Coalition agrees on changes to heating law – adoption in the Bundestag delayed

As the amendment motion shows, the federal government is to present an additional law by 1 December 2026 that introduces a so-called "green gas/green heating oil quota." This law will obligate the "distributors" of gas, oil and liquefied gas to fully convert the fuels placed on the market for the heat supply of buildings to climate-neutral fuels from the year 2045.

Core of the reform: green gas quota instead of 65-percent requirement

According to the motion, a "green gas quota" that must be met by suppliers is to apply to existing heating systems as early as 2028. The exact level of this quota is still open, according to coalition circles. Economics Minister Katherina Reiche had said during the first reading of the draft law in the Bundestag that the federal government is replacing "heating mandates" with technological openness. The CDU politician had spoken of a "mandate for heat pumps" with a view to the existing regulations.

In the future, new gas and oil heating systems are to remain installable – provided that they gradually use an increasing share of CO2-neutral fuels such as biomethane. This eliminates the previous path toward a far-reaching switch to heat pumps as the standard technology in new and existing buildings.

The opposition sharply criticized the plans. Michael Kellner, energy policy spokesperson of the Greens, told the German Press Agency: "Union and SPD are hesitant to implement their own law. They should make good use of the summer recess and withdraw the law entirely." The coalition is ignoring all warnings when it comes to the law. "The law is an expensive package for tenants, fuels the climate crisis and creates uncertainty for skilled trades."

Criticism from the opposition

Kellner also warned: "Fossil gas heating systems will not be taken off the market." There is no tenant protection for self-employed people and small business owners. Green MP Alaa Alhamwi said: "Negotiations went on for weeks, but nothing was really improved." Experts had made clear in the hearing that the law was bad and highly problematic under constitutional law.

The Left faction in the Bundestag has meanwhile filed a lawsuit with the Federal Constitutional Court. The faction sees the information rights of MPs as violated. The aim is to prevent the new law from being railroaded through – without the effects on climate impact being known. The court could rule on the urgent application as early as this week.

The Left's lawsuit before the Federal Constitutional Court

The Left accuses the coalition of not having informed MPs sufficiently about the consequences of the law. Only after additional information is provided can parliamentarians adequately assess the scope of the planned changes, it said from the faction. The black-red coalition rejected the accusations and referred to the ongoing parliamentary process.

Should the Federal Constitutional Court grant The Left's urgent application, adoption of the law before the summer recess would hardly be possible. The Bundestag's parliamentary summer recess lasts until early September 2026. According to information from coalition circles obtained by the German Press Agency, a decision on postponing the vote is expected in the coming days.

Timeline: delay due to summer recess

The legislative project originally planned for this week is titled the Building Modernization Act and is intended to replace the previous Building Energy Act, also known in political language as the heating law. With the changes, the black-red coalition is departing from key climate policy decisions of the previous "Ampel" government of SPD, Greens and FDP.

From SPD circles it was said that an agreement had been reached with the Union on a compromise that takes both climate targets and practical feasibility into account. The previous 65-percent rule had encountered significant acceptance problems in practical implementation, particularly among owner-occupiers of older existing buildings. With the green gas quota from 2028, a binding path toward decarbonization of the heat supply is being created, without forcing owners.

Reactions from business and associations

Business associations and trade guilds had repeatedly called for a relaxation of the 65-percent rule. They pointed to delivery bottlenecks for heat pumps, high installation costs and a lack of skilled workers. Tenant associations also expressed skepticism: they fear that the planned provisions could lead to higher heating costs if the costs of switching to climate-neutral fuels are passed on to end customers.

It remains unclear how the planned green gas quota is to be designed in concrete terms. One open question is whether and to what extent biomethane, synthetic methane or hydrogen blends will count toward the quota. The procurement rules for suppliers – i.e., whether the quota can be met through purchasing, blending or certificates – have also not yet been finally settled.

Open questions on the design of the quotas

In view of the debate within the Union, the agreement is seen as a success of Economics Minister Reiche's pragmatic line. The CDU politician had advocated early on for a relaxation of the heat pump requirement, thereby keeping critics from the ranks of climate protection advocates in the Union at a distance. The Federal Ministry of Economics said that a proposal for the concrete design of the quotas would be presented in the coming weeks.

Observers interpret the amendment motion as a signal that the coalition is betting on more market opening and less regulatory requirements when it comes to the heat transition. Whether this course holds up in the coming deliberations will likely also depend on how the Federal Constitutional Court rules on The Left's urgent application and what conditions the court may formulate for further parliamentary handling.

Until then, it remains unclear whether the heating law in the form now envisaged will still be adopted in this legislative period. The summer recess begins in a few weeks, and the coalition is under pressure to follow up its own energy policy announcements with action. Otherwise, the project threatens to slip into the next year – with uncertain majority conditions.