India’s Industrial Decarbonisation Shift: The Emerging Role of CCUS

Across Europe and North America, CCUS is moving from pilot-stage deployment toward commercial implementation. Industrial clusters are developing shared CO₂ transport and storage infrastructure, while companies such as Mitsubishi Heavy Industries, Shell, and Aker Carbon Capture are scaling commercial applications. Although the market is still at an early stage of maturity, policy direction and investment activity indicate that CCUS is expected to play an increasingly important role in industrial decarbonisation pathways.

India is entering a similar transition phase. As one of the world’s largest industrial economies, the country faces a complex decarbonisation challenge, particularly in sectors where emissions are embedded within industrial production processes. Recent regulatory developments, including emission intensity benchmarks and the rollout of the Carbon Credit Trading Scheme, indicate a gradual transition from voluntary sustainability initiatives toward compliance-driven carbon management.

This transition is commercially significant. Nearly 500 industrial facilities are expected to operate under emissions reduction obligations in the initial phase, creating a measurable demand base for decarbonisation technologies and carbon management solutions. India’s broader net-zero ambitions and industrial growth trajectory are also expected to increase pressure on sectors where conventional efficiency measures may not be sufficient.

Despite this emerging demand, India’s CCUS ecosystem remains at an early stage. Commercial deployment pathways are evolving, CO₂ transport and storage infrastructure is limited, and industrial stakeholders continue to assess the techno-economic viability of capture and utilisation solutions. Technology providers often face challenges related to industrial partner identification, localisation strategy, and project bankability, while industrial companies continue to seek clarity on viable decarbonisation pathways.

An adjacent opportunity is emerging around the capture and utilisation of biogenic CO₂ from sectors such as CBG, ethanol, and sugar processing. Biogenic CO₂ offers potential advantages in carbon monetisation and low-carbon fuel pathways, particularly as interest grows in e-methanol, sustainable fuels, and circular carbon applications.

This creates an important market opportunity across multiple stakeholder groups:

• Global/domestic technology providers: India represents a large, relatively underpenetrated market for proven capture and utilisation technologies
• Industrial emitters: Companies that begin feasibility assessments and partner identification early are likely to be better positioned as compliance frameworks tighten
• Biogenic CO₂producers: Sectors such as CBG, ethanol, and sugar processing can potentially monetize underutilized biogenic CO₂ streams while improving project bankability through carbon-linked revenue opportunities

India’s CCUS market remains at an early stage, but the underlying regulatory and industrial drivers are becoming increasingly visible. Stakeholders that establish early partnerships, pilot projects, and market positioning are likely to be better placed as the ecosystem matures and implementation activity accelerates.