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Budget 2026-27 sets aside Rs 20,000 crore to accelerate carbon capture in heavy industry

The Indian government has allocated Rs 20,000 crore in the 2026-27 budget to accelerate the development of carbon capture technologies in heavy industries. This investment aims to bridge the gap between pilot projects and commercially viable, large-scale carbon capture systems. This is a significant move to address climate change and reduce emissions from hard-to-abate sectors like steel, cement, and chemicals.

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Key points

Exam-ready takeaways

The 2026-27 Indian budget has allocated Rs 20,000 crore for accelerating carbon capture in heavy industries.

The investment is aimed at bridging the gap between pilot projects and commercially viable, large-scale carbon capture systems.

The target sectors for this initiative include steel, cement, and chemicals - industries that are considered 'hard-to-abate' in terms of emissions reduction.

This is a significant policy move to address climate change and reduce greenhouse gas emissions from the industrial sector.

The carbon capture technology is expected to play a crucial role in India's efforts to meet its climate commitments under the Paris Agreement.

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