"A set of technologies that trap carbon dioxide from industrial sources or the air and either reuse it or store it permanently underground"

Carbon Capture, Utilisation and Storage (CCUS) refers to technologies that capture carbon dioxide (CO2) emissions at their source (such as power plants, steel, cement and refineries) or directly from the air, and then either use the CO2 in products like chemicals, building materials and fuels, or inject it into deep geological formations for permanent storage. CCUS is regarded as essential for hard-to-abate industries where emissions cannot be eliminated by electrification alone. NITI Aayog's policy framework has set an ambition of capturing about 750 million tonnes per annum (mtpa) of CO2 by 2050.

High relevance for GS3 (climate mitigation, industrial decarbonisation, energy). CCUS is central to reconciling India's growth in steel and cement with its net-zero-by-2070 goal. The Union Budget 2026-27 announced a dedicated CCUS scheme with an outlay of about Rs 20,000 crore over five years across power, steel, cement, refineries and chemicals, making it a live policy topic.

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  • 2 NITI Aayog's CCUS policy framework proposes viability gap funding and hub-and-cluster models
  • 3 Union Budget 2026-27 announced about Rs 20,000 crore over five years for a dedicated CCUS scheme
  • 4 Target of about 750 mtpa of CO2 capture by 2050, with proposed hubs in Gujarat and Odisha
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  • 6 Utilisation pathways include synthetic fuels, urea, methanol, carbonated building materials and enhanced oil recovery
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The Union Budget 2026-27 committed about Rs 20,000 crore over five years to a dedicated CCUS scheme covering power, steel, cement, refineries and chemicals, operationalising NITI Aayog's target of about 750 mtpa of CO2 capture by 2050.
GS Paper 3
Economy, Environment, S&T, Security
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