Germany's proposed new heating law will jeopardise the country's climate targets in the building sector, environmental groups and energy associations have warned.
The law, proposed yesterday evening by ruling parties the CDU/CSU and SPD, would include a rising green gas or green oil quota, termed "bio-stairs", to enable households to stick with gas or oil heating systems.
The so-called buildings modernisation act will ensure that "new heating systems will be predominantly CO2-free in future", the parties said.
Economy and energy minister Katherina Reiche of the CDU said the proposals offer "free choice of heating" compared with the legislation that they will replace. The buildings energy act passed under the previous Greens-led economy ministry includes a mandatory 65pc renewables share for new heating systems.
The proposed new rules call for a 1pc admixture of carbon-neutral fuels from 2028, with new gas and oil heating systems to use at least 10pc of the equivalent biofuel from 2029. The quota would then rise in three stages until 2040. The text mentions biomethane, hydrogen, synthetic fuels and bio-oil as potential fuels to meet the quotas. For hydrogen, it suggests an openness to various production pathways, specifically renewable hydrogen, hydrogen made from natural gas with carbon capture and storage or through pyrolysis, and waste-based hydrogen. The parties expect savings of 2mn t CO2 equivalent (CO2e) by 2030 through these measures.
The CDU/CSU and SPD will present the final details of the proposed system in the summer, by which point they aim to have a government draft passed by parliament, with the law scheduled to enter force on 1 July. Existing funding programmes will continue until at least 2029.
Critical thinking
Environmental group DUH's managing director Barbara Metz said scrapping the 65pc renewables rule will make climate neutrality in the building sector "effectively unattainable". Metz flagged a recent high administrative court ruling calling for more climate action, particularly in the country's buildings and transport sectors.
The CDU/CSU and SPD have stressed that the targets under Germany's climate action law will continue to apply. Should an evaluation in 2030 show that the building sector is not meeting its target, "corrective measures will be taken", they said.
But allowing gas and "even" oil heating systems to be installed with initially "relatively low" biofuel content, while at the same time abolishing the 65pc requirement, would jeopardise Germany's climate targets, energy and water association BDEW managing director Kerstin Andreae said.
And "ambitious" green fuel quotas will be needed to have an emissions-saving effect, but such high quotas will in turn drive up heating prices, penalising tenants in particular, think-tank Agora Energiewende's Julia Blaesius warned. Green fuels are "scarce" and it remains unclear how demand for them will develop, she said.
The CDU/CSU and SPD paper argues that gas and oil suppliers already offer tariffs with an organic component. And the carbon price under Germany's domestic carbon market — expected to be replaced by the future EU emissions trading system for the buildings and transport sectors (ETS 2) from 2028 — does not apply to the climate-friendly fuel component, which will have a cost-cutting effect, they said.
Germany's buildings sector emitted around 109mn t CO2e last year, according to federal environment office UBA.
