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Carbon dioxide: Why pipeline subsidies are not expected before 2025

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Published: September 18th, 2024,
Last updated: January 30th, 2025

CO2 emissions from coal-fired power plants: The plan ist to capture the greenhouse gas deposit in the North Sea.

A draft on the German government’s Carbon Management Strategy (CMS) from the Federal Ministry for Economic Affairs and Climate Action (BMWK) postpones the issue of public funding for a privately operated CO2 pipeline network until next year. The draft, which has yet to be coordinated between the ministries and is available to Table.Briefings, states that „the need for security mechanisms for investors in the ramp-up phase“ is being examined. In addition to existing funding instruments such as Carbon Contracts for Difference – which, however, tend to benefit large manufacturing companies rather than grid operators – the German government will „probably examine options for state guarantees for financing infrastructure in the first half of 2025.“ Instruments from the German investment and development bank KfW might be considered.

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