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Bundestag Approves Industrial CO2 Storage Law Focused on Offshore Sites

The measure now requires Bundesrat consent before it can take effect.

Overview

  • The legislation, backed by CDU/CSU and SPD, shifts carbon capture and storage from research trials to commercial deployment.
  • CO2 storage is prioritized beneath the seabed with prohibitions in protected areas and close to coastlines.
  • States can opt in to onshore storage, and a national pipeline network is authorized to transport captured CO2.
  • The policy targets hard-to-abate industries such as cement, lime and aluminium, with CCS at coal plants effectively excluded.
  • Industry groups including the Carbon Management Alliance welcomed the move, while Greenpeace and BUND warned of high costs and risks, citing Norway’s Northern Lights as a key reference point for the technology.