AUSTRIA Trends and Developments Contributed by: Bernd Rajal, Maximilian Klein and Moritz Üblagger, Schönherr Rechtsanwälte GmbH
governments are increasingly turning to AI. AI has the potential to streamline administrative processes, reduce bureaucracy and create new business opportunities for companies offering AI solutions, enhancing operational efficiency in the public sector. AI is already used in areas such as determining speed limits based on air pollution, calculating labour market opportunities, and applying facial recognition for crime prevention. These applica - tions highlight AI’s growing role in data-driven decision-making and automated governance within government functions. However, the use of AI raises concerns about transparency. The “black box” nature of AI systems makes administrative decisions hard to understand, challenging transparency and accountability. Hydrogen: Austria’s Energy future? The Austrian hydrogen strategy promotes the ramp-up of a hydrogen market. Green hydrogen should be primarily used in the industrial sector rather than in the heating sector. The government also plans to support the construction of a hydrogen transport network (similar to the one in Germany). The legislator has yet to specify the financing of the hydro - gen transport system. Two financing models are currently under review. The first model provides for a high level of investment funding including a pay-back provision. The second model pro - vides for a guaranteed minimum quantity and a distribution of federal expenditure over the term. Closely interwoven with the financing of a hydro - gen launch and core network is the question of the possibility of utilising existing pipeline infra - structure, such as those used for transporting
natural gas, to carry hydrogen. While repurpos - ing these pipelines could reduce investment costs, legal complexities must be addressed to determine whether existing regulatory permits are sufficient for hydrogen transport or if differ - ent legal provisions apply. Unlocking Potential: The End of the CCS Ban and New Prospects for Businesses in Austria Currently, carbon capture, utilisation and stor - age (CCUS) is prohibited by law in Austria, but this ban may soon be lifted, offering significant opportunities for companies to explore innova - tive climate solutions. On 26 June 2024, the Aus - trian Council of Ministers adopted the Austrian Carbon Management Strategy (CMS), which outlines a framework for addressing hard-to- abate greenhouse gas emissions. The strategy calls for removing the ban on geological storage of carbon dioxide, which has been in place since 2011, and highlights the potential for utilising CO₂ in product manufacturing. The CMS also emphasises the importance of both technical and nature-based methods for removing carbon dioxide from the atmosphere. This strategy aims to create a new legal frame - work for CCUS, facilitating cross-border trans - portation of CO₂ and opening new avenues for businesses to engage in carbon management and contribute to Austria’s climate goals. For companies, the upcoming changes present a growing market for carbon management tech - nologies and services. As the legal and regula - tory landscape evolves, businesses can capital - ise on emerging opportunities in carbon capture, storage and utilisation, positioning themselves as leaders in the transition to a more sustainable economy.
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