Carbon Dioxide Storage Act

Carbon Dioxide Storage Act, Carbon Capture and Storage

On 6 August, the German Federal Cabinet approved the Draft Law to amend the Carbon Dioxide Storage Act. The law is intended to enable the use of CCS (carbon capture and storage) and CCU (carbon capture and utilization), as well as the transport and storage of CO2.

📄 Draft Law: Entwurf eines Gesetzes zur Änderung des Kohlendioxid-Speicherungsgesetzes

The Draft Law was developed over the past few months by the Federal Ministry for Economic Affairs and Energy and coordinated with the states, associations, and other ministries.

✅ Key Takeaways:

📌 With this draft law, Germany joins the ranks of countries that aim to use CCS technologies as part of achieving their climate targets.

📌 The law establishes a legal framework for the construction of CO2 pipelines and storage facilities, while ensuring compliance with safety and environmental regulations.

📌 The main provisions include:

  • Application of the law to the licensing and operation of CO2 pipelines, the licensing and operation of permanent underground storage facilities, as well as the investigation, monitoring, decommissioning, and aftercare of all facilities and equipment related to CO2 storage and transport.
  • Authorization of CCS facilities for commercial use on an industrial scale on the continental shelf and in the exclusive economic zone.
  • Exclusion of marine protected areas and coastal waters from CO2 storage.
  • An opt-in option for federal states to allow onshore storage on the German mainland.
  • Recognition of the overriding public interest for the construction, operation, and significant modification of CO2 pipelines and storage facilities.
  • Exclusion of emissions from coal-fired power generation from access to the CO2 pipeline network.
  • Introduction of regulations to accelerate procedures and approvals for the development of CO2 infrastructure.

➡️ Source: Bundesregierung ebnet den Weg für CO₂-Speicherung und -Nutzung (CCS und CCU)

New draft laws in the Energy Sector

Abolition of the gas storage levy - Entwurf eines Vierten Gesetzes zur Änderung des Energiewirtschaftsgesetzes.
Accelerate the Expansion of Geothermal Plants, Heat Pumps, and Heat Storage Facilities - Entwurf eines Gesetzes zur Beschleunigung des Ausbaus von Geothermieanlagen, Wärmepumpen und Wärmespeichern sowie zur Änderung weiterer rechtlicher Rahmenbedingungen für den klimaneutralen Ausbau der Wärmeversorgung.
EU Renewable Energy Directive in the Areas of Offshore Wind Energy and Electricity Grids - Entwurf eines Gesetzes zur Umsetzung der EU-Erneuerbaren-Richtlinie
in den Bereichen Windenergie auf See und Stromnetze.
Act Amending Energy Industry Law to Strengthen Consumer Protection in the Energy Sector and Amending Other Energy Law Provisions (EnWG Amendment 2025) - Entwurf eines Gesetzes zur Änderung des Energiewirtschaftsrechts zur
Stärkung des Verbraucherschutzes im Energiebereich sowie zur Änderung weiterer energierechtlicher Vorschriften.

On 6 August, the German Government launched the following drafts of laws initiated by the Federal Ministry for Economic Affairs and Energy:

✅ Abolition of the gas storage levy

📄 Draft of a Fourth Law Amending the Energy Industry Act – Entwurf eines Vierten Gesetzes zur Änderung des Energiewirtschaftsgesetzes

📌 An important initiative from the coalition agreement and the emergency program.

📌 This Draft Law will provide relief for all end customers.

📌 The relief to all end customers will be in the amount of approximately €3.4 billion:

  • with a levy of €2.89 per megawatt hour, the relief for a four-person household will amount to approximately €30 to €60 per year.
  • the relief on gas prices will also contribute to a reduction in electricity costs.

✅ Draft Law to Accelerate the Expansion of Geothermal Plants, Heat Pumps, and Heat Storage Facilities

📄 Draft Law: Entwurf eines Gesetzes zur Beschleunigung des Ausbaus von Geothermieanlagen, Wärmepumpen und Wärmespeichern sowie zur Änderung weiterer rechtlicher Rahmenbedingungen für den klimaneutralen Ausbau der Wärmeversorgung

📌 Planning approval procedures for heat pipelines and the construction of large heat pumps will be accelerated.

📌 The approval process for heat storage facilities will be clearly regulated, thereby eliminating uncertainty in practice.

📌 In the future, authorities will be able to require geothermal companies to provide proof of coverage for mining damage as well.

✅ Law Implementing the EU Renewable Energy Directive in the Areas of Offshore Wind Energy and Electricity Grids

📄 Draft Law: Entwurf eines Gesetzes zur Umsetzung der EU-Erneuerbaren-Richtlinie in den Bereichen Windenergie auf See und Stromnetze

📌 Introduction of acceleration areas for offshore wind energy and infrastructure areas for transmission grids, distribution grids, and offshore connection lines.

