Associate Hamburg
"The Act creates the regulatory framework for the storage of CO₂ on an industrial scale and for the development of a nationwide CO₂ infrastructure for the transport and commercial storage of CO₂."
With the recodification of its Carbon Dioxide Storage and Transport Act (des Kohlendioxid-Speicherung-und-Transport-Gesetz, “KSpTG”), the German government is taking a decisive step towards its goal of climate neutrality by 2045. The recodification came into force on 28 November 2025.¹ It puts an end to many years of reform regarding carbon dioxide (“CO₂”) storage and utilisation. The Act creates the regulatory framework for the storage of CO₂ on an industrial scale and for the development of a nationwide CO₂ infrastructure for the transport and commercial storage of CO₂. The KSpTG is the subject of controversial debate on certain points; but at the same time, there is broad consensus that CO₂ storage is essential from a climate protection perspective. Various industries in which CO₂ emissions are technically unavoidable have been waiting for legal certainty. The investment potential is enormous.
CO₂ storage
CO₂ storage (also known as Carbon Capture and Storage (“CCS”)) refers to the process of capturing CO₂ from industrial processes before it is released into the atmosphere and then storing it permanently underground in deep geological formations on land or at sea. The aim is to prevent further accumulation of CO2 in the atmosphere and to achieve climate targets.² The removal and storage of CO₂ from the air (Direct Air Carbon Capture and Storage, “DACCS”) is only covered by the KSpTG insofar as it concerns issues relating to the storage of CO₂. The removal of CO₂ from the air is not regulated in the KSpTG.
The concept of Carbon Capture and Utilisation (“CCU”) enables captured CO₂ to be used as a raw material, in the production of chemicals, building materials or energy sources for transport, industry and heat supply. This does not reduce CO₂ emissions but creates opportunities to reuse captured CO₂ in line with the goal of a circular economy.³ For CCU, it must also be ensured that the CO₂ is permanently stored in the product.⁴
These technologies are particularly important for the decarbonisation of industrial sectors with emissions that are difficult to avoid, especially the cement and lime industry and thermal waste treatment.⁵
Current Legal Situation
The KSpG (Carbon Dioxide Storage Act) has been in force in Germany since 2012. The Act permitted the permanent storage of CO₂ exclusively for research purposes. The KSpG lacked any regulatory provisions for commercial use.
The KSpG also contained provisions on the transport of CO₂. According to Section 4 (1) KSpG, a planning approval procedure (Planfeststellungsverfahren) was required for carbon dioxide pipelines, and Sections 43a no. 1-4, 43b no. 3-5 and 43e EnWG applied accordingly, Section 4 (2) sentence 1 KSpG. Under the new KSpTG, a planning approval procedure is also mandated for constructing and operating CO₂ pipelines and storage facilities, with pipelines additionally subject to planning permission (Plangenehmigung), Sections 4 and 11 KSpTG.
An analysis and assessment of the potential of CO₂ storage was to be carried out nationwide, Section 5 KSpG. Based on this assessment, a draft for the new KSpTG has been drawn up and is now taken up again by the new federal government.
The KSPTG
Overview
"The new KSpTG creates a legal framework for the commercial storage and transport of CO₂ for the first time."
The new KSpTG creates a legal framework for the commercial storage and transport of CO₂ for the first time. Particularly, it covers the development of CO₂ infrastructure, especially carbon dioxide pipelines and storage facilities. The Act implements the requirements of the EU Net Zero Industry Act, which sets binding targets for the creation of CO₂ injection capacities by 2030.
The construction and operation of this CO₂ infrastructure is now in the overriding public interest In legally mandated weighing decisions, this public interest must be given special consideration and generally takes precedence over other concerns. This is a considerable relief for CO₂ infrastructure projects as experience with comparable regulations for renewable energies and battery storage facilities shows.
CO₂ storage offshore is generally only permitted in the Exclusive Economic Zone (“EEZ”) and on the continental shelf; injection is prohibited in coastal waters. Storage facilities may not be built in marine protected areas and must not significantly impair the operation of offshore wind turbine generators.⁶ An opt-in provision in Section 2 (5) allows federal states to permit onshore storage facilities at the state level.⁷ Opinions on the use of the opt-in provision vary among the federal states.
