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2 Feb 2026·Source: The Hindu
4 min
EconomyEnvironment & EcologyScience & TechnologyNEWS

₹20,000 Crore Earmarked for Carbon Capture, Utilization, and Storage

Budget allocates ₹20,000 crore for Carbon Capture, Utilisation, and Storage (CCUS) scheme.

₹20,000 Crore Earmarked for Carbon Capture, Utilization, and Storage

Photo by PHLAIR

Union Finance Minister Nirmala Sitharaman earmarked ₹20,000 crore in the Budget for Carbon Capture Utilisation and Storage (CCUS). CCUS technologies capture carbon dioxide (CO2) emissions from large point sources and either use CO2 as an input or permanently store it in geological formations. A DST report in December 2025 outlined the need for CCUS to meet India's net-zero goals for 2070. The DST road map positions CCUS as essential for India’s “hard-to-abate” sectors. India's approach is research and development-led, focusing on pushing CCUS technologies from laboratory scale to commercial readiness. The anticipated costs are around ₹4,500 crore over the next two years.

Key Facts

1.

CCUS allocation: ₹20,000 crore

2.

Net-zero target: 2070

3.

CCUS cost (2 years): ₹4,500 crore

UPSC Exam Angles

1.

GS Paper III (Economy, Environment): CCUS as a technology for sustainable development

2.

Connects to syllabus topics like climate change mitigation, industrial policy, and energy security

3.

Potential question types: Statement-based, analytical questions on the role of technology in achieving climate goals

Visual Insights

Key Statistics on Carbon Capture and India's Climate Goals

Dashboard highlighting the financial commitment to CCUS and India's net-zero target, crucial for understanding India's climate action strategy.

CCUS Budget Allocation
₹20,000 Crore

Significant government investment demonstrating commitment to carbon capture technologies. Important for GS Paper 3 (Environment) and Essay.

India's Net-Zero Target
2070

India's long-term goal for achieving carbon neutrality. Relevant for GS Paper 3 (Environment) and International Relations (COP commitments).

CCUS R&D Investment (Next 2 Years)
₹4,500 Crore

Focused investment to drive innovation and commercialization of CCUS technologies. Important for GS Paper 3 (Science & Technology and Environment).

More Information

Background

Carbon Capture, Utilization, and Storage (CCUS) technologies are gaining prominence as a crucial strategy to mitigate climate change. The concept of carbon sequestration, which involves capturing and storing carbon dioxide (CO2) emissions, has been around for decades, but its large-scale implementation is relatively recent. Early efforts focused on geological storage, injecting CO2 into underground formations. The Intergovernmental Panel on Climate Change (IPCC) has recognized CCUS as a key technology for achieving deep decarbonization. Over time, the focus has expanded to include the utilization of captured CO2. This involves using CO2 as a feedstock for producing various products, such as fuels, chemicals, and building materials. This approach not only reduces emissions but also creates economic opportunities. Research and development in CCUS technologies have been accelerated by government policies and international collaborations. The Paris Agreement has further emphasized the importance of CCUS in achieving global climate goals. Several countries have implemented CCUS projects, with varying degrees of success. Norway's Sleipner project, which began in 1996, was one of the first commercial-scale CO2 storage projects. The United States has also invested heavily in CCUS research and development, with projects like the Petra Nova carbon capture project. The legal and regulatory framework for CCUS is still evolving, with issues such as liability for leakage and long-term monitoring needing to be addressed. The Clean Development Mechanism (CDM) under the Kyoto Protocol provided some early incentives for CCUS projects. India's approach to CCUS is primarily research and development-led, with a focus on adapting technologies to its specific industrial and geological context. This includes developing cost-effective capture technologies for industries like steel, cement, and power. The DST report in December 2025 highlights the importance of CCUS for India to achieve its net-zero target by 2070. India's commitment to Sustainable Development Goals (SDGs) also drives the need for CCUS technologies.

Latest Developments

Recent government initiatives in India are focusing on promoting CCUS technologies. The ₹20,000 crore earmarked in the budget is a significant step towards scaling up CCUS projects. This funding is expected to support research, development, and deployment of CCUS technologies across various sectors. The Ministry of Science and Technology is playing a key role in coordinating these efforts. Ongoing debates revolve around the cost-effectiveness and scalability of CCUS technologies. Some stakeholders argue that CCUS is an expensive solution compared to other decarbonization strategies like renewable energy. Others emphasize that CCUS is essential for hard-to-abate sectors where emissions are difficult to eliminate. The NITI Aayog is actively involved in assessing the potential of CCUS and developing policy recommendations. The future outlook for CCUS in India is promising, with several pilot projects and demonstration plants planned. The government aims to create a favorable ecosystem for CCUS by providing incentives and addressing regulatory barriers. The DST roadmap envisions CCUS playing a crucial role in achieving India's net-zero target by 2070. Collaboration with international partners is also expected to accelerate the development and deployment of CCUS technologies. The International Energy Agency (IEA) is providing technical assistance and sharing best practices. Challenges remain in terms of technology development, cost reduction, and public acceptance. Widespread deployment of CCUS will require significant investments in infrastructure and skilled workforce. Addressing concerns about the safety and environmental impacts of CO2 storage is also crucial. A comprehensive regulatory framework is needed to ensure the responsible and sustainable deployment of CCUS technologies. The Environment Protection Act, 1986 provides a broad framework for environmental regulation in India.

