Leading industrial and chemical firms in Germany have given a cautious welcome to the federal government’s draft bill enabling commercial carbon capture and storage, while also highlighting concerns about implementation and financing.

On 26 August, the Cabinet approved a draft bill to amend the Carbon Dioxide Storage Act, transforming it into the Carbon Dioxide Storage and Transport Act. The legislation, once passed by parliament, would permit commercial CCS and utilisation projects and establish a regulatory regime for CO2 pipeline infrastructure. 

The government has described the act as essential to achieving climate neutrality by 2045 and net negative emissions thereafter.

The bill introduces several key changes. CCS projects may now be permitted at large commercial scale, not just for research or demonstration, and will be allowed offshore in the continental shelf and exclusive economic zone. 

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