GERMANY Law and Practice Contributed by: Friedrich Gebert, Hannah Düwel, Bernhard Gröhe and Clara Schmidt, ARQIS Partnerschaftsgesellschaft mbB
Another new approach is the German government’s “climate protection agreements”, which are designed to provide financial relief to companies in emission- intensive industries as they switch to climate-friendly technologies. In addition, many federal states and municipalities offer additional bonuses for photovol - taics and electricity storage. For example, large cities such as Munich and Cologne subsidise the purchase of PV systems and electricity storage systems with up to EUR300 per kilowatt-hour of storage capacity, with the exact amount depending on the power output range of the system and the applicant. 6.2 Other Support Germany promotes climate-friendly investment through regulatory frameworks like the CSRD and the EU Taxonomy Regulation, which enhance sustain - ability reporting and support ESG-focused finance. The Omnibus Package recently refined these rules by limiting their scope to larger companies to reduce administrative burdens. See 2.5 Bilateral/Multilateral Co-Operation Under the Paris Agreement , 4.1 Liabil- ity for Climate Change and ESG Reporting and 5.1 Due Diligence for detailed information.
Regarding CCUS (carbon capture, utilisation and storage), Germany has recently reformed its Carbon Dioxide Storage Act ( Kohlendioxid - Speicherung - und - Transport - Gesetz – KSpTG) in late 2025. The reform aims to support the use of CCS (carbon capture and storage) and CCUS, mainly by allowing the construc - tion of CO2 pipelines and CO2 storage facilities in Germany’s continental shelf and exclusive economic zone (EEZ) and accelerating approvals by declaring such pipelines and storage facilities to be of overrid - ing public interest.
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