India's` New Low-Carbon Diet: Conserving Energy, Trading Credits

Background

On March 27, 2023, India's Power Ministry ("MoP") released a copy of a draft carbon credit trading scheme ("CCTS," and such draft CCTS, the "Draft CCTS") among relevant stakeholders (comprising a few key industry bodies).

This exercise was undertaken pursuant to the MoP's authority to do so under the Energy Conservation Act, 2001 (the "EC Act"), as recently amended by the Energy Conservation (Amendment) Act, 2022 (the "2022 Amendment").

Further to the 2022 Amendment, which came into force on January 1 this year, the EC Act now empowers the central government ("CG") to specify the CCTS through notification, in consultation with the Bureau of Energy Efficiency ("BEE"). In the present instance, the MoP represents the CG, being the nodal ministry with respect to the matter.