No access to CO₂ infrastructure for operators of coal-fired power plants
CO₂ from coal-fired power plants is excluded from the scope of the KSpTG in that operators of CO₂ transmission networks and storage facilities must deny companies that operate coal-fired power plants access to the pipeline network. Conversely, this means operators of gas-fired power plants, and all other companies that express an interest, must be granted access to the pipeline network and storage facilities. The KSpTG does not provide for an obligation to deny access to companies whose CO₂ emissions were avoidable according to the state of the art.⁸ More specific regulations on grid connection and access are to be laid down by ordinance in accordance with Section 33 (4) KSpTG.
CO₂ transport infrastructure and grid expansion
One of the aims of the Act is to establish a nationwide CO₂ transport infrastructure in the form of a CO₂ pipeline network. The definition of the CO₂ pipeline network is based on the regulation for hydrogen networks found in the Energy Industry Act (“EnWG”). Mixed-use pipelines for CCS and CCU are also planned.
The planning approval procedure is largely based on the EnWG.⁹ The Higher Administrative Court has jurisdiction in the first instance for court proceedings concerning the construction, operation and significant modifications of CO₂ pipelines. According to Section 4 (6) KSpTG, Section 43e (1) to (3) EnWG applies accordingly to legal actions, meaning that appeals against planning approval decisions have no suspensory effect and special regulations apply to the time limits for urgent legal remedies and for submitting statements of grounds for appeals. Pursuant to Section 4 (1) sentence 1 KSpTG CO₂ pipelines may, in principle, only be constructed and operated by way of planning approval procedure, unless they are located within a factory site. A planning approval procedure that involves procedural simplifications may be granted under the conditions set out in Section 74 (6) of the Administrative Procedure Act (“VwVfG”), i.e. under the conditions that the rights of others are not or only insignificantly affected and that the project is in the public interest.
Existing permits for natural gas, hydrogen and product pipelines are also considered permits for the transport of CO₂ in accordance with Section 4a (2) sentence 1 KSpTG, if there is no plant requiring approval under immission control law. In the case of bundling CO₂ and hydrogen pipelines, there is a legal presumption that no interests are affected that were not already considered in the planning of the corresponding hydrogen pipeline.¹⁰
Overriding public interest
Projects involving CO₂ pipelines are in the overriding public interest pursuant to Section 4 (1) sentence 3 KSpTG; for CO₂ storage facilities, the overriding public interest follows from Section 11 (1) KSpTG. This attribution also applies to cases where the respective project is implemented on a private-sector, profit-oriented basis.
Comparable provisions already exist in energy law, e.g. The law does not contain any explicit weighting priorities, however, the contribution to climate protection and the reduction of greenhouse gases through CO₂ pipelines must be considered in weighing decisions, according to the KSpTG. Planning approval procedures for CO₂ pipelines are also to be given priority by the authorities.¹¹ This reflects the overriding public interest and will accelerate planning approval procedures for CO₂ pipelines.
Onshore CO₂ storage and export options
The new law does not provide for mainland storage facilities. However, Germany’s federal states may permit CO₂ storage by means of an ‘opt-in’ arrangement. This gives the federal states considerable leeway in determining the areas in which storage will be permitted. In cases of cross-state projects, the participation and approval of all affected federal states is required.¹²
The municipal umbrella organisations (kommunalen Spitzenverbände) have called for the early involvement of local authorities in the selection of suitable areas on land.¹³ Currently, the federal states in northern and central Germany are predominantly opposed to or cautious about possible CO₂ storage sites.¹⁴ In Mecklenburg-Western Pomerania onshore storage has been ruled out by the Carbon Dioxide Storage Exclusion Act of 30 May 2012 and there are no plans to change this regulation.¹⁵
Southern German federal states are more open to this idea. In July 2025, the Bavarian Ministry of Economic Affairs published an action plan to examine the possibilities for storing and transporting CO₂ in Bavaria, aiming for completion by the end of 2027.¹⁶ In a position paper, the state government of Baden-Württemberg announced that it would “take a proactive approach within the scope of its own responsibilities”.¹⁷ If individual federal states opt in, industry circles and experts estimate that the implementation of a storage project could take around ten years from that point onwards, as land designation, project planning and planning approval procedures take time. For companies with emissions that are difficult to avoid, investors and developers should closely monitor developments in the individual federal states so as not to lose any time and be able to start planning immediately.
