India introduces concept of carbon credit trading in Energy Conservation Act

On December 20, 2022, the Ministry of Law and Justice of India published the Energy Conservation (Amendment) Act, 2022. The amendment introduces the concept of carbon credit trading and adds vehicles, vessels, industrial units, and buildings or facilities as being subject to the energy consumption standards. Penalties for violating the provisions of the Energy Conservation Act have also been subdivided, and if energy consumption standards are not complied with, additional fines are set based on the amount of oil equivalent per product or excess. The effective date of this amendment was to be set forth in the notification to be published separately in the Official Gazette by the Central Government, and it took effect from January 1, 2023 based on the Notification by Ministry of Power dated December 26, 2022.