Government Investment in CCUS Technologies

The Indian government has allocated Rs 20,000 crore over the next five years to develop Carbon Capture, Utilisation, and Storage (CCUS) solutions. This significant investment aims to reduce carbon footprints in critical industries and help India achieve net-zero emissions in the long term.

Understanding CCUS

• CCUS involves capturing CO2 emissions from industrial processes.
• The captured CO2 can be stored underground or converted into useful chemicals.
• CCUS comprises diverse technologies designed to prevent CO2 from entering the atmosphere.
• Despite existing for decades, CCUS deployment has been limited due to cost, safety, and scaling challenges.
• Globally, only 50 million tonnes of CO2 are captured annually, a small fraction of the almost 40 billion tonnes emitted every year.

Importance of CCUS for India

India's emissions are expected to grow due to industrial expansion, making CCUS crucial for its net-zero target by 2070. The government is focusing on indigenous CCUS technologies tailored to local needs.

• Pilot projects are in operation in steel, cement, and chemical industries.
• Potential sites for large-scale carbon capture and storage have been mapped.
• Research institutions like IIT Bombay are working on CCUS solutions.

Budgetary Push and Economic Benefits

The Rs 20,000 crore allocation seeks to overcome financial barriers and enhance technology readiness. This will support the commercial deployment of CCUS technologies in India.

• CCUS is essential for industries like steel and cement, where CO2 is a byproduct of production processes.
• The Finance Minister's budget targets power, steel, cement, refineries, and chemicals sectors.
• Lowering CO2 emissions will help Indian products remain competitive, especially in markets facing carbon tariffs like the EU's CBAM.