The Union Ministry of Power has notified the implementation of
the Energy Conservation (Amendment) Act, 2022, from January 1.
Apart from the other key changes, the amendment empowers the
Union government to lay down a carbon credit certificates trading
scheme in India.
Although carbon credit is not defined in the Act, it essentially
reflects an instrument received by a person whose activity has
sequestered, reduced, or avoided one tonne of carbon dioxide
emissions from the atmosphere.
These credits can then be traded with other entities on
regulated (global or national) or voluntary carbon markets and the
amount received thereon can be utilised for further promoting such
sustainable activities.
