The building sector has exceeded the CO2 budget in 2021 and a further failure to meet the annual emission targets is projected. Therefore, the German government is forced to act and has now presented a package of measures in the form of an immediate action program. This focuses particularly on the expansion of heating networks, the use of heat pumps, and the avoidance of green gases. To achieve a 65% RE quota for newly installed heating systems, the federal government has proposed two options and granted a consultation period for civil society for this purpose. The subsidy landscape is also changing to encourage more investment in heating replacement and retrofitting of existing buildings.
The Policy Brief provides an overview of the core elements of the Immediate Action Program and analyzes the effectiveness and implications of the proposed measures, as well as the advantages and disadvantages of the two design options for the 65% RE target.
