The Role of CCUS in Achieving India’s Net-Zero Emissions

What is CCUS?

CCUS stands for Carbon Capture, Utilization, and Storage. It is a technology designed to capture carbon dioxide (CO2) emissions from sources such as power plants and industrial facilities. Once captured, the CO2 can be utilized in various industrial applications or stored deep underground in geological formations, like depleted oil and gas reservoirs or saline aquifers, thereby preventing it from entering the atmosphere.

Importance of CCUS for India

• Achieving Net-Zero Emissions by 2070: CCUS is crucial for India to achieve its target of net-zero emissions by 2070, particularly in sectors that are challenging to decarbonize, such as heavy industry and power generation.
• Continued Use of Existing Plants: This technology enables existing industrial and power plants to operate while significantly lowering their carbon emissions.

CO2 Storage Potential in India (2030-2050)

• Western Region: 388.9 gigatonnes
• Southern Region: 80.58 gigatonnes
• Eastern Region: 76.3 gigatonnes
• North-Eastern Region: 47.2 gigatonnes
• Northern Region: 7.65 gigatonnes

Global and National Context

• Growing Market: The global CCUS market is on the rise, with an anticipated growth rate of 13.3% from 2022 to 2030. As of 2022, the market size reached $2.49 billion, with considerable CO2 capture capacity currently under development.
• Collaboration: To enhance CCUS adoption in India, collaboration with international partners, such as the US, will be essential for fostering innovation and lowering costs.

Government Support for CCUS Mission

• Viability Gap Funding (VGF): The government can provide VGF to fill the financial gap for CCUS projects that may not yet be commercially viable but hold the potential for significantly reducing carbon emissions.
• Carbon Pricing and Taxing Mechanism: Implementing carbon pricing or taxing can motivate industries to adopt CCUS technologies by creating a financial incentive to reduce emissions.
• Carbon Trading: Establishing a carbon trading system where companies can exchange carbon credits would promote a market-driven approach to emission reductions, encouraging the implementation of CCUS.
• Subsidies and Production-Linked Incentives (PLI): The government could introduce subsidies or PLI schemes for industries that implement CCUS technologies, thereby lowering the overall cost of adoption and promoting widespread deployment.

Incorporating these financial and regulatory frameworks into India’s CCUS mission will be instrumental in reducing the carbon footprint, making CCUS technologies more accessible and economically viable, and ultimately supporting the nation’s climate objectives.