Germany's CCS Infrastructure Needs Financial Support and Strategic Policies for Climate Neutrality
Achieving climate neutrality in Germany requires the establishment of Carbon Capture and Storage (CCS) infrastructure. Current costs for CCS are estimated between 150 and 300 euros per ton, significantly higher than prior forecasts and above the current EU ETS CO2 price of around 85 euros per ton. The German government has begun legal reforms for CCS but lacks key requirements for market ramp-up, including a robust CO2 price and targeted industrial strategy. Without governmental support, CCS deployment will be slow and insufficient to meet EU storage targets.
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Germany's move towards climate neutrality hinges on the development of Carbon Capture and Storage (CCS) infrastructure. Recent calculations from Agora Industrie and Öko-Institut indicate that CCS costs range from 150 to 300 euros per ton, exceeding earlier estimates and the current EU ETS price of approximately 85 euros.
The German government has initiated legal reforms for CCS but still lacks essential conditions for a successful market launch, such as a solid CO2 price and a strategic industrial approach. Existing CCS projects in the EU can only store ten million tons of CO2 annually, far from the 50 million ton target by 2030.
To meet future storage needs, two large storage facilities must be operational each year. Immediate governmental action is required to create investment-friendly conditions and retain limited storage capacities for unavoidable emissions.
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