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The German Government approved on Wednesday, August 6, 2025, draft legislation that would legalise the underground storage of carbon dioxide (C02), a key step in its strategy to meet climate change goals.
The plans include the development of a national CO2 transport network to facilitate carbon capture and storage (CCS), particularly for hard-to-abate industrial sectors.
The Cabinet’s decision marks a significant policy shift.
Until now, the use of CCS technologies has been effectively blocked in Germany.
The bill must still be passed by lawmakers in parliament.
Economy Minister, Katherina Reiche, described the package as a “milestone” in decarbonising German industry.
Reiche’s predecessor, Robert Habeck, had also proposed similar legislation, but political disagreements in the previous coalition government derailed those plans.
The legislation would allow CO2 to be captured at industrial sites, transported via pipelines, and stored underground, primarily beneath the seabed in Germany’s exclusive economic zone and on the continental shelf.
Storage in coastal waters and protected areas would be prohibited.
The focus was on sectors where emissions were currently unavoidable, such as cement, lime and aluminium production.
These processes cannot yet be decarbonised via electrification or material substitution.
However, the law would explicitly exclude emissions from coal-fired power plants from being stored via this method.
The government also wants to enable the construction of CO2 pipelines and allow German participation in cross-border storage projects, such as those in Norway.
While permanent CO2 storage on land would not be permitted nationwide, states would have the option to legalise it through regional legislation.
