German federal states reject new rules for heating decarbonisation

The debate over heating policy is intensifying in Germany. Several German federal states oppose proposed changes to federal rules, which they say could slow the shift away from fossil fuels.

As Clean Energy Wire reported, the dispute between the federal government and some states centres on a proposed update to Germany’s Building Modernisation Act, which the federal government recently put forward.

The proposal would ease existing requirements for heating decarbonisation by removing mandatory quotas for renewable energy and allowing new fossil-fuel heating systems to remain on the market even after Germany reaches its national climate-neutrality target in 2045.

Several states now argue that this directly conflicts with their more ambitious climate targets. Baden-Württemberg, Lower Saxony and Hamburg have committed to achieving climate neutrality by 2040 and fear that looser national standards could undermine investment certainty and delay emissions reductions.

Critics of the reform also point to concerns about infrastructure. State representatives argue that expanding electricity distribution grids for heat pumps and investing in district heating networks will make less economic sense if gas infrastructure continues operating alongside them for many years to come.

Supporters of stricter rules also argue that prioritising renewable heating technologies would reduce long-term costs and limit dependence on fossil fuels.

The proposed changes have reignited political disputes over Germany’s energy transition in the heating sector. The original law was introduced under former Economy Minister Robert Habeck and became one of the country’s most controversial climate measures. During the 2025 election campaign, the conservative Christian Democratic Union of Germany (CDU) pledged to significantly overhaul or repeal the law.

The current proposal was put forward by Energy Minister Katherina Reiche and Construction Minister Verena Hubertz in Chancellor Friedrich Merz’s government. Although the proposal contains an “opening clause” allowing states to retain stricter rules, concerns remain that this provision could be changed during parliamentary negotiations.