In the heart of Madhya Pradesh’s steel belt, furnaces burn day and night, producing the metal that underpins India’s highways, railways, and high-rises. For workers, the economic payoff is clear, but so is the environmental cost. India’s steel sector emits more than 2.5 tonnes of CO₂ per tonne of steel produced, significantly above the global average, and heavy industries remain the country’s largest industrial greenhouse gas emitters.
On February 1, Finance Minister Nirmala Sitharaman announced a 200 billion rupee allocation, roughly $2.2 billion, over five years to scale up Carbon Capture, Utilisation, and Storage (CCUS) technologies in “hard-to-abate” sectors such as steel, cement, power, refineries, and chemicals. The initiative is framed as a step toward India’s 2070 net-zero target, but environmental experts warn that the allocation may be insufficient to drive meaningful emissions reductions. Spread over five years, the funding equates to roughly $480 million annually, a modest sum for the world’s third-largest emitter.
With India emitting roughly 2.7 billion tonnes of CO₂ each year, capturing even 50 million tonnes annually would require public support of less than $10 per tonne, far below the current global carbon capture cost of $50 to $100 per tonne.
Current CCUS initiatives remain limited. A pilot in Jharkhand’s Pakri-Barwadih coalfield could store 15.5 million tonnes over ten years, equating to 1.55 million tonnes annually if fully realized. Four smaller pilots combined capture roughly 82,000 tonnes per year.
Critics argue that allocating funds to proven decarbonization pathways, such as solar, wind, energy efficiency, and green hydrogen, could deliver faster, measurable reductions. Despite a rapid expansion of renewables, India still relies on coal for around 70% of electricity generation, highlighting the gap between ambition and structural energy realities. Experts emphasize that CCUS addresses CO₂ but not local air pollutants, such as particulate matter and sulfur dioxide, which directly affect public health.
Operational and regulatory hurdles further complicate the technology. Captured carbon must be transported safely, often through pipelines, and permanently injected into geological formations, requiring long-term monitoring. India’s regulatory framework for CCUS remains under development, raising questions about liability and enforcement.
