India to launch CCUS mission with incentives to achieve net-zero targets

The government is developing a policy framework to implement Carbon Capture, Utilisation, and Storage (CCUS) technology, aiming to help the country meet its net-zero targets by 2070. The forthcoming CCUS mission will focus on capturing carbon dioxide from large-point sources, particularly fossil fuel power generation units.

The mission is expected to include financial incentives, such as viability gap funding, carbon pricing mechanisms, carbon trading, and production-linked incentives (PLI) to attract private sector investment. The mission is being formulated in collaboration with the office of the principal scientific adviser to the PMO and the power ministry.

The program will emphasize technology development, the establishment of pilot plants, and incentives for CO2 emitters. One of the key components will be setting up pilot plants capable of capturing 500 tonnes of CO2 per day, with government support for funding.

This initiative is part of India’s broader strategy to increase its share of non-fossil fuel energy and align with global efforts in CCUS, as seen in countries like the United States and Japan. The captured CO2 will be used in various applications or stored in deep geological formations.