Hotly Debated Building Energy Law
Although the Building Energy Law (GEG) has undergone a rigorous legislative process up to its ratification, it continues to be viewed controversially. The debate centers around questions of the law’s effectiveness and feasibility, particularly in light of the intended energy transition and the reduction of greenhouse gas emissions. Are the legal requirements too stringent? Who bears the cost of the energy transition? How do investments and climate objectives reconcile with tenant protection?
The GEG is also discussed in the context of the real estate market and the construction industry. Concerns are legitimate, as there are foreseeable burdens for owners of older buildings and the impact of significant additional costs on rent prices and thus, the availability of housing.
Moreover, the methods for calculating and evaluating a building's energy efficiency are criticized. Expert opinions vary widely. At the heart of the debate is whether the targeted standards are even suitable for achieving climate goals. The measurability and accuracy of implemented measures, as well as the fairness of the assessment procedures, are under scrutiny.
Objectives of the GEG
The GEG aims to achieve climate neutrality in Germany’s building heating sector by 2045. There are legitimate doubts as to whether the climate targets can be met without massive CO₂ savings. Although CO₂ emissions from heating have been declining for years, nearly 150 million tons of CO₂ are still attributed to building heating – that's just over two-thirds (68%) of the total emissions.
According to the Federal Environment Agency, an oil-fired boiler produces 318 grams of CO₂ per kilowatt-hour. For a living space of 120 sqm, requiring about 15,000 kilowatt-hours of heating energy, an oil-heated household thus generates approximately 4.7 tons of CO₂ annually. To meet climate targets by 2045, substantial CO₂ savings are inevitably required. The energy price shock at the beginning of the Ukraine war showed all tenants, owners, and builders how sensitive the system in Germany is to dependencies on energy imports. It has thus become a political and economic goal to become as independent from imported energy as possible.
Even after the intense societal and parliamentary discussion surrounding the Building Energy Law, its effectiveness and feasibility, as well as the impacts on costs and their distribution, remain contested. Moreover, the ongoing debate revolves around how climate protection can be reconciled with tenant protection and how potential devaluation of properties due to the GEG should be handled.
It is already becoming apparent that real estate prices will no longer be determined solely by traditional factors such as location, rent, and general condition, but increasingly by their energy efficiency. Thus, the GEG affects the entire real estate market, from individual apartments to extensive portfolios. The financial burdens for owners of older buildings and potential impacts on rent prices are difficult to estimate.
What challenges do Berlin districts face?
Berlin is a metropolis that has reinvented itself many times over. Two world wars, the division of the city, industrialization and deindustrialization, population decline, and rapid growth have always left the global city little time for major transformations. This also applies to Berlin's stock of houses and apartments, which to this day remains extremely heterogeneous in terms of heating supply. This is particularly evident in our evaluation of data on the amenities of apartments in Berlin's multifamily buildings, which we have determined and visualized exclusively for you based on the 2011 Census.