In the Union Budget 2026–27, Finance Minister Nirmala Sitharaman announced a ₹20,000 crore (approximately US$2.5 billion) scheme to support Carbon Capture, Utilisation and Storage (CCUS), marking a significant signal of institutional recognition for carbon management within India’s climate response.

The initiative is expected to accelerate the development of carbon capture infrastructure and support emerging industrial decarbonisation pathways. From a carbon management perspective, such investments could also create important opportunities for complementary engineered carbon dioxide removal (CDR) approaches in the future.

At CRIA, we see this as a positive step towards building the broader policy and investment ecosystem needed to address residual emissions from hard-to-abate sectors and strengthen India’s long-term climate strategy.