Frequently Asked Questions

1. What is Carbon Capture, Utilization, and Storage (CCUS), and why is it important for India?

CCUS involves capturing carbon dioxide (CO2) emissions from large sources and either using it as an input for other processes or storing it permanently in geological formations. It is important for India to meet its net-zero goals, especially in 'hard-to-abate' sectors, as outlined in the DST report.

2. What are the key facts about the ₹20,000 crore CCUS allocation that are important for UPSC Prelims?

The key facts include: the allocation amount of ₹20,000 crore, India's net-zero target year of 2070, and the anticipated CCUS cost of ₹4,500 crore over the next two years. Remember these figures as they are directly testable.

Exam Tip

Focus on remembering the numerical data: ₹20,000 crore, 2070, ₹4,500 crore.

3. Why is CCUS considered essential for India's 'hard-to-abate' sectors?

CCUS is essential because these sectors, such as steel and cement, have processes that inherently produce significant CO2 emissions. CCUS offers a technological solution to capture and manage these emissions, which are otherwise difficult to eliminate through other means.

4. What is India's current approach to CCUS technology development?

India's approach is research and development-led, focusing on pushing CCUS technologies from laboratory scale to commercial readiness. The Ministry of Science and Technology is playing a key role in coordinating these efforts.

5. How might the ₹20,000 crore CCUS scheme impact common citizens?

While the scheme primarily targets industrial emissions, its success could lead to a cleaner environment and reduced impact of climate change. This can result in improved air quality and potentially new job opportunities in the green technology sector, positively impacting the health and livelihoods of common citizens in the long run.

6. What are the potential challenges in implementing the CCUS scheme in India?

Potential challenges include the high costs associated with CCUS technologies, the need for suitable geological storage sites, and the development of efficient CO2 utilization methods. Scaling up technologies from laboratory to commercial scale also presents a significant hurdle.

7. What is the significance of the year 2070 in the context of this news?

2070 is the year India aims to achieve its net-zero target. CCUS is considered a crucial technology to help India reach this target, especially in sectors where emissions are hard to abate.

8. What are the recent developments related to CCUS in India?

Recent developments include the ₹20,000 crore allocation in the budget for CCUS projects. This funding is expected to support research, development, and deployment of CCUS technologies across various sectors. The Ministry of Science and Technology is playing a key role in coordinating these efforts.

9. Explain the term 'carbon sequestration' in simple terms.

Carbon sequestration is like capturing and storing carbon dioxide (CO2) so it doesn't go into the atmosphere and contribute to climate change. It's like taking out the bad air and putting it somewhere safe.

10. Who is Nirmala Sitharaman and what is her role in this news?

Nirmala Sitharaman is the Union Finance Minister. She earmarked ₹20,000 crore in the budget for Carbon Capture Utilisation and Storage (CCUS).

Practice Questions (MCQs)

1. Consider the following statements regarding Carbon Capture, Utilization, and Storage (CCUS) technologies: 1. CCUS technologies only focus on storing carbon dioxide in geological formations. 2. The DST report in December 2025 suggests CCUS is essential for India to meet its net-zero goals by 2070. 3. India's approach to CCUS is primarily focused on importing technologies from developed countries. Which of the statements given above is/are correct?

  • A.1 only
  • B.2 only
  • C.1 and 3 only
  • D.2 and 3 only
Show Answer

Answer: B

Statement 1 is INCORRECT: CCUS technologies involve both utilization and storage of captured CO2. Utilization includes using CO2 as a feedstock for various products. Statement 2 is CORRECT: The DST report explicitly mentions the 2070 net-zero target. Statement 3 is INCORRECT: India's approach is research and development-led, focusing on developing indigenous technologies.

2. Which of the following sectors are considered 'hard-to-abate' sectors where Carbon Capture, Utilization, and Storage (CCUS) technologies are deemed essential according to the DST report? 1. Renewable Energy Sector 2. Steel Industry 3. Cement Industry Select the correct answer using the code given below:

  • A.1 and 2 only
  • B.2 and 3 only
  • C.1 and 3 only
  • D.1, 2 and 3
Show Answer

Answer: B

The DST report positions CCUS as essential for India’s “hard-to-abate” sectors. While the specific sectors are not explicitly listed in the summary, steel and cement industries are known to be energy-intensive and difficult to decarbonize. Renewable energy sector is by definition not a hard-to-abate sector.

3. What is the approximate anticipated cost for Carbon Capture, Utilisation, and Storage (CCUS) technologies development in India over the next two years, as per the provided news?

  • A.₹10,000 crore
  • B.₹20,000 crore
  • C.₹4,500 crore
  • D.₹1,000 crore
Show Answer

Answer: C

The anticipated costs for CCUS technologies development in India are around ₹4,500 crore over the next two years, as mentioned in the provided summary.

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