Building Modernization Act: Bundestag passes new heating law
The government’s planned adjustment of the Building Energy Act is from Bundestag been adopted. The new Building Modernization Act makes it possible to install new gas and oil heating systems again. Previously, the rule decided by the traffic light government applied, according to which every newly installed heating system must be operated with 65 percent renewable energy. With the new law, the Union and SPD instead stipulate that new, fossil-fuelled heating systems must gradually use an increasing proportion of CO₂-neutral fuels such as biomethane.
Federal Economics Minister Katherina Reiche (CDU) had previously said that the federal government wanted to replace “heating constraints” with openness to technology. Reiche had repeatedly spoken of an alleged “force to use a heat pump”.
The opposition sees climate protection at risk and criticizes the impending costs
The Left warned in parliament of a “cost trap” caused by the new law, including through the increasing CO₂ taxes on fossil fuels. The Greens accused the government of ignoring warning signals such as the sharp rise in prices for fossil fuels due to the Iran war and thus accepting regressions in climate protection.
Coalition politicians, on the other hand, praised the law’s new freedom of choice in the debate and claimed to be responsive to citizens with the new law and to trust them to make their own decisions. In addition, tenants would be protected from excessive costs. According to the law, landlords will share half of the network fees and half of the CO₂ costs from 2028. However, the subsidies for replacing old heating systems will be significantly reduced.
Further legislation is expected to follow this year
The planned so-called “bio-staircase” for new heating systems is controversial: from January 2029, at least 10 percent of climate-friendly fuels should be used, from January 2030 at least 15 percent, from January 2035 at least 30 percent and from January 2040 at least 60 percent.
A “green gas quota” is to be introduced for existing heating systems from 2028. This should start at a rate of up to one percent, but details are unclear. A regulation according to which boilers were no longer allowed to be operated with fossil fuels from 2045 onwards will no longer be applicable. In the parliamentary process, however, it was determined that the federal government should present another law this year that would oblige fuel providers to switch completely to climate-neutral fuels by 2045.
Critics see Germany’s goal of becoming climate-neutral by 2045 as being seriously jeopardized by the new law. Lawsuits are expected.
This article will continue to be updated.