The postponing of the law is a challenge for investors and developers of CCS projects, as they rely on predictable framework in order to make decisions on this topic. The law has been object to large controversies in Germany, as political parties, environmental organisations and industry are strictly divided in their views on CCS.
The latest obstruction in the development of the law is whether the states (Bundesländer) should be given a veto right for the deployment of CCS in their state. The black sheep in the debate is Schleswig-Holstein. Here, the state president Mr. Carstensen is demanding the right for the states to deny such projects on their territories. According to EU law, the member states are conceded this possibility. Nevertheless, the German Government does not want to meet the claim of Schleswig Holstein.
Juridically, it will also be problematic for the German Federal Council (Bundesrat) to approve the law with such a veto reservation. As the CCS law is supposed to be a federal law, it must be valid for the whole federal state. Exceptions for certain states are not allowed.
Most environmental organisations and civil resistance groups, which are against the deployment of CCS, argue that CCS will contribute to a delay in the development of renewable energy. They fear that CCS will give energy companies an excuse to continue the operation of coal driven power plants. Further arguments are that the risks connected with CO2 storage are not sufficiently treated. On the other hand, the proponents see CCS is as an necessary middle term option to cope with Germany’s immense climate gas emissions (more than 800 Mt/year), of which 40% comes from coal based power production.
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