In a bold move to accelerate India’s transition toward a net-zero economy, Finance Minister Nirmala Sitharaman announced a massive Rs 20,000 crore investment over the next five years for Carbon Capture, Utilisation, and Storage (CCUS) technologies in the Union Budget 2026–27. This initiative signals the government’s commitment to sustainable growth while addressing the twin challenges of climate change and energy security.
Pioneering Carbon Capture in India
CCUS technology involves capturing carbon dioxide emissions from industrial sources, transporting them, and either storing them underground or repurposing them for industrial use. By supporting these cutting-edge technologies, India aims to significantly reduce its carbon footprint while promoting innovation in clean energy solutions.
Driving Climate Action and Industrial Growth
The Finance Minister highlighted that this initiative would not only support India’s climate goals but also stimulate economic opportunities in green technology, creating high-value jobs and fostering research in environmental science and sustainable engineering. With a strong focus on industrial decarbonization, sectors such as steel, cement, and chemicals are expected to benefit the most.
Strategic Investments and Global Leadership
The Rs 20,000 crore allocation over five years is designed to catalyze both public and private investment in CCUS, positioning India as a global leader in climate technology. The government expects this funding to support demonstration projects, commercial-scale CCUS plants, and the development of an ecosystem for innovation in carbon management solutions.
Long-Term Vision
This allocation aligns with India’s broader sustainability goals under the Nationally Determined Contributions (NDCs) and its commitment to achieving net-zero emissions by 2070. By integrating CCUS into the country’s energy and industrial strategy, the government aims to balance economic growth with environmental responsibility, ensuring a greener future for generations to come.
Experts note that such targeted investments in climate-smart infrastructure can accelerate India’s clean energy transition, strengthen global competitiveness, and demonstrate how developing economies can lead in sustainable industrial practices.