India Launches ₹39,000 Crore Phased Carbon Capture Programme to Drive Industrial Decarbonisation – EQ
In Short : The Centre has unveiled a ₹39,000 crore Carbon Capture, Utilisation & Storage (CCUS) programme, to be rolled out in phases. With over half the funding coming from the government, the initiative aims to curb industrial and energy-related emissions, promote cleaner technologies, and strengthen India’s long-term climate goals while advancing its clean energy transition.
In Detail : The Government of India has announced a massive ₹39,000 crore Carbon Capture, Utilisation and Storage (CCUS) programme, designed to be implemented in multiple phases. The initiative is aimed at addressing carbon emissions from energy-intensive industries and power plants. It marks one of the most significant steps toward reducing greenhouse gases and aligning with India’s climate commitments.
Funding for the programme will be shared between the government and private sector stakeholders, with the Centre contributing slightly more than half. This balance is expected to encourage industry participation while ensuring that public resources provide a foundation for large-scale adoption. It also reflects the seriousness of India’s approach to decarbonisation.
The phased rollout of the CCUS programme will allow time for technological advancements, regulatory adjustments, and industry adaptation. Initial phases will focus on pilot projects and infrastructure creation, while later stages are likely to expand into large-scale commercial operations. This gradual method ensures both reliability and scalability.
Industries such as steel, cement, chemicals, and thermal power are expected to be the primary beneficiaries of this programme. These sectors are among the highest emitters of carbon dioxide, and CCUS technology provides a path to significantly reduce their environmental footprint without undermining economic growth and competitiveness.
The programme also aims to strengthen India’s transition to clean energy by complementing renewable energy growth. While solar, wind, and green hydrogen are expanding rapidly, CCUS offers an additional pathway to cut emissions from hard-to-abate sectors. Together, these strategies will help India move closer to its net-zero target by 2070.
Another crucial aspect of the initiative is the utilisation of captured carbon. Instead of merely storing it underground, the programme encourages exploring ways to repurpose CO₂ in industries like building materials, fuels, and chemicals. This approach aligns with the global trend of creating value from captured carbon, turning a challenge into an opportunity.
Government agencies will work closely with research institutions, private companies, and international partners to ensure effective implementation. Technology transfer, capacity building, and knowledge sharing will be critical to accelerate progress. India also hopes to leverage global expertise while simultaneously building indigenous innovation in CCUS.
The environmental benefits of this programme are immense. Reducing industrial emissions will improve air quality, slow down global warming impacts, and create a more sustainable industrial ecosystem. At the same time, the initiative is expected to generate employment opportunities in new sectors such as carbon storage infrastructure, monitoring, and advanced engineering.
In summary, the ₹39,000 crore CCUS programme represents a bold and strategic investment in India’s clean energy future. By targeting carbon-heavy industries, enabling carbon utilisation, and fostering innovation, it lays the groundwork for a greener economy. Its phased structure ensures practicality while signaling India’s determination to lead in sustainable industrial development.
