Is Germany About to Win Europe’s Carbon Capture Race?

Germany clears legal hurdles for CCS, eyeing EU funds and global CO₂ storage links.

22 Apr 2025

Germany is fast-tracking its carbon capture ambitions, setting the stage for a continent-wide shift in how Europe tackles industrial emissions.

In a major policy shakeup, Berlin’s ruling coalition has agreed to grant carbon capture and storage (CCS) projects the status of “overriding public interest.” That label might sound dry, but it dramatically cuts red tape, making it easier to build pipelines, access land, and draw in big investors.

For industrial giants like Heidelberg Materials and Thyssenkrupp, long-stalled CCS plans may finally get off the ground. “It’s a turning point,” said one energy analyst. “Germany is clearing the way for industrial decarbonization at scale.”

The new law also breaks fresh international ground. It includes a ratified amendment to the London Protocol, allowing CO₂ exports for offshore storage. With limited capacity at home, Germany is eyeing established storage hubs in Norway and the Netherlands, hoping to stitch together a trans-European carbon network.

Timing is no accident. By aligning its law with European Union climate rules, Germany is positioning CCS projects to tap into EU subsidies like Carbon Contracts for Difference. That could be a game-changer for funding, especially for sectors that can’t easily go green, like cement and steel.

Critics warn against leaning too heavily on CCS, arguing it could distract from clean energy investments. But most experts see it as a necessary tool, not a substitute. The new policy is designed to work alongside renewables, not replace them.

As the law moves into parliamentary debate, the rest of Europe is watching. If Germany’s CCS gamble pays off, it could become a blueprint for how the EU hits its climate targets, one captured carbon molecule at a time.