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Bundesrat Clears Commercial CO2 Capture, Pipelines and Deep Undersea Storage

The measure sets a private‑led pathway for hard‑to‑abate sectors, pointing to a mid‑2030s start for transport and storage.

Overview

  • Upper‑house approval completes a law that allows industrial CCS and CCU and authorizes a national CO2 pipeline network after prior Bundestag passage.
  • Storage is permitted mainly beneath the North and Baltic Sea but barred in coastal proximity and protected marine areas.
  • Federal rules leave onshore storage to state discretion, with states such as Schleswig‑Holstein backing the law while logging formal reservations.
  • The economy ministry estimates a seven‑to‑ten‑year build‑out, leaving the private sector to plan and operate infrastructure, with no state‑run onshore facilities.
  • Berlin has signaled about €6 billion in 2026 funding that includes CCS/CCU, as industry groups call the framework essential and environmental NGOs warn of cost, leakage and fossil‑fuel lock‑in risks.