New Delhi, Feb 1 (NationPress) In a significant advancement towards achieving India's net-zero goals, Finance Minister Nirmala Sitharaman revealed a noteworthy budget allocation of Rs 20,000 crore over the next five years specifically for Carbon Capture, Utilisation and Storage (CCUS) technologies during the Union Budget 2026-27 presented on February 1.

This funding is intended to expedite the adoption of CCUS in sectors that are challenging to decarbonise, thereby enabling India to fulfill its climate obligations while sustaining economic growth.

CCUS technology captures carbon dioxide emissions from industrial sources, repurposes the captured CO2 for products such as chemicals or enhanced oil recovery, or permanently stores it underground to prevent it from entering the atmosphere. This technology is vital for reducing emissions in sectors where it is hard to eliminate emissions solely with renewable energy sources, including power generation, steel manufacturing, cement production, refineries, and chemical plants.

These industries are integral to India's heavy manufacturing sector and significantly contribute to its greenhouse gas emissions.

The finance minister highlighted that this investment will facilitate the scaling of CCUS technologies and improve readiness for end-use applications across these five critical sectors.

This initiative is in line with the government's CCUS roadmap introduced in 2025, which delineates strategies for technology maturation, pilot projects, and eventual commercial implementation.

By focusing on research, establishing demonstration plants, developing CO2 transport and storage infrastructure, and providing incentives for adoption, the proposal aims to enhance domestic capabilities and reduce dependency on foreign solutions.

This initiative comes at a time when there is a global demand for such technologies, including the European Union's Carbon Border Adjustment Mechanism (CBAM), which levies tariffs on high-carbon imports like steel and chemicals.

The Rs 20,000 crore allocation is anticipated to aid Indian exporters, particularly in the steel and chemicals sectors, in maintaining competitiveness in global markets by decreasing their carbon footprint.

This commitment represents a pragmatic evolution in India's decarbonisation strategy, concentrating on actionable solutions for emission-heavy industries rather than relying exclusively on the expansion of renewable energy.

The funding is expected to stimulate private sector involvement through public-private partnerships, technology localization, and job creation in green engineering and storage operations.

Industry representatives view this as a significant boost to their sustainability efforts and compliance with Environmental, Social, and Governance (ESG) standards.

The proposal is integrated with broader initiatives for green infrastructure in the budget, such as high-speed rail corridors and inland waterways, reflecting a comprehensive approach to sustainable development.

As implementation details emerge, the success of this CCUS initiative will hinge on effective policy execution, regulatory frameworks for carbon markets, and international collaborations for technology transfer.

With this bold initiative, India aspires to turn a climate challenge into an opportunity for innovation and industrial resilience, paving the way for Viksit Bharat.