<article><p class="lead">The Indian government is seeking to mandate the use of non-fossil fuel energy sources and introduce carbon trading in a bid to accelerate the country's decarbonisation efforts.</p><p>The government introduced the energy conservation (amendment) bill 2022 in parliament on 3 August, which proposes to mandate the use of green hydrogen, green ammonia, biomass and ethanol for energy and feedstock and introduce carbon trading to combat climate change.</p><p>India announced a pledge to achieve net-zero emissions by 2070 last year and aims to reduce carbon emissions by 1bn t by 2030 from 2005 levels. It is also targeting about 5mn t/yr of green hydrogen production by the end of the decade.</p><p>The amendment also proposes non-compliance penalties of as much as 1mn rupees ($12,640) and issuing carbon credit certificates to registered entities that comply with the requirements, which can be voluntarily sold or purchased in line with a carbon credit trading scheme.</p><p>Most Indian firms in the carbon-intensive steel, cement and fertilizer sectors have yet to commit to any net-zero targets. Indian <a href="https://direct.argusmedia.com/newsandanalysis/article/2297073">steelmakers called for policy support</a> from the government to help their transition towards green steelmaking earlier this year.</p><p>The bill is not sufficient in finding sources of alternative energy, according to Sougata Ray, a member of the Lok Sabha, the lower house of parliament, while opposing the bill. "In India, we are still dependent on coal-fired energy, so this bill does nothing to improve the introduction of green hydrogen, green ammonia and other non-fossil fuels," he said.</p><p class="bylines">By Sumita Layek</p></article>
