Budget 2026: A Rs 20,000 Crore Push for Carbon Capture Solutions in India
In a significant move to combat climate change, the Indian government has allocated Rs 20,000 crore in the Budget for the development of carbon capture, utilisation, and storage (CCUS) solutions over the next five years. This substantial investment underscores India's commitment to reducing its carbon footprint and achieving net-zero emissions by 2070, as pledged at the Glasgow climate conference.
What Are CCUS Solutions?
CCUS technologies involve capturing carbon dioxide emissions from industrial processes, preventing them from entering the atmosphere. The captured CO2 can then be stored underground in geological formations or converted into useful chemicals. These solutions are not a single technology but a suite of approaches aimed at mitigating global warming.
Global Context and Challenges
Despite being around for decades, CCUS deployment has been limited globally due to:
- High costs and safety concerns
- Difficulties in scaling up technologies
- Limited adoption, with only about 50 million tonnes of CO2 captured annually worldwide
This accounts for less than half a percent of the nearly 40 billion tonnes of CO2 emitted each year. However, as countries struggle to cut emissions, CCUS is seen as crucial for achieving net-zero targets by 2050.
India's Strategic Focus on CCUS
India's emissions are expected to rise due to industrial and construction growth, making CCUS essential. The government has been promoting indigenous technologies through:
- Pilot projects in steel, cement, and chemicals industries
- Mapping potential sites for large-scale carbon capture and storage
- Establishing Centres of Excellence at institutions like IIT Bombay and Jawaharlal Nehru Centre for Advanced Scientific Research in Bengaluru
In December last year, the Department of Science and Technology released an R&D roadmap for CCUS by 2030, identifying technology, finance, and policy bottlenecks.
Budget Allocation: A Game-Changer
The Rs 20,000 crore fund aims to bridge gaps in technology readiness, enabling field testing and scaling of CCUS solutions. Vikram Vishal, professor at IIT Bombay, highlighted that this move could lead to commercial deployment of technologies capable of capturing 100 to 500 tonnes of CO2 per day within five years.
Economic and Industrial Benefits
CCUS is particularly vital for industries like steel and cement, where CO2 emissions are intrinsic to production processes. The Budget targets end-use applications in:
- Power
- Steel
- Cement
- Refineries
- Chemicals
These sectors face challenges such as the EU's Carbon Border Adjustment Mechanism (CBAM), making CCUS essential for maintaining competitiveness in export markets. Parth Jindal, president of the Cement Manufacturers' Association, noted that this support is critical for decarbonising the cement industry while meeting infrastructure needs.
Conclusion
The Budget's focus on CCUS represents a strategic step towards sustainable industrial growth, aligning with global climate goals and enhancing India's economic resilience in a carbon-conscious world.