📌 Streamlined approval procedures are to apply to these areas.

📌 The draft transposes the requirements of the RED III in the areas of offshore wind energy and electricity grids into national law.

✅ Act Amending Energy Industry Law to Strengthen Consumer Protection in the Energy Sector and Amending Other Energy Law Provisions (EnWG Amendment 2025)

📄 Draft Law: Entwurf eines Gesetzes zur Änderung des Energiewirtschaftsrechts zur Stärkung des Verbraucherschutzes im Energiebereich sowie zur Änderung weiterer energierechtlicher Vorschriften

📌 The Draft Law further increases the level of protection for consumers in the energy sector through obligations of electricity suppliers to household customers to hedge against price risks.

📌 The new regulations on “energy sharing” will enable consumers to actively participate in the energy market and the energy transition.

📌 The Draft Law provides for a further acceleration of the smart meter rollout.

AI & Energy

Artificial Intelligence and digitalisation for Energy

📢 New EU Initiative on AI & Energy

The European Commission has launched the public consultations regarding the initiative “Strategic Roadmap for digitalisation and AI in the energy sector”.

🗓 Feedback period: 05 August 2025 – 05 November 2025

💬 Feedback can be provided here

🎯 Goals of the Strategic Roadmap:

📌 To exploite of synergies with the Affordable Energy Action Plan, the Energy Efficiency Roadmap, the Grids Package, the Citizens Energy Package, the Electrification Action Plan and the Heating and Cooling Strategy.

📌 To complement the upcoming Apply AI Strategy, the Data Union Strategy, and the Cloud and AI Development Act.

📌 To leverage the potential of digital and AI technologies for the energy system, while mitigating the associated risks and enable the decarbonisation and competitiveness of the EU economy.

☑️ What does the initiative aim to achieve?

📌 Accelerate deployment

  • Enable access to energy data to support innovative services
  • Help develop and test AI tools for the energy sector
  • Advance smart grids and digital twins

📌 Boost innovation & research

  • Close the innovation gap
  • Strengthen EU technological sovereignty
  • Support clean energy R&D using AI

📌 Integrate data centers sustainably

  • Improve planning and energy efficiency
  • Minimise grid strain and local impact

📌 Enhance transparency & risk oversight

  • Share best practices for AI in critical infrastructure
  • Provide guidance on high-risk AI systems
  • Use AI to improve energy asset security

📌 Create a robust governance framework

  • Foster collaboration across sectors and Member States
  • Engage with international partners and stakeholders

✅ What next?

  • Targeted consultations and workshops
  • Discussions with Member States and expert groups
  • A high-level stakeholder event in Q3 2025

➡️ Source: Artificial intelligence and digitalisation for energy – a roadmap

Annual Energy Outlook 2025

Long-term projections: total hydrogen supplied to market, 2023-2050, hydrogen produced via steam methane reforming, 2023-2050

Figure: Long-term projections for supply and production of hydrogen

Source: Annual Energy Outlook 2025

According to the latest Annual Energy Outlook 2025 by the U.S. Energy Information Administration, even when accounting for the IRA incentives prior to the “One Big Beautiful Bill Act”, hydrogen produced from natural gas remains dominated in the long-term outlook.

📊 By 2050, the majority of H2 in the U.S. is projected to be produced from natural gas via steam methane reforming (SMR). Less than 1% is expected to come from electrolyzers, despite supportive policies.

➡️ Full analysis: Natural gas remains the largest source of hydrogen in our long-term projections

Yet, this contrasts with the vision laid out in the U.S. National Clean Hydrogen Strategy and Roadmap, which foresees a more diverse production mix — including electrolysis, fossil-based hydrogen with CCS, and biomass/waste-derived hydrogen, playing key roles through at least 2050.

The key takeaway: Ambition and reality are still not fully aligned, when it comes to scaling up green hydrogen.

➡️ Source: U.S. National Clean Hydrogen Strategy and Roadmap

EU Hydrogen Auction

Hydrogen Bank. Innovation Fund IF25 Hydrogen Auction. Draft Terms and Conditions

📢 New EU Hydrogen Auction – Draft Terms & Conditions Open for Feedback

The European Commission has published the draft Terms & Conditions (T&Cs) for the IF25 Hydrogen Auction, the third call under the European Hydrogen Bank, set to launch by the end of 2025.

☑️ What’s new in this round?

