India’s Finance Minister has proposed an outlay of INR200bn (approximately US$2.2bn) over the next five years to scale up carbon capture, utilisation and storage (CCUS) technologies (Indian government press release, 01/02/2026).
The announcement, delivered in the Indian Parliament during the Union Budget 2026–27 speech on 1 February 2026, is aligned with the national CCUS roadmap released in December 2025. It aims to support large-scale deployment in the power sector, refining, and across hard-to-abate industries such as steel, cement, and chemicals sectors, which are widely regarded as among the most difficult to decarbonize. This CCUS initiative forms part of India’s broader commitment to achieving net-zero emissions by 2070.
According to the Minister, the funding is intended to advance CCUS technologies toward higher levels of technological maturity and commercial readiness in end-use applications. The investment is therefore designed to bridge the gap between pilot projects and commercially viable, large-scale deployment.
India’s gross GHG emissions have risen sharply since 2000, reaching 4.7 GtCO₂eq in 2024. Energy-related emissions accounted for 74% of the total, followed by agriculture (17%), industrial processes (6%), and waste (3%). After a temporary decline in 2020 linked to the Covid-19 crisis, emissions have rebounded strongly, increasing at an average rate of 6.6/year (Enerdata Global Energy Research).
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