German Government Adopted The Law On CO₂ Storage And Utilisation

The German Government on 6 August 2025 adopted a draft law amending the Carbon Dioxide Storage Act, which aims to facilitate the use of carbon capture, utilisation and storage (CCUS). This marks a turning point in Germany's climate strategy, which has historically been cautious about CCUS technologies due to environmental and public concerns.

The amendment aims to support the use of CCUS, to achieve net-zero emissions by 2045 and net-negative emissions post-2050. Additionally, the new policy initiative aims to decarbonize hard to abate sectors such as cement, steel, and chemicals, industries where emissions are difficult to eliminate through electrification or renewable energy alone. By allowing CO₂ to be captured and either stored underground or reused in industrial processes, Germany is aligning itself with broader European efforts to meet net-zero targets.