Berlin In view of the ongoing tugging of the traffic light coalition over the Building Energy Act (GEG), displeasure is growing in the economy. “Politicians are facing difficult decisions, but these must be made now,” Sabine Nallinger, head of the Climate Economy Foundation, told Handelsblatt. Companies from many sectors of the German economy who want to lead the way in climate protection have joined forces in the foundation.
The traffic light coalition has been struggling for weeks about its course in the matter of GEG. It is still unclear whether the Bundestag can decide on the plans for the heat transition by the summer, despite all the differences of opinion, especially between the Greens and the FDP.
The ongoing lack of clarity has long been a nuisance not only for the sectors directly affected, such as the manufacturers of heating systems, but also for construction financiers, for example. Reinhard Klein, CEO of the Schwäbisch Hall building society, is pushing for a political decision. His company needs clarity and reliable political regulations against the background of which customers can be given serious advice.
The contradictory signals from Berlin are currently causing customers to be reluctant, Klein told the Handelsblatt. The switch to a decarbonized heat supply for CO2 neutrality in the building sector is “ultimately without alternative” and also makes sense in view of the prospect of rising CO2 prices and for the preservation of the value of real estate. “Socially acceptable designs can certainly be found in the further legislative process,” said Klein.
Meanwhile, time for the coalition is running out. The federal cabinet already approved the GEG draft in April. However, the draft law has not yet been introduced into the Bundestag. That would have to happen in the coming week if a special session of the Bundestag before the summer break from July 7th is to be avoided.
Industry representatives are demanding a decision before the summer break
In coalition circles it was said that negotiations would be held this weekend with the aim of finally reaching a compromise that the traffic light groups could then agree to on Tuesday.
The GEG draft stipulates that new heating systems must be operated with at least 65 percent renewable energy from 2024. In fact, this goes hand in hand with a ban on new oil and gas heating systems. The Liberals, in particular, consider the bill to be too rigid. They want greater openness to technology. There is also a struggle about transitional periods, exceptions and the amount of funding.
According to the Minister for Economic Affairs, 500,000 heat pumps are to be sold in Germany every year.
(Photo: dpa)
From the point of view of the affected industries, the back and forth is no longer acceptable. “We need the GEG amendment before the summer break in order to have planning and investment security,” said Filip de Graeve, Germany boss of Daikin, the Handelsblatt. Daikin is a world leading manufacturer of air conditioning and heat pumps. “The industry is ready for the GEG amendment. The industry is not overwhelmed, but is able to provide the required plant capacities,” said de Graeve. One is dependent on trend-setting political decisions.
Federal Economics Minister Robert Habeck (Greens) had encouraged heat pump manufacturers to massively expand production capacities long before the start of the debate on the GEG. Habeck prepared the companies for the fact that 500,000 heat pumps would be installed in Germany every year from 2024.
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The construction industry also demands clear conditions. “The traffic light must not take the pace out of the heat transition. We now have to rely on all available technologies to decarbonize the heat supply,” said Jan-Hendrik Goldbeck, managing partner of the commercial construction expert Goldbeck. “For this we need standardized and typified procedures,” he explained. Goldbeck began installing photovoltaic systems on the roofs of commercial buildings more than two decades ago, thereby setting standards.
Uncertainty is spreading among the population
The long debate of the traffic light coalition is also causing uncertainty among the population. This is suggested by an as yet unpublished Insa survey commissioned by the Forum for Climate, Energy, Mobility and Building (KEMB). Accordingly, the citizens rated the climate policy debate in May worse than in the previous month.
The current survey was conducted from May 26th to 30th. It also proves that there is little acceptance of the long-established political goal of no longer using natural gas, oil or coal for heating purposes by 2045 at the latest. The largest group of respondents, 44 percent, said they thought the goal was “bad” or “rather bad”.
The negative attitude is particularly pronounced among AfD voters at 72 percent. Only 33 percent of all respondents find the goal “good” or “rather good”. KEMB is still a young platform that wants to establish itself as a driving force and think tank in the energy and climate policy debate.
On Saturday around 13,000 people demonstrated in Erding near Munich against the planned heating law. Bavaria’s Prime Minister Markus Söder (CSU) and his deputy, Economics Minister Hubert Aiwanger from the Free Voters, use their speeches to attack the government in Berlin. Söder mainly attacked the Greens. He said that climate protection is important, but it has to be promoted together with the citizens.
Aiwanger said now is the point where the silent vast majority of this country must take back democracy. He demanded the resignation of the “Berliner Chaos”.
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