Home » Business » Deutsche Bank prepares for costly heating transition in Germany

Deutsche Bank prepares for costly heating transition in Germany

The coalition parties are still negotiating the final version for the major renovation of houses in Germany – it’s about the new one Heating Act. Out with the fossil heating systems, in with the heat pumps. In many cases, this also requires the conversion of roofs, thermal insulation, floors, windows, etc.? For many homeowners, the green heat transition around the keyword heat pump is likely to be very expensive fun. Will many homeowners not be able to afford such a conversion, which may cost more than 100,000 euros for many houses? Of course, a lot still depends on how much the SPD and FDP water down the green ideas. But the fear of many homeowners is likely to be great.

One can assume that many owners have to borrow heavily for the heating conversion in their four walls. And Deutsche Bank, as a lender, seems to be preparing for this scenario at the moment. According to the head of sustainability at Deutsche Bank Germany, the carbon dioxide emissions of residential real estate are the biggest obstacle to achieving the net zero target in 2045. “We as a society really have to act,” says Jörg Eigendorf, who is now Chief Sustainability Officer of the bank, in an interview with Bloomberg. “The longer we wait, the more difficult it will be” and the cost of the transition “will increase significantly over time”.

The bank expects around 600 billion euros in necessary investments to make apartments and single-family houses in Germany energy-efficient by 2045. In doing so, she estimates that a third of her residential real estate clients do not have the financial means to upgrade their homes to a Class A EPC level or to a zero-carbon building. In comparison, the volume of housing loans granted by the bank was 175 billion euros at the end of the year. According to Deutsche Bank, the portfolio is associated with 3.9 million tonnes of carbon dioxide equivalent emissions annually.

Housing is becoming an increasingly important area for European efforts to meet climate targets. The European Union aims to decarbonize 35 million homes, offices, schools and other buildings by 2030. According to the International Energy Agency, the building and construction sector is responsible for 30% of total final energy consumption worldwide.

According to Deutsche Bank, it can cost more than 100,000 euros to renovate a house to achieve the highest European energy efficiency class, A. This corresponds to total costs of around 80 billion euros for the bank’s residential real estate customers. She therefore plans to help homeowners improve the energy efficiency of existing homes while supporting the construction of new low-carbon homes.

“Private clients need to be part of the discussion,” said Tobias Horn, head of portfolio management for private banking in Deutsche Bank’s risk department. Financial support is to be offered through tailored loan products and access to grants, incentives and subsidies. The bank also plans to work with corporate customers, such as utilities and manufacturers of building materials, to reduce associated emissions.

FMW/Bloomberg

Read and write comments, click here

2023-05-31 11:04:35
#Loans #heating #conversions #houses #Deutsche #Bank #preparing

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.