{"id":65985,"date":"2026-02-05T17:54:12","date_gmt":"2026-02-05T12:24:12","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=65985"},"modified":"2026-02-06T00:25:13","modified_gmt":"2026-02-05T18:55:13","slug":"budget-2026-ccus","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/editorial-analysis\/05-02-2026\/budget-2026-ccus","title":{"rendered":"Union Budget 2026-27 &#038; Carbon Capture Utilisation and Storage (CCUS) Technologies"},"content":{"rendered":"\n<p><strong>Syllabus: GS3\/Environment<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Context<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Recently, the <a href=\"https:\/\/www.nextias.com\/ca\/current-affairs\/02-02-2026\/union-budget-2026-highlights\"><strong>Union Budget 2026-27<\/strong><\/a> proposed an outlay of <strong>Rs 20,000 crore<\/strong> over the next <strong>five years<\/strong> in <a href=\"https:\/\/www.nextias.com\/ca\/current-affairs\/01-11-2025\/carbon-capture-net-zero-india\"><strong>Carbon Capture Utilisation and Storage (CCUS)<\/strong> <\/a>technologies.<\/li>\n\n\n\n<li>It is aligned with India\u2019s long-term goal of achieving <strong>net-zero emissions by 2070<\/strong>, even as industrial activity and energy demand continue to grow in the near term.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><a href=\"https:\/\/www.nextias.com\/ca\/current-affairs\/01-11-2025\/carbon-capture-net-zero-india\"><strong>What Are CCUS Technologies?<\/strong><\/a><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Carbon Capture, Utilisation and Storage (CCUS)<\/strong> refers to a group of technologies that prevent carbon dioxide (CO\u2082) emissions from entering the atmosphere.\n<ul class=\"wp-block-list\">\n<li><strong>Capture:<\/strong> CO\u2082 released during industrial processes is separated and collected.<\/li>\n\n\n\n<li><strong>Utilisation:<\/strong> The captured CO\u2082 can be converted into useful products such as chemicals or fuels.<\/li>\n\n\n\n<li><strong>Storage:<\/strong> Alternatively, it can be stored safely for long periods in geological formations deep underground.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Why CCUS Matters for Climate Goals?<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Although CCUS technologies have existed for decades, their <strong>global deployment has been limited<\/strong> due to <strong>high costs, safety concerns and scaling challenges<\/strong>.&nbsp;<\/li>\n\n\n\n<li>At present, only about <strong>50 million tonnes of CO\u2082<\/strong> are captured annually worldwide, less than <strong>0.5%<\/strong> of the nearly <strong>40 billion tonnes<\/strong> emitted each year.\n<ul class=\"wp-block-list\">\n<li>The <strong>global net-zero targets are unachievable without large-scale CCUS deployment<\/strong>, especially as many countries struggle to sharply cut emissions from heavy industry.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>India\u2019s Growing Focus on CCUS<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Emissions are expected to rise in the<strong> short to medium term<\/strong> due to infrastructure development and industrial expansion.<\/li>\n\n\n\n<li>India has intensified efforts to develop <strong>indigenous CCUS solutions<\/strong>, since announcing its <strong>net-zero 2070 pledge<\/strong> at the <strong>Glasgow Climate Summit (2021).<\/strong><\/li>\n\n\n\n<li>Key developments include:\n<ul class=\"wp-block-list\">\n<li><strong>Pilot and demonstration projects<\/strong> in steel, cement and chemical industries;<\/li>\n\n\n\n<li><strong>Mapping of potential large-scale capture and storage sites;<\/strong><\/li>\n\n\n\n<li>Establishment of <strong>Centres of Excellence<\/strong>, such as those at IIT Bombay and the Jawaharlal Nehru Centre for Advanced Scientific Research;<\/li>\n\n\n\n<li>A <strong>CCUS R&amp;D roadmap for 2030<\/strong>, released by the <strong>Department of Science and Technology (DST)<\/strong>, identifying technological, financial and policy gaps;<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full is-resized\"><img data-dominant-color=\"78817c\" data-has-transparency=\"false\" loading=\"lazy\" decoding=\"async\" width=\"502\" height=\"242\" src=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2026\/02\/image-29.png\" alt=\"ccus technologies\" class=\"not-transparent wp-image-65986\" style=\"--dominant-color: #78817c; aspect-ratio:2.074449538322464;width:349px;height:auto\" srcset=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2026\/02\/image-29.png 502w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2026\/02\/image-29-300x145.png 300w\" sizes=\"auto, (max-width: 502px) 100vw, 502px\" \/><\/figure>\n<\/div>\n\n\n<h2 class=\"wp-block-heading\"><strong>Why Is the Budget Allocation Crucial?