Germany's Coalition Proposes Cost Cap for Renters in Heating Law Reform

In a reform of the heating law, the coalition government proposes a cost cap for renters, intending to distribute heating expense risks between landlords and tenants. Key provisions include halving costs related to CO2 emissions, network fees, and biogas for existing and future rental agreements following a heating system replacement.

The introduction of a 'green gas quota' for existing heating systems is also planned for 2028. Environmental groups caution that rising CO2 prices and network fees may increase long-term costs. Critics argue this plan may prolong reliance on fossil fuels and lead to higher overall housing expenses.