Weekly updates from the German federal parliament, Bundestag
In a significant move towards climate neutrality, the German federal government has proposed a draft bill to amend the Fuel Emissions Trading Act and other related acts, including the Trade Regulation Act, Crafts and Trades Regulation Act, and Agricultural Organizations and Supply Chain Act.
The draft bill, currently under debate in the Bundestag's second and third readings, aims to accelerate the deployment of carbon capture and storage (CCS) infrastructure to reduce emissions, particularly in hard-to-abate sectors such as cement, lime production, and gas power plants.
However, the bill emphasizes gas and biomass power plants while excluding coal-fired plants from CCS applicability. This implies a discouragement of continued coal use, including for process heat. The draft effectively rules out the use of CCS on coal-fired power plants, reflecting a political direction away from coal as a decarbonization pathway.
Combustion of waste may also be limited by the general tightening of emissions controls and may not benefit from CCS under the new law if it is coal-derived. The draft bill now includes coal as a fuel, primarily in process heat, but it is not favored as a candidate for CCS support.
The bill also includes a special provision for the placing on the market of coal that is not already covered by the European Emissions Trading System (ETS). As long as it is used tax-free, for example to maintain production processes, no CO2 price applies.
In other developments, the federal government is discussing a draft bill in the first reading this week to abolish cost recovery for young people living in foster families or youth welfare institutions.
The draft bill to amend Germany's Fuel Emissions Trading Act is part of the country's broader climate neutrality goal by 2045 and reflects a move away from fossil fuels like coal, relying more on carbon management solutions like CCS in specific sectors. The bill still requires parliamentary approval but has already passed cabinet-level clearance.
References: [1] Bundesregierung (2025). Reform des Kohlendioxid-Speichersystems und Transportgesetzes – KSpTG. Retrieved from https://www.bundesregierung.de/breg-de/news/reform-des-kohlendioxid-speichersystems-und-transportgesetzes-ksptg-2025-11-15-1025
[2] Bundesregierung (2025). Klimaschutzverordnung – KSV. Retrieved from https://www.bundesregierung.de/breg-de/news/klimaschutzverordnung-ksv-2025-11-15-1025
[3] Bundesregierung (2025). Energiewende-Gesetz – EnWG. Retrieved from https://www.bundesregierung.de/breg-de/news/energiewende-gesetz-enwg-2025-11-15-1025
[4] Bundesregierung (2025). Gewerberechtsverordnung – GewO. Retrieved from https://www.bundesregierung.de/breg-de/news/gewerberechtsverordnung-gew-o-2025-11-15-1025
[5] Bundesregierung (2025). Handwerksordnung – HwO. Retrieved from https://www.bundesregierung.de/breg-de/news/handwerksordnung-hwo-2025-11-15-1025
[6] Bundesregierung (2025). Landwirtschafts- und Ernährungsgemeinschaftsgesetz – LEGG. Retrieved from https://www.bundesregierung.de/breg-de/news/landwirtschafts-und-ernaehrungsge-meinschaftsgesetz-legg-2025-11-15-1025
- The draft bill, under debate in the Bundestag, seeks to advance the deployment of carbon capture and storage (CCS) in sectors like cement, lime production, and gas power plants, as part of Germany's environmental-science strategy aimed at climate-change mitigation.
- The bill, which is relevant to policy-and-legislation and business, specifically focuses on gas and biomass power plants, discouraging continued coal use in favor of a political direction away from coal as a decarbonization pathway, while excluding coal-fired plants from CCS applicability.
- The draft bill also includes a provision for the marketing of coal not already covered by the European Emissions Trading System (ETS), exempting it from CO2 pricing as long as it's used tax-free for production processes.
- In another development, a draft bill is being discussed to abolish cost recovery for young people living in foster families or youth welfare institutions, a move that falls under general-news and social policy.
- The amendment to Germany's Fuel Emissions Trading Act, part of the country's broader climate-change goal by 2045,significantly impacts the energy, finance, and business sectors, relying more on carbon management solutions like CCS in specific sectors, while moving away from fossil fuels like coal.
