By Holger Hansen
BERLIN (Reuters) -Germany’s Bundestag lower house of parliament cleared the way on Thursday for underground carbon storage, passing a law that designates CO2 storage sites and pipelines as being of “overriding public interest” to speed up planning and approvals.
The measure is intended to help Germany achieve climate neutrality by 2045 by enabling the capture and storage of hard-to-abate emissions, notably from cement and lime production and from waste incineration.
The law allows the use of carbon capture and storage (CCS) at gas‑fired power plants but bans it at coal‑fired plants. Onshore storage remains generally prohibited, though federal states can opt in by passing their own legislation.
Industry groups welcomed the move but called for public funding to build out CO2 transport infrastructure, arguing that pipelines and hubs will be critical to scale the technology. Environmental campaigners, however, warned the reform could blunt efforts to cut emissions at source.
Until now, underground CO2 storage in Germany has been permitted only for research projects.
BUNDESTAG ABOLISHES GAS STORAGE LEVY
The Bundestag also abolished on Thursday the gas storage levy, which had been used to finance the government-mandated filling of gas storage facilities following the 2022 energy crisis.
The German government will cover the costs incurred up to the end of 2025 – amounting to as much as 3.4 billion euros ($4 billion) – using funds from the Climate and Transformation Fund.
The levy was introduced after Russia’s full-scale attack on Ukraine to help cover the costs of replacing Russian gas. It was added to gas bills, meaning consumers and businesses indirectly paid for the strategic gas purchases through higher energy costs.
($1 = 0.8575 euros)
(Reporting by Holger Hansen. Writing by Maria Martinez. Editing by Madeline Chambers and Mark Potter)
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