NITI Aayog’s September announcement of a Carbon Capture, Utilisation and Storage mission signals acceptance that India’s emissions cannot be eliminated through renewable energy alone. The initiative targets industrial clusters where capture technology offers the most viable decarbonisation pathway.
Cement, steel and aluminium producers face the dual challenge of process emissions that resist electrification and global buyers demanding lower carbon footprints. The government proposes incentives covering 50-100% of pilot project costs to accelerate commercial deployment.
International partnerships with Norway, the US and UK provide technology access while India develops indigenous capabilities. However, global CCUS experience highlights persistent cost challenges, with capture expenses ranging from $50-100 per tonne of CO2.
The mission represents pragmatic climate policy acknowledging India’s continued reliance on heavy industry and thermal power. While renewable capacity expands rapidly, complete decarbonisation requires interim solutions that maintain economic growth alongside emission reductions.