13 February, 2026

India’s recently announced 2026 budget offers a clear look at how the world’s third largest emitter of greenhouse gases is approaching its low carbon future. The headline move is a $2.2 billion commitment to carbon capture, utilisation and storage (CCUS) technologies, aimed at reducing emissions from heavy industries like steel, cement and chemicals. This is a notable signal of intent, although some experts caution that a reliance on CCUS should not distract from simpler and more efficient ways to cut emissions. 

The budget also places major emphasis on critical minerals. Plans for ‘rare earth corridors’ along mineral rich coastlines suggest a push to grow domestic processing and manufacturing capacity. Industry observers see a chance for India to move up the value chain, but others point out that mining does not create lasting value without strong investment in the associated processing and pollution controls. 

Nuclear energy receives a boost too. India has removed customs duties on nuclear power equipment through 2035 and aims to increase capacity tenfold by 2047. Rooftop solar receives funding as well, however, the core infrastructure needed to expand clean power at scale received limited attention. This leaves a gap between ambition and delivery. 

Despite India’s rising exposure to heat, floods and other climate shocks, the budget does not outline dedicated measures to protect vulnerable communities. Adaptation is treated implicitly in the budget with the focus on a technology led, growth centred vision of the future. India’s path forward will depend on bringing mitigation and adaptation into closer balance. Thus, budget 2026 reflects a cautious step forward, with that balance still the opportunity ahead. 

By Tulika Agarwal