The results of our study on the German Carbon Management Strategy (CMS)

Together with the German think tank EPICO, we have prepared a study on the German Carbon Management Strategy (CMS).

Both the storage and the use of carbon dioxide (Carbon Capture Utilization and Storage, CCUS) makes a significant contribution to the decarbonization plans of German companies from the cement, steel, lime and chemical industries as well as the waste management sector.

This study highlights unresolved challenges and uncertainties for the implementation of CCUS projects. For example, it is criticizing the planned private-sector financing of the CO2 transport network, that is endangering the sufficient dimensioning and nationwide expansion, including locations in peripheral areas.

Another critical challenge for CCUS projects concerns the difficult economic viability. As companies do not expect customers to be prepared to pay more for climate-neutral products voluntarily, a CO2 price is needed to cover the additional costs of decarbonization. According to the participants, this will only be achieved for CCS projects in the period 2035-2040. Until then, the additional costs of decarbonization must be covered by subsidies.

Interview participants' assessment of expected CCS costs vs.CO2-Price, Source: CMS Study EPICO & DAG

Read more about this in our study with EPICO.