CCUS Outlay in Budget 2026-27: ₹20,000 Crore Carbon Credit Plan
Why in the news
The ₹20,000 crore Budget line labelled a “carbon credit programme” caused confusion about whether it pays farmers; official papers point to industrial carbon capture.
Key facts
- Outlay: ₹20,000 crore in Budget 2026-27.
- Focus: CCUS (Carbon Capture, Utilisation and Storage) for steel, cement, refineries, chemicals, power and fertilisers.
- Not a farmer carbon-credit payment scheme.
- Goal context: Net Zero 2070.
CCUS versus agriculture
| Aspect | Industry (CCUS) | Agriculture |
|---|---|---|
| Emissions | Concentrated point sources; CO2 arises from the process itself, such as limestone in cement and coke in steel | Diffuse, from fields, soils and animals |
| Gases | CO2 | Methane (paddy, livestock) and nitrous oxide (fertiliser) |
| Climate route | Capture at the source, then use or underground storage | Carbon dioxide removal: soil carbon, agroforestry, biochar, regenerative farming |
Carbon market
- Farm removals can earn credits under the Carbon Credit Trading Scheme, 2023 or voluntary markets, separately from the Budget outlay.
- The scheme rests on the Energy Conservation (Amendment) Act, 2022; the Bureau of Energy Efficiency manages it, and the Grid Controller of India keeps the registry.
- NITI Aayog’s 2022 CCUS framework expected a large capture capacity need by 2050.
Exam angle
- CCUS: capture, utilisation, storage.
- Farm gases: methane, nitrous oxide.
- CCTS 2023: BEE administers.