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25th February 2026

The issue of the impact of carbon dioxide on climate and global warming in the form of a CO2 symbol covered with leaves in a lush green environment. 3D illustration.

India is shifting carbon capture, utilisation and storage (CCUS) from the fringes of climate discourse to the centre of its industrial strategy, with the government allocating about ₹20,000 crore (roughly $2.4 billion) in the 2026–27 budget to decarbonise heavy sectors like steel and cement. This marks a decisive pivot from research interest to full-blown policy support, as carbon pricing mechanisms and export pressures make emissions management a business imperative.

The move comes as India grapples with rising emissions that renewables and electrification alone can’t fully address, especially in hard-to-decarbonise industries, making CCUS a structural necessity for “net-zero by 2070” ambitions. By fostering policy clarity and investment signals, Delhi aims to attract capital and technical partners, while positioning domestic firms and infrastructure to compete in global low-carbon markets.

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ESG Research Foundation