19th August 2025

For a long time, carbon dioxide removal (CDR) was primarily a topic for scientific debate and pilot projects. Now, however, there are signs of a change of course: the German government is gradually laying the financial and legal foundations to anchor CDR in Germany’s climate policy and bring it to market.

Around €380 million for CDR

The government’s draft budget for 2026 allocates more than €111 million to negative emissions for the first time. Of this, €98 million is to be used to fund specific projects and €11.5 million to purchase CO₂ removal certificates. In addition, commitment appropriations of €320 million are planned until 2033. Funds are also allocated in other areas of the budget, such as €44.6 million for soils as carbon sinks. This makes it clear that the German government is prepared to invest substantial funds in the development of a CDR ecosystem.

Department for negative emissions at the BMUKN

In addition to financial resources, institutional anchoring is also needed. According to a current draft organisational chart, the Federal Ministry for the Environment (BMUKN) plans to set up a separate department for negative emissions. Although this has not yet been officially confirmed, it would send a strong signal: for the first time, CDR would be given a permanent place within national climate policy – on an equal footing with other issues such as the energy transition or heat planning.

Legal framework for transport and storage

Another building block is the amendment to the Carbon Dioxide Storage Act, which has already been approved by the Federal Cabinet. This will enable the transport and geological storage of CO₂ or carbon – a necessary prerequisite for several CDR methods that cannot function without transport or storage.

Germany on its way to becoming a pioneer?

Taken together, these developments mark a significant change: CDR is moving out of its niche and into the centre of climate policy. Financing, institutional anchoring and legal frameworks are emerging almost simultaneously. The crucial question now is whether Germany can translate this momentum into a genuine pioneering role in Europe – through scaling, functioning markets and effective contributions to climate protection.

DVNE assessment

The DVNE expressly welcomes these developments. They show that politicians are increasingly recognising the importance of CO₂ removal and are setting the course for a functioning market. The key now will be to pick up speed, stabilise investments and create clear framework conditions for companies and projects. Only in this way can Germany seize its opportunity to take on a genuine pioneering role in the field of CDR.

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