Germany's CCS Infrastructure Needs Financial Support and Strategic Policies for Climate Neutrality
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.
