Germany: Prohibition of gas heating in new buildings from 2024

The Climate Neutral Foundation, Agora Energiewende, and Agora Verkehrswende demonstrated how the next German federal government can achieve the improved mid-2030 goals and avoid bad investments through swift and concerted action. Among the 50 recommendations of climate protection actions, Germany will ban the use of gas heating in new buildings from 2024.

The German Bundestag is currently planning to pass an amendment to the climate protection law before the summer vacation, so it needs to act quickly. Politicians must immediately propose specific instruments in the new legislative period. This is the only way for Germany to achieve its ambitious goal of reducing carbon dioxide emissions by at least 65% from 1990 levels by 2030. Rainer Baake, Director of the Climate Neutral Foundation, Patrick Graichen, Director of Agora Energiewende, and Christian Hochfeld, Director of Agora Verkehrswende, have now proposed 50 climate protection actions. "In most parts of the world, people are increasingly aware that climate change requires rapid action. On the road to climate neutrality, there is competition for the best strategy. It is also about succeeding in the market of tomorrow. "Rainer Baake said. "Our method is based on a combination of 50 instruments. With the help of carbon dioxide pricing, regulatory laws, subsidies and tax incentives, the German economy can be transformed into climate-neutral innovation and social balance. Our proposal is to be carefully coordinated Complementary to cross-sectoral. They avoid bad investment, improve efficiency and ensure widespread electrification and the use of hydrogen in all sectors.” Baake, Graichen and Hochfeld hope that their action proposals will be understood as a right to enter the climate protection coalition negotiations after the federal election. Of the party’s proposal. "We have identified the main levers for reducing greenhouse gases in all sectors and have developed tools for this. These are based on a large number of scientific studies and legal reports commissioned by our three agencies in the past few months." Detailed climate protection actions Suggest.

The 50 recommendations for action are subdivided into five key sectors of the German economy related to climate protection. Energy, transportation, industry, construction and agriculture. There are also cross-departmental measures. For example, this includes the "automatic adjustment mechanism" in the Federal Climate Protection Act, which aims to ensure that carbon dioxide prices rise or similar effective measures are taken if industry targets are not met. In addition, the three major think tanks advocated fundamental climate protection-oriented reforms to the original tax collection and carbon dioxide pricing system, and provided market-based incentives for the shift to climate-friendly technologies. In order to reduce electricity bills, politicians should cancel EEG surcharges as soon as possible, as early as January 1, 2023, and at the latest, January 1, 2025. Revenues from EU emissions trading and higher carbon dioxide pricing will act as counter-financing. Experts predict that by drastically reducing subsidies that are harmful to the environment, more funds will be provided for the modernization of ecology and social justice. In order to avoid individual bad investments and claims against taxpayers (such as the elimination of coal), the legislature should legally limit the use of fossil fuels in all economic sectors to January 1, 2045. If the corresponding law is passed in 2022, all relevant personnel will have 22 years of depreciation and adjustment time. Recommendations for Action Energy Since the electrification and hydrogen production in other sectors require large amounts of carbon dioxide-free electricity, the three organizations have proposed extensive measures to achieve faster expansion of renewable energy. By 2030, their share of electricity consumption will increase to at least 70%. Specific legislative proposals indicate how to provide more areas for wind power plants, how to tighten approval procedures, and how to constructively resolve conflicts between targets and species protection interests by setting bird strike protection distances. In addition, speed up the construction of offshore wind energy systems and strengthen solar power generation by open-air photovoltaic systems. In addition, three think tanks proposed the lowest carbon dioxide price in the national power industry. This should offset the price of carbon dioxide below the European Emissions Trading Scheme, starting from 50 euros in 2025 and rising to at least 65 euros by 2030. Buck: "This will end coal power generation in 2030." Recommendations for movement flow. Climate experts hope to increase the number of electric vehicles to at least 14 million by 2030 through a series of coordinated measures. Politicians should achieve this goal by reforming the vehicle tax. This has a significant steering effect on the direction of electric vehicles. In addition, the think tank proposes to eliminate the climate-damaging subsidy effect on burning vehicles as part of the company's car tax. The burden of emission-free vehicles and burning trucks with truck tolls, the accelerated demand-based expansion of charging infrastructure, and the tightening of the EU's carbon dioxide fleet restrictions are aimed at promoting the electrification of trucks. Further measures include expanding the railway network and strengthening local public transportation. The goal here is to double the number of passengers and make railways account for 25% of all freight. In addition, politicians should adjust the Federal Transport Infrastructure Plan to meet the requirements of Germany's climate neutrality in 2045. Priority should be given to maintaining the substance of the transportation infrastructure and expanding the railway network. Legislators should abolish aviation's financial privileges. To this end, he should increase the air traffic tax rate to 19% of the value-added tax rate. Christian Hochfeld: "The current debate on rising gasoline prices has shown that before we discuss measures in the transportation sector, there needs to be a basic political consensus that has long existed in science: we cannot escape the climate crisis. In addition to funding for electric vehicles and public transportation To make new mobility a substitute for private cars, it also requires stricter requirements and higher prices for climate-damaging mobility. This is the only way to achieve the most ambitious climate protection goals in the transportation sector. "Recommendations for the motion industry. For the industrial sector, the three major think tanks recommend the promotion of climate-neutral technology in basic industries." To this end, politicians should legally introduce climate protection agreements in the form of carbon contracts for difference (CCfD). These are used to fund the differential cost between climate-neutral technology and the revenue that can be obtained on the market. Graichen: “If politicians don’t act quickly, there will be no more investment in Germany. As early as 2022, we need a law that allows climate-neutral investment in industry, otherwise Germany’s economic foundation will become obsolete. Because there is no company that invests in old fossil technology." Action construction recommendations From 2024, new buildings will no longer allow the installation of fossil heating systems. For major renovations of existing buildings, the legislature has stipulated increased energy requirements. Climate experts hope to provide 12 billion euros in funding for climate-neutral new buildings and climate-neutral building renovations each year. From 2023, landlords should no longer be allowed to pass on the rising cost of carbon dioxide to tenants in order to incentivize landlords to renovate energy efficiency and switch to carbon dioxide-free heating systems. The legislature should reduce the modernization surcharge for energy-saving renovation to 1.5%. In the future, landlords will no longer need to deduct subsidies from the apportionable costs, and they will still belong to the building owner (the third model). “In terms of climate policy and social policy, the following applies: electricity prices fall and carbon dioxide prices rise. And don’t pass on higher carbon dioxide costs to tenants, but leave them to the landlord as a reward. Because of investing in new low-carbon heating systems Or good insulation depends on them," Graichen said.

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