Why in news?

The Lok Sabha passed the Energy Conservation (Amendment) Bill, 2022, which provides for the establishment of carbon credit markets and brings large residential buildings under the energy conservation regime.

What does the bill say?

• The bill seeks to mandate the use of non-fossil sources, including green hydrogen, green ammonia, biomass, and ethanol for energy and feedstock; establish Carbon Markets; bring large residential buildings within the fold of the Energy Conservation regime; enhance the scope of the Energy Conservation Building Code; amend penalty provisions; increase members in the governing council of Bureau of Energy Efficiency; and empower the State Electricity Regulatory Commissions.
• The Bill mandates the use of non-fossil sources, including green hydrogen, green ammonia, biomass and ethanol, for energy and feedstock, according to the statement of objects and reasons.
•  The Bill amended the Energy Conservation Act, 2001, to establish carbon markets, enhance the scope of the Energy Conservation Building Code, amend penalty provisions and increase number of members in the governing council of the Bureau of Energy Efficiency.
• the carbon credit would not be exported and would have to be used domestically.

till India met the commitments made at COP21 and COP26, it would not allow export of credits.