3. Carbon Capture, Utilisation and Storage (CCUS) in Budget 2026

Background Union Budget 2026 announced a major push towards Carbon Capture, Utilisation and Storage (CCUS) to decarbonise India’s industrial sector. Key Highlights • ₹20,000 crore allocation over five years. • Focus on pilot and demonstration projects, not mass rollout. • Targets hard-to-abate sectors: o Steel o Cement o Fertilisers • Rising urgency due to EU’s Carbon Border Adjustment Mechanism (CBAM). • High capital cost and technological complexity remain key barriers. Value Addition • CCUS is critical for industrial competitiveness, not just climate action. • Helps Indian exports remain carbon-compliant in global markets. Key Definition • CCUS: Technology that captures CO₂ emissions, then stores them underground or reuses them industrially. Constitutional & Legal Provisions • Article 48A: State’s duty to protect the environment. • Paris Agreement: India’s international climate commitments. Conclusion CCUS is a bridge technology—essential in the medium term but dependent on private investment and innovation. UPSC Relevance • GS-3: Climate change, industrial policy, sustainable development