Carbon capture and storage (CCS) keeps gaining attention as a crucial tool for cutting industrial CO2 emissions, though critics warn it could extend fossil fuel dependency. With the European Commission set to announce new regulations, the role of CCS is a hot topic. Today, we turn our focus to Germany’s updated National Energy and Climate Plan (NECP) and examine how one of Europe’s leading economies is integrating CCS into its climate strategy. By addressing this critical aspect of Germany’s pathway to climate neutrality, we aim to understand how CCS could shape not only Germany’s but Europe’s industrial future.

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Germany’s NECP emphasises a multi-faceted approach to carbon capture, utilisation, and storage as essential for meeting its climate targets and reducing dependency on carbon-intensive industries. The plan showcases the country’s ongoing initiatives and strategic developments to foster CCU and CCS technologies.

Germany has established numerous programs to support CCU and CCS, notably Carbon2Chem and CO2-WIN, which aim to expand the country’s raw material base and improve independence from external resources. Additionally, through the SINATRA funding program, new junior research groups will explore artificial photosynthesis applications, particularly in collaboration with the U.S. Department of Energy. The ERA-Net Cofund ACT initiative further enhances the CCS and CCU technology chain by covering aspects such as CO2 capture, transport, storage, and utilisation.

Germany also supports the EU-funded SUNERGY initiative and is a member of the Mission Innovation Community on Sunlight-to-X, targeting advancements in fossil-free fuels and recyclable carbon. Through the 7th Energy Research Programme, direct-air CO2 capture (DAC) is being funded as an emerging technology, while offshore CO2 storage is under consideration for industrial purposes.

The Federal Government introduced the German Carbon Management Strategy (CMS) in February 2024, establishing conditions for the safe use of CCS technologies, alongside their transport and storage. With a focus on enabling emission-intensive sectors—such as cement, lime, and chemical industries—to achieve climate neutrality, Germany aims to balance CCS and CCU developments with the German Climate Change Act goals and GHG neutrality by 2045.

Key aspects of the CMS include:

• Barrier removal and guidelines: Easing regulatory obstacles to CCS and CCU, with strict adherence to emission reduction targets.
• Energy transition and CCS/CCU role: Supporting CCS and CCU only in non-fossil-based energy production. Coal-based plants remain excluded from CO2 pipeline access.
• Offshore storage: Legal frameworks now allow offshore CO2 storage exploration in the Exclusive Economic Zone (EEZ), excluding marine protected areas.

The Carbon Storage Act (KSpG) also enables the länder to opt into onshore CO2 storage while providing nationwide access for research storage.

The German NECP includes several measures under Carbon Direct Avoidance (CDA), combining CO2 avoidance with CCU and CCS methods to minimise emissions. A core component is Germany’s focus on recirculating CO2 post-utilisation, particularly in bioeconomy applications and renewable energy projects.

To address residual emissions, Germany is developing a Long-term Negative Emissions Strategy (LNe), which includes bioenergy with carbon capture and storage (BECCS) and Direct Air Carbon Capture and Storage (DACCS) technologies. These innovations complement Germany’s natural carbon capture solutions, such as reforestation, by creating a robust negative emissions strategy that aligns with climate goals.

Strategic Energy Technology Plan (SET Plan) and EU collaboration

Germany actively participates in the EU’s Strategic Energy Technology (SET) Plan, contributing to thematic working groups on key energy technologies including CCS, CCU, hydrogen, and renewable energies. The insights from these collaborations feed into the EU’s energy funding strategies, further aligning Germany’s goals with EU-wide initiatives.

The NECP outlines Germany’s involvement in the EU Innovation Fund as part of the EU ETS, which supports climate-friendly manufacturing technologies across energy-intensive industries. Germany is also launching a new funding guideline in 2024 to support decarbonisation in high-emission sectors, utilising Carbon Contracts for Difference (CCfDs) to mitigate operational costs of innovative technologies.

Germany’s vision under the NECP emphasises a sustainable and comprehensive approach to reducing carbon emissions, setting a strong example for integrating CCU and CCS into industrial processes and energy policies. As the country progresses toward its 2045 climate neutrality goal, its NECP represents a commitment to addressing both immediate and long-term challenges in emissions management.