The negotiations over a reform of Germany’s Building Energy Act (GEG) have stalled, prompting industry groups to warn that the law may fail to be adopted on time. The owner‑association Haus & Grund, led by president Kai Warnecke, told the “Bild” that the new GEG must enter into force no later than 1 July 2026. Warnecke stressed that the federal parliament still has to draft, debate, consult experts, and finally ratify the legislation – a process that would leave no room for intervention by the Constitutional Court unless it entered the Bundestag by mid‑February. He described the situation as “essentially no longer feasible”.
The German parliament’s two main coalitions – the ruling Union and the opposition SPD – continue to be at an impasse. A key points paper that was expected earlier this week will now only be ready “in early February” the “Bild” reports, based on sources close to the coalition.
A central sticking point concerns the 65 % rule for climate‑neutral operation of new heating systems. While the Union pushes to eliminate the rule, the SPD rejects this move. Warnecke warned that if the GEG is not passed by 1 July, the 65 % rule will remain in effect across all cities with more than 100 000 residents. Under this clause, newly installed heating units must operate at a minimum of 65 % climate neutrality. Warnecke argued that this would force most households to install only heat pumps or expensive hybrid systems, a costly burden that runs counter to sound energy and climate policy.
Ingbert Liebing, chief executive of the Association of Municipal Enterprises (VKU), echoed these concerns and urged both parties to reach a swift agreement. According to Liebing, timely clarity is essential for citizens, small and medium‑sized enterprises, and municipalities, which all need to plan and implement energy measures under stable regulatory conditions. “It is not helpful that the political framework keeps changing” he said.