Comparison of CCS/CCU Policies: Japan vs Germany
Edited by Annie Nguyễn – April 3, 2026
As countries accelerate their pathways to carbon neutrality, both Japan and Germany are positioning Carbon Capture, Storage, and Utilization (CCS/CCU) as key decarbonization tools. However, their strategies reveal fundamentally different policy priorities and industrial focuses.
Japan: Flexible, Pragmatic, and Internationally Oriented
Japan has established a comprehensive regulatory framework through the CCS Business Act, which will be fully enforced by 2026.
Due to limited domestic geological storage capacity, Japan is pursuing a dual strategy:
- Development of offshore CO₂ storage within Japan
- Expansion of cross-border CCS collaboration with countries such as Malaysia and Vietnam
Japan’s approach remains notably technology-neutral and inclusive, allowing CCS deployment across a wide range of sectors—including coal-fired power generation.
To accelerate deployment, the government is currently supporting 18 advanced CCS projects through subsidies.
Germany: Targeted, Restrictive, and Regionally Integrated
Germany, on the other hand, enacted the CO₂ Storage and Transport Act (KSpTG) in November 2025, enabling commercial-scale CCS—particularly offshore storage in the North Sea.
Germany’s strategy focuses on:
- Building a European CO₂ transport and storage network
- Exporting captured CO₂ to storage hubs in Norway and Denmark
Unlike Japan, Germany adopts a strict sectoral approach:
- CCS is prohibited for coal-fired power plants
- Priority is given to hard-to-abate industries, such as steel and cement
This reflects Germany’s broader commitment to phasing out coal rather than extending its life through CCS.
Shared Challenges
Despite their different approaches, both countries face similar structural challenges:
- High capital and operational costs
- Need for CO₂ transport infrastructure (pipelines, shipping)
- Public acceptance and environmental concerns
Conclusion: Diverging Paths, Converging Goals
Japan and Germany illustrate two distinct CCS pathways:
- Japan: Flexible, global, and transition-oriented
- Germany: Targeted, regional, and structurally transformative
Both approaches highlight that CCS is not a one-size-fits-all solution, but rather a policy tool shaped by each country’s energy mix, industrial base, and political priorities.
