India’s CCUS Strategy for Net Zero 2070: ₹20,000 Crore Scheme, First Integrated Field Lab at IIT Bombay, and Decarbonizing Hard-to-Abate Sectors
How much it matters for each exam
- UPSC9/10
- JPSC8/10
- BPSC7/10
- UPPSC7/10
- SSC7/10
1At a glance
Carbon Capture, Utilisation and Storage (CCUS) is a critical technological pathway for India to achieve its Net Zero by 2070 target, especially for decarbonizing 'hard-to-abate' industrial sectors like steel, cement, and refineries. The Union Budget 2026-27 allocated ₹20,000 crore over five years to promote CCUS, and India's first integrated CCUS Field Laboratory was inaugurated at IIT Bombay in May 2026, capable of capturing 3 tonnes of CO₂ per day. A hub-and-cluster model is being developed for regions like Gujarat, Odisha-Jharkhand, and the Northeast.
Major Budget Push
₹20,000 crore allocated over five years in Union Budget 2026-27 to promote CCUS in power, steel, cement, refineries, and chemicals.
First Integrated Lab
India's first integrated CCUS Field Laboratory inaugurated at IIT Bombay in May 2026, capturing 3 tonnes of CO₂ daily from industrial/ambient air.
Hub & Cluster Model
NITI Aayog advocates a regional hub-and-cluster approach for CCUS, with potential clusters in Gujarat, Odisha-Jharkhand, and Northeast India.
2Facts to remember
Tap a card to see the answer. Try to recall it first.
3Detailed analysis
Context / Background
India's Panchamrit commitments and Net Zero 2070 target necessitate deep decarbonization beyond renewable energy. Sectors like steel, cement, chemicals, and fertilisers are 'hard-to-abate' as their process emissions cannot be eliminated by electrification. CCUS provides a pathway to capture CO₂ from these industrial sources, utilize it, or store it permanently, thus bridging the gap between industrial growth and climate goals.
Core Analysis & Implications
The government's multi-pronged strategy includes significant R&D funding (DST roadmap), a major budgetary scheme, and pilot-scale demonstrations. The hub-and-cluster model aims for cost efficiency by creating shared infrastructure for CO₂ transport and storage. This is crucial as emissions from hard-to-abate sectors and thermal power are projected to reach ~2,300 million tonnes annually by 2030. CCUS also enables a low-carbon hydrogen economy through 'blue hydrogen' production via coal gasification coupled with carbon capture.
Technological & Geological Dimensions
Key technological demonstrations include CCU testbeds in coal-gasification plants (IIT Delhi-Thermax, CSIR-IICT-BHEL) and a testbed cluster for the cement industry (launched May 2025). For storage, scientific drilling in Deccan Traps basalt formations is being explored. Carbon utilisation applications range from building materials (concrete) and chemicals (methanol, DME) to enhanced oil recovery and algae-based products, creating a circular carbon economy.
Future Outlook / Way Forward
The project pipeline shows growing momentum with 3 operational, 6 under execution, and 16 proposed CCU projects across states like Andhra Pradesh, Telangana, Assam, and Odisha. Success hinges on scaling indigenous technology, developing robust regulatory frameworks for geological storage, and ensuring cost competitiveness. CCUS will be integral to sustaining existing energy infrastructure (45.12% fossil-fuel capacity as of Aug 2026) during the transition, while decarbonizing core industries essential for 'Viksit Bharat 2047'.
4Background GK
Textbook concepts you need to understand this news
- Net Zero
- A state where the amount of greenhouse gases emitted into the atmosphere is balanced by the amount removed from it, resulting in no net addition to global warming.
- Hard-to-Abate Sectors
- Industries where reducing carbon emissions is particularly challenging due to technological or economic constraints, such as steel, cement, chemicals, and aviation, where process emissions are intrinsic.
- Coal Gasification
- A process that converts coal into a mixture of gases known as synthesis gas (syngas: primarily hydrogen and carbon monoxide) through controlled reaction with oxygen and steam at high temperatures.
- Deccan Traps
- A large igneous province located in west-central India, formed by massive volcanic eruptions. Its basalt rock formations are being studied for potential permanent geological storage of CO₂.
5How exams will ask this
- Data: ₹20,000 crore allocation over five years in Union Budget 2026-27 for CCUS.
- Nodal Body: Department of Science and Technology (DST) for the CCUS R&D Roadmap and testbeds.
- Location: IIT Bombay for India's first integrated CCUS Field Laboratory (inaugurated May 2026).
Don't make this mistake!
Confusing 'Carbon Capture and Storage (CCS)' with 'Carbon Capture, Utilisation and Storage (CCUS)' – the latter includes productive use of CO₂. Also, swapping the roles of institutions: NITI Aayog for policy framework vs. DST for R&D roadmap vs. Ministry of Finance for budget allocation.
Write these in mains answers
Circular Carbon EconomyJust Transition for Hard-to-Abate SectorsIndigenous Technology Development for Climate Resilience
6Practice questions
Pick an answer, then read the explanation.
- Q1Easy
Which premier institute houses India's first integrated Carbon Capture, Utilisation and Storage (CCUS) Field Laboratory, as per the article?
Explanation: The article explicitly states that 'India’s first integrated CCUS Field Laboratory at IIT Bombay' was inaugurated in May 2026. JNCASR Bengaluru hosts a National CCUS Centre, but the first integrated field lab is at IIT Bombay.
- Q2Hard
Consider the following statements regarding Carbon Capture, Utilisation and Storage (CCUS) in India:
- 1.The Union Budget 2026-27 allocated ₹20,000 crore specifically for CCUS deployment in the power and agriculture sectors.
- 2.NITI Aayog has identified the Odisha-Jharkhand belt as a potential regional cluster for CCUS linked to its steel and cement industries.
- 3.The CCUS process involves the permanent storage of captured carbon dioxide only in depleted oil and gas reservoirs.
Which of the statements given above is/are correct?
Explanation: Statement 1 is incorrect: The ₹20,000 crore allocation is for five sectors: Power, Steel, Cement, Refineries, and Chemicals – agriculture is not mentioned. Statement 2 is correct as per the article. Statement 3 is incorrect: Permanent storage can be in depleted oil/gas reservoirs, deep saline aquifers, and basaltic rock formations, not only the first option.
- Q3Medium
What is the daily carbon dioxide capture capacity of India's first integrated CCUS Field Laboratory at IIT Bombay?
Explanation: The article provides the specific data point: 'The indigenous facility can capture up to 3 tonnes of carbon dioxide per day from industrial emissions and ambient air.' The other options are plausible but incorrect distractors.
- Q4Medium
What is the primary objective of adopting a hub-and-cluster model for Carbon Capture, Utilisation and Storage (CCUS) in India, as identified by NITI Aayog?
Explanation: The article states that the hub and cluster model 'can create economies of scale, reduce infrastructure risks and connect carbon dioxide supply with potential demand.' The other options either misrepresent the model's goal or introduce objectives not mentioned in the article.
7All sources
Original27 October 2026 · Read story