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In view of the climate change threat, India has recently committed to reduce greenhouse gas emissions to 35% by 2030 relative to 2005 levels. Energy efficiency in buildings offers the greatest potential for saving energy at the lowest cost. This paper reviews current energy consumption trends in the residential building sector of India and traces various initiatives by the government to reduce dependence on fossil fuels in terms of regulatory framework, green building rating systems, fiscal incentives and institutional mechanisms affecting energy demand management. Further, the paper provides an overview of various barriers and challenges in implementing energy efficiency programmes in housing along with suggestions to strengthen the institutional framework and create awareness to accelerate energy efficiency programmes for reducing CO2 emissions.