Carbon Capture, Utilisation and Storage (CCUS)
Context:
To achieve net-zero emissions, the government has allocated ₹20,000 crore in the Budget over the next five years for the development of CCUS solutions.
Basics of CCUS:
CCUS refers to technologies that "capture" carbon dioxide (CO2) from industrial processes before it enters the atmosphere.
The captured CO2 is either:
Stored for prolonged periods in geological formations (e.g., underground)
Utilised by converting it into useful chemicals.
Globally, deployment is limited due to high costs and safety concerns.
Currently, less than 0.5% of annual global CO2 emissions are captured.
The Budget Push:
The ₹20,000 crore outlay aims to bridge the gap between "lab-readiness" and "commercial viability".
Many technologies are proven in labs but lack the investment for field testing and scaling.
The funding targets end-use applications in power, steel, cement, refineries, and chemical industries.
The goal is to scale technologies capable of capturing 100–500 tonnes of CO2 per day.
Benefits:
Hard-to-Abate Sectors:
For industries like steel and cement, CO2 is released during the production process itself, not just from burning fuel.
Switching to renewable energy alone cannot eliminate these emissions; CCUS is the only solution.
Net Zero 2070:
It is critical for India's goal to attain net-zero status by 2070, especially as emissions from construction and industry grow.
Export Competitiveness:
It helps Indian industries lower their carbon footprint, protecting them from carbon tariffs like the EU’s Carbon Border Adjustment Mechanism (CBAM).