German Government adopted the law on CO₂ storage and utilisation

The German Government on 6 August 2025 adopted a draft law amending the Carbon Dioxide Storage Act, which aims to facilitate the use of carbon capture, utilisation and storage (CCUS). This marks a turning point in Germany’s climate strategy, which has historically been cautious about CCUS technologies due to environmental and public concerns.

The amendment aims to support the use of CCUS, to achieve net-zero emissions by 2045 and net-negative emissions post-2050. Additionally, the new policy initiative aims to decarbonize hard to abate sectors such as cement, steel, and chemicals, industries where emissions are difficult to eliminate through electrification or renewable energy alone. By allowing CO₂ to be captured and either stored underground or reused in industrial processes, Germany is aligning itself with broader European efforts to meet net-zero targets.

Key aspects of the Carbon Dioxide Storage Act Amendment

• Industrial-scale CO₂ storage: Allows construction of commercial CO₂ storage facilities in Germany’s continental shelf and exclusive economic zone (EEZ), while protecting marine reserves and territorial waters.
• Onshore storage option: German states can choose to permit CO₂ storage on land through an “opt-in” mechanism.
• Public interest status: Declares CO₂ pipelines and storage projects as being of overriding public interest, helping speed up approvals and development.
• Coal emissions excluded: Emissions from coal-fired power generation are not allowed access to the CO₂ pipeline network.
• Acceleration of approvals: Introduces measures to accelerate planning and approval processes for CO₂ infrastructure projects.

Environmental groups have raised concerns about the long-term safety of underground CO₂ storage and the potential for CCUS to delay the transition away from fossil fuels. The Government has responded by emphasising the strict safety standards, transparent monitoring, and public engagement in project development.

With appreciation to Amineh Farasatmand for her contribution in preparing this blog.