Article

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.