The Energy Conservation (Amendment) Bill, 2022 amends the Energy Conservation Act, 2001 to empower the central government to specify a _____.

carbon credit trading scheme

The correct answer is Option 1 - carbon credit trading scheme

The Energy Conservation (Amendment) Act empowers the central government to establish a system for trading carbon credits, which are permits that allow the emission of a certain amount of carbon dioxide or other greenhouse gases. This is a market-based approach to incentivize reducing emissions.

Coal based stations, coastal regulation schemes, and eco-sensitive zones are not directly related to carbon trading.