About Carbon Capture Utilization and Storage Report
The Carbon Capture Utilization and Storage Report explores the importance of CCUS as an emission reduction strategy to achieve deep decarbonisation from the hard-to-abate sectors such as heavy industries. The purpose of CCUS policy framework is to develop and implement a practicable framework to accelerate research and development on CCUS in India.
Carbon Capture Utilization and Storage Market Background
- India’s LT-LEDS: India has recently submitted its Long-Term Low-Emission Development Strategy (LT-LEDS) at the UNFCCC’s COP27, which emphasized upon the adoption of CCUS technologies.
- 2030 Roadmap for CCUS: Earlier the government had put the draft policy titled ‘2030 Roadmap for CCUS for Upstream E&P companies’ in the public domain for suggestions.
What is Carbon Capture Utilization and Storage (CCUS)
Major Highlights of the CCUS Policy Framework
Significance of CCUS for India
Elements of CCUS Policy Framework for India
- Policy path: CCUS policy in India should be carbon credits or incentives based, tax and cash credits should be used, and provide early-stage financing and funding mechanisms for CCUS projects.
- Hub & cluster business model: The policy framework should promote the creation of regional hub & cluster models to drive economies of scale across the CCUS value chain, with defined roles for emitters, aggregators, hub operators, disposers and conversion agents.
- Preferential procurement: Low-carbon or carbon-abated products need to be supported through preferential procurement in Government tenders and Production Linked Incentive (PLI) schemes.
- Environmental and social justice: CCUS policy should protect communities most affected by environmental and climate change by ensuring the distribution of the economic value created by CCUS.
- Regulatory framework: To incentivize carbon capture in different sectors, there is a need to establish a baseline of regulated emission levels and allowances for different sectors.
- Risk mitigation: There is a need to de-risk CCUS projectsby limiting the liability and ownership of CO2 across the CCUS value chain and monitoring risk through appropriate Monitoring, Verification and Accounting (MVA) frameworks.
Major Challenges of Carbon Capture Utilization and Storage
- Private sector participation: Private sector participation is essential to promote the transfer and commercialization of existing CCUS technologies, particularly CO2 utilization technologies.
- Technology transfer:Technologies for CCUS sequestration and EOR have been demonstrated at a commercial scale. Hence, the immediate focus should be on the transfer, assimilation and adoption of proven Technologies.
- Promoting R&D: The Government should promote an ecosystem to foster R&D and innovation in CO2 utilization technologies. There is a need to fund, foster and incubate innovation-based ecosystems through national centres of excellence.