In the global effort to combat climate change and adhere to the Paris Agreement's objectives, nations worldwide are exploring diverse strategies to mitigate carbon emissions. Among these approaches, carbon capture has emerged as a promising technology garnering significant attention. Carbon capture entails capturing carbon dioxide emissions from industrial processes and subsequently storing or utilizing them to prevent their release into the atmosphere. This article will delve into the industry perspective on carbon capture in India, focusing on its cost-effectiveness as a business proposition.
The Importance of Carbon Capture in India
India stands at a pivotal juncture in its quest for sustainable development amidst escalating global climate concerns. As one of the world's largest emitters of greenhouse gases, the nation's industrial and economic growth trajectory must align with environmental stewardship. Embracing carbon capture technologies emerges as a crucial strategy, offering a pragmatic approach to curbing emissions from hard-to-decarbonize sectors such as steel, cement, and chemicals. By investing in carbon capture, India not only demonstrates its commitment to combating climate change but also fosters innovation, job creation, and economic resilience. Moreover, integrating carbon capture into the energy mix enhances energy security and propels India towards a greener, more prosperous future, solidifying its position as a responsible global leader in sustainable development..
Per capita carbon dioxide (CO₂) emissions in India have climbed from 0.92 metric tons in 2002 to 1.91 metric tons in 2022
The Potential for Carbon Capture in India
India has immense potential for carbon capture, with various industries and sectors ripe for implementation. The country's rich reserves of basaltic rocks, coal seams, depleted oil reserves, soils, deep saline aquifers, and sedimentary basins offer ample opportunities for carbon storage. However, the scale-up of carbon capture technologies is crucial to make a significant impact on reducing emissions.
The Cost of Carbon Capture: A Good Business Proposition
One of the primary concerns surrounding carbon capture is its cost-effectiveness. However, advancements in technology and economies of scale have made carbon capture an increasingly attractive business proposition. While the initial costs may be high, the long-term benefits and potential revenue streams make it a worthwhile investment.
Industrial Perspective on Carbon Capture in India
From an industrial perspective, carbon capture offers several advantages. It allows industries to reduce their carbon emissions while continuing their operations and maintaining profitability. By implementing carbon capture technologies, industries can demonstrate their commitment to sustainability and fulfill their corporate social responsibility.
Cost-Effectiveness of Carbon Capture
The cost-effectiveness of carbon capture depends on various factors, including the scale of implementation and the specific technology used. While the initial capital costs may be significant, the potential for revenue generation through carbon credits and carbon markets can offset these expenses.
Carbon Credits and Carbon Markets
Carbon credits represent verified reductions or removals of CO2 from the atmosphere and are tradable commodities within carbon markets. They offer industries implementing carbon capture technologies an additional revenue stream. By purchasing carbon credits, companies can fulfill their net-zero commitments, thereby driving demand for carbon capture projects.
EKI based in India is currently the world’s largest generator of Carbon Credits. This is done through their carbon trading exchange
Policy Support and Financial Incentives
Governments can promote the uptake of carbon capture technologies through policy backing and financial incentives. Examples include tax credits, public procurement, reverse auctions, advanced market commitments, loans, and loan guarantees. Ensuring the development of transport and storage infrastructure is also essential for the effective execution of carbon capture projects