India’s latest Union Budget for 2026–27 has placed renewed emphasis on Carbon Capture, Utilisation, and Storage (CCUS) by allocating around ₹20,000 crore to scale the technology across heavy industries such as steel, cement, refining and chemicals. The move is intended to curb emissions from hard-to-abate sectors and signals stronger intent on industrial decarbonisation within India’s broader climate strategy.
However, experts note that CCUS has so far delivered limited real-world impact despite its prominence in climate models, and remains both costly and technically complex to deploy at scale. As renewable energy and other decarbonisation solutions advance more rapidly, analysts suggest India will need to apply carbon capture selectively—using it where alternatives are limited—rather than viewing it as a universal solution.
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