Germany's Cabinet backs legislation to allow CO2 storage projects

Christian Lindner, Germany's Minister of Finance, waits for the start of the German Cabinet meeting in the Chancellery. Michael Kappeler/dpa

The German government has backed a controversial plan to allow underground storage of climate-damaging carbon dioxide (CO2) emissions in the country.

The Cabinet approved a draft of the Carbon Dioxide Storage Act in Berlin on Wednesday, sources told dpa. According to the draft legislation, CO2 storage projects are being planned primarily under the North Sea.

However, Germany's parliament will still need to consider the proposals.

The proposal for CO2 storage was included in the government's February presentation of key points from its carbon management strategy.

Germany's current government contends that the use of carbon underground storage technology is necessary in order to achieve climate targets.

Storage projects would be used to offset CO2 emissions that are particularly difficult to avoid, particularly in limestone and cement production and waste incineration.

A number of environmental organizations have rejected the storage of CO2, arguing among other things that projects are likely to be very expensive and difficult to realize on a large scale.

In addition, the Cabinet also approved on Wednesday a draft law that is intended to give hydrogen projects a boost.

Hydrogen is seen as a potential climate-friendly replacement for fossil fuels as part of the broader energy transition.

"Hydrogen will play an important role in storing and transporting renewable energies," according to the draft, which was obtained by dpa.

"This is because hydrogen must be used in particular in those sectors of the economy where it is not possible or economical to convert procedures and processes to greenhouse gas neutrality through direct electrification."

Among the measures included in the draft are steps to allow faster planning and approval of hydrogen projects.

Germany's Chancellor Olaf Scholz speaks during the German Cabinet meeting in the Chancellery. Michael Kappeler/dpa
Germany's Chancellor Olaf Scholz (L) arrives behind Hubertus Heil (R), Germany's Minister of Labor and Social Affairs, at the meeting of the German Cabinet in the Chancellery. Michael Kappeler/dpa
Boris Pistorius (C), Germany's Minister of Defence, stands between Svenja Schulze (L), Germany''s Minister for Economic Cooperation and Development, and Annalena Baerbock (R), Germany's Foreign Minister, before the start of the German Cabinet meeting in the Chancellery. Michael Kappeler/dpa