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PoliticsGerman Bundestag passes revised Building Modernization Act, easing heating rules
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On July 10, 2026, the German Bundestag passed a comprehensive revision of the controversial heating law, known as the Building Modernization Act, with 322 votes in favor and 272 against. The amendment removes the requirement that new heating systems must operate with at least 65% renewable energy, allowing fossil fuel heating systems to remain permitted in the long term. However, from 2029, newly installed gas and oil heating systems must blend increasing proportions of biomethane or bio-oil, rising from 10% to 60% by 2040. The Bundesrat approved the law without convening the mediation committee. A new funding concept, passed by the Budget Committee, scales grants according to social criteria, with over 44 billion euros earmarked for energy efficiency by 2030. Critics view the revision as a weakening of climate protection, while the government argues it gives homeowners greater freedom of choice.
Source report
Building Modernization Act Approved
The Bundestag has passed a comprehensive revision of the controversial heating law, with fossil fuel heating systems remaining permitted for the time being. The Bundesrat has also given its approval.
On Friday, the last day before the parliamentary summer recess, 322 members voted in favor of the amendment in a roll-call vote, while 272 parliamentarians voted against it. The governing factions of the Union and SPD had signaled their approval ahead of the vote, while the opposition parties AfD, Greens, and Left intended to vote against.
Key Changes to the Law
With the revision, the coalition aims to remove the requirement that new heating systems must be operated with at least 65 percent renewable energy. Critics see this as a weakening of climate protection. The government, however, wants to give homeowners greater freedom of choice.
Key provisions include:
- Long-term permission for the continued operation and new installation of oil and gas heating systems
- Climate neutrality requirement from 2045 for all heating fuels
- Gradual blending requirements for newly installed gas and oil heating systems from 2029, requiring increasing proportions of biomethane or bio-oil:
- Starting at 10 percent
- Rising to 60 percent by 2040
Controversy Over the "Bio-Staircase"
The so-called bio-staircase is controversial. Climate-friendly gases and oils are currently not sufficiently available and remain expensive.
Under the new rules, landlords will be required to bear half of the CO2 costs, grid fees, and costs for the bio-share when installing fossil fuel heating systems, though their share will be capped.
New Funding Concept
The Budget Committee of the Bundestag passed a new funding concept for switching to climate-friendly heating systems on Wednesday, taking immediate effect. The concept:
- Provides for savings
- Scales grants more strongly according to social criteria
- Offers greater support for self-occupying owners with a household income of up to €30,000
Despite the savings, over €44 billion is earmarked for promoting greater energy efficiency in buildings by 2030.
Bundesrat Approval
After the Bundestag passed the Building Modernization Act on early Friday afternoon, the Bundesrat refrained from convening the mediation committee. The Bundesrat had previously expressed criticism in June and made proposals for changes.
The requirements for replacing heating systems under the old heating law of the traffic light coalition will thus largely be eliminated in the future.
Source
taz.de - taz.deWestern
Part of this Story
Germany Passes Controversial New Heating Law with 'Bio-Staircase' Fuel Blending