The Securities and Exchange Board of India issues consultation paper on "Proposals for Ease of Doing Business by Environment, Social and Governance Rating Providers"
The Securities and Exchange Board of India ("SEBI") issued a consultation paper, dated October 31, 2024, aimed at enhancing the operational framework for Environment, Social and Governance ("ESG") Rating Providers ("ERPs"). The paper proposes a subscriber-pays model to improve the functioning and transparency of ESG ratings. Key recommendations include allowing ERPs to share ESG rating reports simultaneously with both rated companies and subscribers, as long as no non-public information influences the ratings. Additionally, the paper suggests that rated entities or their affiliates should not subscribe to their own ratings to maintain impartiality.
The following consultations are open for public comment from SEBI:
- Consultation 1: Requirement of sharing draft ESG rating report with the issuer in case of ERPs following a subscriber – pays model.
- Consultation 2: Dealing with appeal and representation by the rated issuer in case of ERPs following a subscriber-pays model.
- Consultation 3: Dispensing with the requirement to disclose the ESG ratings to the stock exchange(s) where the issuer or the security is listed, in case of ERPs following a subscriber-pays model.
- Consultation 4: Specifying activity-based regulation for ERPs.
International Financial Services Centre Authority issues circular on framework for ESG ratings and data products providers in the Internal Financial Services Centre
The International Financial Services Centre Authority ("IFSCA") issued a circular dated October 30, 2024 outlining the framework for entities wishing to operate as ESG Ratings and Data Products Providers ("ERDPP") within the International Financial Services Centre ("IFSC"). The circular emphasises the growing global importance of ESG ratings due to increasing investor demand for transparency and accountability, as well as various international regulatory requirements for ESG disclosures. It prescribes the approach for registration, outlining eligibility criteria, obligations, permissible activities and compliance requirements for entities wishing to provide ESG related services.
Key components of the circular include definitions of ESG ratings and data products, the registration process and ongoing compliance obligations. Entities must maintain a minimum net worth, appoint qualified personnel and adhere to a code of conduct focusing on governance, transparency and conflict management. The circular also stipulates requirements for annual audits, grievance redressal and the maintenance of operational integrity. It emphasises that registered ERDPP must ensure their activities are distinctly segregated from other services to avoid conflicts of interest and uphold the integrity of ESG assessments.
MoEF notifies the Biological Diversity Rules, 2024
MoEF, vide notification dated October 26, 2024, notified the Biological Diversity Rules, 2024 in supersession of the Biological Diversity Rules, 2004. The rules prescribe the manner of selection and appointment, term of office, pay and allowances of Chairperson and other members of the National Biodiversity Authority. It provides the procedure to be followed for access to biological resources and knowledge associated to it, sharing and transfer of research results to foreign entities, grant of intellectual property rights, obtaining certificate of origin for cultivated medicinal plants, conducting non-commercial research or research for emergency purposes outside India by Indian researcher or institution. It also provides the procedure to be followed by the adjudicating officer for inquiry into any compliant of non-compliance against any entity.
CAQM issues order on use of diesel generator sets during melas, outdoor exhibitions/processions and in community centres/banquet halls
CAQM issued order dated October 21, 2024 on use of polluting Diesel Generator sets ("DG sets") during melas, outdoor exhibitions/processions and in community centres/banquet halls. The order is issued in view of the representations from resident welfare associations reporting rampant use of non-compliant DG sets by organisers of outdoor melas, exhibitions, community centres etc. The order clarifies that the use of DG sets falls within the purview its Direction No. 76 dated September 29, 2023, and should mandatorily be complied with by the organisers of such melas, exhibitions, processions, community centres, marriage halls etc. including outsourced DG sets by such agencies across the NCR.
Central Consumer Protection Authority issues the Guidelines for Prevention and Regulation of Greenwashing or Misleading Environmental Claims, 2024
The Central Consumer Protection Authority, vide circular dated October 15, 2024, issued the Guidelines for Prevention and Regulation of Greenwashing or Misleading Environmental Claims, 2024. The guidelines are issued to address the issue of greenwashing in environmental claims made in marketing and advertisement of products. The guidelines define 'green washing' as any deceptive or misleading practice including concealing, omitting or hiding relevant information, by exaggerating, making vague, false or unsubstantiated environmental claims. It also includes the use of misleading words, symbols or imagery, placing emphasis on positive environmental aspects while downplaying or concealing harmful attributes. The guidelines apply to all environmental claims made by a manufacturer, service provider or trader whose goods, product or service is the subject of an advertisement. For a detailed analysis, please refer to the
For a detailed analysis, please refer to the JSA Prism of October 29, 2024.
