India Plans Major Carbon Capture Incentives to Support Coal-Based Energy

India is set to introduce a national carbon capture initiative offering 50% to 100% government funding for selected projects. The move aims to encourage industries to adopt carbon capture, utilization, and storage (CCUS) technologies while continuing to rely on coal for energy. CCUS technology captures carbon dioxide emissions from industrial processes or directly at the source, helping reduce environmental impact. Officials believe these incentives will promote sustainable use of coal in India’s energy sector. Despite plans to increase non-fossil fuel capacity to 500 GW by 2030, coal will remain a significant part of the energy mix for the next two decades. The government is planning to expand coal-based capacity by 97 GW by 2035 to meet energy security needs. The initiative also explores converting coal to synthetic natural gas to cut natural gas imports and integrating CCUS with gasification projects. Globally, CCUS is seen as essential for meeting climate targets, and India aims to align with these efforts while addressing its energy demands.