Germany wants to ease heating rules: New proposal scraps ban on fossil-fuel boilers after 2045

The German government has presented a proposal for a new version of the law on building heating, significantly changing the direction set by the previous government. The Economy Ministry’s proposal would scrap the mandatory share of renewable energy in new heating systems and also lift the existing ban on operating boilers running purely on fossil fuels after 2045. Instead, the government wants to gradually introduce mandatory quotas for “green” fuels. Critics warn, however, that the changes could make climate targets harder to meet and prolong Germany’s dependence on fossil fuels.  

The new legislative proposal puts into concrete form an agreement reached by Chancellor Friedrich Merz’s governing coalition in February this year. The most significant change is the removal of the rule requiring newly installed heating systems to use at least 65% renewable energy.

This provision was a key part of the original Building Energy Act (GEG), passed in 2023 by then-Economy Minister Robert Habeck. The law triggered one of the biggest political debates in the recent history of the German energy sector and became a symbol of disputes over the transition to zero-emission heating.

Under the new proposal, households will still be able to install new gas and oil boilers without direct restrictions. Responsibility for reducing emissions is now to shift primarily to fuel suppliers.

The cabinet is due to discuss the new proposal in mid-May. A parliamentary process will follow, which could take several months and is likely to bring further political clashes between advocates of rapid decarbonisation and supporters of a more technology-neutral approach.

Mandatory quotas for “green” gases and oils

The proposal envisages the introduction of gradually increasing quotas for low-emission or climate-neutral fuels. From 2029, new systems would have to use at least 10% low-emission or zero-emission gas or heating oil. This share is set to rise to 15% in 2030, 30% in 2035 and 60% in 2040.

These fuels could include biomethane, synthetic methane, green hydrogen or bio-oils. The government argues that the new system will give households greater flexibility and reduce pressure to invest immediately in heat pumps or other low-emission technologies.

At the same time, the proposal scraps the provision that would have banned the use of purely fossil-fuel heating systems from 2045. In practice, this means gas and oil boilers could continue operating after 2045, provided they meet the required quotas for low-emission fuels.

Criticism: Higher emissions and the risk of more expensive heating

Environmental organisations and parts of the energy sector have sharply criticised the changes. They say the proposal could significantly widen the gap between Germany’s climate targets and actual emissions in the buildings sector, which has long been one of the most challenging areas of German decarbonisation.

Critics also warn that continued use of gas networks could increase costs for the remaining customers. If the number of gas consumers gradually falls, the costs of operating the infrastructure will be shared among fewer households, potentially driving network charges up significantly.

According to some analyses, households relying on natural gas over the long term could face a substantial increase in their overall heating costs in the future. Another concern is the higher price of low-emission and zero-emission gases, whose production is currently limited and costly.

Industry welcomes greater flexibility

The German Heating Industry Association (BDH), by contrast, has welcomed the proposal. The association says the market needs stability and predictability, particularly for long-term investment planning and the replacement of ageing heating systems.

The government also plans to maintain subsidies for heat pumps, district heating and other low-emission technologies at least until 2029.