Parliament has approved the Building Modernisation Act (GModG); the anticipated approval by the Bundesrat also followed swiftly. This new Act replaces the previous Building Energy Act (GEG) and implements central provisions of the European Energy Performance of Buildings Directive (EPBD) into national legislation. This redefines a crucial regulatory framework for the entire building sector in Germany.
Aygül Özkan, Chief Executive Officer of the German Property Federation (ZIA), commented on the development, highlighting the return to increased reliability and a factual approach. At the same time, she urged the necessity of rigorously pursuing the established climate pathway. Following a period of uncertainty, greater clarity has now been achieved, which is of crucial importance for the stability of the real estate industry and its investment decisions. However, it is essential that with the introduction of the GModG, the claim to a transparent, reliable, and systemically integrated transformation path is by no means abandoned.
2045 Climate Targets and the Professionalisation of the Sector
The ZIA expressly welcomed the German government's commitment in the GModG to the climate protection targets in the building sector and the associated obligation to implement these targets. Nevertheless, the Act's openness to fossil heating options gave cause for concern. Although this is of lesser relevance for the professional real estate industry, where the focus is already on climate-friendly solutions, new fossil lock-in effects threatened the broader building sector. These could jeopardise the climate pathway of the entire sector.
Ms. Özkan further emphasised that should the climate targets be missed, leading to the necessity of regulatory readjustment, this must not be at the expense of the professional real estate industry. This sector is already investing significantly in decarbonisation and modernisation.
Implementation of EPBD Provisions and Funding Requirements
The ZIA positively noted that key demands of the association were taken into account during the legislative process. The implementation of EPBD provisions regarding minimum energy performance standards, charging infrastructure, and energy performance certificates is being carried out in a practical manner. Technology neutrality is being maintained, and bureaucratic requirements have been reduced in key areas. The transformation of the existing building stock is not solely a matter of political will, but primarily a question of economic feasibility. Therefore, it is necessary to establish a consistent link between regulatory law and an adequate funding landscape.
- —Practical implementation of EPBD provisions on minimum energy performance standards.
- —Maintenance of technology neutrality in the building sector.
- —Reduction of bureaucratic requirements at key points.
- —Need for a rigorous link between regulatory law and the funding landscape.
The ZIA demanded that the reform of the Federal Funding for Efficient Buildings (BEG) be consistently aligned with the requirements of the GModG. Increased legal requirements without an adequate and predictable funding landscape would tend to hinder rather than accelerate investments. As Ms. Özkan specified: “Those who impose higher requirements must also create the economic conditions for investments to actually take place. Regulatory law and funding belong together.”
