NITI Aayog has released a study report titled, “Carbon Capture, Utilisation, and Storage Policy Framework and its Deployment Mechanism in India.” The country is prioritising Carbon Capture, Utilisation, and Storage (CCUS) as a potential solution to decarbonize hard to abate sectors such as thermal power plant, iron & steel and cement industry etc. and also enable sunrise sectors such as coal gasification and the hydrogen economy.
To enable the sustainable development of the Indian economy, economy-wide adoption of CCUS will require policy support to initiate and accelerate deployment through economic incentives. Economic incentives can take many forms, including a tax or cash subsidy on captured CO2, viability gap funding, loan guarantees, demonstration project support, and R&D incentives. The report states that promoting innovation, development, transfer, and adoption of CCUS technologies is key to rapid decarbonization in India. In addition, a clear strategy and pathway for the disposition of the captured CO2 through permanent geological storage.
The report advocates the Hub and Cluster Model to drive CCUS economics and implementation at scale and also recommends the establishment of a financial framework such as a Carbon Capture Finance Corporation (CCFC) to support CCUS projects across their lifecycle. further states that CCUS will have a material positive impact on GDP, employment growth, energy, and material security, and import substitution.