Germany approves new heating law allowing oil and gas boilers

The German Bundestag passed the Gebäude‑Modernisierungsgesetz, replacing the previous heating legislation. The law permits the installation of new oil and gas boilers but requires that, from 2029, they be operated with increasing shares of biogas or bio‑oil. At the same time, the state subsidy for replacing old heating systems with heat pumps is being reduced, with the current scheme ending on 21 July.

The Federal Constitutional Court dismissed a legal challenge by the Left party, clearing the way for the law’s entry before the parliamentary summer recess. Government officials present the measure as providing certainty for owners, renters, the construction sector and installers. Environmental groups and the BUND criticised the continued allowance of fossil‑fuel boilers, the bio‑fuel mandate and the cut in subsidies, arguing that the changes undermine Germany’s climate targets.

Opposition parties and climate advocates called the law a step back for the Wärmewende, warning that higher costs could deter households from investing in renewable heating solutions.