Berlin Faces Climate Challenge as Germany Rethinks Building Energy Policy
Berlin is bracing for a significant shift in climate policy as the federal government moves to replace the existing Building Energy Act (GEG) with a new Modernization of Buildings Act (GMG). This change, announced on February 24, 2026, necessitates immediate action from the city’s senate and coalition partners.
Recent data from the Federal Environment Agency’s 2025 climate balance reveals a concerning trend: emissions from the building sector increased to 103.4 million tonnes of CO₂ equivalent in 2025 – a rise of 3.4 million tonnes. This increase occurs despite the urgent necessitate for reductions.
Rollback of Climate Measures and the Risk to Residents
With key federal climate protection instruments being rolled back, seemingly in favor of the fossil fuel industry, Berlin must grab a more assertive role in climate and heat policy. Failure to do so risks falling further behind on climate goals and exposing residents to unpredictable fossil fuel costs, as demonstrated by recent price spikes linked to geopolitical events.
The move away from stringent energy efficiency requirements weakens efforts to transition away from gas heating. Combustion-free technologies are seen as the future of heating, including within district heating networks.
The Need for a Clear Path to a Sustainable Heat Future
Berlin requires clear guidelines for the heat transition. This includes a binding decarbonization pathway for district heating and increased support for renewable alternatives. Local heat networks, utilizing geothermal energy, waste heat, large heat pumps, or solar thermal energy, are particularly promising but currently lack sufficient political backing.
BUND Berlin is advocating for a heat plan that prioritizes renewable and efficient solutions, reduces fossil fuel dependence, and protects households from rising heating costs. Without strong political direction, Berlin’s heat transition could face costly delays and climate risks.
Further information can be found at: https://umweltzoneberlin.de/das-anti-modernisierungs-gesetz
Contact:
Matthias Krümmel, Climate Protection Policy Referent at BUND Berlin, Tel. 030-78 79 00-63, kruemmel(at)bund-berlin.de
Key Changes with the GMG
The upcoming GMG will replace the GEG, and a central change is the abolition of the 65% renewable energy requirement for new heating systems. Instead, a quota for green gas and green heating oil will be introduced. The paragraphs 71 to 71p and paragraph 72 of the GEG will be removed, eliminating the 65% EE requirement. The coupling with communal heat planning will also be removed.
What Does This Mean for Homeowners?
The shift from the GEG to the GMG introduces a new level of complexity for homeowners. Even as the 65% renewable energy mandate is removed, the introduction of green gas and green heating oil quotas could influence future heating costs and technology choices. The federal funding for efficient buildings (BEG) is secured until at least 2029.
FAQ
Q: What is the GMG?
A: The GMG (Gebäudemodernisierungsgesetz) is the new Modernization of Buildings Act, which will replace the GEG.
Q: What is being removed with the GMG?
A: The 65% renewable energy requirement for new heating systems, as well as paragraphs 71 to 71p and paragraph 72 of the GEG, are being removed.
Q: What is replacing the 65% requirement?
A: A quota for green gas and green heating oil is being introduced.
Q: Will there still be funding for energy-efficient buildings?
A: Yes, the federal funding for efficient buildings (BEG) is secured until at least 2029.
Did you know? The European Buildings Directive requires building automation, and this requirement will likely remain in place even with the GMG.
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