GS3 · Environment · Climate Change

Carbon capture: how India can make its ₹20,000 crore CCUS push count, in three phases

Carbon capture plant with pipes and towers at a cement factory in Brevik, Norway
Asked by UPSCMains 2025 (GS3)1 PYQ

UPSC has already asked about this. Read the story with these questions in mind.

Battle Brief

Union Budget 2026 set aside ₹20,000 crore over five years for carbon capture, utilisation and storage (CCUS). An expert piece in the Indian Express (23 October 2026) suggests spending it in three phases: about ₹4,000 crore on research, pilots and mapping storage sites; about ₹9,000 crore on public–private plants; and ₹6,000–7,000 crore on scale-up. The aim is to help steel, cement and refineries cut emissions they cannot easily avoid.

Fact File

Budget
₹20,000 crore, 5 years
Phase 1
About ₹4,000 crore
Phase 2
About ₹9,000 crore
Cost goal
Under ₹2,000/tonne
In the news

CCUS plan: what happened?

Some factories cannot simply switch to solar. A cement kiln releases carbon dioxide from the limestone itself. That is where carbon capture comes in.

  • 23 Oct 2026: experts in the Indian Express propose a phased plan for the ₹20,000 crore CCUS budget.
  • Phase 1 (~20%): research, AI-led screening of sorbents, pilots of 30,000–1,00,000 tonnes a year, and mapping storage in the Cauvery basin, Cambay, Mahanadi valley and Deccan Traps.
  • Phase 2 (~₹9,000 crore): PPPs, two large capture-and-use units of about 2 lakh tonnes a year, pilot storage injection and Direct Air Capture tests.
  • Phase 3 (₹6,000–7,000 crore): units above 10 lakh tonnes a year, linked to carbon markets and the hydrogen plan.
Back Story

What is CCUS?

  • Carbon capture, utilisation and storage traps CO₂ from chimneys of power plants and industries.
  • The CO₂ is either stored deep underground in rock formations or used to make chemicals, fuels or building materials.
  • Basalt rocks like the Deccan Traps can turn CO₂ into stable minerals.
  • UNEP’s Emissions Gap Report 2026 says crossing 1.5°C is now unavoidable, so removal tools matter more.
Back Story

How do capture, use and storage compare?

Source: Indian Express, 23 Oct 2026
RouteWhat happens to CO₂Example
Capture and use (CCU)Turned into productsUrea, methanol, concrete curing
Capture and storage (CCS)Locked undergroundSaline aquifers, old oil fields, basalt
Direct Air Capture (DAC)Pulled from open airCostly; tests proposed
Blue hydrogenCCS added to gas-based hydrogenBridge till green hydrogen
Rulebook

  • Paris Agreement (2015): India’s updated NDC and net-zero target for 2070.
  • Energy Conservation (Amendment) Act, 2022 enabled the Carbon Credit Trading Scheme, 2023.
  • There is no Indian law yet on CO₂ ownership, liability for leaks or post-injection monitoring.
  • Article 48A (Directive Principle) and Article 51A(g) (Fundamental Duty) on protecting the environment.
Fault Lines

What are the challenges?

  • High cost: ₹10,000–20,000 per tonne of CO₂ today.
  • Storage sites are not mapped in detail.
  • No clear rules on liability and carbon accounting.
  • Critics warn CCUS can prolong fossil fuel use.
Road Ahead

What should be done?

  • Fund geological mapping first so investors know where to store CO₂.
  • Use PPPs, learning from the UK’s East Coast Cluster and the Netherlands’ Porthos.
  • Frame a legal regime for CO₂ transport, storage and liability.
  • Link CCUS credits to the carbon market and pay only for verified outcomes.
Exam Radar

What can Prelims ask on CCUS?

  • CCUS = carbon capture, utilisation and storage.
  • Hard-to-abate sectors: steel, cement, chemicals, refining.
  • Deccan Traps basalt can mineralise CO₂.
  • Carbon Credit Trading Scheme notified in 2023 under the Energy Conservation Act.
  • India’s net-zero target year: 2070.
Answer Lab

How to write about CCUS in Mains

Practice question (15 marks, 250 words): Carbon capture, utilisation and storage is essential for India’s net-zero path but faces cost and policy hurdles. Discuss. (GS-III)

  • Intro: ₹20,000 crore Budget 2026 allocation.
  • Why needed: hard-to-abate sectors; 1.5°C overshoot.
  • Phased plan: research, PPP plants, scale-up.
  • Hurdles: cost, storage maps, law, fossil lock-in.
  • Conclusion: fund outcomes, not announcements.

Image: Carbon capture installation at the Heidelberg cement plant in Brevik, Norway. PutTheKettleOn, Wikimedia Commons, CC BY 4.0

How to use this in Mains

GS-III Decarbonising hard-to-abate industry through CCUS

If asked: Why are hard-to-abate sectors central to India’s climate goals? (GS-III)

Quote: “These technologies are particularly relevant for industries where cutting emissions is difficult, even with a shift to cleaner energy.”

Use it: Use it to define the problem in one line.

If asked: Discuss the role of public–private partnerships in clean technology. (GS-III)

Quote: “PPPs offer the best of both worlds — avoiding the inefficiencies attributed to the public sector and mitigating the risk-aversion of private financing for frontier technologies.”

Use it: Quote it while proposing a delivery model.

Exam angle

UPSC

Prelims: CCUS, DAC, Deccan Traps basalt, CCTS 2023. · Mains GS-III: decarbonising industry; climate finance.

Practice MCQs

Original practice questions (not PYQs).

Practice · UPSC

Which of the following rock formations in India is considered suitable for permanently mineralising carbon dioxide?

Answer (b) & explanation

Basalt reacts with CO₂ to form stable carbonate minerals; the Deccan Traps are vast basalt formations.

Practice · UPSC

Consider the following statements:
1. CCUS can be used for cement and steel plants.
2. Direct Air Capture removes CO₂ from the open atmosphere.
3. Blue hydrogen is produced by electrolysis using renewable power.
Which of the statements given above are correct?

Answer (a) & explanation

Blue hydrogen is made from natural gas with carbon capture; green hydrogen uses renewable-powered electrolysis.

Practice · UPSC

India’s Carbon Credit Trading Scheme, 2023 was notified under which law?

Answer (b) & explanation

The scheme was notified under the Energy Conservation Act, 2001, as amended in 2022.

Quick questions

Questions students ask about this

How much has India set aside for CCUS?

₹20,000 crore over five years in Budget 2026.

What is the proposed first phase?

About ₹4,000 crore for research, pilots and mapping storage sites.

Where could CO₂ be stored?

Cauvery basin, Cambay, Mahanadi valley and Deccan Traps are proposed for study.

What is the cost target?

Under ₹2,000 per tonne of CO₂, from ₹10,000–20,000 now.

Keep studying

Go deeper

facts from cited sources only; faculty review pending