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Article 3: Carbon Capture is Key to Achieving Net-Zero Goal

Why in News: The Union Budget 2026 has allocated ₹20,000 crore over five years to accelerate Carbon Capture, Utilisation and Storage (CCUS) technologies to support India’s net-zero target.


Key Details

  • CCUS involves capturing carbon dioxide from industrial sources and storing or converting it into useful products.
  • India has committed to achieving net-zero emissions by 2070 (COP26, Glasgow).
  • Hard-to-abate sectors like cement, steel, power and chemicals are major focus areas.
  • Globally, CCUS deployment remains limited but is essential for meeting climate goals.


Understanding CCUS Technology (Static Concept)

  • Carbon Capture: CO₂ is captured from industrial processes such as cement kilns, steel furnaces, and power plants before it enters the atmosphere, reducing direct emissions.
  • Carbon Utilisation: Captured CO₂ can be converted into fuels, chemicals, building materials, or used in enhanced oil recovery, creating economic value.
  • Carbon Storage: CO₂ is stored in deep geological formations such as depleted oil and gas reservoirs, ensuring long-term isolation from the atmosphere.
  • Technology Spectrum: CCUS is not a single technology but a chain of processes involving capture, transport, utilisation and storage, each requiring advanced engineering.


Global Status of Carbon Capture

  • Limited Current Deployment: Around 45 commercial CCUS facilities operate globally, capturing only around 50 million tonnes of CO₂ annually, less than 0.5% of global emissions.
  • Gap with Climate Targets: To achieve global net-zero by 2050, CCUS capacity must reach 435 million tonnes per year by 2030, highlighting a massive scale-up challenge.
  • Regional Leaders: The US, Europe and China are leading CCUS deployment, driven by climate policies and industrial decarbonisation needs.
  • Cost and Scale Constraints: High costs, infrastructure needs and safety concerns have slowed widespread adoption.


Why CCUS Is Critical for India

  • Growing Emissions Trajectory: India’s emissions are expected to rise in the near term due to infrastructure development and industrial expansion.
  • Hard-to-Abate Sectors: In cement and steel industries, most CO₂ emissions arise from chemical processes, not fuel combustion, making renewable energy insufficient alone.
  • Net-Zero Commitment: Achieving net-zero by 2070 is impossible without CCUS, as recognised by global climate pathways and IPCC assessments.
  • Energy Security Balance: CCUS allows India to pursue decarbonisation without compromising growth and development needs.


India’s Progress on CCUS (Policy and Institutional Efforts)

  • Pilot Projects: Companies like NTPC, Tata Steel, Dalmia Cement and ONGC are running pilot and demonstration CCUS projects.
  • Research Ecosystem: Multiple institutions are developing indigenous solutions, supported by Centres of Excellence at IIT Bombay and JNCASR, Bengaluru.
  • Mapping Storage Potential: India has identified potential geological sites suitable for long-term carbon storage.
  • DST CCUS Roadmap 2030: Released in December, it identifies technological, financial and policy bottlenecks to scale-up.


Significance of Budgetary Support

  • Bridging the Funding Gap: Many CCUS technologies are laboratory-proven but require large investments for field-scale testing and commercialisation.
  • Improving Technology Readiness: Budgetary support aims to raise Technology Readiness Levels (TRLs) from pilot to commercial deployment.
  • Sectoral Focus: Funds target power, steel, cement, refineries and chemicals — the largest industrial emitters in India.
  • Game-Changing Potential: Experts suggest commercial CCUS deployment in India could begin within the next five years.


Economic and Strategic Benefits

  • Industrial Competitiveness: CCUS can help Indian exports comply with mechanisms like the EU’s Carbon Border Adjustment Mechanism (CBAM).
  • Job Creation: New value chains in capture, transport, storage and utilisation can generate skilled employment.
  • Infrastructure Synergies: Supports continued infrastructure growth while lowering carbon intensity.
  • Climate Leadership: Indigenous CCUS solutions enhance India’s credibility as a responsible climate actor.


Conclusion

Carbon Capture, Utilisation and Storage is not an optional technology but a strategic necessity for India’s net-zero pathway. While renewables and efficiency measures remain central, CCUS provides the only viable solution for decarbonising hard-to-abate industries. The ₹20,000 crore budgetary push, combined with research, regulatory clarity, and private sector participation, can transform CCUS from pilot projects into a mainstream climate solution. A phased, region-specific and cost-effective deployment strategy will be crucial for long-term success.


EXPECTED QUESTION FOR UPSC CSE

Prelims MCQ

Q. Consider the following statements about CCUS:

  1. CCUS is primarily relevant for sectors where emissions arise from chemical processes.
  2. Switching entirely to renewable electricity can eliminate CO₂ emissions from cement production.
  3. CCUS technologies are essential for achieving global net-zero targets.

Which of the above statements are correct?

(a) 1 only

(b) 2 only

(c) 1 and 3 only

(d) 1, 2 and 3

Answer: c