changeadminIn a major push towards decarbonisation of the Indian economy, a significant financial outlay of ₹20,000 crore was proposed for Carbon Capture, Utilisation, and Storage in the annual Budget 2026-2027, presented by India’s Finance Minister, Ms Nirmala Sitharaman, today.
Carbon Capture, Utilisation, and Storage (CCUS) is a set of technologies that capture carbon emissions from industrial sources before they reach the atmosphere, with particular relevance for hard-to-abate sectors.
The budget proposed an expenditure of ₹20,000 crore (~US$2.3 billion) over the next 5 years to scale CCUS technologies in India for end-use applications across five industrial sectors, including power, steel, cement, refineries, and chemicals.
As the world faces escalating climate change challenges, the need for innovative pathways to reduce greenhouse gas emissions has become more urgent than ever.
For India, achieving Sustainable Development—balancing rapid industrial growth with environmental responsibility—remains a defining priority.
In this context, reaffirming India’s long-term commitment to a sustainable future and setting the ambitious goal of achieving net-zero emissions by 2070, Carbon Capture, Utilisation, and Storage has emerged as one of the technological pillars essential for decarbonising sectors.
CCUS will help reduce the nation’s carbon footprint, marking an important step toward a sustainable future aligned with the vision of Viksit Bharat (developed India) by 2047.
As the Finance Minister noted in her speech, the budget allocation aligns with the Capture, Utilisation, and Storage roadmap prepared by the Department of Science and Technology (DST) under the Ministry of Science & Technology.
The roadmap had called for coordinated action, fostering collaboration, and enabling investments to accelerate technology deployment.
It provides strategic guidance on thematic priorities and funding pathways to accelerate the development of CCUS technologies in India.
Beyond technology, the roadmap highlights the need for supportive frameworks—including skilled human capital, regulatory and safety standards, and early-shared infrastructure.
It also provided strategic guidance on thematic priorities and funding pathways needed to accelerate CCUS development, with DST prepared to lead implementation through initiatives such as the ₹100,000 crore Research, Development & Innovation (RDI) Scheme, strengthening private-sector-led innovation in industrial decarbonization, and complementing the roadmap’s vision.
DST has taken a leadership role in supporting translational R&D by creating carbon capture and utilisation (CCU) testbeds in real industrial environments, leveraging innovative public–private partnership models.
In July 2025, DST considered five CCU testbeds in the cement sector, with the objective of capturing carbon emissions from manufacturing and converting them into value-added products, including synthetic fuels, urea, soda ash, concrete aggregates, and food-grade CO₂.
These testbeds will serve as platforms to validate CCU technologies at a small scale in real industrial settings through Industry-Academia collaborations.
In January 2026, NITI Aayog released the “Roadmap for Cement Sector Decarbonisation”, outlining strategies for the Indian cement industry, which included scaling up Carbon Capture, Utilisation and Storage.
The budget allocation of ₹20,000 crore (₹4,000 crore annually) can help India achieve deep decarbonization in sectors such as cement, steel, and power, enabling net-zero goals while sustaining economic activity.
Furthermore, investments in CCUS technologies in India can create high-skilled jobs in engineering, construction, and operations, with the potential to generate billions in low-carbon exports and new markets for CO2-derived products such as fuels and materials.
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