India Launches Carbon Capture Program With Full Funding Support

India is planning a nationwide program to capture and store carbon emissions from coal power plants. The government will offer incentives that cover up to 100% of project funding for some initiatives. This program aims to reduce emissions from India’s large coal power fleet, which continues to grow every year.

Rajnath Ram, an energy adviser at NITI Aayog, India’s government policy think tank, explained that the incentives are meant to help industries adopt carbon capture technologies. These technologies can then be integrated with existing coal-based energy systems to make them cleaner and more sustainable.

Coal Remains Central to India’s Power

Coal continues to play a key role in India’s electricity generation. About 60% of India’s total power comes from coal. New coal-fired power plants are still being built, and the country relies heavily on coal to meet the growing electricity demand.

Rajnath Ram emphasized that coal will remain an important part of India’s energy system for the next two decades. The government’s focus is not on eliminating coal but on using it more sustainably. Installing carbon capture and storage (CCS) systems is one of the ways to achieve this goal.

Why Carbon Capture Is Important

Carbon capture and storage systems are technologies that prevent carbon dioxide from being released into the atmosphere. They can be installed in coal power plants to reduce emissions significantly. By capturing carbon before it leaves the plant, these systems help fight climate change while allowing India to continue using coal for electricity.

Experts believe that carbon capture can make coal plants much cleaner and allow India to balance its need for energy with its environmental goals. These systems will also help India meet international commitments to reduce greenhouse gas emissions.

Coal Capacity Growth in India

In 2024, India installed 4 gigawatts (GW) of new coal-fired power capacity. This is the same as the high level reached in 2023 and the highest since 2019. The government plans to add up to 90 GW of coal capacity by 2032 to meet the increasing power needs of the country.

Even though India is rapidly increasing renewable energy production, coal will still be needed for reliable baseload electricity. This ensures that homes, factories, and businesses receive power even during periods when solar or wind energy is not available.

Renewable Energy Growth

India has achieved significant progress in renewable energy. The country reached its goal of having 50% of installed electricity capacity from non-fossil fuel sources five years ahead of schedule, as of July 2025. This includes solar, wind, and hydroelectric power.

However, installed capacity does not always translate into electricity generation. Renewable energy depends on weather, battery storage, and the power grid. If the sun does not shine or the wind does not blow, India will still need coal to avoid blackouts.

Incentives to Encourage Carbon Capture

The government’s incentives will encourage industries and power companies to invest in carbon capture technologies. Some projects will receive full government funding, while others may get partial support. The goal is to make CCS adoption more affordable and attractive to private companies.

By supporting these projects, India hopes to reduce pollution, improve air quality, and contribute to global efforts against climate change. The program will also create jobs in the energy and technology sectors.

Coal Use and Climate Goals

Coal will continue to be an important part of India’s power system for the next 20 years. The key challenge is how to use it in the most environmentally friendly way. Carbon capture technologies are essential to achieve this.

India’s energy policy balances coal use with renewable energy expansion. This approach allows the country to maintain reliable electricity while moving toward a greener energy future.

Meeting Energy Demand

India’s power demand is rising due to population growth, industrial development, and urbanization. During heat waves, coal power becomes especially important to prevent blackouts and provide reliable electricity.

Carbon capture programs will allow India to continue using coal to meet this demand while reducing harmful emissions. This helps protect both the environment and public health.

Long-Term Benefits

The carbon capture program will have long-term benefits. It will reduce emissions, support sustainable development, and help India meet its climate commitments. Industries adopting CCS technologies will be able to operate more efficiently and with less environmental impact.

The program also aligns with India’s broader energy strategy, which combines renewable energy growth with cleaner coal use to ensure a stable and sustainable energy supply.

India’s nationwide carbon capture and storage program is a major step toward reducing emissions from coal power plants. With full government funding incentives for some projects, the program encourages industries to adopt sustainable practices. Coal will remain a key energy source, but these technologies ensure that it can be used more responsibly. India continues to expand renewable energy while using carbon capture to reduce the environmental impact of its existing coal fleet. This approach balances the need for reliable electricity with climate protection goals.