Lok Sabha Passes India’s Energy Conservation Bill. What’s Next?

Lok Sabha Passes India’s Energy Conservation Bill. What’s Next?

India is moving ahead with its climate conservation goals and has taken a major step in doing so. The Lok Sabha or the lower house of the Parliament passed the Energy Conservation Bill on Tuesday, which requires the usage of renewable and sustainable energy resources. It aims to minimise the depletion of non-renewable energy and reduce the emission of greenhouse gases that adversely affect health and climate.

An Overview Of The Energy Conservation Bill

The Energy Conservation Bill is yet to be passed by the upper house of Parliament or Rajya Sabha. The legislation also mentions that industrial polluters will have to pay a price if they fail to comply with the terms laid down in the bill and also for the carbon they emit. It mentions a minimum requirement of renewable energy consumption by industrial corporations and even residential buildings. This energy conservation legislation also presents a carbon-saving certificate to clean energy users. In addition, it mentions a new standard for energy efficiency in households that account for about 24% of the country’s energy consumption.

The legislation will penalise the companies that are not using the required amount of renewable energy sources for their day-to-day operations. The India energy transitions lead at E3G, which is a climate change think tank, Madhura Joshi, said that India’s Energy Conservation Bill is “a positive step” taken toward meeting the nation’s safe climate goals. He added:

“The share of clean energy sources powering India’s industries and homes will definitely increase as a result of this bill.”

Last week, India pledged to reduce the carbon emissions that are generated due to the operations carried out for the nation’s economic growth. The target is set at reducing 45% of these emissions by 2030 compared to that of 2005. The country also aims to increase its non-fossil fuel energy consumption to about 50% reducing pressure on the limited resources. India’s Energy Conservation Bill is one of the first steps that has been taken toward this mission. The country might even roll out further energy conservation schemes to meet its targets. The World Resources Institute’s India energy program leader, Bharath Jairaj, commented on the bill saying:

“Every unit of energy saved or conserved is critical for reducing emissions.”

He then went on to say that these energy conservation measures would be essential in cutting greenhouse gas emissions, which will then be beneficial for the environment as a whole. In addition, the large residential buildings will also be monitored so that unnecessary energy consumption is stopped.

It will be interesting to watch how the different industries would change their way of working to adhere to this bill after the Rajya Sabha passes it.

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Nitin Kapur

Nitin Kapur is an entrepreneur, investor, business advisor and speaker. If you wish to know about businesses and their position then there is no better analyst than him to help you with that.

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