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India's Green Future: Why Carbon Capture is More Than Just a Budget Line Item

  • Nishadil
  • February 05, 2026
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  • 5 minutes read
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India's Green Future: Why Carbon Capture is More Than Just a Budget Line Item

Beyond Green Hydrogen: The Crucial Role of Carbon Capture in India's Climate Strategy

India's budget highlights a bold commitment to a greener future, but while green hydrogen takes the spotlight, the often-overlooked technology of Carbon Capture, Utilisation, and Storage (CCUS) might just be the quiet hero we desperately need to tackle emissions in hard-to-abate sectors. It's a complex puzzle, but a vital piece for India's net-zero ambitions.

India, like many nations grappling with the monumental challenge of climate change, has laid out some pretty ambitious plans for a greener tomorrow. You see it reflected clearly in the Union Budget for 2023-24, where a significant chunk of change—nearly 20,000 crore rupees, if we're being precise—was earmarked for the National Green Hydrogen Mission. That's a huge commitment, right? And alongside that, there was vital support for battery energy storage projects, which, let's be honest, are absolutely essential for a stable renewable grid. But amidst all this exciting news, a less talked-about yet profoundly critical technology quietly made its appearance: Carbon Capture, Utilisation, and Storage, or CCUS as it's often called. It's not as flashy as green hydrogen, perhaps, but its role in India's journey towards net-zero emissions simply cannot be overstated.

Now, what exactly is CCUS, you might be wondering? In its essence, it's a suite of technologies designed to snag carbon dioxide—that pesky greenhouse gas—right from the industrial chimneys where it's produced or even directly from the air itself. Once captured, this CO2 isn't just released willy-nilly; instead, it's transported, often through pipelines, and then either stored deep underground in secure geological formations, or, and this is the clever part, repurposed for other uses. Think about it: imagine using captured CO2 to help extract more oil (yes, really, it's called enhanced oil recovery), or as a raw material for concrete, plastics, even synthetic fuels. It's a fascinating concept, isn't it? In fact, the think tank NITI Aayog even released a detailed report in late 2022, practically mapping out a policy framework for how India could embrace CCUS. This wasn't just a casual mention in the budget; it was a nod to a deeply considered strategy.

So, why is this technology so important, especially for a rapidly developing nation like India? Well, it's pretty straightforward. Despite our best efforts to switch to renewables, some sectors—like cement, steel, and heavy chemicals—are incredibly difficult, or "hard-to-abate," when it comes to cutting emissions. These industries often rely on processes that inherently release CO2, and simply swapping out fossil fuels isn't always an option, at least not yet. CCUS offers a lifeline, a way to significantly reduce emissions from these vital industries while they transition, allowing us to continue producing essential goods without the same environmental burden. It's not about ignoring renewables; it's about adding another powerful tool to our climate arsenal, ensuring we don't leave any stone unturned in our fight against climate change. It also buys us a bit of time, allowing us to manage our energy security while still moving forward on climate goals.

But let's not sugarcoat it; implementing CCUS isn't without its hurdles. For India, the challenges are quite significant, and frankly, expensive. We're talking costs that could range from Rs 3,000 to a whopping Rs 9,000 per tonne of captured CO2, depending on the technology and scale. That's a considerable investment, wouldn't you agree? Beyond the sticker price, these technologies are also quite energy-intensive themselves, which means we need to ensure the energy used to power CCUS facilities is clean, or we risk a circular problem. Then there's the sheer logistical nightmare of building the necessary infrastructure: miles of pipelines to transport the CO2, and identifying and developing secure, long-term geological storage sites. And of course, there's the crucial need for a robust policy and regulatory framework, something NITI Aayog has rightly highlighted, along with the often-overlooked aspect of public acceptance. People need to understand what this is and why it's safe.

Yet, despite these considerable obstacles, the potential payoff for India is immense. As one of the world's largest emitters, our climate actions—or inactions—have global ramifications. Embracing CCUS could be a game-changer, helping us meet our ambitious climate targets without necessarily stalling economic growth or compromising energy security. Globally, the scientific consensus is clear: the Intergovernmental Panel on Climate Change (IPCC) consistently points to CCUS as an essential component of any credible path to limiting global warming. Even the International Energy Agency (IEA), a voice of authority in energy matters, emphasizes its importance. So, India isn't operating in a vacuum here; we're joining a global chorus that recognizes the necessity of this technology.

So, what's next for India on this CCUS journey? It's pretty clear that a multi-pronged approach is needed. First, we absolutely must accelerate the development of that comprehensive regulatory framework to provide certainty and attract investment. Then, think about pilot projects: small-scale demonstrations that can prove the technology's viability and allow us to learn and optimize. Financial incentives, perhaps similar to what we see for renewables, could certainly kickstart adoption. And, crucially, we need to invest heavily in research and development to drive down costs and improve efficiency. Building domestic capacity—training engineers, scientists, and technicians—is also paramount. Lastly, given the global nature of this challenge, international collaboration and knowledge-sharing will be invaluable. It's a complex roadmap, yes, but one that could very well define India's leadership in the global climate fight.

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