India’s $2.2 Billion Investment in Carbon Capture and Storage Initiatives

India’s government has unveiled a significant initiative, proposing a 200 billion rupees ($2.2 billion) program aimed at enhancing the deployment of carbon capture utilization and storage (CCUS) technology. This move is designed to address emissions from five of the country’s most heavily polluting sectors.

During her annual federal budget speech on Sunday, Finance Minister Nirmala Sitharaman outlined that the plan will focus on the power, steel, cement, refineries, and chemical industries over the next five years. This strategic approach highlights India’s commitment to tackling environmental challenges while supporting industrial growth.

Carbon capture technology, which involves storing or recycling emissions produced by industrial plants, is gaining popularity worldwide. As nations struggle to decarbonize their economies at the necessary pace to combat climate change, CCUS presents a viable solution.

Particularly noteworthy is India’s steel sector, recognized as the most carbon-intensive globally. This is largely attributed to the prevalence of smaller mills that depend on coal as their primary feedstock. While carbon capture infrastructure is still in its early stages, it remains costly and is typically suited for large industrial clusters, heavily influenced by their geographical locations.

To incentivize steel producers in their efforts to reduce emissions, the government has recently classified coking coal as one of its critical minerals. This classification is expected to expedite the mining and extraction processes for this essential feedstock.

“Cost-competitive steel at scale will require high-carbon blast furnaces. Base load electricity will need coal-based generation,” stated Nishant Nishchal, APAC lead for metals and mining at Kearney. He emphasized that carbon removal technologies are crucial for India to achieve its net-zero goals.

Photograph: Buildings shrouded in smog in New Delhi, India, on Tuesday, Oct. 29, 2024; photo credit: Anindito Mukherjee/Bloomberg

Copyright 2026 Bloomberg.

Topics
India

India’s government has unveiled a significant initiative, proposing a 200 billion rupees ($2.2 billion) program aimed at enhancing the deployment of carbon capture utilization and storage (CCUS) technology. This move is designed to address emissions from five of the country’s most heavily polluting sectors.

During her annual federal budget speech on Sunday, Finance Minister Nirmala Sitharaman outlined that the plan will focus on the power, steel, cement, refineries, and chemical industries over the next five years. This strategic approach highlights India’s commitment to tackling environmental challenges while supporting industrial growth.

Carbon capture technology, which involves storing or recycling emissions produced by industrial plants, is gaining popularity worldwide. As nations struggle to decarbonize their economies at the necessary pace to combat climate change, CCUS presents a viable solution.

Particularly noteworthy is India’s steel sector, recognized as the most carbon-intensive globally. This is largely attributed to the prevalence of smaller mills that depend on coal as their primary feedstock. While carbon capture infrastructure is still in its early stages, it remains costly and is typically suited for large industrial clusters, heavily influenced by their geographical locations.

To incentivize steel producers in their efforts to reduce emissions, the government has recently classified coking coal as one of its critical minerals. This classification is expected to expedite the mining and extraction processes for this essential feedstock.

“Cost-competitive steel at scale will require high-carbon blast furnaces. Base load electricity will need coal-based generation,” stated Nishant Nishchal, APAC lead for metals and mining at Kearney. He emphasized that carbon removal technologies are crucial for India to achieve its net-zero goals.

Photograph: Buildings shrouded in smog in New Delhi, India, on Tuesday, Oct. 29, 2024; photo credit: Anindito Mukherjee/Bloomberg

Copyright 2026 Bloomberg.

Topics
India