Overview: Miersch and the heating law debate
Matthias Miersch, SPD parliamentary leader, has made tenant protection the central promise in the new building modernization law (Gebäudemodernisierungsgesetz). He warns that he will not accept any law that simply shifts heating costs onto renters: ‘With me there will be no law that leaves tenants to pay the costs.’ The proposal repurposes parts of the old and controversial Building Energy Act (GEG) and tries to balance climate policy, affordability and legal clarity.
Key changes in the new building modernization law
The law does not fully abolish the old GEG but renames and reforms it. Important technical and regulatory shifts are proposed, aiming to influence how buildings are heated while shaping incentives for low-carbon solutions and modernization funding that should avoid burdening tenants.
| Policy element | What changes |
|---|---|
| GEG status | Renamed and reformed rather than fully abolished |
| Renewable energy quota for new installations | 65% rule for new installations removed from 2025 |
| Green gas quota | Introduces a 10% greengas quota from 2029 |
| Cost control | Miersch emphasizes CO2 price steering and modernization subsidies to prevent cost-shifting to tenants |
Miersch’s commitment to tenant protection
Miersch frames tenant protection (Mieterschutz) as a precondition for modernizing buildings. He argues that modernization rules, CO2 pricing mechanisms and public funding must be designed so that landlords cannot simply pass the bill for heating law compliance to renters through higher rents or charges.
- Require modernization funding to prioritize low-income households and energy efficiency upgrades that reduce bills long term.
- Use CO2 price steering to reward efficiency and low-emission heating without shifting costs to tenants.
- Set clear limits on rent increases connected to mandatory heating upgrades.
His approach leans on existing instruments: aligning CO2 price signals with targeted modernization funding and clearer rules for how modernization costs are allocated in rental law. Making tenant protection an explicit legal condition is meant to keep energy price relief and social fairness at the forefront of implementation.
Environmental and expert criticism
Environmental groups and investigative outlets such as Correctiv have criticized parts of the reform as potential greenwashing. They say shifting incentives toward greengas while dropping strong renewable quotas risks prolonging fossil gas use instead of accelerating heat pump adoption and true decarbonization.
Methane, heat pumps and climate impact
Critics point out that methane—present in fossil gas—has a much stronger short-term warming effect than CO2. Studies highlight that methane can be roughly 80 times more potent than CO2 over a short time horizon, so continued reliance on gas, even partially ‘greened,’ carries important climate risks. In contrast, electric heat pumps offer higher overall efficiency and lower lifecycle emissions when powered by decarbonized electricity.
- Methane: high short-term warming potential compared with CO2.
- Heat pumps: efficient, lower-emission option when electricity is decarbonized.
- Greengas concerns: limited supply and possible high cost for consumers.
Political reactions and responses
Green party leaders have criticized the reform as a ‘gas fetish’ that risks locking in fossil fuels. The economy minister rejects those accusations, arguing the law balances supply constraints and affordability. Debates focus on whether the greengas quota is realistic and whether it merely extends gas dependence under a greener label.
Social inequality and economic effects
Experts and research groups warn that poorly designed rules could increase social inequality. Studies by the European Climate Foundation and experts such as Martin Pehnt show a pattern: lower-income renters often bear rising energy costs, while wealthier property owners can afford upgrades that reduce bills and carbon emissions.
- Poorer households risk paying higher gas prices without benefiting from efficiency upgrades.
- Wealthy owners invest in renovations and low-emission heating, widening the gap.
- Lack of planning certainty for municipalities may slow rollout of public programs and scalable heating solutions until July 2026.
Market signals already show a shift: after a 2023 peak, sales of oil and gas heating systems declined while heat pump installations increased. Still, uncertainty about regulation and funding can slow municipal planning and delay investments until rules are final.
EU directives and legal frameworks may further influence national implementation and can act as a constraint or guidance, depending on alignment with the new law’s social and climate objectives.
Practical steps for tenants, landlords and municipalities
Finding the right balance between climate protection, economic feasibility and social fairness is the central task ahead. Clear tenant protections, targeted funding and strong planning will determine whether the heating law succeeds in cutting emissions without unfairly shifting costs onto renters.
For tenants
- Request clear information from your landlord about planned modernizations and expected cost sharing.
- Check your rental contract and local tenant protection rules before accepting renovations that could raise costs.
- Seek advice from tenant associations or legal aid if you fear unfair cost pass-throughs.
- Look for available subsidies or energy-efficiency programs that reduce the need for rent increases.
For landlords and property owners
- Prioritize energy-efficiency investments such as insulation and heat pumps that lower long-term operating costs.
- Design modernization plans with transparent cost allocation and consider phased upgrades to ease tenant impacts.
- Use available modernization funding and CO2-incentive programs to reduce upfront costs and avoid passing them to tenants.
For municipalities and policy makers
- Provide planning certainty and clear timelines so building owners and installers can invest confidently.
- Target subsidies to low-income households and community heating projects to maximize social fairness.
- Coordinate local programs that accelerate heat pump deployment and technical support for building owners.