Criticism of Reiche's heating plans: Green gas quotas make heating more expensive, associations warn

Environmental and consumer associations are demanding that the federal government reduce the biofuel quota for heating systems planned from 2028 and instead promote the phase-out of fossil-based heat supplies. The so-called green gas quota is a “sham solution” and not an effective instrument against the climate crisis, according to a statement from ten associations, including Greenpeace, the Association for the Environment and Nature Conservation, the German Tenants’ Association and the Federal Association of Consumer Organizations. In the opinion of the associations, the government is not progressing the replacement of fossil heating systems in this way. Rather, there is a risk that their operation will be extended and consumers will be burdened with high heating costs.

Background: Federal Minister of Economics Katherina Reiche (CDU) wants fossil heating systems to be operated with a gradually increasing quota of green gases such as biomethane or biooil from 2028. This means that the climate goals should remain achievable, even though there is no longer a date for phasing out gas and oil heating. This is part of the building modernization law, with which the black-red federal government gutted the traffic light heating reform. Dealers should be obliged to only sell fuels with the required admixture. The quota should initially be 1 percent in 2028 and rise to 100 percent by 2045. Critics complain that there are not enough biofuels available and that they are very expensive.

“The green gas quota threatens to lead to significant additional heating costs for private households,” warn the associations. Tariffs with a share of at least 10 percent biomethane are already on average 25 percent more expensive than conventional ones.

According to Reiche's plans, the green gas quota should only apply to private households, not to industry or transport. The federal government plans to ensure that retailers “can also fulfill their obligations under the green gas quota by supplying renewable and low-carbon hydrogen to industrial companies,” said the associations. They firmly reject this as “cross-subsidization of hydrogen in industry by private households”. The ramp-up of hydrogen is necessary, but there must be separate financing instruments for this.