CO₂ Storage: Cabinet Decision Must Be Followed by Swift Implementation

• Die Gas- und Wasserstoffwirtschaft welcomes the Cabinet's decision to amend the Carbon Dioxide Storage Act as an important foundation for the CO₂ market.
• The abolition of the gas storage levy through the amendment of the Energy Industry Act (EnWG) eases the burden on industry as well as consumers.
• Kehler: "CCU/S must no longer be blocked, but understood as a key factor for Germany as an industrial location – what we need now is speed in implementation."

Die Gas- und Wasserstoffwirtschaft welcomes today’s Cabinet decision to amend the Carbon Dioxide Storage Act (KSpG) and the Energy Industry Act (EnWG). Both initiatives send important signals for Germany as an industrial hub and for achieving climate goals. What is crucial now is a swift, technology-neutral implementation with clear framework conditions for infrastructure, investment, and societal acceptance.

Die Gas- und Wasserstoffwirtschaft welcomes today's cabinet decision on the draft Carbon Dioxide Storage Act (KSpG) as a long overdue and correct step. The legal opening for carbon capture and utilisation/storage (CCU/S) creates new prospects for climate protection in industry – and at the same time strengthens Germany as an industrial location.

"Today's cabinet decision marks the start of a political race to catch up in an area where other countries are already well ahead. It is good that CCS is finally no longer taboo, but is being seen for what it is: a necessary addition to the climate-neutral transformation of our industry," explains Dr Timm Kehler, CEO of the Association Die Gas- und Wasserstoffwirtschaft.

CCS is often the only technically feasible option, especially for energy-intensive industries whose processes cannot be completely decarbonised. At the same time, the end of free CO₂allowances will increase the financial burden on industrial companies – an additional factor that makes CCS increasingly relevant as a location factor.

"Introducing a legal framework alone is not enough. What is crucial now is rapid, predictable and technology-neutral implementation. If we want to combine climate protection and competitiveness, we must enable CCS for all suitable applications – including industry-related power plants," Kehler continues.

The question of suitable storage sites must also be discussed in a solution-oriented manner. A voluntary opt-in for interested federal states can strengthen social acceptance and open up new opportunities.

At the same time, the cabinet also discussed a draft amendment to the Energy Industry Act (EnWG), which provides for the abolition of the gas storage levy, among other things. "The abolition of this levy is a step in the right direction to ease the financial burden on consumers and industry," said Kehler. "However, we now need a reliable strategy to secure gas storage in the future – for example, through market-based instruments and clear responsibilities."

Die Gas- und Wasserstoffwirtschaft is calling for the path that has been chosen to be pursued with political determination. CO₂ infrastructure – complementary to the hydrogen economy – is a key element of a more resilient, climate-neutral energy system. The draft law must therefore be passed quickly and supplemented by accompanying measures such as non-discriminatory access to transport infrastructure and industry-compatible investment conditions.