German Energy Industry Calls for Clarity as Coalition Nears Crucial Heating Transition Talks
Berlin,November 22,2023 - Representatives from Germany‘s energy industry are urging swift consensus ahead of a critical meeting between the governing coalition – comprised of the CDU/CSU and SPD – scheduled for November 27th. The talks aim to resolve disagreements surrounding legislation to phase out oil and gas boilers, a key pledge of the current government.
The core of the dispute lies in a law stipulating the phase out of fossil fuel heating systems. Industry leaders emphasize the need for a “clear roadmap for climate-pleasant heat supply and no further uncertainty,” warning that “unnecessary delays and radical changes of direction increase costs,” according to Simone Andreae.
The economy ministry is expected to present a paper outlining key measures for the so-called heating law before the year’s end,perhaps addressing financing for building renovations,municipal heat planning,and implementation of the European Energy Performance of Buildings Directive (EPBD).
A key point of contention is a provision requiring new heating systems to operate using more than 65 percent renewable energy. The SPD supports maintaining this requirement, while CDU representatives have advocated for its abolishment.
Despite growing adoption of heat pumps and district heating in new construction – accounting for over 70 percent of new heating systems – fossil fuels remain dominant in existing buildings. Reducing greenhouse gas emissions from the heating sector is considered a major challenge in Germany’s efforts to achieve climate neutrality by 2045.
