Austria to lift CO2 storage ban via new legislation

The Austrian government, composed of the ÖVP, SPÖ, and NEOS, is moving to lift a ban on carbon dioxide (CO2) storage that has been in place since 2011. A new legislative draft regarding Carbon Capture and Storage (CCS) is expected to enter the review process this week.

The proposed law aims to create a strict regulatory framework for CCS, allowing the technology to be used in industrial sectors where emissions are difficult to avoid, such as cement, steel, and ceramic production. To ensure environmental safety, geological storage will be limited to a maximum of five percent of Austria’s annual CO2 emissions.

In addition to the CO2 storage law, the government is also reviewing an amendment to the Environmental Impact Assessment Act (UVP-G). This reform is intended to reduce bureaucracy, shorten procedure durations, and increase legal certainty for environmental assessments.

Separately, the EY Climate Protection Barometer 2026 indicates that while 88 percent of Austrians consider corporate climate action important, there is significant distrust regarding corporate claims. Approximately 77 percent of respondents believe companies engage in greenwashing.