Soon, it will be possible to use existing storage facilities abroad and export sequestered CO₂ using the CO₂ infrastructure. A proposal to amend the Hohe-See-Einbringungsgesetz (High Seas Dumping Act)¹⁸ is currently before the Bundesrat for comment with a view to exporting CO₂ for storage in the seabed of other states.¹⁹
In this respect, there is a risk of conflict with the international maritime law. In order to realise the export and storage of CO₂ in the seabed, Germany would first have to ratify the resolution to amend Article 6 of the London Protocol, which enables the conclusion of bilateral agreements with neighbouring countries on CO₂ storage.²⁰ The Federal Government has already passed a corresponding draft law, which is currently going through the legislative process.²¹
CO₂ in contention with other offshore land uses
"The construction and operation of a CO₂ storage facility is only permissible if it does not significantly impair the construction or operation of offshore wind turbine generators."
According to Section 13 (1) sentence 1 no. 8 KSpTG, the construction and operation of a CO₂ storage facility is only permissible if it does not significantly impair the construction or operation of offshore wind turbine generators, connection lines or other energy generation facilities defined in the Offshore Wind Energy Act. At the same time, CO₂ storage facilities may not be constructed in protected marine areas or within less than eight kilometres from such areas. Areas reserved for shipping, military use or underwater cables are also off-limits. Comprehensive offshore spatial planning that takes the needs of CO₂ infrastructure into account will become even more important with the expansion of CO₂ infrastructure.
Reactions and financing
The law has been largely welcomed by industry. Many welcome the fact that Germany has now created a legal framework for CCS/CCU.
The opt-in option for the federal states is viewed differently. A particular concern is the risk of contaminated drinking water caused by CO₂ storage in mainland soil.²² On the other hand, there are calls to allow onshore storage nationwide which will save costs.²³
The law does not provide a funding framework for the expansion of the CO₂ network or the construction of storage facilities. At the same time, according to Article 10 (1) lit. d) of the EU Taxonomy Ordinance, CCS and CCU are economic activities that can make a significant contribution to climate protection. However, the decisive factor for taxonomy compliance of the respective activity is its specific designation in delegated acts, e.g. for the transport and storage of carbon dioxide in sections 5.11 and 5.12 of Regulation (EU) 2021/2139.
Several environmental associations had opposed the draft law on the KSpTG in an open letter.²⁴ The focus of the criticism is the possibility of using CCS for technically avoidable emissions. They call for gas-fired power plants to be excluded from the planned CO₂ transport network, equivalent to coal-fired power plants.
The organisations also fear that marine conservation could be jeopardised.
Summary and outlook
"The successful use of CO₂ storage as a climate protection tool requires clear legal framework and investment security in order to meet climate protection targets and the needs of the economy."
The successful use of CO₂ storage as a climate protection tool requires clear legal framework and investment security in order to meet climate protection targets and the needs of the economy.²⁵ With the KSpTG, Germany is taking a decisive step in this direction.
Uncertainties remain regarding the anticipated high costs of ramping up CCS and CCU technology. When implementing onshore storage under the ‘opt-in’ regulation, it is particularly crucial to obtain approval from the population; a detailed analysis of each individual site is essential. If an EU-wide regulation on CO₂ storage infrastructure follows, it may be necessary to harmonise the various regulatory regimes. The European Commission has already announced that, as part of its carbon management strategy,²⁶ it will present a proposal for the creation of a legal framework for cross-border CO₂ networks in Europe in Q3 2026.²⁷
Despite the regulatory uncertainties, the KSpTG allows Germany to catch up with other countries and use another instrument to reduce CO₂ emissions in industry.
Companies and planning authorities should familiarise themselves with the planned new regulatory framework at an early stage to be able to implement future projects efficiently and successfully.
[1] See Federal Law Gazette 2025 I no. 282, https://www.recht.bund.de/bgbl/1/2025/282/VO.html, last accessed on 5 December 2025.
[2] See https://www.umweltbundesamt.de/themen/wasser/gewaesser/grundwasser/nutzung-belastungen/carbon-capture-storage#grundlegende-informationen, last accessed on 11 September 2025; Kindler/Boennen, in: KlimR 2024, 71; Grebe/Senders, in: IR 2025, 223.
[3] See https://www.umweltbundesamt.de/themen/klima-energie/klimaschutz-energiepolitik-in-deutschland/carbon-capture-utilization-ccu#Hintergrund, last accessed on 11 September 2025.
[4] See Grebe/Senders, in: IR 2025, 223.
[5] See Federal Ministry for Economic Affairs, FAQ on CCS and CCU, as of 29 May 2024, sentence 5, section 1.5.
