Germany’s parliament has passed a landmark reform paving the way for the use of carbon capture and storage (CCS) technology, marking a major policy shift in the country’s climate strategy. The new legislation allows captured carbon dioxide to be stored under the seabed and sets the legal foundation for the creation of CO₂ pipeline networks—though it continues to ban CCS use at coal-fired power plants.
The reform is seen as a key step toward helping Germany reach its target of climate neutrality by 2045 and net negative emissions thereafter. Economy and Climate Minister Robert Habeck welcomed the decision, saying it “lays the groundwork for a future-oriented CO₂ infrastructure that protects the climate while keeping German industry competitive.”
Supporters, including major players in the chemical and gas industries, praised the law as essential for decarbonizing sectors that are difficult or impossible to fully electrify, such as cement, steel, and chemicals. Industry associations called for swift implementation and government support for building CO₂ transport and storage infrastructure, warning that delays could push companies to relocate production abroad.
Environmental organizations reacted more cautiously. Groups such as WWF Germany criticized the inclusion of gas-fired power plants in the policy framework, arguing that it risks prolonging fossil fuel dependency rather than accelerating the transition to renewables. They welcomed, however, the government’s decision to keep CCS projects out of marine protected areas, even as they warned that pipeline construction could still harm fragile ecosystems.
The legislation will now move to the Bundesrat, Germany’s upper house, for final approval. Once enacted, it will provide the legal certainty needed for large-scale CCS projects and cross-border CO₂ transport agreements within the European Union.
For years, Germany has permitted small-scale carbon capture activities but lacked the legal framework to store or transport CO₂ permanently. The reform fills that gap and signals a more pragmatic approach to reaching climate goals. Experts widely agree that CCS technologies will be crucial for mitigating residual emissions from heavy industry, though environmentalists remain wary that the technology could slow investment in renewable energy and energy efficiency.
The new law positions Germany to play a central role in developing Europe’s carbon management infrastructure while balancing industrial competitiveness with its long-term climate commitments.