Union Finance Minister Nirmala Sitharaman proposed a substantial ₹20,000 crore outlay over five years to accelerate Carbon Capture, Utilization, and Storage (CCUS) technologies in her Union Budget 2026 presentation. This strategic funding scales up projects across key sectors, enhancing technology readiness for widespread industrial applications.
Sectoral Decarbonization Focus
CCUS deployment targets hard-to-abate industries including power, cement, steel, refineries, and chemicals, balancing India’s growth trajectory with its net-zero 2070 commitment. The initiative supports emission-intensive sectors lacking viable alternatives, maintaining energy security while transitioning to sustainable operations.
Technology Scale-Up and Infrastructure
Funding enables pilot-to-commercial transitions, shared CO2 infrastructure development, and skilled workforce training. Complementary regulatory frameworks and safety standards position India as a CCUS leader, fostering innovation in carbon utilization for fuels, materials, and enhanced oil recovery.
