Source: TH
Context:
A ₹20,000 crore allocation in Union Budget 2026 for a “carbon credit programme” has triggered confusion over its actual intent—whether it targets industrial decarbonisation through CCUS or aims to create carbon income opportunities for farmers.
Core Issue:
- Two competing interpretations:
- Industrial focus (CCUS-based decarbonisation)
- Agriculture-focused carbon credit income for farmers
- Official evidence indicates the primary focus is on industrial carbon capture technologies, not agriculture.
What is CCUS (Carbon Capture, Utilization, and Storage)?
Carbon Capture, Utilization, and Storage (CCUS) is a technology-based climate solution that involves:
- Capturing CO₂ emissions from industrial sources
- Utilizing the captured carbon in industrial processes
- Storing it underground to prevent release into the atmosphere
What Does CCUS Target?
Hard-to-Abate Industries
CCUS focuses on sectors where emissions are:
- Concentrated (point-source emissions)
- Technically difficult to eliminate using renewables
Key Target Sectors
- Power and Refineries
- Steel and Cement
- Chemicals
These sectors are responsible for a large share of industrial CO₂ emissions and cannot fully decarbonize through renewable energy alone.
Why Agriculture is NOT Included in CCUS
1. Diffuse Emission Sources
- Emissions spread across:
- Farms
- Soil
- Livestock
- No single point for capture
2. Biological Nature of Emissions
- Main gases:
- Methane (CH₄)
- Nitrous Oxide (N₂O)
- Produced via biological processes, not industrial combustion
3. Technological Mismatch
- CCUS works on:
- Concentrated CO₂ streams
- Agriculture deals with:
- Low-density, scattered emissions
Agriculture’s Role: Carbon Dioxide Removal (CDR)
Instead of CCUS, agriculture contributes through:
- Soil carbon sequestration
- Agroforestry
- Biochar
- Regenerative farming
These methods absorb CO₂ from the atmosphere, rather than capturing emissions at source.
