Germany introduces green gas quotas for private households

The German government, under the Building Modernization Act (GModG), is implementing a mandatory green gas and heating oil quota to transition residential heating toward climate neutrality by 2045. The plan involves a gradual increase in the proportion of biomethane, bio-oil, or hydrogen mixed into fuels used by private households.

According to a policy paper from the Federal Ministry for Economic Affairs and Energy (BMWE), the quota is set to begin in 2028 at 1 percent. The share is projected to rise to 5 percent by 2030, 20 percent by 2035, and 50 percent by 2040, with a goal of reaching 100 percent by 2045. While the specific costs and exact quantities of fuel required remain uncertain due to market and import dependencies, the policy specifically targets private residential heating, exempting industrial, commercial, and transport sectors.

For new installations, a “bio-staircase” model will require heating systems to meet increasing renewable energy thresholds: 10 percent by 2029, 15 percent by 2030, 30 percent by 2035, and 60 percent by 2040. This new legislation replaces previous regulations that had faced significant public opposition regarding the mandatory replacement of older heating systems.