Carbon Capture: India's ₹38,900 Crore Gamble on a Greener Future

The Central Government is developing a Carbon Capture, Utilisation, and Storage (CCUS) programme with an estimated investment of ₹38,900 crore, including ₹19,500 crore in government funding. The remaining capital will be mobilised through bank loans and multilateral sources.

The scheme will feature multiple sub-schemes, offering 100% government support for R&D initiatives and potential full financing for semi-commercial projects. Other components may receive 40–50% funding support, depending on their scale and commercial readiness. The programme will be rolled out in phases, beginning with a six-year first phase, and will focus on carbon-intensive sectors such as power, steel, cement, chemicals, coal gasification, and green hydrogen.

Although CCUS remains a high-cost technology, experts believe scaling up can drive down costs, making it a viable decarbonisation tool. With India targeting 97 GW of coal-based power capacity by 2032, CCUS is seen as essential for reducing emissions in the energy sector. The initiative will also incorporate geological sequestration alongside carbon utilisation technologies.

The programme supports India’s broader climate objectives—to halve emissions by 2050 and achieve net-zero by 2070.

News by Rahul Yelligetti.