Mentor’s Comment

India’s Carbon Capture, Utilization, and Storage (CCUS) initiative aims to reduce greenhouse gas emissions to meet 2070 net-zero targets, focusing on high-emitting industrial sectors. The Union Budget 2026-27 announced a ₹20,000 crore scheme to scale up CCUS deployment, specifically targeting power, steel, cement, refineries, and chemical industries. The Budget 2026 announcement highlights the tension between industrial decarbonisation via CCUS and nature-based carbon markets involving agriculture. This raises issues of policy clarity, sectoral prioritisation, and climate governance design.

What is the core objective of India’s carbon credit plan?

1. Industrial Decarbonisation Focus: Targets sectors like power, steel, cement, refineries, and chemicals where emissions are concentrated and difficult to eliminate.
2. CCUS Deployment: Ensures capture of CO₂ from industrial flue gases and its utilization or storage underground.
3. Technology-led Transition: Supports R&D roadmap released by Department of Science and Technology (Dec 2025).
4. Budgetary Commitment: ₹20,000 crore over five years for large-scale CCUS deployment.

Why is agriculture excluded from CCUS strategy?

1. Emission Characteristics: Agricultural emissions (methane, nitrous oxide) are diffuse and biologically mediated.
2. Technological Limitation: CCUS is suited for point-source emissions, not dispersed sources like farms.
3. Policy Segregation: Clear distinction between CCUS (industrial) and Carbon Dioxide Removal (CDR) via soil, biochar, agroforestry.
4. Role of Agriculture: Positioned under carbon sequestration pathways, not industrial capture.

What is causing confusion around ‘farmer carbon credits’?

1. Terminology Overlap: Use of “carbon credit programme” creates perception of inclusivity across sectors.
2. Parallel Narratives: Media and discourse suggest farmers can directly earn credits under Budget allocation.
3. Existing Voluntary Markets: Agriculture and forestry projects already generate credits for domestic and global buyers.
4. Policy Communication Gap: Lack of clear distinction between regulated compliance markets and voluntary carbon markets.

What are the implications of prioritising CCUS over agriculture?

1. Industrial Competitiveness: Supports decarbonisation of sectors contributing ~25% of India’s emissions.
2. Net-Zero Alignment: Essential for achieving India’s climate commitments.
3. Missed Rural Opportunity: Delays monetisation of agriculture’s carbon sequestration potential.
4. Fiscal Prioritisation: Directs public funds toward capital-intensive technologies instead of nature-based solutions.

Can agriculture-based carbon markets emerge as a parallel opportunity?

1. Soil Carbon Sequestration: Enhances carbon storage through regenerative practices.
2. Agroforestry Potential: Integrates trees into farming systems to generate carbon credits.
3. Private Sector Initiatives: Pilot programmes compensate farmers for sustainable practices.
4. Policy Requirement: Needs separate funding, institutional frameworks, and certification mechanisms.

What policy approach is required to resolve the ambiguity?

1. Clear Sectoral Demarcation: Separates ‘smokestack’ (industrial) and ‘soil’ (agriculture) carbon pathways.
2. Dedicated Agricultural Policy: Establishes structured carbon farming programme with incentives.
3. Market Development: Creates trusted domestic carbon market for agriculture credits.
4. Communication Clarity: Ensures alignment between policy design and public narrative.

Conclusion

India’s carbon credit framework reflects a dual transition challenge: industrial decarbonisation through CCUS and agricultural transformation through carbon sequestration. Policy clarity, sector-specific instruments, and institutional coherence are essential to avoid misaligned expectations and unlock full climate and economic potential.

Why in the News?

The COP30 Climate Summit in Belém (Brazil, 2025) introduced the first global adaptation indicators integrating Water, Sanitation and Hygiene (WASH) systems into climate accountability frameworks. Now there is a major shift in global climate governance: water systems are emerging as the central pillar of climate resilience. The outcomes of the UN Climate Conference COP30 and the Belém Adaptation Indicators place water management, sanitation, and hydrological governance at the core of adaptation strategies.

How does climate change manifest primarily through water systems in India?

1. Hydrological Disruptions: Climate change alters rainfall patterns, leading to extreme floods and prolonged droughts affecting urban and rural economies.
2. Glacial Melt Impact: Himalayan glacier retreat destabilizes river systems, affecting long-term water availability for major rivers like the Ganga and Brahmaputra.
3. Saline Intrusion: Rising sea levels cause salinisation of coastal aquifers, contaminating freshwater sources in coastal regions.
4. Agricultural Vulnerability: Agriculture contributes ~40% of anthropogenic methane emissions, particularly from rice cultivation, livestock systems, and organic waste.
5. Food Security Threats: Erratic monsoon cycles disrupt crop productivity and irrigation systems.

