Energy Conservation Bill welcome, but implementation key : FKCCI

The Energy Conservation (Amendment) Bill, 2022 recently passed by the Lok Sabha has received a cautious positive response from Industry & Trade, said FKCCI, with specific reference to the promotion of use of clean technology through carbon saving certificates.

We do not foresee a problem in the stipulation of minimum quantum of renewable energy in the overall consumption by establishments and industrial units.

This is because the comparative costs between RE and traditional energy are not a forbidding factor.

But execution will be key to the success of this ambitious policy.

For instance, a lot of things have to come into play together in a seamless way if we have to move towards a low carbon footprint regime, such as for example, a robust monitoring & reporting system, and verification protocols for carbon emission reductions.

There is still sufficient ground to cover for the policymakers to co-opt the industry & trade in the new system.

There are quite a few imponderables in the new policy. Paramount to clearing the implementation bottlenecks will be a fully systematic coordinated approach between the Central Government and the State.

There is also an apprehension in certain quarters about whether the Energy Amendment Bill will stand up to legal scrutiny.

Apart from this, the Bill mandates for limited State representation as there can only be a maximum of 5 State representatives in the Bureau of Energy Efficiency (BEE).

This has posed some doubts about the extent to which the state electricity regulatory commissions will be empowered and have control over the energy transition goals, when their opinions are not factored into account in the BEE.

All said and done, FKCCI hopes that Karnataka would be a frontrunner State in implementing the Bill and help achieve a low-carbon, climate-resilient econo

B.V. Gopal Reddy
President, FKCCI