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Germany's new heating law balances climate goals with tenant cost relief

A controversial reform is coming: Germany's heating overhaul cuts red tape for landlords but keeps climate targets in sight. Will tenants finally get a break?

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Germany's new heating law balances climate goals with tenant cost relief

The German government is drafting a new Building Modernisation Act to reform heating regulations while protecting tenants from rising costs. The law will require oil and gas heating systems to gradually increase their use of breaking news biogas or synthetic fuels over time. At the same time, it removes a key renewable news requirement for new buildings.

Under the proposed changes, new oil and gas heating systems must gradually increase their use of biogas or synthetic fuels. This shift aims to reduce reliance on fossil fuels while keeping costs manageable for households. Minister Hubig has stressed that heating systems should not become a financial burden for renters, especially as energy news climb.

The draft law also scraps the rule that new buildings must use at least 65 percent renewable news in their heating systems. This move has drawn criticism, with concerns that it could weaken climate protection efforts and add pressure on tenants. However, the government insists the changes will balance environmental goals with affordability.

To strengthen tenant protections, new measures will be added to the Civil Code (BGB) alongside the heating reforms. With over half of Germany's population renting their homes, the law prioritises shielding them from excessive ancillary costs. Meanwhile, the existing Building Energy Act (GEG) remains in place, though discussions continue on making it more flexible. Federal Environment Minister Schneider (SPD) has confirmed that the 65 percent renewable news requirement for new heating systems will still apply from 2026.

The federal government plans to present the draft bill to the Cabinet by Easter. Minister Hubig is currently working to turn the key provisions into concrete legal regulations.

The new law will push for a gradual shift to cleaner fuels in heating systems while easing some renewable news rules for new buildings. Tenant protections will be legally reinforced to prevent unfair cost increases. The government expects to finalise the draft in the coming weeks, with heat pumps likely to remain the dominant heating solution.

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