German black-red coalition politicians shaking hands on heating law reform, with symbolic heaters and protesting Greens in background.
German black-red coalition politicians shaking hands on heating law reform, with symbolic heaters and protesting Greens in background.
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Black-red coalition agrees on heating law reform

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The black-red coalition has agreed on key points for reforming the heating law and scrapped the controversial 65 percent rule for renewable energies. Instead, oil and gas heaters will be allowed with increasing shares of green fuels. Environmental groups and the Greens criticize the changes as a setback for climate protection.

The faction leaders of CDU/CSU and SPD agreed on Tuesday evening on the basic features of a reform of the Building Energy Act, known as the heating law. The regulation that new heaters must be operated with at least 65 percent renewable energies is eliminated. Instead, in addition to heat pumps, district heating, hybrid models, and biomass, gas and oil heaters can be installed in the future, provided they are operated with at least ten percent green fuels such as biomethane or synthetic fuels from January 2029. The quota is to increase.

CDU faction leader Jens Spahn emphasized: "The heating cellar will become a private matter again: Citizens have the freedom to decide for themselves how to heat." SPD faction leader Matthias Miersch called the agreement "the squaring of the circle" and a highly difficult issue that has been resolved.

The law is to be presented as a draft by Easter and take effect on July 1. Funding for climate-friendly heaters will remain in place until at least 2029, with subsidies up to 70 percent. Tenants are to be protected from excessive costs due to uneconomical heaters.

The Greens warn of missing climate targets. Building policy spokesman Kassem Taher Saleh said: "Without the 65 percent rule, we will clearly miss our climate targets. We are making ourselves further dependent on fossil oil and gas, including from autocratic states." Greenpeace energy expert Mira Jäger criticized: "With these changes, the federal government is giving the fossil oil and gas industry a huge gift." Nabu and BDEW see risks for climate targets but welcome planning security. Municipal heat planning is simplified, with deadlines from 2026 for major cities.

The original law came into force at the beginning of 2024 to promote the replacement of fossil heaters. Last year, heat pump sales rose 55 percent to 299,000 units.

Hva folk sier

Reactions on X to the black-red coalition's agreement on reforming Germany's heating law by scrapping the 65% renewable energy rule are largely positive among conservatives and homeowners, praising increased technology openness and relief from mandates. Critics from environmental and green-leaning accounts decry it as a climate protection setback and potential EU violation, while skeptics claim it maintains underlying green pressures without true abolition.

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Union and SPD politicians shaking hands on new Building Energy Act reform, with energy transition symbols in a Berlin conference backdrop.
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The Union and SPD have agreed on the key points of a new Building Energy Act, abolishing the existing heating law. Instead of a 65 percent requirement for renewables, there will be a gradual increase in climate-friendly shares for gas and oil heaters. The reform is set to take effect before July 1.

Germany's municipal associations have positively received the planned changes to the heating law but warn of additional burdens and demand funding. The agreement between the Union and SPD aims to abolish the 65 percent rule for renewables and introduce a gradual shift to climate-friendly fuels. Meanwhile, the Federal Constitutional Court is reviewing the parliamentary process of the original version.

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Natural gas prices are fluctuating wildly, making heating more expensive for households, as the reform of the heating law stalls. Federal Economics Minister Katherina Reiche missed the January deadline for key points, fueling uncertainty. Experts call for stronger promotion of heat pumps as a cheaper alternative.

Chancellor Friedrich Merz has called on coalition partner SPD to lift blockades on reform projects. At an event of the German Banks Association in Berlin, he announced serious talks for the evening. Energy policy, pension reform, and statutory health insurance are in focus.

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