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| Countries covered: Germany Introduction Carbon capture and storage (CCS) technology is expected to play an important role in facilitating Germany's low-carbon ambitions over the coming years. However, by the time it takes CCS to reach technological maturity, German renewables can be expected to have major cost advantages over the newcomer technology. Scope
The draft German CCS act is a necessary yet insufficient condition to drive the widescale development of CCS in Germany. The proposed regulatory framework approach does put certain liability questions to rest but fails to provide the CCS investment community with the necessary reassurances by relying on the European carbon market to fund CCS. The current political and energy landscape in Germany - a country which depends on coal for about half of its electricity needs - provides the ideal platform for the development of CCS. CCS will take root as part of the country's challenge to replace a significant proportion of power generation in the coming years. Germany's climate protection strategy focuses on the increased use of renewable power and higher levels of energy efficiency. CCS will not threaten the development of existing and future renewable energy assets in Germany and can instead play a role in reducing CO2 emissions from widespread fossil fuel power generation. Reasons to Purchase
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