Proposed Budget: EUR 1.1 billion, split across three topics:

  • Topic 1: EUR 400 million – RFNBO and/or electrolytic low-carbon hydrogen
  • Topic 2: EUR 400 million – RFNBO hydrogen only
  • Topic 3: EUR 200 million – RFNBO and/or electrolytic low-carbon hydrogen for maritime applications

☑️ Key Updates:

📌 Broader Scope: Support extended to include electrolytic low-carbon hydrogen alongside RFNBOs

📌 Electrolyser Resilience: Aligned with the NZIA Implementing Act (C(2025) 2900), simplifying some earlier resilience criteria

📌 Environmental Screening: New evaluation against Do-No-Significant-Harm (DNSH) principles

📌 No Double Funding: Projects already funded under the Innovation Fund or other EU sources are not eligible

📌 Electricity Sourcing Plan: Projects must show a credible strategy for sourcing 100% of required electricity. For low-carbon hydrogen, at least 60% of non-renewable input must meet the 70% emissions savings threshold defined in Directive (EU) 2024/1788.

➡️ What’s next?

  • Stakeholder feedback will be gathered through the consultation
  • Feedback will be incorporated into the final design of the auction
  • The final version of T&Cs will be published with the auction launch in Q4 2025

🗓 Feedback deadline: 14 September 2025

📄 Draft Terms & Conditions available here: Innovation Fund IF25 Hydrogen Auction. Draft Terms and Conditions

💬 Provide feedback here: IF25 Auction – Draft T&Cs public consultation

Revisions to CBAM regulation

CBAM: downstream extensions, anti-circumvention and rules on electricity emissions

For general information about CBAM please visit General Introduction to CBAM.

This July, the European Commission launched a public consultation on proposed revisions to CBAM. The key aims:

  • Extend CBAM to certain downstream products – to reduce the risk of carbon leakage when production shifts outside the EU or buyers turn to non-EU suppliers.
  • Strengthen anti-circumvention measures – to close gaps and ensure the financial obligations are not avoided without valid reasons.
  • Clarify electricity-related rules – particularly the use of default values and criteria for using actual electricity emissions.

📅 Feedback period – 01 July 2025 – 26 August 2025

✅ Main Objectives of Consultation

The consultation explores:

📌 Inclusion of selected downstream goods based on carbon leakage risk, embedded emissions, and technical feasibility.

📌 Options to reinforce anti-circumvention tools (e.g. more reporting requirements).

📌 Changes to CBAM rules for electricity – from emission factor updates to clearer criteria for PPAs and grid conditions.

☑️ What next?

  • A factual summary report will be available 8 weeks after the consultation closes, followed by a full synopsis report.

➡️ Source: Carbon Border Adjustment Mechanism (CBAM) – downstream extension, anti-circumvention and rules on electricity emissions

News on the Hydrogen and Guarantees of Origin Market

hydrogen and guarantees of origin (GO) system

The latest EU report titled “Technical assistance to monitor functioning of the guarantees of origin (GO) system” provides an in-depth look at the GOs market and its impact on renewable energy and hydrogen tracking.

✅ Key Takeaways

📌 The GO market has achieved a healthy level of liquidity.

📌 While transparency has improved, price discovery remains limited. GO prices vary based on factors such as technology, region, and additionality – factors not always visible to consumers. Forecasting prices remains difficult due to elements of monopolistic competition.

📌 More than 90% of hydropower, 50% of wind, and 30% of solar electricity production in Europe is currently tracked via GOs.

📌 The GO system is effective in tracking renewable electricity, but further harmonization is needed to reduce the risk of misuse.

📌 Hydrogen

  • As of the end of 2023: only 0.4% of EU hydrogen production was based on water electrolysis (45 tonnes or 1.5 GWh).
  • An additional 9.2% (1,033 tonnes or 34 GWh) was produced as a green by-product (e.g., from chlor-alkali electrolysis).
  • The Hydrix index (as of January 2025) estimates green hydrogen prices in Germany at €7.80–€9.50/kg, roughly 2.5x higher than grey hydrogen (€3–€4/kg).

📌 Hydrogen GO trading volumes

  • RFNBO certification has only been possible since December 2024.
  • Until now, certified green hydrogen has only been traded via GOs or Non-Governmental Certificates (NGCs).
  • Assuming certification, 1,500 GOs could have been issued in 2023 for hydrogen produced via electrolysis.
  • While only a few EU Member States are active in the gas GO market and even fewer support EU-wide GO trading, interest in GOs is growing:
    • Smaller projects often opt for GOs/NGCs due to lack of RFNBO compliance.
    • Larger projects (many pre-FID) are preparing for RFNBO certification to benefit from offtake obligations under the compliance market.

