India Plans Large Carbon Capture Incentives Amid Coal Expansion

India is aggressively advancing its carbon capture and clean energy initiatives as part of its commitment to achieving net-zero emissions by 2070. The government plans to promote coal gasification projects with an Rs 8,500 crore investment to convert coal into cleaner fuels, aiming for 100 million tonnes within five years while emphasizing sustainability. Complementing this, India is launching a national Carbon Capture, Utilisation, and Storage (CCUS) mission offering 50% to 100% incentives to foster adoption of carbon capture technologies, crucial for decarbonizing coal-reliant power sectors. The entry of the UAE-based Carbon Capture Company into the Indian market signals enhanced efforts to capture and store millions of tonnes of CO2 annually, supporting industrial decarbonization across sectors such as oil, steel, and cement. Additionally, India is encouraging states to increase subsidies for rooftop solar under the PM Surya Ghar Muft Bijli Yojana to accelerate renewable energy adoption and aims to develop a fully indigenous solar manufacturing chain by 2028, reducing import dependence. These coordinated efforts reflect India’s strategy to balance rising energy demands with environmental commitments while maintaining energy security through diversified clean energy technologies and carbon management solutions.