Discontent on all sides: The cabinet’s decision to abolish the traffic-light coalition’s heating rules is criticized not only by climate activists, environmental associations and the opposition, but also by business associations and trade unions.
The Union and the SPD have stated in the coalition agreement that they want to abolish what is called the traffic-light coalition’s heating law. This refers to the rules in the Building Energy Act (GEG), which are intended to promote a shift from fossil to renewable heat. The GEG is to be renamed the Building Modernization Act (GMG) in the future. The draft for a new GMG, prepared under the leadership of Federal Minister for Economic Affairs Katherina Reiche (CDU), was adopted by the Federal Cabinet on Wednesday.
This would remove the requirement that new heating systems be operated with 65 percent of new energies. Moreover, according to the government’s plan, gas- and oil-fired heating systems can be installed and operated without time limits. Under the current law, this would mean a latest deadline of 2045—the year by which Germany is supposed to achieve climate neutrality.
The climate target is to be reached according to the government’s plans by requiring an increasing share of biofuels in new gas- and oil-fired heating systems, the so-called green gas quota. Where the necessary amounts should come from, the federal government cannot say. What is clear: these fuels are scarce and will remain expensive in the future. Especially for tenants, this entails significant cost risks, because they do not decide for themselves which heating they use.
DUH: Fossil Rollback
Climate activists, environmental organizations, the Greens and The Left have been harshly criticizing the GMG since the plans became known because of climate and cost risks. Accordingly, they interpret the cabinet decision. The Fridays for Future activists, for example, accuse the Union and SPD of caving in to the fossil lobby with the new heating rules. The background: if gas- and oil-fired heating can continue without limits, fossil energy companies can cling to their business models. Minister Reiche, who is largely responsible for the new GMG, was until taking office the manager of a fossil energy company. “The draft bill is only to be outmatched in ecological and social irresponsibility,” reads a statement from Fridays for Future.
The Deutsche Umwelthilfe (DUH) contends that the federal government is making a “fossil rollback” with the project. “We will not spare legal means to stop the Building Modernization Act in its current form,” announced DUH managing director Barbara Metz.
Criticism does not come only from the expected side. The Association of Municipal Enterprises (VKU), whose former chief executive is Reiche and in which municipal utilities with fossil business models are organized among others, welcomes the cabinet’s adoption of the GMG. But it points to a number of open questions, for example regarding biogenic fuels. “Municipal utilities need clarity from the federal government on the concrete design of the green gas quota,” said VKU chief executive Ingbert Liebing. He calls on the government to quickly provide planning security and to develop a biomethane strategy.
The Federation of German Industries (BDI) believes that the new GMG is better than its reputation and considers the change the right step to get investments on track. Yet there is skepticism here as well. The BDI therefore calls for the planned evaluation of the GMG to be moved up by one year to 2029. The association wants early adjustments if the climate targets are not reached. “Especially the current geopolitical situation—not least the escalation in the Iran conflict—shows how vulnerable Germany remains due to heavy oil and gas dependencies,” explained Carsten Rolle, Co-Head of Energy, Mobility and Environment at the BDI. And it sounds almost like a climate NGO: “The more urgent it is now to invest in efficient, future-proof buildings to reduce energy consumption, strengthen resilience, and permanently protect households from rising costs.”
The IG Metall union fears, however, that the planned new heating rules will deter investments and thereby threaten jobs in the heating industry. “Germany’s building energy policy lacks strategic clarity,” said IG Metall deputy head Jürgen Kerner. The Building Modernization Act remains well short of the expectations of workers and industry.
