The federal government is fast-tracking reforms to the rules governing heating system replacements. The “traffic light” coalition’s unpopular heating law—which mandates climate-friendly heating systems—is set to be scrapped as early as Friday. The Federal Constitutional Court cleared the way for this on Thursday by dismissing a procedural challenge filed by the Left Party parliamentary group. At the same time, state subsidies for replacing old heating systems are set to decrease in just two weeks.
According to government plans, the continued operation and new installation of oil and gas heating systems are to remain possible in the long term. To offset this, newly installed gas and oil heating systems will be required to run on increasing proportions of biogas or bio-oil starting in 2029. Furthermore, fuel suppliers are to increasingly blend in biogenic materials to make the operation of existing heating systems more climate-friendly.
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The Bundestag’s Committee on Economic Affairs gave the green light for this on Wednesday. The full chamber still needs to approve it, but following the Constitutional Court’s ruling, there are no longer any obstacles to doing so. In the Bundesrat, the Permanent Advisory Council agreed to a request to shorten the legislative timeline. Consequently, the chamber representing the federal states can also deal with the proposal definitively as early as Friday.
“The Building Modernization Act can now be implemented,” stated Federal Economics Minister Katherina Reiche (CDU). “In doing so, we are providing property owners, tenants, the skilled trades, and the construction industry with the planning certainty they have long been waiting for.”
The parliamentary groups of the Union and the SPD had proposed further amendments to the government’s draft this week. Among other things, a complete switch to alternative fuels for oil and gas heating systems by 2045 is to be mandated. The previous version of the bill merely stipulated a target of 60 percent bio-based content by 2040.
The German Nature Conservation Ring (DNR) criticized this as “vacillating”: “The Federal Government is removing the ban on fossil-fuel heating systems from the Building Modernization Act, even though it acknowledges the necessity of such a ban and intends to reintroduce the same regulation elsewhere,” explained DNR Executive Director Florian Schöne.
Last-minute changes also emerged this week regarding heating subsidies. Due in part to budget shortfalls, subsidy rates for replacing old heating systems will drop significantly later this year. According to the Federal Ministry of Economics, homeowners who already possess application confirmation or a technical project description have only until July 21 to submit subsidy applications under the old system. After that date, most applicants will receive a smaller grant.
The energy consultants’ association GIH sharply criticized this move. “Short-notice cuts, complex regulations, and a lack of transition periods are holding back the very people who want to invest in climate-friendly buildings today,” stated GIH head Stefan Bolln. “What the building sector needs now is not a sudden policy reversal, but stable and reliable market conditions.”
In addition to budgetary constraints, the Ministry of Economic Affairs points to falling heat pump prices as justification for the lower subsidy rates. The GIH, however, remains skeptical. “If subsidies disappear faster than costs fall, the heating transition in existing buildings risks losing momentum precisely when it needs to accelerate,” Bolln explained.
Green Party MP Alaa Alhamwi accused the government of a breach of trust. “The federal government is breaking its promise of reliable heating subsidies sooner than expected,” he declared. He argued that the timeframe for reducing the subsidies was far too short. “They aren’t even giving people a chance to act.”
“We are rewarding those who decide to switch their heating systems as soon as possible,” argued SPD MP Armand Zorn. Furthermore, the reform actually increases subsidy rates for the lowest income groups. “Our goal is for as many people as possible to be able to afford the switch to heat pumps—especially young families.”
Author: AFP – pe/ilo
Sources: AFP Press Portal