Published: 22 March 2026Science & Technology
Union Budget 2026 Carbon Credit Programme: ₹20,000 Crore CCUS Roadmap for Hard-to-Abate Sectors
The ₹20,000 crore carbon credit programme announced in Union Budget 2026 is based on the CCUS (Carbon Capture, Utilisation & Storage) roadmap. The programme focuses on reducing emissions from hard-to-abate sectors including power generation, steel manufacturing, cement production, refineries, and chemical industries.
The initiative aligns with India's commitment to achieving net-zero emissions by 2070. It will incentivise industries to adopt carbon capture technologies through a market-based mechanism of tradeable carbon credits. The programme is expected to catalyse private sector investment in clean technology and create a robust carbon market ecosystem in India.
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Linked questionMedium
The CCUS roadmap in Budget 2026 focuses on which type of sectors?
Explanation · Correct answer BCCUS focuses on hard-to-abate sectors like power, steel, cement, refineries, and chemicals.
Frequently asked questions
What is the ₹20,000 crore carbon credit programme announced in Union Budget 2026?
The **₹20,000 crore carbon credit programme** announced in **Union Budget 2026** is based on the **CCUS (Carbon Capture, Utilisation & Storage)** roadmap. It aims to reduce emissions from **hard-to-abate sectors** including power generation, steel, cement, refineries, and chemical industries through a market-based mechanism of tradeable carbon credits.
Which sectors does the Union Budget 2026 CCUS carbon credit programme target?
The **CCUS-based carbon credit programme** in Union Budget 2026 targets five **hard-to-abate sectors**:
- **Power generation**
- **Steel manufacturing**
- **Cement production**
- **Refineries**
- **Chemical industries**
These sectors are called hard-to-abate because they are difficult to decarbonise through conventional methods.
How does the Union Budget 2026 carbon credit scheme incentivise industries to reduce carbon emissions?
The **₹20,000 crore CCUS programme** incentivises industries through support for development and deployment of CCUS technologies. Industries that adopt carbon capture technologies earn credits they can trade, creating a financial reward system that encourages emission reduction without mandating specific technologies.
What is India's net-zero emissions target year and how does the CCUS programme align with it?
India is committed to achieving **net-zero emissions by 2070**. The **CCUS-based carbon credit programme** from Union Budget 2026 directly aligns with this goal by incentivising carbon capture in hard-to-abate sectors, which together account for a significant share of India's industrial emissions.
What is CCUS and why is it important for India's carbon credit programme in Union Budget 2026?
**CCUS** stands for **Carbon Capture, Utilisation & Storage** — a technology that captures CO₂ emissions at the source before they enter the atmosphere. The **₹20,000 crore programme** in Union Budget 2026 uses CCUS as its roadmap because it allows industries like steel, cement, and power generation to significantly cut emissions while continuing to operate, supporting India's **2070 net-zero goal**.
