Reform of the Building Energy Act: Gas and hydrogen industry calls for genuine technological openness

• CO₂ footprint as a benchmark: Key issues paper advocates inclusion of the entire building
• Level playing field for all technologies: Gas network and green methane must be part of the solution space.
• Kehler: “The current law is too complex and technology-restrictive. The result is a lack of confidence among modernizers and poor market figures.”

The current Building Energy Act (GEG) has missed its target. Instead of noticeable progress in the heating transition, the law is leading to a recession in the market: instead of the 1.2 million installations that would be necessary to keep the heating transition on track, the industry expects only around 650,000 new heating systems this year. In a key issues paper, the German Gas and Hydrogen Industry Association proposes five points to get the heating transition back on track.

With a key issues paper entitled “Five Approaches for a Building Energy Act 3.0,” the gas and hydrogen industry wants to get the stalled heating transition moving again. “After almost two years of the GEG, it is clear that the law is slowing down the heating transition instead of accelerating it,” says Dr. Timm Kehler, CEO of the German association Die Gas- und Wasserstoffwirtschaft . “The current GEG has plunged the heating market into crisis and unsettled modernizers. Our five theses show how the heating transition can pick up speed again. We must focus on the CO₂ footprint of buildings instead of fixating on rigid quotas. Renovations, efficiency improvements, and renewable energies must be evaluated together so that climate protection remains affordable,” Kehler continues.

Die Gas- und Wasserstoffwirtschaft has developed five approaches to resolve the current blockade of the heating transition. Instead of relying on quotas, the legal framework must consistently target actual CO₂ savings, taking into account the overall balance of the building. Only through holistic modernization that takes into account the building envelope, modern heating technology, and the use of renewable energies can the carbon footprint be truly reduced.

At the same time, legislation must ensure genuine technological openness. Hybrid heating systems, in which a compact heat pump supplements the existing gas heating system, have been proven to reduce emissions by up to 70 percent. Similarly, heating solutions based on biomethane, synthetic methane, or hydrogen would be largely excluded. A technology-neutral heat transition must therefore create transitional regulations for all climate-friendly energy sources in order to enable their market ramp-up.

For Die Gas- und Wasserstoffwirtschaft, genuine technology neutrality is the core concern. "The current law favors two paths—heat networks and heat pumps—and disadvantages green molecules such as biomethane and hydrogen. We need a level playing field where all climate-friendly solutions can compete. And for that, we will continue to need gas networks in the future. This is the only way to create suitable and affordable heating solutions for both old and new buildings," emphasizes Kehler. The association is therefore calling for transitional arrangements for the introduction of green methane and development prospects for gas networks, as well as a green gas quota to open up the market for green methane and hydrogen and no longer block the ramp-up of these energy sources.

At the same time, mandatory one-sided advice must be abolished. “Anyone who decides to install gas heating today is obliged to seek advice – but this is not the case for district heating or heat pumps. That is not objective. Homeowners must be able to obtain information about all cost components and risks. Only then can they choose the technology that is right for them,” Kehler continues.

With its key issues paper, the association is calling on the federal government to initiate a paradigm shift in the upcoming amendment to the GEG. "A GEG 3.0 must not create uncertainty and market barriers again. It must focus on the CO₂ footprint of the building, establish genuine technology neutrality, and enable the market ramp-up of green gases. Only when citizens regain confidence will the heating transition be a success," Kehler summarizes.

Further background information on this can be found in the position paper [LINK].