Negotiations are intensifying within Germany’s governing coalition as they seek to overhaul the contentious Building Energy Act (GEG), colloquially known as the “heating law”. A key meeting between Economics Minister Katarina Reiche (CDU) and Housing Minister Verena Hubertz (SPD) took place this week, signaling a renewed effort to reconcile divergent approaches to climate policy and economic feasibility.
The current GEG, implemented at the start of 2024, mandates that new heating systems in new constructions must operate using at least 65% renewable energy sources, with subsidies available for replacements transitioning to this standard. This legislation, initially championed by the previous “traffic light” coalition government, sparked widespread public backlash and became a significant political liability. While intended to drive climate action within the building sector – consistently failing to meet targets set in the federal climate protection law – its perceived inflexibility and potentially prohibitive costs for homeowners fueled significant opposition.
Under the current coalition agreement between the CDU and SPD parties, a commitment was made to abolish the existing GEG, replacing it with a revised framework hailed as “technology-open, flexible and simpler”. The focus is shifting towards defining “achievable CO2 avoidance” as the central guiding metric, ostensibly providing greater latitude in meeting climate goals while theoretically reducing the prescriptive nature of the previous legislation.
However, the SPD continues to advocate for retaining the 65% renewable energy threshold, suggesting a potential sticking point in the ongoing negotiations. Critics argue that a significantly weakened mandate risks undermining the fundamental objective of decarbonizing Germany’s building stock. Concerns remain about the political motivations behind the revisions, with some observers suggesting a calculated move by the CDU to appease voters and distance themselves from the unpopular policies of the prior administration. The timeline for presenting a revised draft remains uncertain, though both ministries have pledged “intensive” collaboration to expedite the process. The outcome of these negotiations will be a crucial test of the coalition’s ability to reconcile ambitious climate targets with the realities of Germany’s economic landscape and public sentiment.
