PIK Director Demands Levy on New Oil and Gas Heaters Amid Building Modernisation Plan

PIK Director Demands Levy on New Oil and Gas Heaters Amid Building Modernisation Plan

Ottmar Edenhofer, director of the Potsdam Institute for Climate Impact Research, has suggested a fee on new oil‑ and gas‑powered heating systems in light of the building‑modernisation bill proposed by the current black‑red coalition. In an interview with Tagesspiegel Background he explained that the levy would “price in the cumulative emissions associated with a new installation”. He estimates that such a pre‑emptive CO₂ price could amount to roughly €50 per tonne of CO₂ over the 20‑year life of the heater.

Edenhofer notes that, on the surface, the measure might be hard to pass politically. However, he argues that if the cost of green gas rises to twice or even three times the current natural‑gas price by 2045, the levy would serve not as an added burden but as a safeguard against the large cost increases that households would otherwise face.

He described the draft of the building‑modernisation law as a “disaster” and cautioned that without new measures, the widespread installation of oil and gas furnaces could cement emissions for decades, inflicting high costs on renters and owners alike. Edenhofer expressed confidence that the bill will be revised in the near future and that it should include provisions to prevent the cementation of emissions and the accompanying financial strain.

Regarding the federal government’s new climate‑protection programme, Edenhofer said it falls short. “We see a gap of about 85 to 102 million tonnes of CO₂‑equivalent by 2040” he warned. The programme, he added, does not adequately address shortfalls in climate targets for the building and transport sectors by 2030. He called for an urgent discussion on how to close this substantial gap.