German Parliament Passes Most Controversial Heating Law

With a majority vote in favor, on September 8, the German Parliament passed the revised Building Energy Act (GEG) - also known as the "Heating Law."

The bill was passed with 399 votes in favor, 275 against and 5 abstentions. This is one of the largest and most controversial projects of the ruling coalition since the government of German Chancellor Olaf Scholz took office.

Previously, Deputy Prime Minister and Minister of Economy and Social SecurityClimateRobert Habeck argued before Congress in defense of the amendment to the Act.

The law still needs to be approved by the Federal Council to come into force, but with such a majority, the plan to pass it in the body that is considered Germany's upper house at the end of September will be just a formality.

The new law is aimed primarily at making heating systems more climate-friendly by gradually replacing oil and gas heating systems.

The bill was originally scheduled to be approved by the German parliament before the summer break, but due to controversy, especially the Federal Constitutional Court's request for parliament to postpone its approval, the work was postponed until September.

Before being put on the agenda in the National Assembly, the amendment to the GEG Act has caused fierce debate within the ruling coalition for many months.

With the new law, the German government wants to ensure more climate-friendly heating. In addition, from 2024, all newly installed heating systems must operate with at least 65% green energy.

However, no existing heating equipment will need to be replaced, while broken equipment can be repaired. The transition will be financially supported by the government. In addition, the new law also outlines a plan for implementing the transition period, as well as strict regulations related to it.

Urban thermal planning must be established in cities with more than 100,000 inhabitants by mid-2026 and in the remaining cities by mid-2028.

According to the German Ministry of Economics, nearly 50% of the approximately 41 million households in Germany are heated with natural gas, followed by oil heating at nearly 25% and remote heating (district heating) at 14%, with the remainder being heated by electricity or heat pumps.