Database / India / 2026

India Union Budget 2026: CCUS Incentive Scheme

Incentive Active Verified

India’s 2026-27 Union Budget represents a historic fiscal commitment to carbon management, allocating 200 billion rupees (~$2.2 Billion USD) over five years. The centerpiece is the ‘Viability Gap Funding (VGF)’ mechanism, specifically designed to de-risk high-CAPEX sequestration projects in the cement, steel, and refining sectors. Launched alongside the 2025 National CCUS R&D Roadmap, the policy promotes a Public-Private Partnership (PPP) model to establish regional sequestration hubs across India’s major industrial corridors, providing the financial motor for the nation’s 2070 net-zero trajectory.

National Governance Context

India Overview

Aggregate National Maturity Index (Peak Strength)

Governed Policies

3

Identified Projects

4

Operational Cap 0.0 Mtpa
Under Construction Cap 0.0 Mtpa
Planned Cap 1.3 Mtpa

Related Policy Network

Directly Linked Assets