Coalition on Track in Talks About Heating Law - Germany's heating law reform nears compromise amid fierce climate debate
Germany's heating law is set for major changes as the CDU/CSU and SPD near a compromise on reforming the Building Energy Act (GEG). The current rules, which require new heating systems to use at least 65 percent renewable energy, have sparked widespread debate and uncertainty among homeowners.
The two parties now aim to replace the existing law with a more flexible approach, though environmental groups and political opponents remain sharply divided over the plan.
The original Building Energy Act was designed to phase out oil and gas heating systems over time, pushing for stronger climate protection in buildings. However, Section 71—mandating that all new heating installations use 65 percent renewable energy—became a flashpoint. Critics argued it placed too much financial strain on households, while supporters saw it as essential for cutting emissions.
In April 2025, the CDU/SPD coalition agreed to scrap this requirement, replacing it with a technology-neutral Building Modernization Act. Under the new rules, oil, gas, heat pumps, and other heating methods would all remain permitted. Existing functional systems could also stay in operation without forced upgrades. Jens Spahn (CDU/CSU) stressed the need to balance affordability, predictability for households, and climate goals, while Matthias Miersch (SPD) admitted the parties had initially been 'far apart' but now expect a deal as early as next week.
Environmental groups like the German Environmental Aid warned the reform would lead to higher costs for renters due to rising gas prices. The Greens condemned it as an 'absolute disaster,' claiming it removes climate protections without offering alternatives. Meanwhile, the AfD and CDU praised the shift as a victory for citizen freedom and practicality.
The coalition had long planned to overhaul the law, but disagreements over key details delayed progress. Now, both sides say they are close to a final proposal, which they intend to present in the coming days.
The reform would allow a wider range of heating options while keeping existing systems in place. If approved, the new law would mark a significant shift from the previous renewable energy mandate. The final decision will determine how Germany balances climate targets with household costs in the years ahead.
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