Analysis of the Regulatory Framework for the CCU Technology

ABSTRACT Carbon capture and utilisation (CCU) is increasingly considered an important technology for achieving climate neutrality within the German and European legal framework. Recent developments, particularly the Carbon Dioxide Storage and Transport Act (KSpTG), aim to enable CO 2 transport infrastructure and cross‐sector carbon management systems. However, under the EU Emissions Trading System (Directive 2003/87/EC), most CCU applications remain subject to the obligation to surrender emission allowances, whereas carbon capture and storage (CCS) benefits from exemptions linked to permanent storage. This distinction raises questions regarding the interpretation of the concept of ‘emission’ and its compatibility with the principle of equal treatment under Article 20 of the Charter of Fundamental Rights of the European Union. A more coherent framework recognising the contribution of CCU to emission reduction and a circular carbon economy appears necessary.