German government paves the way for underground CO₂ storage

The German government has approved a legal framework to enable industrial-scale carbon capture and storage (CCS), marking a key step toward meeting national climate targets and supporting emissions-intensive industries in their decarbonisation efforts.

On 6 August, the federal cabinet adopted an amendment to the Carbon Dioxide Storage Act (KSpG), which extends the scope of CCS beyond research to include commercial-scale projects. The move is expected to provide planning certainty for sectors such as cement, lime, waste incineration, and basic chemicals — where residual emissions are considered unavoidable.

The revised legislation creates the conditions for building CO₂ transport and storage infrastructure, a process that typically takes seven to ten years. German policymakers stress the urgency of early investment decisions to ensure infrastructure is operational by the early 2030s.

The decision reflects Germany’s commitment to climate neutrality by 2045 and acknowledges CCS as a necessary instrument alongside reduction and efficiency measures. Until now, Germany’s CCS activities were limited to demonstration projects under strict conditions.

The updated legal framework follows a 2022 policy evaluation which concluded that CCS and CCU (carbon capture and utilisation) will be essential to reaching climate targets set out in the Federal Climate Change Act (KSG). Existing international projects, such as those in Norway, are cited as proof-of-concept for safe and scalable deployment.

The expansion of CCS regulation is particularly relevant for the steel and metals sector, where future competitiveness will depend on access to viable decarbonisation technologies and infrastructure. Industry stakeholders are now awaiting further details on site selection, permitting, and investment incentives.

Source: Bundesregierung, Photo: Fotolia