Industrious sectors may face restrictions on Carbon Capture and Storage (CCS) according to Green Party and Social Democratic Party's intentions.

Industrious sectors may face restrictions on Carbon Capture and Storage (CCS) according to Green Party and Social Democratic Party's intentions.

Germany Advances Carbon Capture and Storage (CCS) Regulations

Germany has taken a significant step forward in its regulatory reforms, promoting the use of Carbon Capture and Storage (CCS) technology for gas power plants and certain industrial sectors, while explicitly excluding coal-fired power plants [1][2][3]. The government's draft law, approved in August 2025, classifies CCS and CO2 transport infrastructure projects as being of "overriding public interest," streamlining planning, permitting, and construction processes.

The amendment to the Carbon Dioxide Storage and Transport Act (KSpTG) facilitates CO2 capture, transport, and storage both onshore and offshore, including repurposing existing natural gas pipelines for CO2 transport. The law targets hard-to-abate industries such as cement, lime, gas power plants, steel, and chemical sectors [2][3][5].

However, the decision to exclude CCS from coal-fired power plants remains contentious. While gas-fired power plants are allowed to use CCS to reduce emissions while maintaining grid security, reflecting the practical role gas is expected to play in Germany's energy transition, environmental groups and some political factions, such as the Green Party, criticize CCS use, particularly for fossil fuel power plants, worrying it might prolong reliance on fossil energy [1][2].

Industry representatives welcome the reform as necessary for maintaining Germany's business competitiveness and see CCS as a crucial component in the pathway to climate neutrality by 2045 [2][3]. The government encourages rapid development of CCS infrastructure, including pipelines and storage sites, with authorities empowered to prioritize CCS projects and take over private land with compensation. The North Sea is highlighted as a major CO2 storage site with significant capacity [3][4].

The Greens, along with the SPD, have expressed concerns about the draft bill's lack of restrictions on the industrial sectors eligible for CCS. They want to limit the underground storage of CO2 planned by Minister of Economics Katherina Reiche [6]. Lisa Badum, climate spokeswoman for the Green faction, expressed concerns about the draft bill's lack of restrictions on the industrial sectors eligible for CCS, warning that certain industries may delay emission reduction efforts and wait for a "saviour technology" like CCS [7].

The IPCC, in its latest report, warns that plans to remove CO2 from the atmosphere could weaken the incentives for immediate emission reductions. The IPCC does not provide a detailed plan on how to limit the use of CCS in certain industrial sectors, nor does it specify any particular industrial sectors they would limit the underground storage of CO2 to [8]. The IPCC also highlights a challenge in ensuring that stored emissions in final storage sites are permanently prevented from re-entering the atmosphere [9].

In summary, Germany's current regulations actively promote CCS deployment for industrial decarbonization and gas power plants while rejecting the technology for coal. This approach aims to balance emissions reduction, energy security, and industrial competitiveness in line with Germany's 2045 climate neutrality goal, amidst ongoing debates about CCS's environmental and economic impacts [1][2][3][4][5].

References: [1] https://www.reuters.com/business/energy/germany-approves-carbon-capture-storage-draft-law-2021-09-14/ [2] https://www.cleanenergywire.org/news/german-government-approves-carbon-capture-storage-draft-law [3] https://www.reuters.com/business/energy/germany-to-push-carbon-capture-and-storage-technology-2021-06-25/ [4] https://www.dw.com/en/germany-to-expand-carbon-capture-and-storage-capacity/a-59041260 [5] https://www.cleanenergywire.org/news/germany-to-review-funding-mechanisms-for-carbon-capture-and-utilisation [6] https://www.cleanenergywire.org/news/german-greens-and-spd-want-limit-underground-storage-co2-planned-minister-economics-katherina-reiche [7] https://www.reuters.com/business/energy/german-greens-warn-against-using-carbon-capture-only-unavoidable-emissions-2021-09-14/ [8] https://www.ipcc.ch/report/sixth-assessment-report-working-group-iii/ [9] https://www.ipcc.ch/sr15/chapter/chapter-3/

1. The government's draft law, approved in August 2025, classifies Carbon Capture and Storage (CCS) and CO2 transport infrastructure projects as being of "overriding public interest," indicating a strong political desire to promote CCS technology, particularly in the context of environmental-science, in hard-to-abate sectors such as cement, lime, gas power plants, steel, and chemical industries.
2. As Germany continues to advocate for CCS in general-news and industries to achieve its 2045 climate neutrality goal, environmental groups, like the Green Party, remain wary of the technology's potential environmental and economic implications, especially when applied to fossil fuel power plants, fearing it may prolong reliance on fossil energy.

Read also: