The shares of EKI Energy plunged almost 20% in the past three days after the Lok Sabha passed the Energy Conservation (Amendment) Bill to establish the carbon credit market in India, on August 08, 2022. Its shares are currently trading at ₹1,706.95 apiece.
Prime Minister Narendra Modi’s Government is seeking changes to the energy conservation law in order to create a domestic carbon market and to push through energy transition goals that will help climate change. The new law will prepare Indian companies for the looming carbon taxes in export markets. Further, it will help transform India from a large energy importer to a net energy exporter in the coming years.
Power and Renewable Energy Minister Raj Kumar Singh told lawmakers during a debate that there would be no exports of carbon credits until India’s commitment to the reduction of 45 per cent emission intensity of gross domestic product (GDP) is met.
India hopes to cut 1 billion tonnes of emissions by 2030 and become carbon-neutral by 2070. It is the fourth country to have announced or planned bans on the sale of carbon credits in recent months after Papua New Guinea, Indonesia, and Uruguay.
According to the statement of objects and reasons, the Energy Conservation (Amendment) Bill mandates using non-fossil sources, including green hydrogen, green ammonia, biomass, and ethanol.
EKI Energy provides strategic solutions for helping businesses and organisations to achieve their climate ambition. The company works in the realm of climate change, carbon credit and sustainability solutions. Its objective is to rehabilitate the Earth to a low carbon and climate resilient global economy.
In less than one year of its listing, the shares gave multibagger returns of 9900% as their share price escalated from ₹ 102 apiece to ₹10200. The company issued bonus shares in the ratio of 3:1 in the month of July.
Written by Simran Bafna
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