Skip to content

Germany scraps controversial Heating Act amid mixed industry reactions

A last-minute U-turn on climate policy sparks debate. Will the new green gas quota ease burdens—or leave homeowners and businesses in limbo?

The image shows a graph depicting the number of CO2 emissions in Germany. The graph is accompanied...
The image shows a graph depicting the number of CO2 emissions in Germany. The graph is accompanied by text that provides further information about the data.

Trade Unions Criticize Heating Law - Industry Reacts Cautiously - Germany scraps controversial Heating Act amid mixed industry reactions

Germany's governing coalition has reached an agreement to scrap the controversial Heating Act, easing rules for homeowners replacing heating systems. The original plan required 65% renewable energy in new installations, but this mandate has now been dropped. Business and labour groups have responded with mixed reactions to the changes.

The revised legislation removes the 65% renewable energy requirement, offering more flexibility for property owners. In its place, a 'green gas quota' will promote the use of biomethane and synthetic fuels to meet climate targets.

Holger Lösch, deputy director general of the Federation of German Industries (BDI), welcomed the resolution but stressed the need for legal certainty. Without clear rules, he warned, investment in the building sector would remain on hold. Lösch also called for alignment with EU regulations and cautioned against further last-minute changes to the law. The German Trade Union Confederation (DGB) criticised the coalition's decision. Stefan Körzell, a DGB board member, described the deal as 'utterly directionless' and lacking meaningful progress. He also raised concerns about cost risks for homeowners and tenants if renewable molecules become a central part of heating solutions. The BDI echoed worries about the green gas quota, arguing it should apply only to building heating and not extend to other sectors.

The revised heating law removes the 65% renewable energy rule but introduces a green gas quota to support climate goals. While industry groups push for stable legislation, unions warn of higher costs and unclear direction. The final text will determine how the changes affect homeowners and businesses in the coming years.

Read also:

Latest