Austria moves to lift CO₂ storage ban and open market for BECCS

Austria’s government has advanced a draft law that would reverse a 15-year ban on geological CO₂ storage. The policy shift is expected to open the country to wider deployment of CCS technologies and, in particular, BECCS — bioenergy with carbon capture and storage.

CO₂ storage would be allowed primarily for residual emissions from hard-to-abate sectors, including cement, steel, paper and ceramics. The draft law proposes capping removals at no more than 5% of Austria’s total man-made greenhouse gas emissions.

For BECCS projects, the new rules could enable geological storage of biogenic CO₂, creating a pathway to negative emissions. This could also provide access to carbon-removal markets and potential credits for verified CO₂ removals.

Austria is estimated to have substantial geological storage potential, including around 150–250 mln tons of CO₂ in hydrocarbon-bearing structures and more than 1 bln tons in deep saline aquifers.

The draft law has been released for public consultation together with a new Climate Act and updated environmental impact assessment rules. Feedback can be submitted until the end of October 2026, after which the legislative package is expected to move to the Austrian Parliament.

Tags: Austria, carbon, bioenergy