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Go-ahead for CO₂ storage in Germany

In late May, the federal cabinet adopted the key principles for a Carbon Management Strategy and draft legislation on the basis of this to amend the Carbon Storage Act. This marks an important step towards reaching the climate targets and improving the competitiveness of the German industrial sector.

On the road towards climate neutrality in 2045, it is key to avoid and reduce greenhouse gas emissions, which are harmful to the climate. In spite of all efforts and technological innovations, there will, however, be emissions that are hard to abate or unavoidable using the available technologies, for example, in some branches of industry and waste management. The amendment of the Carbon Dioxide Storage Act, which is to provide a legal basis for the use of CCS (in German only) and CCU along with the transport and offshore storage of CO₂ in Germany, is designed to make it possible for these branches to also reach climate neutrality.

^{In the spotlight: Hard- or impossible-to-abate emissions}

CCS is short for carbon capture and storage; CCU stands for carbon capture and utilisation. These technologies are mainly to be used in sectors with hard- or impossible-to-abate emissions. These are caused in processes which can neither be fully avoided, nor directly switched to electricity from renewable sources or to hydrogen.

^{CCS/CCU technologies must not be used to extend business models based on the use of fossil fuels}

It is clear that CCS/CCU technologies are a necessary addition to the toolbox of climate policy, but must not be used to extend business models based on the use of fossil fuels. This is why funding for these technologies is limited to branches with impossible-to-abate emissions and why they are subject to strict environmental standards. Said Federal Minister Habeck: “We will permit offshore storage; but we will explicitly exclude marine protected areas. This policy will bring us in line with our European neighbours like Norway and many other countries. And we, as a large industrialised country in Europe, will live up to the responsibility for the way we handle greenhouse gas emissions.”

^{Amendment includes an opt-in clause for onshore storage of CO₂}

In view of the responses from the Länder, an opt-in clause for the onshore storage of CO₂ has been included in the draft. This allows individual Länder to permit onshore storage of CO₂ (in German only) on their territory.

The key points paper and the draft legislation have many points in common with the draft documents from February 2024, but also contain some changes that are the result of interministerial coordination and the comments received from the Länder and the associations. For a more detailed summary, please click here.