With India setting ambitious target to become net zero by 2070, the recent amendments to the Energy Conversation Act, 2001 brings in a regulatory framework in moving towards the stated goal of becoming a low carbon intense economy. A significant introduction in this amendment is the introduction of carbon markets that would enable entities to trade credits earned from conservation of energy in line with the Paris Agreement (COP21). The practical and implementation aspects of the carbon credit trading will be clearer once the trading scheme is notified in future. With renewed focus on sustainable development goals to secure future generations, we may see more similar policy reforms in the future and this amendment to Energy Conversation Act, 2001 is only a first in the lot.
Audio Source: An article published on the LKS website in February 2023.
Authors: Kumar Panda, Senior Associate LKS.