Emission law amendments to trigger carbon credit trading in India
– Payal Agarwal, Senior Executive | payal@vinodkothari.com
This version: 23rd December, 2022
The Energy Conservation (Amendment) Bill, 2022 (the “Bill”) has been passed by both houses of the Parliament (Lok Sabha: 8th August, 2022 and Rajya Sabha: 12th December, 2022), proposing amendments to the Energy Conservation Act, 2001 (“the Act”). The Bill seeks to bring the mandatory carbon credit markets in India. The Bill provides a legislative inclusion to the formulation of a carbon credit trading scheme [clause (w) of Section 14 of the Energy Conservation Act, 2001] . The scheme will be launched by the Central Government and the contours of the scheme will be known only when the scheme is announced. However, it is clear that with the passing of this Bill, the country is all set to launch carbon credit markets in India.
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