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Politics
09 April 2025

Germany's New Coalition Government Abolishes Controversial Heating Law

The CDU and SPD aim for a more flexible energy policy while maintaining consumer subsidies for heating transitions.

In a significant shift in German energy policy, the new coalition government of the Christian Democratic Union (CDU) and the Social Democratic Party (SPD) has announced plans to abolish the controversial heating law, formally known as the Building Energy Act (GEG), which was introduced by former Green Minister Robert Habeck just a year ago. This decision, articulated in the coalition agreement presented on April 9, 2025, marks a pivotal moment in the country’s approach to climate change and energy efficiency.

The GEG mandated that all newly installed heating systems must operate on at least 65 percent renewable energy. However, it faced widespread criticism for its complex regulations, which many perceived as bureaucratic and difficult to implement. Critics argued that the law added unnecessary uncertainty to the market, hampering homeowners and businesses alike.

Brandenburg's Infrastructure Minister Detlef Tabbert remarked, "The planned abolition of the heating law in the coalition agreement is a good and overdue signal. Here, the previous government brought too much uncertainty into the market, which ultimately was not effective." He emphasized the need for a new Building Energy Act that would be more flexible, technology-open, and simpler to navigate.

The coalition agreement explicitly states, "We will abolish the heating law," signaling a clear departure from the previous administration's approach. The CDU and SPD aim to replace it with a new framework that focuses on achievable CO2 reductions as a central control variable, while also ensuring that renovation and heating subsidies for consumers will be maintained.

Friedrich Merz, the leader of the CDU, has been a vocal advocate for this shift, stating that even a revised heating law would eventually lead to the end of oil and gas heating systems. He noted that the previous regulations were too restrictive and did not provide the necessary flexibility for consumers to choose their heating solutions.

In the new coalition's vision, the focus will be on making climate measures more adaptable and user-friendly. The aim is to enhance public acceptance of environmentally friendly heating systems and facilitate a smoother transition to greener alternatives. The coalition plans to introduce new transitional periods and options for homeowners, thereby allowing them to find solutions tailored to their specific needs.

Despite these changes, environmental groups have expressed concern over the potential rollback of climate protections. The German Environmental Aid (DUH) criticized the coalition's plans, warning that they could undermine the nation’s climate goals. "The CDU and SPD's decision threatens to dismantle the ongoing heat transition and set back climate protection efforts in the building sector," said DUH's federal managing director, Barbara Metz.

Moreover, the coalition's approach has raised questions about how the new regulations will be implemented in practice. While the agreement promises to maintain renovation and heating subsidies, the specifics remain unclear. Many stakeholders, including homeowners and energy advisors, have voiced concerns about the potential for confusion and delays in the heat transition process.

Tabbert highlighted the importance of ensuring that the accompanying funding programs for heating conversion are at least maintained, if not expanded, to support homeowners and tenants during this transition. He stated, "It is crucial that the accompanying funding programs for the heating transition are at least preserved, if not expanded, to ensure that the heat transition is socially cushioned and that private owners and tenants are not overwhelmed."

The coalition's commitment to a more flexible and simplified approach to energy efficiency assessments is a response to the public's demand for clarity and ease in implementing energy-saving measures. As the new Building Energy Act takes shape, it remains to be seen how effectively these changes will be enacted and what impact they will have on Germany's broader climate goals.

As Germany strives for climate neutrality by 2045, the new coalition faces the challenge of balancing environmental sustainability with economic feasibility. The EU's target of achieving climate neutrality by 2050 looms large, and the effectiveness of the new regulations will be closely scrutinized in the coming years.

With the heating law's repeal, the CDU and SPD are taking a significant step back from the stringent measures that characterized the previous administration's climate policies. This shift highlights the ongoing debate over how best to achieve climate goals while also addressing the needs and concerns of consumers.

As the country moves forward, the coalition's ability to implement a workable and effective energy policy will be critical not only for meeting climate targets but also for ensuring that the transition to greener heating solutions is smooth and equitable for all citizens.