- GS-3: Environmental Conservation
Context: In order to facilitate the achievement of more ambitious climate change targets and ensure a faster transition to a low-carbon economy, the government is seeking to strengthen a 20-year law, called the Energy Conservation Act of 2001.
The Bill to amend the Energy Conservation Act, 2001 has two main objectives.
- First, it seeks to make it compulsory for a select group of industrial, commercial and even residential consumers to use green energy. A prescribed minimum proportion of the energy they use must come from renewable or non-fossil fuel sources.
- Second, it seeks to establish a domestic carbon market and facilitate trade in carbon credits.
Mains Practice Question – What are carbon markets? What role does carbon markets play in achieving India’s climate targets?
Note: Write answers to this question in the comment section.