German Economy Ministry Targets Rapid Building Energy Law Reform

German Economy Ministry Targets Rapid Building Energy Law Reform

The Ministry of Economics says it is aiming to reform the Building Energy Act (GEG) “quickly” and remains confident that the reform can be completed on schedule. A spokesperson told reporters on Monday that a tight timetable has been set “and we are trying to stick to it”. She added that interest in the project is high but that the urgency is clear.

Under the planned reform the new law must take effect no later than 1 July 2026. If it does not, a rule that had been imposed by the coalition government will remain in force in all cities with more than 100,000 residents. That rule requires newly installed heating systems to operate climate‑neutrally at a minimum of 65 %. The SPD is reportedly resisting the elimination of this controversial provision, which had caused a stir during the tenure of former Economy Minister Robert Habeck and had been dubbed a “heating ban” in the headlines.

Parliamentary proceedings are expected to take a long time, leaving experts already concerned that achieving the reform by the 1 July deadline will be difficult. Regarding a potential emergency decree to cover a missed deadline, the ministry declined to comment. Instead, the spokesperson emphasized that the legislation would be drafted jointly with the Bundestag and that all parties would be involved in the parliamentary process.