<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>A major hurdle for CCUS has been the lack of funding for <strong>field-scale testing and deployment<\/strong>. While many technologies have proven effective in laboratories, scaling them up to real-world conditions involves high risks and costs.<\/li>\n\n\n\n<li>The <strong>\u20b920,000 crore allocation<\/strong> is aimed at bridging this gap by improving the <strong>technology readiness levels<\/strong> of promising solutions.<\/li>\n\n\n\n<li>The meaningful impact requires technologies capable of capturing or storing <strong>100\u2013500 tonnes of CO\u2082 per day<\/strong>.\n<ul class=\"wp-block-list\">\n<li>Multiple CCUS technologies to achieve commercial deployment in India within the next five years.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Economic and Industrial Benefits<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>CCUS is especially important for industries like <strong>steel and cement<\/strong>, where emissions arise from fuel combustion and <strong>core production processes themselves<\/strong>.\n<ul class=\"wp-block-list\">\n<li>In such cases, <strong>switching to renewable electricity<\/strong> alone <strong>cannot eliminate CO\u2082 emissions.<\/strong><\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>The budget targets CCUS deployment in power generation, steel, cement, refineries, and chemical industries.\n<ul class=\"wp-block-list\">\n<li>These sectors are among the <strong>largest contributors to India\u2019s emissions<\/strong>.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Boosting Global Competitiveness<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Indian exporters are increasingly exposed to <strong>carbon-related trade barriers<\/strong>, such as the EU\u2019s <strong>Carbon Border Adjustment Mechanism (CBAM)<\/strong>.\n<ul class=\"wp-block-list\">\n<li>Indian products can remain competitive in key international markets, by lowering their carbon footprint through CCUS.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Looking Ahead<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>India could see <strong>commercial deployment of CCUS technologies within the next five years w<\/strong>ith targeted funding, clearer policy direction, and growing industrial interest.\n<ul class=\"wp-block-list\">\n<li>The push promises technological leadership, industrial resilience, and long-term economic gains, beyond climate mitigation.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>India\u2019s \u20b920,000 crore<\/strong> on CCUS signals that<strong> achieving net-zero<\/strong> will require renewable energy, and <strong>heavy investments in technologies<\/strong> that deal directly with carbon emissions where they are hardest to eliminate.<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-background has-fixed-layout\" style=\"background-color:#ebecf0\"><tbody><tr><td><strong>Daily Mains Practice Question<\/strong><br><strong>[Q]<\/strong> Examine the significance of the recent policy push for Carbon Capture Utilisation and Storage (CCUS) technologies in India. Discuss how it can support India\u2019s net-zero commitment and enhance the global competitiveness of Indian industries.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><a href=\"https:\/\/indianexpress.com\/article\/explained\/explained-climate\/budget-carbon-capture-solutions-india-needs-10512853\/\" target=\"_blank\" rel=\"noopener\">Source: IE<\/a><\/p>\n\n\n\n<p><\/p>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/www.nextias.com\/ca\/wp-content\/uploads\/2026\/02\/Daily-Editorial-Analysis-05-02-2026.pdf\">Download PDF<\/a><\/div>\n<\/div>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p><strong>Published on:<\/strong> 05 February, 2026<\/p>\n<p>Recently, the Union Budget 2026-27 proposed an outlay of Rs 20,000 crore over the next five years in Carbon Capture Utilisation and Storage (CCUS) technologies.<\/p>\n","protected":false},"author":4,"featured_media":65992,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[22],"tags":[],"class_list":["post-65985","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-editorial-analysis"],"acf":[],"jetpack_featured_media_url":"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2026\/02\/Editorial-Analysis-900-600.webp","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/65985","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=65985"}],"version-history":[{"count":5,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/65985\/revisions"}],"predecessor-version":[{"id":66031,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/65985\/revisions\/66031"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media\/65992"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=65985"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=65985"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=65985"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}