German Bundestag passes new heating law, repeals strict renewable energy rules

Source: Bernd Weißbrod/dpa

The Bundestag has voted to repeal the strict heating rules introduced by the former traffic light coalition. The 65-percent renewable energy requirement has been dropped, and new gas and oil heating systems remain permitted. A "bio-staircase" is planned.

The so-called Heating Act of the previous government will soon be history. The Bundestag has passed the new Building Modernization Act, with which the black-red coalition overturns central regulations of the existing law. The reform is also expected to pass the Bundesrat on Friday.

Union Deputy Parliamentary Group Leader Sepp Müller stated that people would again have freedom in their boiler rooms: "We are replacing paternalism with freedom of choice."

Sharp criticism came from the opposition. Green Party Parliamentary Group Leader Katharina Dröge said: "This reform is an accelerant for the climate crisis. It is completely oblivious to the future that the CDU and SPD are once again relying on climate-damaging oil and gas heating." Environmental associations also warned of setbacks in climate protection and a cost trap for tenants if landlords install new gas heating systems.

Core of the Existing Law Is Overturned

The CDU, CSU, and SPD agreed in their coalition agreement: "We will abolish the Heating Act." During the election campaign, this was particularly insisted upon by the Union, which opposed the reform of the Building Energy Act driven primarily by former Economics Minister Robert Habeck (Greens).

The core of the existing law is now to be removed: Section 71, titled "Requirements for a heating system," which many critics found complicated and overly detailed. At the center is the 65-percent regulation, which is now being deleted. It stipulated that every newly installed heating system should be operated with 65 percent renewable energy. Since the regulation came into force in 2024, this initially applied to new buildings in new development areas. For existing buildings, the current law provided comprehensive transition periods. Functioning heating systems can continue to be operated.

"Bureaucratic interference in the boiler room must end" – this was stated in the Union's election manifesto. Economics Minister Katherina Reiche (CDU) had spoken of a "mandatory heat pump" with regard to the existing regulations. There should now be technological openness. CDU politician Lars Rohwer said the coalition was ending Habeck's "heating mess."

"The owner again has the freedom to decide which heating option they want to choose," the draft law states. Reiche said that in the future, the heat pump will remain a dominant technology. However, there has been hesitation in investments so far.

These Are the Central Legal Changes

In the future, in addition to a heat pump, a district heating connection, hybrid heating models, or a biomass heating system, new gas and oil heating systems can also continue to be installed – provided that from January 1, 2029, they use an increasing proportion of CO₂-neutral fuels such as biomethane. This is intended to pave the way for the transition to climate-friendly heating.

A "bio-staircase" is planned:

• From January 2029: at least 10 percent climate-friendly fuels must be used
• From January 2030: at least 15 percent
• From January 2035: at least 30 percent
• From January 2040: at least 60 percent

For existing heating systems, a "green gas quota" is to be introduced from 2028. This is expected to start at up to one percent – but details remain unclear. A regulation that, until now, heating boilers could no longer be operated with fossil fuels from 2045 has been dropped. The federal government is now to present a law by early December so that fuels for heating systems are completely climate-neutral from 2045.

Why the Reform Is Controversial

Germany has set itself the goal of operating climate-neutrally from 2045. This means that no additional greenhouse gases may be released into the atmosphere by that date.