Germany approves carbon storage law to ensure climate neutrality and industry

The German Federal Government has announced that it has approved a bill to amend the Carbon Dioxide Storage Act (KSpG), significantly expanding the legal framework for carbon capture, transportation and underground storage (CCS). Until now, CCS projects in Germany have been limited to research and pilot operations.

This amendment is considered an important milestone in Germany's plan to achieve climate neutrality by 2045, as well as preserve the country's industrial competitiveness.

Why carbon storage is necessary

Some industrial emissions, especially in steel, cement and lime, cannot be completely eliminated even with the latest low-carbon technologies. The government has stated that for these sectors, CCS is necessary to achieve net zero goals.

Since it takes seven to 10 years to build the CCS infrastructure, the government emphasizes that projects must begin immediately to ensure that facilities are operational by the early 2030s.

Expanded legal framework

The KSpG review in 2022 confirmed that CCS and carbon capture and utilization (CCU) are required under the German Federal Climate Protection Act (KSG).

The amendment now provides for the following industries::

• Legal certainty to justify long-term investments,
• The path to scaling CCS from pilot projects to full deployment is allowed only if it is proven to be safe for health and the environment.

Laying the legal foundation today,