Home / Politics / News /  Govt introduces energy efficiency norms for industry

New Delhi: The government has finally set the ball rolling on forcing India’s industrial units to make their use of energy more efficient. According to a notification on Saturday, over 400 of India’s most energy intensive industrial units must collectively reduce their current energy consumption of 166 million tons by a little over 6% by 2015. Together these units, which include major companies such as Reliance India Limited and Vedanta Aluminium Company account for a third of India’s energy usage.

The targets reflect the amount of energy that an organisation must save in producing its product rather than just a overall reduction in its energy consumption. Those that save more than prescribed could obtain energy savings certificates that may be traded and bought by other units covered by the programme who may find it expensive to meet their targets through their own actions.

Units unable to meet their target, either through their own action or through purchase of certificates will be penalized at 10,154 for every shortfall of 1 ton of oil equivalent in the achievement of the target.

Under its commitments to mitigate the effects of greenhouse gas emissions, India has drafted a eight-point national action plan on climate change. Without committing to international legal commitments it has agreed that its per capita emissions of carbon dioxide would never exceed that of the western countries.

The current proposal is part of this action plan and hopes to emulate the clean development mechanism process under which several Indian companies gain carbon credits in return for implementing clean technologies, which can then be sold to companies in Europe.

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