The Union Budget 2026-27 signals commitment to climate action with a dedicated Rs 20,000 crore allocation for carbon capture and utilisation (CCUS) schemes, focusing on challenging sectors like steel and cement where emissions reduction is technically complex. This funding aims to develop and deploy technologies capturing CO2 from industrial processes for storage or conversion into useful products, supporting India's net-zero by 2070 target and intermediate Paris Agreement goals. Steel and cement contribute significantly to national emissions—steel alone around 12%—making CCUS vital for decarbonising without curbing growth. The initiative reflects broader sustainable development push amid rising industrial output energy demand.

Budget context includes record infrastructure capex defence hikes AI incentives manufacturing boosts fiscal prudence 4.3% deficit. CCUS global context mature but costly technologies pilot stages India limited demonstrations. Allocation vibe scaling potential domestic innovation partnerships international leaders Norway US. Experts view positive step but stress need clear roadmaps incentives private investment regulatory frameworks viable projects. Implementation challenges include high costs infrastructure storage sites monitoring. Complementary measures like green hydrogen rare earth corridors align clean energy transition. In my view, timely investment—industrial emissions trajectory demands innovative solutions beyond renewables efficiency. Hoping effective utilisation partnerships accelerate deployment contributing global mitigation equitable manner developing nation.

Vibe View: The vibe of this Rs 20,000 crore carbon capture allocation in Budget 2026 is hopeful yet pragmatic, like India acknowledging tough emissions challenge in heavy industries and putting real money behind innovative solutions without overpromising miracles. It's got that forward-thinking energy—targeting steel cement vibe smart priority sectors huge footprints hard electrify or switch fuels quickly. Overall vibe balanced ambition realism—CCUS technologies vibe game-changer capturing CO2 storage utilisation but costly immature scale India vibe recognising need dedicated push pilots demonstrations. Positive vibe aligning net-zero 2070 Paris goals broader sustainable growth infra AI manufacturing. Experts vibe welcome step but call clear implementation roadmaps incentives private partnerships regulatory ease vibe valid scaling hurdles high costs infrastructure monitoring. Broader vibe responsible leadership—rising industrial power taking ownership emissions without curbing development vibe equitable transition developing nations. Hoping vibe translates effective projects domestic tech partnerships international leaders accelerating deployment meaningful reductions. Positive potential complementary green hydrogen rare earths vibe holistic clean ecosystem.