India's Budget for Carbon Capture Technology

Budget for Carbon Capture Technology

Government Budget Allocation and Objectives

• Budgetary Outlay: ₹20,000 crore allocated for the development of CCUS technologies over the next five years.
• Objective: To support technologies aimed at reducing the carbon footprint of critical industries in India, contributing towards achieving net-zero emissions by 2070.

Overview of CCUS Technologies

• Definition: CCUS refers to a range of technologies and methods for capturing carbon dioxide (CO2) emissions from various industrial processes.
• Functionality:
  • Capture: CO2 is captured from industrial emissions.
  • Storage: CO2 can be stored underground in geological formations.
  • Utilisation: CO2 can also be converted into useful chemicals.
• Current State:
  • Globally, only 50 million tonnes of CO2 are captured annually, which is less than 0.5% of the total CO2 emissions of around 40 billion tonnes per year.

Importance for India

• Challenges: India's emissions are expected to increase due to expanding industrial activities.
• International Commitment: India announced its net-zero emission target by 2070 during the Glasgow Climate Conference (2021).
• Current Projects: Pilot projects in sectors like steel, cement, and chemicals have been initiated, with feasibility studies for large-scale carbon capture and storage locations already conducted.

Research and Development Initiatives

• Establishment of Centres of Excellence: Institutions like IIT Bombay and the Jawaharlal Nehru Centre for Advanced Scientific Research in Bengaluru are dedicated to CCUS.
• R&D Roadmap: The Department of Science and Technology released a roadmap for CCUS technologies targeting the year 2030, addressing technological and financial gaps.

Economic Implications

• Target Industries: The ₹20,000 crore budget is aimed at end-use applications in power, steel, cement, refineries, and chemical industries - the largest CO2 emitters in India.
• Competitive Advantage: Adoption of CCUS technologies may help Indian industries compete by mitigating carbon tariffs like the EU's Carbon Border Adjustment Mechanism (CBAM).
• Sustainability in Industrial Processes: CCUS is deemed essential for industries where CO2 emissions are intrinsic to production methods, such as cement and steel manufacturing.

Judicial and Policy Framework

• Government Initiative for Net-Zero Goals: The fiscal allocation reflects the government's commitment to addressing carbon emissions as part of its environmental responsibility and economic growth strategy.
• Policy Bottlenecks: Ongoing efforts to identify and mitigate policy barriers for the rapid development and deployment of CCUS technologies.

Future Prospects

• Scaling Up Technologies: Successful implementation of CCUS requires scaling technologies capable of capturing 100-500 tonnes of CO2 per day efficiently and cost-effectively.
• Anticipated Developments: Significant advancements in CCUS technologies expected in India within the next five years, leading to potential commercial deployment and innovation in carbon management.

Conclusion

The strategic investment into CCUS technologies marks a significant step in India's approach to sustainability and carbon management amid growing industrial emissions. Through enhanced R&D and targeted budgetary support, the government aims to bolster the infrastructure necessary for achieving its long-term climate goals while promoting competitiveness in global markets.