ANNOUNCEMENTS
Global warming refers to the prolonged change in temperature on and near the Earth's surface due to various human activities leading to release of greenhouse emissions (GHG) which includes carbon di oxide, causing long term shifts to weather patterns. Climate change affects the entire planet, resulting in the melting of polar ice sheets and glaciers, which leads to rising sea levels1. Severe weather occurrences like typhoons and hurricanes are becoming more frequent, draughts & wildfire, flooding & crop failure etc are all attributed to global warming.
With a population exceeding 1.3 billion, India continues to be one of the rapidly expanding major economies globally, and it requires consistent energy sources to support its growth, on the same time protect its environment for sustainable development. In a way, proper management of release, capture and storage of GHG from Industries, vehicles or other sources not only safeguards the environment but also upholds the individual’s “right to life,” which is assured to every citizen under Article 21 of the Indian Constitution. and Article 25(2) of the Universal Declaration of the Human Rights. Higher GHG emissions from industries like cement steel and power, oil & gas or other hard to abate emission sectors leads to excessive carbon dioxide and higher AQI levels in several cities in India including NCR region (Delhi). Such pollution is a major concern for the environment and needs to be addressed as a policy measure, where CCUS can be very insightful and helpful solution. Even though the Kyoto protocol calls for developed nations to bear the cost for global warming, it is essential to create a policy framework to address climate change within India, given that in 2023 India was the 3rd largest absolute contributor to global fossil-based CO2 emissions, which amounted to 8% of carbon emission of the global CO2 emissions. As per the New Indian Express article dated 9th December 2023, “India’s emissions (8% of global) increased by 8.2%. Emissions for all fossil fuels grew by 5% or more, with coal the highest at 9.5%. India is now the world’s third-largest fossil CO₂ emitter.”
The Special Report on Global Warming by the Intergovernmental Panel on Climate Change2 (IPCC) and the latest commitments from various countries regarding net-zero emissions have supported CCUS technologies in reducing carbon emissions. Similar reference has been made by IEA3, in its report “CCUS in clean energy transitions”, released in September 2020. In COP 264, India declared its intentions to reduce emissions by 45% by 2030 and to make progress towards reaching Net Zero by 2070. India currently lacks a formal law or national policy regarding CCUS; however, the Government has released a draft document from NITI Aayog and is actively working on establishing a national CCUS policy. The successful deployment of CCUS technologies in other countries, coupled with India's commitment to achieve net-zero emissions by 2070, is driving the need for a CCUS national policy in India to achieve decarbonization goals.
It may be noted that India is not able to cut back its dependence on the fossil-based energy resources, given that about ten percent of global coal reserves are in India. This makes the role of national CCUS policy even more important to achieve net zero and in formulating energy policy strategy for India. Path to decarbonization will require support from Government for policy specific initiatives to meet challenges in the initial scaling-up phase. These policy initiatives may include setting up of financial frameworks including tax credits, creating a local sustainable CCUS business model, identifying sources and sinks and technology layout on carbon capture, transportation and storage and assessment of socio-economic impact of CCUS implementation.
The demonstrated fundamental stages for CCUS process are carbon dioxide capture and compression, transportation, utilization and storage. The government policy and the industry can collaborate and support the CCUS policy initiative in following ways:
1) Carbon Capture: About 75% of Greenhouse gases released in India are contributed by the energy sector5. While the companies can support and lead environmentally friendly carbon capture initiatives, the Government can facilitate regulatory and policy support on carbon capture by having a proper carbon market in place. In house CDM experience on carbon capture by PSUs like Indian Oil & ONGC will be valuable input in technology realization. India is developing a regulatory framework for carbon capture to support its net-zero goals. This structure is being created under the Energy Conservation Amendment Act, 2022. In particular, the Energy Conservation Act6, 2022 authorizes the Central Government to implement a carbon credit trading program, managed by the Bureau of Energy Efficiency (BEE). The Ministry of Power will also play a role in regulating the carbon market. Policy to support in-house R&D to support carbon capture technologies like the direct air capture (DAC) will have a crucial role in adopting CCUS technologies in India.
2) Transportation: The captured carbon dioxide requires treatment, compression, and transportation via pipelines, and the necessary infrastructure must be established. The major oil companies have the expertise to deal with pipeline cost and economics, other associated infrastructure expenses, identify risks and suggest proper hazard mitigation. Based on their international experience, oil majors can help develop hubs and clusters in India which will reduce risks and costs by allowing industrial emitters to share the carbon dioxide transport and storage infrastructure. The Government of India must carefully carve the CCUS policy which can utilize the expertise of major oil companies, (several of them have presence in India) in CCUS transportation as well develop regulations for pipelines, trucks, rail, and ship transport, and address policy for cross-border CO2 movement. The policies should aim to ensure safety, liability, and access to transportation infrastructure at reasonable rates.
3) Utilization: CCUS may be utilized in various industries including EOR, fertilizers plastics, chemicals, hydrogen production etc. The Enhanced Oil Recovery (EOR) policy framework should promote and incentivizes EOR methods in the oil and gas industry, for recovery of hydrocarbons in Oil reservoirs and Coal Bed Methane reservoirs. The fertilizer industry already relies on capturing CO2 from processes like ammonia production, making it a natural fit for CCUS. CCUS offers a way to close the loop in the plastic lifecycle by reusing carbon resources instead of relying solely on fossil fuels for raw materials. CO2 that has been captured can serve as a raw material for different chemical processes, such as the production of methanol or synthetic fuels. The Government needs to establish laws and policies aimed at the use of CO2, concentrating on developing frameworks that encourage the advancement and implementation of technologies designed to capture CO2 emissions. This includes policies concerning the classification and purity of CO2, the ownership and title of CO2, and the regulatory scope within the CCUS value chain.
4) Storage: Storage resources and their capacity must be identified. Government must provide adequate policy support on carbon credit related to storage, contamination of aquifers and identify sinks for CO2 disposal. Storing carbon dioxide in environmentally safe geological formations like deep saline aquifers and basalts is a widely proven technology which have been used as various part of the world. The Government needs to create an extensive strategy for evaluating the CO2 storage capacity of geological formations in India and establish a solid legal structure that clarifies ownership, liability, and permitting processes for CO2 storage initiatives. An extensive policy framework and its implementation mechanism in India are necessary for sustainable development and progress.
Key Words: Climate change, global warming, greenhouse gases, CCUS policy, India, capture, transport, utilization, storage of carbon dioxide.
