Germany’s Economy on the Brink of Disaster as Union’s Heat Plan Sparks Fears of Soaring Costs and Chaos

Germany's Economy on the Brink of Disaster as Union's Heat Plan Sparks Fears of Soaring Costs and Chaos

In the face of plans by the Union to repeal the Heating Act after the federal election, Federal Minister of Economics Robert Habeck (Greens) has warned of rising costs for citizens and economic uncertainty.

“Die von manchen geforderte Rückabwicklung des Gebäudeenergiegesetzes wäre fatal” said Habeck to the “Rheinische Post” (Tuesday’s edition). “Who, at the topic of heating, only sets the focus on the CO2 price, makes heating more expensive for citizens due to the rising CO2 price for oil and gas, not cheaper.” The Green politician emphasized.

Through the switch to a climate-friendly heating system, citizens will save money in the future. “We support them in this through the most attractive funding to date. For private households with low and medium income, the funding rate is up to 70 percent.” The funding is effective, with the number of applications increasing.

“We should let the Building Energy Act continue to work for the protection of our climate and our well-being. The call for the repeal of the Act will come at a high cost for citizens in the long run and leads to uncertainty in the economy and population” said Habeck.

According to the Federal Ministry of Economics, the number of applications submitted to the state-owned KfW Bank for the switch to climate-friendly heating systems is increasing. A total of around 227,000 applications were received by the end of 2024. The majority concerns the switch to heat pumps (around 151,100), followed by biomass (26,800) and connecting to district heating networks (9,600).