Carbon Capture in India: Budget Push, Climate Strategy, and Industrial Transition

Context

The Union Budget’s allocation of ₹20,000 crore over five years for Carbon Capture, Utilisation and Storage (CCUS) marks a major policy push to reduce emissions from industries that cannot easily decarbonise.
This initiative aligns with India’s commitment to achieve net-zero emissions by 2070, while supporting industrial growth and global competitiveness.

Q1. What is Carbon Capture, Utilisation and Storage (CCUS), and why is it important in the fight against climate change?

1. CCUS refers to technologies that capture carbon dioxide before it enters the atmosphere.
2. The captured CO₂ can be stored underground in geological formations.
3. Alternatively, CO₂ can be reused to make fuels, chemicals, or building materials.
4. CCUS targets emissions from industrial processes, not just energy use.
5. It is not a single technology but a group of methods and systems.
6. CCUS addresses emissions that cannot be eliminated by renewables alone.
7. Global climate models show net-zero goals are impossible without CCUS.

Q2. Why has the Union Budget allocated ₹20,000 crore for CCUS, and what does it signal about India’s climate strategy?

1. India’s emissions are expected to rise due to industrial growth.
2. CCUS offers a way to reduce emissions without slowing development.
3. The allocation signals seriousness about long-term decarbonisation.
4. It reflects a shift from targets to implementation.
5. The funding supports pilot, demonstration, and scale-up projects.
6. It shows focus on industrial emissions, not just power generation.
7. The Budget links climate action with economic competitiveness.

Q3. How does CCUS help India meet its long-term net-zero emissions target?

1. India has committed to net-zero emissions by 2070.
2. Heavy industries will continue emitting CO₂ for decades.
3. CCUS allows emissions reduction while industries operate.
4. It prevents locking in high-carbon infrastructure.
5. CCUS complements renewable energy expansion.
6. It reduces cumulative emissions over time.
7. This makes the net-zero pathway more realistic and flexible.

Q4. What is the current status of CCUS development and deployment in India?

1. India began accelerating CCUS efforts after the 2021 Glasgow summit.
2. Pilot projects are running in steel, cement, and chemical sectors.
3. Potential CO₂ storage sites have been mapped.
4. Research hubs include IIT Bombay and JNCASR Bengaluru.
5. Indigenous technologies are being developed for Indian conditions.
6. Most systems are still at early or mid-technology readiness levels.
7. Large-scale commercial deployment is yet to begin.

Q5. Why is CCUS especially important for hard-to-abate sectors like steel and cement?

1. These industries emit CO₂ from chemical reactions, not just fuel use.
2. Switching to renewable electricity cannot eliminate process emissions.
3. Cement production releases CO₂ from limestone calcination.
4. Steelmaking produces CO₂ during iron ore reduction.
5. CCUS is the only viable decarbonisation option for these processes.
6. Without CCUS, deep emission cuts are impossible.
7. Budget focus reflects the dominance of these sectors in emissions.

Q6. What role do research institutions and the CCUS R&D roadmap play in scaling these technologies?

1. CCUS requires advanced materials and engineering solutions.
2. Research institutions develop cost-effective capture methods.
3. The CCUS R&D roadmap identifies technology and policy gaps.
4. It sets milestones up to 2030 for deployment.
5. Collaboration improves technology readiness levels.
6. Indigenous innovation reduces dependence on foreign technology.
7. Research ensures safety and long-term storage integrity.

Q7. How will the ₹20,000 crore budget outlay help overcome key barriers to CCUS adoption?

1. High cost is the biggest barrier to CCUS adoption.
2. The funding supports real-world testing and scale-up.
3. It bridges the gap between lab success and commercial use.
4. Projects can now capture 100–500 tonnes of CO₂ daily.
5. Risk-sharing encourages private sector participation.
6. Scale reduces per-unit costs over time.
7. Several technologies may become market-ready within five years.

Q8. What are the economic and trade benefits of CCUS for Indian industry?

1. CCUS reduces carbon intensity of industrial products.
2. This helps Indian exports meet global climate standards.
3. It addresses trade barriers like the EU’s CBAM.
4. Cleaner products improve global competitiveness.
5. CCUS supports job creation in new green technologies.
6. It attracts climate finance and investment.
7. Decarbonisation strengthens long-term industrial resilience.

Q9. What challenges must India address to successfully deploy CCUS at scale?

1. High capital and operating costs remain a concern.
2. Transport and storage infrastructure is limited.
3. Long-term liability for stored CO₂ needs legal clarity.
4. Public acceptance and safety concerns must be addressed.
5. Skilled workforce and monitoring systems are essential.
6. Coordination between ministries and states is required.
7. Stable policy support is needed beyond pilot stages.

Conclusion

Carbon Capture, Utilisation and Storage is no longer optional for India’s climate strategy.
The ₹20,000 crore budget push recognises that industrial decarbonisation and economic growth must go together.

If backed by strong regulation, innovation, and industry participation, CCUS can become a cornerstone of India’s net-zero pathway, protecting both the climate and the country’s industrial future.