Union Budget 2026 allocates Rs 20,000 crore for CCUS to decarbonise hard-to-abate sectors

Key facts

• The Union Budget 2026 earmarks Rs 20,000 crore over five years for carbon capture utilisation and storage (CCUS) targeting power, steel, cement, refinery and chemicals sectors.
• The scheme will also support emissions reduction in iron, chemicals, coal gasification and green hydrogen applications.
• India’s annual carbon dioxide emissions are about 2.6 gigatonne per annum (gtpa), making it the third largest emitter after China and the US.
• The NITI Aayog and MN Dastur & Co 2022 joint report states India needs a sustainable solution for sectors contributing 70 % of emissions.
• The programme may be implemented in phases with the first phase spanning six years and some sub-schemes eligible for 100 % government funding.
• Semi-commercial CCUS projects may be fully funded by the government while laboratory-scale projects could receive partial support.