This is necessary in view of India’s commitment to energy transition and to fulfil the Paris Agreement goals.
During June 2021, the Union power minister had interacted with concerned ministries and departments of the central government and it was concluded that state agencies will also have to play more active role in this endeavour.
In his address, Singh the government is committed to the environment and India is way ahead of the targets which it had committed to in its Nationally Determined Contributions (NDCs) declared in the Paris Climate Agreement.
He stated that while the country is changing the nature of energy by adding more renewable energy, resulting in emissions reduction, it is also reducing the emissions intensity of the economy by schemes for energy efficiency such as UJALA and Perform Achieve and Trade (PAT) which have resulted in reducing millions of tonnes of CO2 per annum.
Singh stressed on the need for collaborative efforts between the Centre and state governments towards large-scale deployment of energy efficiency measures.
He called for setting up of dedicated energy efficiency institutions in states, similar to the Bureau of Energy Efficiency (BEE) at the central level.
He further stated that the states will set targets in accordance with the goals set by the country for emissions reduction.
The minister also announced the launch of trading of Energy Saving Certificates (ESCerts) under PAT Cycle-II.
The trading will take place every Tuesday, starting from October 26, 2021 on designated power exchanges.
The industries which performed exceedingly well on energy savings have been rewarded with ESCerts and they will be able to earn monetary benefits through sale of these instruments to other industrial units which could not meet their targets.
In order to move towards a greener economy, Singh also announced a proposal for National Carbon Market with an objective to involve corporate and private sectors towards energy saving and carbon emission reductions.
The draft blue print was released on this occasion for stakeholder consultation.
This carbon market will pave the way for a large scale promotion of clean energy technologies in India, leading to de-carbonisation of the economy through active participation by various stakeholders.
Similar markets in other countries have found to be successful in promoting energy efficiency and clean energy deployment.
BEE has been mandated by the government to develop such a market which would be functional in the coming years.
The meeting was attended by senior officials from state governments who presented highlights of state level activities accomplished during last four years.
The Ministry of Power, in consultation with BEE, has drafted a comprehensive roadmap on clean energy transition.