Overview
- The allocation targets five hard-to-abate sectors: power, steel, cement, refineries and chemicals, as announced in the Union Budget 2026-27.
- The outlay aligns with the December 2025 CCUS roadmap and is reported to fund R&D, demonstration plants, CO2 transport and storage infrastructure, and adoption incentives.
- Industry bodies for steel and cement welcomed the signal, while startups and investors flagged new opportunities alongside persistent high costs and early-stage technologies.
- Experts note most domestic solutions remain at TRL 3–4, and key delivery details are still pending, including funding modalities, shared CO2 infrastructure, storage liability, and carbon-market rules.
- Analysts say the push could help limit exposure to EU CBAM on exports, with reporting also citing a 2050 goal to capture 750 million tonnes of CO2 and gaps on carbon pricing and green finance still unresolved.