The German Building Energy Act: A Contentious Issue Heading into the Bundestag Elections
Introduction
The Heating Act, a major source of controversy during the current legislative period, looms large as Germany heads towards the Bundestag elections. With the incumbent government’s term drawing to a close, there are growing calls for a fundamental overhaul of the Building Energy Act (GEG), as it is officially known. The upcoming coalition negotiations promise to be marked by intense debate.
The Positions of the Main Political Parties
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SPD (Social Democratic Party): The SPD intends to subject the GEG to a "practical check," aiming to simplify its language and reduce bureaucracy where possible without compromising its environmental goals. The party believes that the GEG’s mandatory municipal heat planning, combined with substantial and equitably distributed subsidies, makes the transition to renewable heating systems feasible for the broader population.
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CDU/CSU (Christian Democratic Union/Christian Social Union): The CDU/CSU advocates for a fundamental change of course. It seeks to remove the "backpack of overregulation" imposed on the GEG by the current government’s Heating Act. The party argues that a new dynamic requires clear framework conditions: gradual CO₂ pricing with social compensation, reliable subsidies, and a technology-neutral strategy of enablement.
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FDP (Free Democratic Party): The FDP, which played a key role in shaping the initial plans during the previous Ampel coalition, now insists on "freedom in the boiler room." Instead of an array of detailed regulations, the FDP favors a market-based solution through CO₂ certificate trading. It aims to phase out the Heating Act with its "excessive requirements." To mitigate the social costs of climate protection, the FDP proposes a "climate dividend" and a drastic reduction in energy taxation.
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Greens: Economics Minister and Green Party candidate Robert Habeck remains committed to his course despite criticism surrounding the Heating Act. The party’s election manifesto emphasizes the continuation of the energy and heating transition, with increased support for the installation of modern climate-friendly heating systems such as heat pumps.
Key Provisions of the Current GEG
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Renewable Heating Requirements: As of 2024, all newly installed heating systems must operate on at least 65% renewable energy. This applies initially to new buildings in designated development areas. Transition periods exist for existing buildings and new buildings outside development areas.
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Municipal Heat Planning: Large cities are required to have municipal heat plans in place by mid-2026, with the rest of the country following by mid-2028. These plans will provide homeowners with clarity on whether they can connect to a district heating network or need to pursue individual decentralized solutions, such as heat pumps.
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Transition Periods: In cases where a gas or oil heating system needs to be completely replaced due to irreparable damage, there are staggered transition periods.
Criticisms of the GEG
The GEG has faced criticism since its introduction for its excessive detail and complexity. Critics argue that it creates a perception of coercion among consumers and makes it difficult to implement in practice. The Bundesverband der Deutschen Heizungsindustrie (German Heating Industry Association) has called for the law to be made more comprehensible and practical.
The Impact of the GEG
Despite the government’s targets, the installation of new heat pumps has fallen short of expectations. However, the state-owned development bank KfW has reported a significant increase in inquiries for government subsidies since the end of 2024.
Conclusion
The German Building Energy Act remains a hotly contested issue as the country approaches the Bundestag elections. The potential for significant changes looms large, as political parties grapple with different visions for transitioning to climate-friendly heating systems in the building sector. The outcome of the upcoming coalition negotiations will likely shape the future of the GEG and Germany’s efforts to reduce its carbon footprint.
