The Centre has proposed to amend the Energy Conservation Act of 2001 to enhance the consumption of renewable energy by industries by defining a minimum share of renewable energy to be used by them.
The new rule also proposes to incentivise clean energy users by providing carbon saving certificates.
"The proposed amendments would facilitate the development of the Carbon market in India and prescribe minimum consumption of renewable energy either as direct consumption or indirect use through the grid. This will help in the reduction of fossil fuel-based energy consumption and carbon emission to the atmosphere," the power ministry said Saturday.
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Power Minister R K Singh has sought suggestions from concerned line ministries and departments and state governments before giving a final shape to the proposed amendments in the EC Act.
India is committed to achieving more than 40% cumulative electric power installed capacity from non-fossil-fuel energy resources by 2030.
The proposed changes to the EC Act will boost the adoption of clean technologies in various sectors of the economy. The provisions would facilitate the promotion of green hydrogen as an alternative to the existing fossil fuels used by industries.
The additional incentives in the form of carbon credits against the deployment of clean technologies will result in private sector involvement in climate actions. The proposal also includes expanding the scope of the Act to include larger residential buildings, with an aim to promote sustainable habitat, the ministry said in a statement.
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(Published 30 October 2021, 13:48 IST)
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