(THE GIST OF PIB) Amendments to Energy Conservation Act 2001

(GIST OF SCIENCE REPORTER) Amendments to Energy Conservation Act 2001


Amendments to Energy Conservation Act 2001

  • Amidst the growing energy needs and changing global climate landscape, the Government of India has identified new areas to achieve higher levels of penetration of Renewable energy by proposing certain Amendments to Energy Conservation Act, 2001.


  • The objective will be to enhance demand for renewable energy at the end- use sectors such as Industry, buildings, transport etc.
  • The proposal includes defining minimum share of renewable energy in the overall consumption by the industrial units or any establishment. There will be provision to incentivise efforts on using clean energy sources by means of carbon saving certificate.
  • The proposed amendments would facilitate development of Carbon market in India and prescribe minimum consumption of renewable energy either as direct consumption or indirect use through grid. This will help in reduction of fossil fuel based energy consumption and carbon emission to the atmosphere.
  • The proposed changes to the EC Act will boost the adoption of clean technologies in various sectors of economy. The provisions would facilitate promotion of green Hydrogen as an alternate to the existing fossil fuels used by the Industries.
  • The additional incentives in the form of Carbon credits against deployment of clean technologies will result in private sector involvement in climate actions. The proposal also includes expanding the scope of Act to include larger Residential buildings, with an aim to promote Sustainable Habitat.



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Courtesy: Science Reporter