Overview
- The federal cabinet approved a draft law on Wednesday, June 24, 2026 that transposes the EU Energy Efficiency Directive with fewer national obligations to reduce administrative burdens on companies.
- The bill lengthens compliance windows for data centres by extending the transition for efficiency rules from two to four years and delays the deadline to cover electricity use with renewables from 2027 to 2030.
- Obligations to reuse waste heat are narrowed so they apply only where a suitable local heat network exists, and several previous national reporting and management requirements will be scaled back or removed.
- The government says the changes will save companies about €760 million a year and roughly €2.9 billion once in one‑off compliance costs, while industry groups gave mixed praise and environmental NGOs and opposition parties warned the move risks weakening climate action.
- The draft now goes to the Bundestag for debate where MPs can amend or block it and the outcome will shape whether Germany prioritises near‑term investment and digital sovereignty or tight energy‑efficiency measures that support climate targets.