Key Facts and Data Points

  • CCUS Definition: Suite of technologies that capture CO₂ from point sources or the atmosphere, transport it, and either utilise (e.g., urea, methanol, building materials) or store it permanently in geological formations.
  • Global Context: According to the International Energy Agency (IEA), CCUS can account for up to 15% of the cumulative CO₂ reductions needed by 2050.
  • India’s Steel Scenario:
  • 2nd largest crude steel producer – 152 Mt in FY 2024‑25.
  • Target: 300 Mt capacity by FY 2030‑31; 500 Mt by 2047.
  • Steel sector contributes 10‑12% of India’s total GHG emissions.
  • Budget Allocation: Rs 20,000 crore over five years (2026‑27) for CCUS projects across power, steel, cement, refineries and chemicals.
  • Green Steel Benchmark: ≤ 2.2 tCO₂e per tonne of crude steel qualifies as “Green Steel” (3‑5 star rating).
  • Estimated Storage Capacity: 500‑1000 Gt CO₂ in Indian basalts and sedimentary basins (still under detailed mapping).

Background and Context

  • Hard‑to‑Abate Sectors: Emissions are process‑intrinsic (e.g., CO₂ released when limestone is calcined for cement). Renewable electricity alone cannot eliminate these emissions.
  • Energy Security: Coal supplies ~55‑60% of India’s primary energy. CCUS enables continued use of existing fossil‑fuel assets while curbing emissions.
  • International Drivers:
  • EU Carbon Border Adjustment Mechanism (CBAM) penalises high‑carbon imports.
  • Paris Agreement goal of limiting warming to 1.5‑2 °C.
  • Policy Milestones:
  • NITI Aayog CCUS Policy Framework – viability‑gap funding, hub‑cluster model.
  • DST Roadmap – pilot phase (2025‑30) → commercial scale‑up (2035‑45).
  • National Centres of Excellence at IIT Bombay & JNCASR.
  • Mission Innovation Challenge on CCUS – joint R&D with 24 countries.

Significance for India / Governance / Policy

  • Decarbonisation Pathway: CCUS is the only near‑term technology to meet India’s Net‑Zero 2070 target for sectors where hydrogen or electrification are not yet viable.
  • Economic Competitiveness: Low‑carbon steel can avoid CBAM tariffs, attract climate‑aligned foreign investment, and protect export markets.
  • Circular Economy: Utilisation of captured CO₂ into methanol, green urea, building materials creates new revenue streams and reduces waste.
  • Infrastructure Development: Creation of CO₂ pipelines and storage hubs can spur regional industrial clusters and generate employment.
  • Legal & Regulatory Gaps: Need for a comprehensive Carbon Storage Act, liability frameworks, and standards (BIS) to ensure long‑term safety.
  • Carbon Pricing: Absence of a robust carbon market or tax reduces financial incentives; proposals include a 45Q‑like tax credit and performance‑linked incentives (PLI).

Related Constitutional / Legal Provisions

  • Article 48A (Directive Principle) – Protection and improvement of environment.
  • National Clean Energy Fund – Can be leveraged for CCUS R&D.
  • Paris Agreement obligations – India’s NDCs incorporate CCUS as a mitigation tool.
  • Sustainable Development Goals – SDG 13 (Climate Action) and SDG 7 (Affordable Clean Energy) are directly linked.

Challenges in Scaling CCUS

  • High capital cost and energy penalty (15‑25% of plant power).
  • Lack of CO₂ pipeline network and land‑acquisition hurdles.
  • Incomplete geological data; storage in basalt formations is technically complex.
  • Minimal market for CO₂ utilisation; conversion to value‑added products remains expensive.
  • No legal liability framework for long‑term storage.
  • Weak carbon pricing mechanisms.

Measures to Strengthen CCUS

  • Cluster‑Based Hubs (e.g., Gujarat, Odisha) for shared transport & storage.
  • Introduce Performance‑Linked Incentive (PLI) for CCUS similar to green hydrogen.
  • Adopt a 45Q‑type tax credit for each tonne of CO₂ stored/utilised.
  • Develop BIS standards for injection, monitoring, verification.
  • Strengthen Carbon Credit Trading Scheme (CCTS) to create a market.
  • Prioritise CCU R&D for green urea, methanol, building materials.

Conclusion

CCUS is no longer optional; it is a key pillar of India’s strategy to achieve net‑zero emissions while sustaining industrial growth. Effective policy, regulatory clarity, and market mechanisms are essential to transform captured CO₂ from a waste stream into a valuable economic asset.

Drishti Mains Question: "Carbon Capture, Utilisation, and Storage (CCUS) is not just a climate mitigation tool but a prerequisite for sustaining India’s industrial growth in a carbon‑constrained world." Discuss.