[6] See below, section 3.6.
[7] See below, section 3.5.
[8] For criticism of this, see the discussion paper by the German Advisory Council on the Environment, sentence 5 f., October 2024, https://www.umweltrat.de/SharedDocs/Downloads/DE/04_Stellungnahmen/2024_2028/2024_10_CCS.pdf?__blob=publicationFile&v=11, last accessed on 27 November 2025.
[9] See the demand of the Economic Committee in the Federal Council for further harmonisation in order to facilitate the application of law by authorities and create greater legal certainty: BR Recommendation 379/1/25 sentence 6 item 9 on Section 43a EnWG, sentence 6 f. item 10 on Section 48a EnWG.
[10] For the criticism of the Economic and Environmental Committees, see: BR Recommendation 379/1/25, sentence 4 f. Nos. 5-7.
[11] For criticism from the Economic Affairs Committee: BR Recommendation 379/1/25 sentence 7 no. 11.
[12] See criticism of the Environment Committee: BR Recommendation 379/1/25 sentence 12 No. 19 lit. f).
[13] See Committee document 20(25)719, statement by the Federal Association of Local Authority Umbrella Organisations, sentence 3.
[14] See https://www.zdfheute.de/politik/deutschland/ccs-bundeslaender-lagerung-co2-100.html, last accessed on 25 November 2025.
[15] See BR Recommendation 379/1/25 sentence 2 item 2.
[16] See CCU/CCS action plan for carbon management in Bavaria, https://www.stmwi.bayern.de/fileadmin/user_upload/stmwi/publikationen/pdf/2025-07-16_AktionsplanCCUCCS_Layout.pdf, last accessed on 25 November 2025.
[17] Position paper of the state government of Baden-Württemberg on carbon management, https://www.baden-wuerttemberg.de/fileadmin/redaktion/dateien/PDF/Anlagen_PMs_2024/241015_Positionspapier-Carbon-Management-BW-2024.pdf, last accessed on 25 November 2025.
[18] https://dserver.bundestag.de/brd/2025/0561-25.pdf, last accessed on 9 December 2025.
[19] On the status of proceedings: https://dip.bundestag.de/vorgang/erstes-gesetz-zur-%C3%A4nderung-des-hohe-see-einbringungsgesetzes/326707?f.deskriptor=CO2-Abscheidung%20und%20-Speicherung&rows=25&pos=4&ctx=d, last accessed on 09.12.2025.
[20] See Grebe/Senders, in: IR 2025, 223, this was already planned by the last federal government, see https://dip.bundestag.de/vorgang/gesetz-zu-den-entschlie%C3%9Fungen-lp34-vom-30-oktober-2009-und/317514?fld.0.0=deskriptor&fld.0.0.term=COVID-19&op.0=AND&f.typ=Vorgang&start=50&rows=25&sort=datum_ab&pos=53&ctx=d, last accessed on 25 September 2025.
[21] On the status of proceedings https://dip.bundestag.de/vorgang/gesetz-zu-den-entschlie%C3%9Fungen-lp34-vom-30-oktober-2009-und/326750?term=Londoner%20Protokoll&f.typ=Vorgang&rows=25&sort=datum_ab&pos=1&ctx=d last accessed on 25 November 2025.
[22] According to the BDEW Federal Association of the Energy and Water Industry in its statement on the draft amendment of 4 July 2025, sentence 9, section 3.3; and the Association of Municipal Enterprises in its statement on the draft bill of 26 May 2025, sentence 7.
[23] See BVEG Federal Association of Natural Gas, Oil and Geoenergy, statement on the association hearing of 4 July 2025, sentence 2, section 1 lit. a.
[24] See open letter: Environmental associations warn against carbon dioxide capture and storage (CCS) for technically avoidable emissions, Berlin, 11 September 2025, available at: https://www.dnr.de/sites/default/files/2025-09/25_09_11_Offener%20Brief_Umweltverb%C3%A4nde_KSpG.pdf, last accessed on 24 September 2025.
[25] See Grebe/Senders, in: IR 2025, 223.
[26] EU Industrial Carbon Management Strategy, COM/2024/62.
[27] European Commission, Europe’s Independence Moment, sentence 12 https://commission.europa.eu/document/download/05d3777d-5d73-456d-bf56-38caa77d53c8_en?filename=2025-CWP_0.pdf last accessed on 9 December 2025.
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Associate Hamburg
Associate Hamburg
