The Government of India has announced a major fiscal commitment to accelerate carbon capture, utilisation and storage (CCUS) technologies by allocating ₹20,000 crore (about US$2.2 billion) over the next five years as part of the Union Budget 2026-27. The move signals one of the largest industry‑level climate investments in the country and aims to help scale CCUS deployment across key sectors to cut emissions and support industrial decarbonisation.
Minister of Finance Nirmala Sitharaman, presenting the budget on 1 February 2026 in Parliament, said the funding will support CCUS adoption in sectors that are traditionally hard to decarbonise, including power, steel, cement, refineries and chemicals. The plan builds on the national CCUS roadmap launched in December 2025, which outlines measures to improve technology readiness and encourage industrial uptake of CCUS solutions.
An initial ₹500 crore (about US$55 million) has been earmarked for the 2026-27 financial year under the power ministry to launch CCUS schemes. The broader outlay is expected to accelerate work from pilot projects toward commercially viable, large‑scale applications in industry.
The government’s commitment is part of a broader strategy to achieve its long‑term climate goals, including its Net Zero emissions target by 2070, and to strengthen India’s competitiveness as global markets begin to price carbon and incentivise low‑emission technologies.
Experts and industry voices have welcomed the move, noting that the funding provision could help bridge the gap between early CCUS research and wider deployment, and support technologies critical for reducing greenhouse gas emissions in high‑impact industrial sectors.
