Cabinet gives green light for CCS Act

07.08.2025

Source: E & M powernews

The Federal Cabinet has decided to amend the Carbon Dioxide Storage and Transport Act. This is intended to create the legal framework for CCS projects in Germany.

In its last meeting before the summer break, the German government passed an amendment to the Carbon Dioxide Storage and Transport Act (KSpTG) on August 6. The aim of the amendment is to legally enable the capture, transportation, storage and export of carbon dioxide (CO2). The technology "Carbon Capture and Storage" (CCS) is intended to contribute to the decarbonization of industrial processes in the future. While industry associations see the move as necessary for Germany as a business location, environmental associations are expressing clear criticism.

According to Achim Dercks, Deputy Managing Director of the German Chamber of Industry and Commerce (DIHK), CO2 capture can play a key role in the transition to climate neutrality. Dercks welcomes the fact that CCS infrastructure is to be in the "overriding public interest" in future. This could speed up approval procedures. However, he is critical of the restriction of CO2 capture to gas and biomass power plants. The planned regulation at state level is also viewed critically, as the DIHK believes that nationwide storage on land would be more economical.

The electrical engineering sector in the German mechanical and plant engineering industry also views the change in the law positively. "The federal government's decision sets the course for Germany as a business location," explained Dennis Rendschmidt, Managing Director of the VDMA Power Systems Association. Rendschmidt sees the new law as opening up new market opportunities for both suppliers and users of CCS technology.

At the same time, he is calling for the swift adoption of the planned carbon management strategy and the ratification of the London Protocol, which regulates the cross-border transportation of CO2.

Environmentalists fear fossil lock-in

The cabinet's decision has been criticized by environmental associations. Greenpeace describes the KSpTG as a threat to climate protection. Climate and energy policy officer Sophia van Vügt sees CCS primarily as a means of prolonging fossil fuel business models: "Instead of effectively reducing emissions, the coalition wants to inject them under the North Sea." She fears that subsidies could support the use of gas-fired power plants and crowd out investments in renewable energies.

The WWF is also calling for improvements to the draft legislation. In its view, CO2 infrastructure should not be classified as being in the public interest across the board. Above all, the construction of pipelines must be limited to unavoidable industrial emissions. Marine protected areas should be kept completely free, as they should not be impaired as natural carbon sinks.

The German Association of Local Utilities (VKU) assumes that the use of CO2 capture in fossil gas-fired power plants will not be used as a rule. High investment costs, low capacity utilization of gas-fired power plants and expensive infrastructure are the reasons for this. Future-oriented alternatives such as the use of hydrogen should not be left behind by this legal option. The protection of water resources must also always take priority over CCS.

CCS only for unavoidable emissions

The German Renewable Energy Federation (BEE) published a position paper on "Carbon Management" to coincide with the cabinet's decision. In it, the association calls for CCS to be used exclusively for the capture of unavoidable emissions and in combination with bioenergy (BECCS). BEE President Simone Peter warns against creating new fossil dependencies with CCS.

According to the BEE, BECCS plants could offset around 60 percent of the remaining greenhouse gas emissions by 2050. These so-called "negative emissions" arise because the processing of biomass captures CO2 that was previously removed from the atmosphere through photosynthesis. This contributes to achieving climate neutrality.

According to BEE, greenhouse gas emissions in Germany amounted to 649 million tons of CO2 in 2024 - a decrease of 3.4 percent compared to the previous year. The decrease is mainly due to the energy industry, particularly the reduced use of fossil fuels and the continuous expansion of renewable energy sources.

The amendment to the law forms part of the German government's planned carbon management strategy. This is to be presented by the end of 2025 and will regulate the future handling of unavoidable emissions and the development of corresponding infrastructure. The basis for this is also the London Protocol under international law, which currently restricts the export of CO2 for storage abroad. Germany has not yet ratified the necessary amendment to the protocol.

The draft of the Carbon Dioxide Storage Act (KSpTG) is available on the Internet (see also separate reports on the Federal Cabinet with the topics of public procurement law, geothermal energy / gas storage levy, climate protection report and climate council).

Author: Susanne Harmsen