The Federal Government passed a reform of the Building Energy Law, also known as the heating law, on Wednesday. This reform eliminates the requirement for new heating systems to operate with at least 65 percent renewable energy. The aim is to provide homeowners with more freedom in their heating choices.
Economics Minister Katherina Reiche (CDU) stated after the cabinet meeting: “We are creating investment security. We are creating planning security. We are enabling technological openness and flexibility in heating choices.” Additionally, the operational ban on oil and gas heating systems starting in 2045, which was anchored in the heating law, has been removed.
Critics of the reform view it as a weakening of climate protection. However, starting in 2029, newly installed gas and oil heating systems are to be operated in a gradually climate-neutral manner. They will need to blend in an increasing share of biomethane or bio-oil, which is set to rise to 60 percent by 2040.
The reform was agreed upon in the coalition agreement between the Union and the SPD, which had decided to abolish the heating law. Instead, the so-called Bio-Staircase will be introduced, which is controversial because climate-friendly gases and oils are currently not sufficiently available and are expensive.
The Federal Government expects the market for biogenic heating systems and fuels to grow in the coming years. Tenants are also to be protected from excessive additional costs due to the installation of uneconomical heating systems. Starting in 2028, the costs for the CO₂ price and gas network fees will be split equally between tenants and landlords.
