Indian parliament passes bill to introduce domestic carbon credit market

Indian parliament passes bill to introduce domestic carbon credit market

The lower house of the Indian parliament passed a bill laying out a focal scheme for the purchase and sale of carbon credits. The bill also promotes clean energy by committing specific large consumers of electricity to use renewable energy and conserve energy. The Energy Conservation (Amendment) Act looks to amend the Energy Conservation Act and introduce a carbon credit trading plan. A carbon credit is a license that permits the holder the right to emit one ton of carbon dioxide or the same amount of another greenhouse gas by balancing it against the decrease of equivalent emissions. Under the carbon credit trading scheme proposed in the bill, enlisted entities will be given carbon credit certificates that they can offer to different entities or individuals. The plan consolidates the offset markets in energy proficiency and renewable energy that presently operate in India. In addition to carbon credits, the bill likewise mandates a base utilization of non-fossil fuel energy for certain assigned consumers such as mining, steel, cement, textiles, and chemical manufacturers, the transport industry, and commercial buildings.