What are Belém Adaptation Indicators?

1. The Belém Adaptation Indicators are a set of 59-60 voluntary, global measures adopted at the COP30 climate summit in Belém, Brazil (scheduled for November 2025) to track how well countries are adapting to climate change. 
2. Developed through a two-year UN process under the UAE-Belém Work Programme, they aim to provide a shared, practical language for monitoring resilience against climate impacts like floods, droughts, and heatwaves.

Key Features of the Belém Adaptation Indicators are as follows:

1. Purpose: To monitor progress toward the Global Goal on Adaptation (GGA) adopted under the Paris Agreement, focusing on whether communities are becoming safer and better able to cope with climate threats
2. Focus Areas: The measures look at essential sectors such as water security, food systems, health, housing, early warning systems, ecosystems, and local economies
3. Scope: The indicators emphasize protecting vulnerable populations, including women, indigenous groups, and people with disabilities
4. Voluntary Nature: They are designed to be flexible rather than a rigid top-down mandate, allowing countries to adapt them to their national circumstances.

How do Belém Adaptation Indicators redefine climate governance?

1. Climate-Resilient Water Systems: Focus on reducing water scarcity and increasing resilience against floods and droughts.
2. Universal Drinking Water Access: Ensures safe drinking water availability for all communities.
3. Climate-Resilient Sanitation Infrastructure: Strengthens sanitation systems capable of functioning during extreme climate events.
4. Multi-Hazard Early Warning Systems: Establishes universal early warning coverage by 2027.
5. Hydrometeorological Capacity: Strengthens meteorological monitoring and national vulnerability assessments by 2030.

How is India strengthening water governance to build climate resilience?

1. Institutional Consolidation: Establishment of the Ministry of Jal Shakti (2019) integrates water governance across sectors.
2. Water Vision 2047: Aligns national water policy with sustainability, equity, and climate resilience goals.
3. Aquifer Mapping Programme: National Aquifer Mapping and Management Programme (NAQUIM 2.0) advances aquifer-level planning based on hydrogeological data.
4. River Rejuvenation: National Mission for Clean Ganga (NMCG) expands focus beyond sewage treatment to biodiversity restoration and river basin management.
5. Integrated Water Management: Encourages linking scientific hydrology with policy planning.

What systemic risks threaten India’s climate-water resilience?

1. Unequal Water Distribution: Water scarcity remains acute and unevenly distributed across regions.
2. Water-Linked Disasters: Most climate disasters in India are water-related (floods, droughts, cyclones).
3. Fragile Adaptation Finance: Global climate finance pathways remain uncertain despite projections of $1.3 trillion annually by 2035.
4. Recovery Bias: Lack of predictable finance shifts focus toward post-disaster recovery rather than long-term resilience planning.
5. Infrastructure Stress: Water supply systems require climate stress testing and diversification of water sources.

Why is digital fragmentation a challenge for climate-water governance?

1. Fragmented Data Systems: Hydrological and meteorological datasets remain distributed across institutions without integration.
2. Limited AI-Driven Decision Support: Despite large datasets, real-time AI integration in governance remains weak.
3. Planning Disconnect: Water data is rarely linked to budgeting, crop advisories, insurance mechanisms, or disaster response systems.
4. Need for Interoperable Platforms: Integration of hydrological data, crop advisory systems, insurance frameworks, and financial flows is essential.

How can India lead global climate adaptation through water governance?

1. Policy Convergence: Align national missions such as drinking water coverage, irrigation efficiency, and urban water reforms with climate adaptation.
2. Digital Public Infrastructure: Utilize India’s strength in digital governance systems to integrate climate-water datasets.
3. Operational Adaptation: Shift from infrastructure creation to functional system resilience.
4. Global South Leadership: Demonstrate scalable climate adaptation models applicable to other developing countries.

Conclusion

Water systems are emerging as the operational backbone of climate adaptation. India possesses strong institutional foundations, including water governance reforms, digital infrastructure, and river restoration programmes. However, translating policy ambition into measurable climate resilience requires integrating hydrological data, strengthening climate finance, and ensuring equitable water distribution. By aligning national missions with global adaptation frameworks, India can emerge as a leader in climate-resilient water governance for the Global South.