Germany's industrial climate transformation strategy and the role of Carbon Capture and Utilization as a building block : targets, pathways, policies, and societal acceptance

Germany is known for its ambitious climate policy targets. By 2045, the country seeks to achieve climate neutrality. As an intermediate step, the government has determined emission thresholds for different economic sectors through the year 2030. The industrial sector has so far not been a frontrunner in Germany's emission reduction efforts. Much of the country's success in this context is owed to the successful ramp-up of renewables in the electricity sector. For German industries, this means that they have little time left to undergo a substantial climate-friendly transformation by 2030. But how can this be achieved? This chapter introduces five different building blocks of Germany's climate strategy for its emission-intensive industrial sector: (1) The expansion of renewable energy for electricity production; (2) electrification and energy efficiency improvements; (3) the establishment of a green hydrogen economy; (4) the transformation towards a circular economy; and lastly (5) carbon capture and storage (CCS) and carbon capture and utilization (CCU). In an in-depth case study, the chapter reviews the particular role of CCU as a strategic component, discussing its potential as a climate strategy, its regulatory and legal framework, as well as insights on the broader societal acceptance of this technological approach.