comply with fuel consumption norms.

The amendments also seek to promote renewable energy and the development of a domestic carbon market to battle climate change. The bill is aimed at helping the country achieve its international commitments on climate change.

It aims to introduce new concepts such as carbon trading and mandate the use of non-fossil sources to ensure faster decarbonisation of the Indian economy and help achieve sustainable development goals in line with the Paris Agreement.

Replying to a debate on the bill, Minister for New and Renewable Energy R K Singh said the bill is environment friendly and will allow carbon trading in the country.

"This is something which is essential for the planet. We don't have any alternative. This is the only planet which we have and we have to do our best to save it. We are doing our best but if you ask me whether the other developed countries are doing their best, I will say I have questions, I have doubts. We hear a lot of talk but do not see any concrete action," he stated. Concrete action is what the country is taking and will continue to take in future as well, he added.

"For the government, the environment is precious and it will take all steps for that," he said, adding India has now become a leader in the energy transition. Currently 24 per cent of the energy consumption is by the housing sector and the Energy Conservation Code for buildings will also apply to office and residential buildings with a connected load of 100 kilowatt or above.

CPI(M) members John Brittas and V Sivadasan moved some amendments to the bill but these were rejected through voice vote. The bill was introduced in Rajya Sabha for passage on December 8 by Singh.

During the debate, opposition members picked holes in the bill saying it encroaches upon the jurisdiction of the Environment Ministry and the government should have brought the legislation after consultation through a standing committee of Parliament.