Overview
- The Federal Cabinet, which approved the Building Modernization Act on Wednesday, sent the proposal to the Bundestag for debate before the summer recess.
- The draft would repeal the 65% renewable requirement and allow new gas and oil boilers if suppliers blend “climate‑neutral” fuels that rise from 10% in 2029 to 60% in 2040, with a formal climate review scheduled for 2030.
- A new 50/50 rule would require landlords who install new fossil systems in rentals to pay half of the CO2 charge, gas network fees, and biogenic fuel surcharges that show up on tenants’ bills.
- Critics across institutions raised alarms as the National Regulatory Control Council called the text unclear and impractical, city associations warned it could clash with local heat plans, and Deutsche Umwelthilfe prepared a court challenge over climate compliance.
- Analysts, including the Öko-Institut, warn the “bio ladder” could drive up heating costs by the 2030s due to scarce biofuels, higher CO2 prices, and rising per-user gas network charges as customer numbers fall.