The German Bundestag has passed the Building Modernisation Act (GModG) despite extensive criticism. According to critics, the Act, which largely regulates the energy efficiency upgrade of buildings in Germany, focuses on so-called green gases and thus entrenches the infrastructure for fossil gas. This contradicts the Act's own stated objective of effective climate protection and could have long-term consequences for the building stock and the real estate industry.
From the perspective of Deutsche Umwelthilfe (DUH), the now-passed Act contradicts Germany's already established statutory climate targets. Consequently, the DUH has announced its intention to file a constitutional complaint against the GModG once it has become legally binding. This measure underscores the fundamental discrepancy between legislative assumptions and the positions of relevant environmental organisations regarding the transformation of the heating sector.
DUH Federal Managing Director, Barbara Metz, was critical of the decision. She referred to the proximity of the Act's passing to a heatwave, which had significant impacts on the population. Metz argued that the Act artificially keeps fossil heating systems alive, thereby exacerbating the climate crisis. In her view, this represents a concession to the gas and oil lobby. Expert opinions, even from within the CDU/CSU parliamentary group, are said to have already questioned the constitutionality of the Act. These assessments point to a critical legal review that extends beyond the political debate.
The DUH views the consequences of the Act as exposing citizens to rising heating costs and continued dependence on fossil fuels. Furthermore, the argument was made that the decision would lead future generations into an increasingly hostile environment. The organisation stressed its determination to enforce compliance with climate targets before the Federal Constitutional Court. For the real estate industry, this means potential uncertainty regarding the long-term planning of investments in building technology and energy-efficient refurbishments, as the validity of the Act is being legally challenged.
This development is being closely followed by market participants and property owners. A successful constitutional complaint could lead to a revision of the Act, thereby creating new frameworks for energy-efficient building modernisation. This would affect construction projects, refurbishment strategies, and the valuation of real estate portfolios across Germany.
