CCUS in the Indian Cement Industry: Policy and Financing Frameworks

Investment Rating - The report does not explicitly provide an investment rating for the CCUS sector in the Indian cement industry, but it emphasizes the need for enhanced policy and regulatory frameworks to support investment in CCUS technologies. Core Insights - The report highlights the importance of developing a comprehensive policy, legal, and regulatory framework to facilitate the deployment of carbon capture, utilization, and storage (CCUS) technologies in India. It identifies gaps in the current frameworks and provides recommendations for improvement to align with global best practices [4][5][6]. Summary by Sections 1.0 Introduction - The report discusses the significance of policy, legal, and financing issues for CCUS deployment, emphasizing that effective frameworks are essential for commercial viability and public confidence in CCUS technologies [4][5]. 2.0 Summary of Gap Analysis and Recommendations - A gap analysis identifies areas where current frameworks are underdeveloped compared to global standards, highlighting the need for government focus on strengthening these frameworks [5][6]. 3.0 Policy, Legal and Regulatory Issues – Status in India - The report outlines the current status of CCUS in India, including the lack of a national CCUS strategy and the need for public awareness and acceptance of CCUS benefits [6][7][8]. 4.0 Policy, Legal and Regulatory Issues Relevant for CCUS - The report discusses the necessity of establishing a legal and regulatory framework for CCUS activities, including safety and integrity measures, and the importance of carbon pricing mechanisms to incentivize CCUS deployment [7][8][9]. 5.0 International Collaboration to Assist India's Efforts - The report emphasizes the need for India to engage in international collaboration and knowledge-sharing initiatives to enhance its CCUS capabilities and access funding opportunities [8][9]. 6.0 Conclusion - The report concludes that a robust policy and regulatory framework is crucial for the successful deployment of CCUS technologies in India, which can significantly contribute to the country's decarbonization goals [6][7]. 3.1 Strategy - The report references NITI Aayog's CCUS report, which outlines a comprehensive overview of CCUS technologies and the potential for CO2 storage in India, estimating a theoretical storage capacity of 400 to 600 gigatonnes [17][18][19]. 3.2 Incentives - The report discusses the amendment to the Energy Conservation Bill, which authorizes the establishment of a domestic carbon credit trading scheme, and highlights the need for fiscal incentives to support CCUS projects [25][26][27]. 3.2.1 Amendment to the Energy Conservation Bill - The amendment allows industries to buy renewable energy directly from producers and initiates the development of the institutional framework for the carbon credit trading scheme [25][26]. 3.2.6 Proposed Carbon Capture Finance Corporation - The report proposes the establishment of a Carbon Capture Finance Corporation to provide tax and cash credits for CCUS projects, suggesting funding mechanisms through a clean energy tax on coal and government bonds [38][40]. 3.2.7 R&D Centres in India Supporting CCUS - The report highlights the role of Indian Oil Corporation in advancing CCUS technologies through R&D initiatives and collaborations with academic institutions [42][43]. 3.2.8 Department for Science and Technology - The Department for Science and Technology is actively involved in promoting research and development in CCUS, collaborating with international partners to drive innovation [44][45].