# What did the Energy Conservation (Amendment) Act, 2022 change for industry?

Canonical: https://senseible.earth/answers/energy-conservation-amendment-act-2022-changes

The 2022 amendment let the government set up a carbon credit trading scheme, require designated consumers to use a minimum share of non-fossil energy, bring large residential buildings, vehicles and vessels under the Act, and raise penalties to up to Rs 10 lakh.

## The main changes

- Carbon credit trading: the government may specify a carbon credit trading scheme and issue carbon credit certificates to registered entities (new section 14AA).
- Non-fossil share: designated consumers can be told to meet a minimum share of energy or feedstock from non-fossil sources (section 14(x)).
- Energy now covers fossil, non-fossil and renewable sources.
- Buildings: the energy code becomes the Energy Conservation and Sustainable Building Code and can cover residential buildings with 100 kW connected load or 120 kVA contract demand; states may set lower limits.
- Vehicles and vessels are brought under energy consumption standards.
- Industrial units that miss notified norms can be ordered to close, but not within two years of the norms being notified.

## Voluntary buyers

Anyone, not only designated consumers, may now buy energy saving certificates or carbon credit certificates on a voluntary basis.

## Penalties

Penalties were replaced with higher amounts, covered in the penalties page linked below.

## What Senseible does here

Senseible keeps a dated, sourced record of energy and fuel use from invoices, the kind of data a registered entity needs when its energy use is reported or questioned.

- [EC Act penalties](https://senseible.earth/answers/energy-conservation-act-penalties-2022)
- [Is my factory a designated consumer?](https://senseible.earth/answers/is-my-factory-bee-designated-consumer)
- [RCO targets](https://senseible.earth/answers/rco-targets-2024-25-to-2029-30)

Sources: [Energy Conservation (Amendment) Act, 2022 (No. 19 of 2022), Gazette of 20 December 2022](https://beeindia.gov.in/WriteReadData/L45218/1772711141.pdf), [BEE, Energy Conservation Act, 2001 chapters](https://beeindia.gov.in/show_content.php?lang=1&level=1&ls_id=164&lid=39)

Last reviewed 2026-10-23.