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India’s energy demand is rising. While renewables are growing fast, coal still generates over 60% of the country’s electricity. At the same time, India has pledged to reach net-zero emissions by 2070. That requires a tough balancing act. CCUS — a suite of technologies that enable mitigation of carbon dioxide (CO2) emissions from power plants, refineries and other industrial facilities or from the atmosphere by either storing or reusing it — offers a pathway to reduce emissions while sustaining industrial momentum and economic growth. It is especially useful for industries such as steel, cement, power, chemicals and petrochemicals that can’t easily switch to clean energy. The upcoming launch of the CCUS Mission signals that India is ready to confront the hard-to-abate sectors head-on, not with hesitation, but with innovation and resolve.
Early signals from NITI Aayog suggest direct government support ranging from 50% to 100% for selected technologies, particularly those integrated with coal-based systems, alongside investments in demonstration projects, technology development, and CO2 transportation and storage infrastructure. Other critical elements such as integration with carbon market, tax incentives or subsidies, viability gap funding, etc., are being discussed within policy circles, but their final form will only be clear once the mission is officially launched.
Think of CCUS as the missing piece in India’s decarbonisation puzzle. It complements the Green Hydrogen Mission, 500 GW renewable energy target by 2030, the Carbon Credit and Trading Scheme, and the efforts to convert CO2 into valuable chemicals and products such as methanol, green ammonia, and green aggregates. If aligned well with existing initiatives, CCUS can help India lead the way in industrial climate innovation.
CCUS offers an opportunity to reduce emissions without compromising growth. It will help attract global climate finance for carbon management and build strong international partnerships. Countries such as the US, China, and Japan are racing ahead with billion-dollar CCUS investments. India’s move indicates it’s readiness to compete. India’s industry scale, policy momentum, and storage potential position it as a leader in this space. If executed well, the mission can unlock private investments, carbon credit trading, technology exports besides creating significant job potential domestically.
As per the NITI Aayog report on CCUS, India’s capturable emissions are projected to reach about 2400 million tonne per annum (mtpa) by 2050, the year by which India anticipates to half its carbon emissions. To make a meaningful contribution to its net-zero goals, CCUS would need to capture at least 30% of these emissions, i.e., around 750 mtpa. However, a recent projection by Wood Mackenzie indicates that India may reach about 123 mtpa by 2050, contingent upon strong policy support. India will need around $4.3 billion via government support to enable CCUS adoption. Moreover, with 400-600 gigatonne of geological storage potential, India has the physical capacity. It now needs the financial and regulatory push to turn ambition into action.
India’s CCUS mission will demand collaboration between emitters and those who control viable storage assets — be it depleted oil and gas fields, saline aquifers, basaltic formations, or coal mines. Some of these regions, often seen as a climate liability, can become part of the solution by offering deep subsurface storage. These partnerships can unlock shared infrastructure business models such as hub and cluster, where multiple emitters feed into centralised storage infrastructure. Other business models may include bilateral Infrastructure-as-a-Service, where storage providers may generate revenue through fixed service fees from emitters, or joint ventures that combine capital, technology, and operational expertise.
Industry players should look out for official launch timeline, pilot project demonstrations, and especially how captured emissions will be monetised. For investors, CCUS represents a frontier opportunity in technology, infrastructure, and carbon market. Early movers stand to benefit from both policy incentives and market growth.
This mission will be a strategic bet on innovation, and on the future of industrial decarbonisation. If it works, it can unlock billions in climate finance, accelerate jobs, and position India as a leader in global carbon management.
This article first appeared in Financial Express on 17 September.
