SEO Riders:
– Germany approves draft law for CO₂ underground storage
– Carbon capture pipelines and offshore storage roadmap
– CCS enabled for cement, lime & aluminium industries
Germany’s federal cabinet approved a pivotal draft law on August 6, 2025, marking a major shift toward legalising underground carbon dioxide (CO₂) storage. The legislation lays the groundwork for the deployment of carbon capture and storage (CCS) and utilisation (CCU) technologies, specifically targeting “hard-to-abate” sectors like cement, lime, and aluminium production, where electrification is not yet viable. The plan includes developing CO₂ capture at industrial sites, constructing pipelines, and enabling offshore storage beneath the seabed in Germany’s Exclusive Economic Zone and continental shelf—with exclusions for coastal and protected areas. Though permanent onshore storage will remain largely prohibited nationwide, individual federal states may opt in via regional legislation. Emissions from coal-fired power plants will explicitly be excluded.
This move represents a breakthrough after earlier attempts under former Environment Minister Robert Habeck stalled due to political divergence. Economy Minister Katherina Reiche hailed the draft as a “milestone” toward decarbonising industry and closing policy gaps. Should it pass parliamentary scrutiny, the law will streamline planning and approval pathways for CO₂ pipelines and storage infrastructure while paving the way for Germany to participate in cross-border CO₂ storage initiatives.
