Fiscal 2026 Blueprint: Strategic ₹20,000 Crore CCUS Initiative Targets Decarbonization of Hard-to-Abate Industrial Sectors

The government's Fiscal 2026 budget proposal earmarks a substantial ₹20,000 crore investment for Carbon Capture, Utilization, and Storage (CCUS) infrastructure, signaling a decisive policy shift toward mitigating emissions in industries where conventional decarbonization remains technologically or economically challenging. This strategic allocation targets sectors such as steel, cement, chemicals, and refining, which collectively constitute a significant portion of the nation's industrial carbon footprint. The initiative aims to accelerate the development and deployment of advanced carbon capture technologies, fostering innovation and scaling solutions critical for achieving long-term climate objectives while maintaining industrial competitiveness. Analysis indicates this funding could catalyze public-private partnerships, drive down technology costs through economies of scale, and position the nation as a leader in climate-tech infrastructure. The move reflects a nuanced understanding that deep decarbonization requires sector-specific strategies, with CCUS serving as a pivotal tool for emissions reduction where electrification or fuel substitution is not yet viable. This budgetary commitment underscores a formal recognition of CCUS's role in the national energy transition framework, aligning fiscal policy with climate imperatives to address one of the most complex challenges in industrial greenhouse gas management.