Bureau of Energy Efficiency publishes list of approved sectors in offset mechanism under Carbon Capture and Trading Scheme by Central Government
On October 15, 2024, the Bureau of Energy Efficiency ("BEE") published an office memorandum dated September 20, 2024 which includes a list of approved sectors for India's Carbon Capture and Trading System ("CCTS"). This marks a significant advancement in the country's climate action strategy. Key sectors included in this initiative are energy, manufacturing, agriculture, waste management, and transport, all vital for reducing carbon emissions and promoting sustainable development.
In the initial phase of the CCTS, emphasis will be placed on sectors such as energy, chemical manufacturing, waste management and agriculture, utilising innovative technologies like green hydrogen production, biochar, landfill gas capture, and afforestation. The second phase will broaden the scope to incorporate additional sectors, including construction, fugitive emissions, and carbon capture, utilisation, and storage. Specific technologies approved in this phase include energy efficiency improvements, green ammonia usage, systematic rice intensification, and electric vehicles ("EVs"), reflecting a comprehensive approach to tackling emissions across various industries.
CAQM issues direction for implementation of plans of action for prevention and control of paddy stubble burning
CAQM, issued direction dated October 10, 2024, on implementation of plans of action for prevention and control of paddy stubble burning. It noted that despite targeted elimination of fire counts during 2024, a total of 267 (two hundred and sixty-seven) and 187 (one hundred and eighty-seven) paddy residue burning events were reported between September 15, 2024 and October 9, 2024 from the States of Punjab and Haryana respectively. It also notes that CAQM has called for entrusting responsibility and accountability on the nodal officers for various villages/blocks and supervisory officers. It authorises Deputy Commissioners/ District Collectors / District Magistrates in the States of Punjab, Haryana, NCR areas of Rajasthan and Uttar Pradesh and in the NCR to file compliant/prosecution before jurisdictional judicial magistrates, in case of inaction in respect of officials, including nodal officers and supervisory officers at various levels and station house officers, responsible for effective enforcement towards ensuring elimination of paddy stubble burning in their respective jurisdiction.
Ministry of Heavy Industries launches PM E-DRIVE Scheme
The Ministry of Heavy Industries, on October 9, 2024 launched the PM Electric Drive Revolution in Innovative Vehicle Enhancement ("PM E-DRIVE") scheme, with a financial outlay of INR 10,900 crore (Indian Rupees ten thousand nine hundred crore), effective from October 1, 2024, until March 31, 2026. The PM E-DRIVE scheme aims to accelerate the adoption of EVs in India by providing incentives for EV purchases, enhancing charging infrastructure, and promoting a robust domestic EV manufacturing ecosystem. It focuses on mass mobility, supporting public transportation systems and reducing transportation-related environmental impacts all aligned with the Aatmanirbhar Bharat initiative.
Key components of the PM E-DRIVE scheme include demand incentives for electric 2 (two)-wheelers, 3 (three)-wheelers, e-ambulances, e-trucks and e-buses, alongside significant funding for establishing charging infrastructure and upgrading testing facilities. The initiative emphasises advanced battery technology for eligibility and sets specific targets for the number of vehicles incentivised. Additionally, the scheme plans to deploy e-vouchers for customers to streamline the incentive process, further encouraging the transition to electric mobility. Overall, this initiative is positioned to enhance sustainable transportation, improve air quality, and generate employment opportunities within the EV sector in India.
Ministry of New and Renewable Energy issues guidelines for implementation of component 'Innovative Projects' under PM-Surya Ghar: Muft Bijli Yojana
The Ministry of New and Renewable Energy ("MNRE"), on October 8, 2024, released the operational guidelines for implementation of component 'innovative projects' under the PM-Surya Ghar – Muft Bijli Yojana. The Government of India approved the PM Surya Ghar: Muft Bijli Yojana on February 29, 2024, to enhance solar rooftop capacity and empower residential households to generate their own electricity. The scheme is set to run until the financial year 2026-27, following administrative approval on March 16, 2024. These guidelines pertain to the 'Innovative Projects Component' of the scheme, aimed at showcasing and demonstrating innovative solar technologies and integration techniques to promote industry advancement.
