In a major policy move, the Indian government is preparing to roll out large-scale incentives for carbon capture, utilization, and storage (CCUS) projects. The aim: reduce greenhouse gas emissions from industries while continuing to rely on coal as a major source of energy.
According to government officials, selected projects could receive 50 to 100 percent financial support, depending on their scale, innovation, and potential to cut emissions. The initiative marks India’s strongest push yet toward carbon management technologies, at a time when the country is under growing pressure to meet its climate goals.
Why Carbon Capture Matters
India is the world’s third-largest emitter of greenhouse gases, and coal still powers over 70% of its electricity. While renewable energy is expanding rapidly, coal remains crucial for energy security and industrial growth.
Carbon capture technology offers a potential “middle path” – allowing India to keep its coal plants and heavy industries running, while minimizing their environmental impact. CCUS involves trapping carbon dioxide from industrial processes and storing it underground, or reusing it in chemicals, fuels, or building materials.
Government’s Balancing Act
Officials say the scheme is designed to attract both domestic and global investors into India’s clean-tech sector. By covering a significant share of project costs, the government hopes to de-risk investments and encourage innovation.
“This initiative sends a clear signal: India is serious about tackling emissions, but not at the cost of economic growth and energy needs,” said an industry expert familiar with the plan.
The challenge will be in implementation. Large-scale CCUS projects are still expensive, and storage infrastructure in India is limited. Environmental groups also argue that investment in carbon capture should not slow down the transition to renewable energy.
What Comes Next
The upcoming policy is expected to be unveiled later this year, with pilot projects likely focused on power plants, steel, and cement industries – sectors responsible for some of India’s highest emissions.
If successful, the incentives could turn India into one of the largest markets for carbon capture technology in the world, opening opportunities for global partnerships, jobs, and green innovation.
Key Takeaway
India’s strategy highlights the difficult balance between climate responsibility and development needs. By betting big on carbon capture, the government is signaling that coal isn’t going away soon – but its environmental impact could be managed more effectively.