India is proposing a number of policies to encourage the establishment of carbon capture facilities by high carbon emission industries like steel, cement, and thermal plants. Production-linked incentive programmes, viability gap funding, or carbon credits could all be used to offer incentives. The government might issue carbon credits that can be exchanged on carbon exchanges or a PLI programme that would tie incentives to how much carbon is gathered and used.
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KEY POINTS:
- According to a government official, Niti Aayog, the nation’s policy think-tank, would shortly release a policy prescription for carbon capture and utilisation of carbon dioxide released by industry as part of the aim to reach Net Zero by 2070.
- These industries account for 6–10% of all carbon dioxide emissions.
- Different strategies are being examined to encourage polluting businesses to build carbon capture facilities so that the carbon dioxide they emit can be captured, utilised, and stored for a variety of industrial uses.
- While the government will support these industries with research and development to build carbon capture plants, alternatives for financial support are also being looked at.