The Innovative Projects Component aims to identify and fund innovations in rooftop solar business models and technical deployments; support startups and institutions in conducting collaborative pilots and scaling new business models to generate innovative rooftop solar technologies; facilitate new deployment pathways for distributed renewable energy and create management tools for distribution companies to manage distributed energy resources, incorporate cutting-edge technology in practical rooftop solar applications. A budget of INR 500,00,00,000 (Indian Rupees five hundred crore) is designated for the Innovative Projects Component. Potential projects include blockchain-based peer-to-peer rooftop solar, digital solutions, smart building materials, and grid-responsive rooftop solar with battery storage.
MoEF issues the Draft Liquid Waste Management Rules, 2024 for public consultation
MoEF, vide notification dated October 7, 2024, issued the Draft Liquid Waste Management Rules, 2024 for public consultation. The draft rules are proposed to be applicable from October 1, 2025, and will be applicable on every urban body, rural local body and all public authorities and entities responsible for generation and management of wastewater, sludge from wastewater treatment facilities and fecal sludge including all entities within their jurisdiction whether controlled and managed by the government, private sector or in public private partnership. 'Liquid waste' has been defined as any liquid/wastewater and associated sludge, including fecal sludge, which is discharged into the environment in such a volume, composition and manner likely to cause an alteration of quality of the environment. The proposed rules provide that every wastewater generator is required to dispose of wastewater generated in drainage systems provided by local body. It is also required not to dispose of wastewater generated on open land or in water body in a manner to adversely affect environmental quality.
SEBI extends timeline for submission of annual disclosures, impact report by social enterprises
On October 7, 2023, SEBI extended the deadline for social enterprises registered with the social stock exchange to submit their annual disclosures and impact reports for the financial year 2023-24. The new deadline is January 31, 2025, moving from the previous date of October 31, 2024.
SEBI's circular states that these reports must comply with regulation 91C (1) for annual disclosures and regulation 91E(1) for annual impact reports under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The reports will cover governance, financial aspects and the social impact generated by the enterprises.
BEE issues draft guidelines for installation and operation of battery swapping and battery charging stations for public consultation
BEE on October 7, 2024, issued the draft guidelines for installation and operation of battery swapping and battery charging stations. These guidelines aim to promote battery swapping as a viable alternative for EV power and encourage a 'battery as a service' model, where users can lease batteries instead of purchasing them outright. They apply to providers of swappable batteries and operators of Battery Charging Stations ("BCS") and Battery Swapping Stations ("BSS"), outlining essential definitions and requirements for establishing these facilities in accordance with existing regulations.
Key proposals in the draft include the promotion of charging and swapping infrastructure through government incentives, such as subsidised land rates and financial support for electricity usage at stations. The guidelines also specify tariff structures, requiring BCS and BSS to maintain separate meters for electricity consumption and adhere to pricing regulations. Additionally, BEE will create a national database of all charging and swapping stations, while a central nodal agency will oversee implementation. The guidelines aim to ensure a well-coordinated rollout of EV infrastructure, integrating renewable energy sources and encouraging open communication standards for data sharing among operators.
BEE publishes the Energy Conservation and Sustainable Building Code
BEE in October 2024 published the 'Eco Niwas Samhita ("ENS") – Energy Conservation and Sustainable Building Code (Residential)', September, 2024 to provide norms and standards for energy efficiency and its conservation, use of renewable energy and other green building requirements for a building. These standards aim to minimise heat gains in cooling-dominated climates and reduce heat loss in heating-dominated climates, while also promoting sufficient natural ventilation and daylighting. Lodging & rooming houses, dormitories, hotels and resorts have been excluded from the definition of 'residential buildings' under the code. The code also applies to alterations made to existing residential buildings that exceed the prescribed threshold, where only the altered parts need to comply with specific requirements. The code outlines 3 (three) levels of energy conservation and sustainability: (a) ENS compliance requires adherence to mandatory requirements; (b) ENS+ compliance involves meeting those requirements and earning additional points; and (c) super ENS compliance necessitates both adherence and achieving a higher number of points across the code's sections.
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