Germany Accused of Ditching Climate Targets as It Scraps Renewables Mandate
Germany's coalition government faces fierce accusations of abandoning its climate targets after agreeing to scrap key parts of a contentious heating law. The reformed legislation will allow homeowners to rely on fossil fuels, removing a mandate that required most newly installed heating systems to use at least 65% renewable energy.
Controversial Law Reform Sparks Outcry
The previous legislation, drawn up by the Greens and passed in 2023, was one of the party's boldest policy goals under the former centre-left-led government of Olaf Scholz. While praised by climate experts for its ambitious targets, it antagonised voters still recovering from the Covid-19 pandemic and concerned about energy security following the war in Ukraine, which hiked inflation and halted Russian gas imports.
The law reform eliminates the requirement for expert consultation when installing new heating systems and permits households to continue using oil and gas. This move has ignited a political firestorm, with the Greens, now in opposition, denouncing it as a betrayal of climate benchmarks.
Political Fallout and Campaign Promises
The dispute over the original law poisoned relations within the coalition of Social Democrats (SPD), Greens, and pro-business Free Democrats, often seen as the beginning of that government's premature implosion. The far-right, climate-sceptic Alternative für Deutschland party also raged against the 2023 legislation, particularly its promotion of heat pumps, accusing the Greens of forcing expensive renovations on households.
The new rules fulfil a campaign promise by Chancellor Friedrich Merz, who pledged to eliminate key planks of the law during the general election campaign one year ago. After weeks of wrangling with junior coalition partners the SPD, Merz's Christian Democratic Union (CDU) insists the change will uphold the goal of cutting CO2 emissions from buildings while giving homeowners more technological choice.
Greens Decry Climate Protection Setback
Greens parliamentary group co-leader Katharina Dröge condemned the legislation, stating, "The CDU and SPD have made it abundantly clear today that climate protection is of no importance whatsoever to this coalition. The federal government has abandoned its climate targets." The Greens, polling at about 12% nationally, argue that the reform jeopardises Germany's climate commitments.
Economy Minister Katherina Reiche defended the planned reform, telling public broadcaster Deutschlandfunk, "The aim of the heating law is to restore greater freedom of choice when replacing heating systems." She highlighted that homeowners would have options including hybrid models, biomass, and even gas and oil heating with increasing proportions of biogas or bio-oil.
Energy Realities and Market Challenges
Germany, the EU's top economy and biggest polluter, still relies on oil and gas for nearly 80% of its heating. The building and transport sectors are significant drags on the country's progress toward its climate goals. Experts note the scarcity of greener fuels like biomethane on global markets, which drives up prices.
While heat pumps are more expensive than gas-burning boilers, they are cheaper to run in most countries. Germany subsidises 30-70% of the cost of a new heat pump, with assistance remaining in place until at least 2029 under the revised law. However, adoption rates lag behind nations like Norway, which has 635 heat pumps per 1,000 households compared to Germany's 47 and the UK's 15.
Future Implications and Legislative Details
The bill foresees ramping up the share of relatively climate-friendly fossil fuels, starting at a minimum rate of 10% by 2029 and progressively increasing until 2040. Germany has pledged to achieve net zero emissions by 2045, making this reform a critical point of contention.
Reiche argued that the previous law had unsettled homeowners, leading to plummeting sales of modern heating systems and heat pumps. She emphasised that the new legislation aims to balance climate protection with practical energy choices, but critics warn it could undermine Germany's leadership in environmental policy and set a dangerous precedent for the EU.