➡️ Source: Technical assistance to monitor functioning of the guarantees of origin (GO) system

Association of Issuing Bodies Annual Report 2024

Association of Issuing Bodies members, applicants and observers

Figure: Association of Issuing Bodies members, applicants and observers

Source: Association of Issuing Bodies, Annual Report 2024

📢 The Association of Issuing Bodies (AIB) Annual Report 2024 is out!

✅ Key highlights from 2024:

📌 Membership Expansion

  • By the end of 2024, the AIB had 39 members from 30 European countries, covering the EU, EEA, and Energy Community.

📌 Electricity Guarantees of Origin

  • 30 members actively participated in the European Energy Certificate System (EECS) Electricity Scheme, issuing and transferring GOs via the AIB Hub.
  • New participants preparing for the scheme:
    • NEURC (Ukraine)
    • ERE (Albania)
    • SEDA (Bulgaria)
  • New observers:
    • ERO (Kosovo)
    • MEMO (North Macedonia)

📌 Gas Guarantees of Origin

  • 9 members were active in the EECS Gas Scheme, including:
    • Gasgrid (Finland)
    • Enagas (Spain)
    • Brugel (Belgium)
    • E-Control (Austria)
    • GSE (Italy)
    • REN (Portugal)
    • OTE (Czech Republic)
    • Elering (Estonia)
    • Conexus (Latvia)
  • 2024 was a milestone year for the Gas Scheme Group, with six new members joining.

📌 Hydrogen

In 2024, the following countries registered EECS hydrogen production devices:

  • Austria: 2 devices (10 MW total capacity)
  • Finland: 1 device
  • Spain: 2 devices (23.8 MW total capacity)

It’s great to see steady progress across electricity, gas, and now hydrogen, contributing to a more integrated and transparent GO market across Europe.

➡️ The AIB Annual Report is available via this link: ANNUAL REPORT 2024

Hydrogen Acceleration Act

Hydrogen Acceleration Act

Last week, the Federal Ministry for Economic Affairs and Energy (BMWK) presented the Draft Law for a new Hydrogen Acceleration Act (Wasserstoffbeschleunigungsgesetz).

📄 The Draft Law is available via this link.

✅ Key Points:

📌 Broader Scope Beyond Green Hydrogen

  • Unlike previous strategies focused solely on green hydrogen, the new Draft Law grants equal treatment to both green and blue hydrogen.
  • Projects producing blue H2 from natural gas with carbon capture and storage (CCS) may now benefit from acceleration measures.

📌 Support Across the Entire Hydrogen Value Chain

The Act aims to fast-track:

  • Electrolyser deployment
  • Hydrogen imports and derivatives (e.g., ammonia, methanol)
  • PtX plants for e-fuel production
  • Hydrogen storage and transport infrastructure

📌 Natural Hydrogen Recognition

  • Natural hydrogen will be classified as a non-mineable mineral resource under the Federal Mining Act (Bundesberggesetz).
  • This change simplifies project development by removing the need for contracts with landowners—similar to how resources like coal or natural gas are handled.

📌 Accelerated Permitting

  • No public hearing (Erörterungstermin) will take place during the approval process.
  • A planning approval decision (Planfeststellungsbeschluss) must be issued within 12 months.
  • A planning permit (Plangenehmigung) must be granted within 7 months.

📅 Consultation Period:

  • The BMWK is accepting feedback from federal states and industry associations until 28 July 2025.

Delegated act for Low-Carbon Fuels

EU Regulation on Low-Carbon Hydrogen and Fuels

📢 New EU Regulation on Low-Carbon Hydrogen and Fuels

On 8 July 2025, the European Commission adopted a Delegated Regulation specifying the methodology for calculating GHG emissions savings from low-carbon fuels, including low-carbon hydrogen (the Delegated Act).

✅ What is this about?

  • The Delegated Act establishes a GHG emissions methodology for low-carbon hydrogen and fuels, as outlined in the Hydrogen and Gas Market Directive.
  • It complements existing rules on renewable hydrogen and RFNBOs, creating a complete EU regulatory framework for hydrogen certification.

☑️ Who does it apply to?

  • The Delegated Act applies to EU and non-EU producers wishing to place hydrogen on the EU market.
  • Certification can be achieved through Voluntary Schemes — third-party systems already in use for renewable fuels.

📅 What happens next?

  • The Delegated Act will now be reviewed by the European Parliament and Council, who have 2 months to accept or reject it.
  • This scrutiny period may be extended by an additional 2 months, if requested.
  • If approved, the Delegated Act will enter into force 20 days after its publication in the Official Journal of the EU.

📄 Delegated Act: Commission delegated regulation (EU) specifying a methodology for assessing greenhouse gas emissions savings from low-carbon fuels

➡️ Source: Clarity to hydrogen sector with new EU methodology for low-carbon hydrogen and fuels