28 Mar 2019

"With the draft budget for 2020 and 2021, the federal government is apparently giving up the energy transition in the building sector," warns BDH President Uwe Glock.

Only a year ago, the coalitionists, CDU, CSU, and SPD agreed on increased funding to accelerate the energy transition in the building sector. The coalition agreement provides for the introduction of tax incentives, as discussed for years. In the future, applicants should be given the right to choose between grant funding and a reduction in taxable income.

Instrument To Accelerate Heating Transition

In the budget now presented by Finance Minister Olaf Scholz, tax incentives are not included. BDH President Uwe Glock: “Tax incentives are an important instrument to accelerate the heating transition and to mobilize the abundant private capital in the direction of climate and resource protection. If this important political project were to be abandoned, politicians would finally say goodbye to the heating transition.

According to the BDH, it seems downright absurd that the finance minister puts EUR 300 million annually in the budget for fines to be feared as part of EU effort sharing. If the Federal Republic of Germany fails to meet its binding climate protection targets, it must pay fines to the EU. "Instead of planning penalties, the finance minister should use the money for CO2-reducing measures in the building sector," said the BDH President. "If this money were used today as an incentive to invest in efficiency, the impending fines could be reduced or even prevented."

Building Sector Reduces CO2 Emissions

In all probability, Germany will clearly miss the climate protection targets for 2020. The goals for 2030 can only be achieved through increased efforts. The building sector is a key factor in reducing CO2 emissions.

This sector accounts for around 35 percent of total energy consumption in Germany and around a third of CO2 emissions. But the modernization of the outdated heating system has been making slow progress for many years. Without the often-announced tax incentives, the modernization backlog in German boiler rooms will be cemented.