Consultation on the new heating law: New heating rules fall through

At a recent public hearing held by the German parliament’s Economic Committee, experts expressed significant concerns over the proposed new heating regulations outlined in the Building Modernization Act. The legislation, which aims to replace the previous government's heating rules, has sparked debate among professionals, industry representatives, and advocacy groups regarding its potential impact on costs, planning certainty, and long-term sustainability goals. The hearing took place as the coalition government—comprising the Christian Democratic Union (CDU), the Social Democratic Party (SPD), and the Greens—pushes forward with plans to expedite the passage of this law through the Bundestag.

The proposed changes include the removal of a requirement that new heating systems must generate 65 percent of their energy from renewable sources. Additionally, the mandatory replacement of gas and oil heating systems by 2045 would be abolished, allowing these systems to remain in use indefinitely. However, the legislation introduces a new provision requiring fossil fuel-based heating systems installed after 2029 to incorporate an increasing share of carbon-neutral fuels, known as the "biogas ladder." This measure is intended to gradually phase out reliance on traditional fossil fuels while promoting cleaner alternatives.

Experts raised alarms about the financial implications of these changes, particularly concerning tenants who could face rising costs associated with biogenic fuels. According to the German Tenants' Association, the current proposal does not adequately address the risk of increased expenses for renters beyond a certain threshold. Specifically, the agreement between the CDU and SPD stipulates that tenants should bear half the cost of carbon-neutral fuels up to a 30 percent share. However, this arrangement leaves renters vulnerable to higher costs once the required proportion of biogenic fuels exceeds 30 percent, potentially reaching 60 percent by 2040. This gap in responsibility, according to the association, necessitates urgent correction.

Industry representatives have also voiced their reservations. While the organization "House and Ground," which represents property owners, supports the abolition of the previous government's heating law, it criticizes the proposed tenant participation model. It argues that tenants have no control over their energy consumption and that the cost-sharing mechanism fails to consider existing investments made by landlords in energy efficiency measures such as insulation and window replacements. Despite these criticisms, the group acknowledges the broader goal of phasing out outdated heating systems.

In contrast, the German Federation of Trade Unions (DGB) views the repeal of the previous government's heating law as counterproductive and highlights a lack of strategic direction in the federal government's building energy policy. The DGB criticized the legislative draft as evidence of technological policy confusion, emphasizing that the uncertainties surrounding the current legislative process are causing hesitation within the construction sector. Furthermore, the union questioned the practicality of the biogas ladder, suggesting that it might not effectively contribute to reducing carbon emissions without a more comprehensive strategy.

As the legislative process moves forward, the proposed changes to the heating regulations continue to draw scrutiny from various stakeholders. With the bill expected to undergo second and third readings in the Bundestag shortly, the outcome of these discussions remains uncertain. The differing perspectives on cost distribution, regulatory clarity, and long-term environmental goals underscore the complexity of implementing effective and equitable policies in the transition toward sustainable energy solutions.