Germany eyes heat pumps as Iran war drives energy costs up

Germany's coalition government of Christian Democrats (CDU) and Social Democrats (SPD) is seeking to overturn the central provision of the heating law introduced by the previous administration. The original law stipulated that all heating systems installed in the coming years must run on at least 65% renewable energy .

The cabinet approved the plan based on a draft bill submitted by Building Minister Verena Hubertz (SPD) and Economy Minister Katherina Reiche (CDU). Under the planned legislation, new heating systems would only be required to use at least 10% renewable energy. The new legislation, called the "Building Modernization Act," is intended to replace the current "Heating Act." The government hopes to push it through parliament before the summer recess in mid-July. Many observers believe the timetable is far too ambitious, particularly as the draft law has triggered not only support but also vociferous criticism . One of the most vocal critics is the National Regulatory Control Council (NKR), an independent advisory body to the German government. Its chairman, Lutz Goebel, described the draft bill in comments to the newspaper Bild as "one of the weakest and most impractical pieces of legislation presented to the National Regulatory Control Council in recent years." He said parts of the text were "barely comprehensible" and warned that problems with implementing the law were likely. According to Goebel, "laws like this contribute to growing frustration among citizens toward the state and politicians." Others have defended the proposal. Carsten Rolle, who is responsible for energy, mobility and environmental issues at the Federation of German Industries (BDI), said the "Building Modernization Act is better than its reputation," according to a press statement. Peter Adrian, president of the German Chamber of Industry and Commerce (DIHK), also called the draft law "overall a step in the right direction." He said it would reduce rigid requirements and give companies "more flexibility on the path toward climate neutrality in the building sector." Frederik Lippert of heating systems manufacturer Vaillant said that "some of the changes could help calm the debate." This includes abolishing the 65% rule, which many in the market viewed as a form of coercion. For Julius Neu of the German environmental organization BUND, the proposed law amounts to "a declaration of bankruptcy in climate policy." "By abolishing the 65% rule, the most effective instrument of the heating transition is being scrapped," he told DW. He argued that this would "artificially prolong fossil-fuel technologies and leave people trapped by rising gas costs." "The federal government is drastically lowering the requirements for new heating systems from 65% renewable energy to initially just 10%," Katja Weinhold, spokesperson for the German Heat Pump Association, told DW. "In light of the crisis in the Middle East and its impact on energy prices, Germany's energy security, and climate targets, this sends entirely the wrong signal." A spokeswoman from the communications department at Robert Bosch GmbH said the industry, above all, needs planning certainty.

Key points

• The cabinet approved the plan based on a draft bill submitted by Building Minister Verena Hubertz (SPD) and Economy Minister Katherina Reiche (CDU).
• Under the planned legislation, new heating systems would only be required to use at least 10% renewable energy.
• The new legislation, called the "Building Modernization Act," is intended to replace the current "Heating Act." The government hopes to push it through parliament before the summer recess in mid-July.
• Many observers believe the timetable is far too ambitious, particularly as the draft law has triggered not only support but also vociferous criticism .
• One of the most vocal critics is the National Regulatory Control Council (NKR), an independent advisory body to the German government.