Union Budget 2026: Inputs by: Rajeev Juneja, President, PHDCCI

-Rajeev Juneja, President, PHDCCI

The Government of India has allocated ₹20,000 crore (~USD 2.4 billion) over the next five years specifically for carbon capture, utilisation, and storage (CCUS) technologies. These are incentives aimed at scaling deployment in heavy-emitting sectors like power,steel, cement, refineries, and chemicals. Key Features: The funds are intended to incentivise CCUS technology adoption and commercial readiness across multiple industrial sectors. This allocation is part of India’s broader climate strategy aligned with its net-zero by 2070

Investments in carbon capture are critical for hard-to-abate sectors — industries where reducing emissions through electrification or fuel switching alone isn’t feasible. Budget allocations and strategic funds help de-risk early projects, establish demonstration facilities, and create market incentives for broader technology adoption The ₹20,000 crore allocation is less about immediate emissions reductions and more about strategic positioning. By earmarking multi-year funding, the government is signaling that CCUS is expected to become a structural pillar of India’s industrial decarbonisation pathway, not a niche or transitional tool. This matters for investor confidence, long-lead infrastructure planning, and domestic technology development.