Climate Protection Ordinance

The term Climate Protection Ordinance broadly refers to all laws and regulations aimed at reducing greenhouse gas emissions in the building sector. In German real estate law, the central instrument is the Building Energy Act (GEG), which replaced the former Energy Saving Ordinance (EnEV) and the Renewable Energy Heat Act (EEWärmeG). In addition, there are further regulations at the EU level (EU Energy Performance of Buildings Directive, EPBD) and at the state level (Bavaria: BayKlimaG). Together, these standards form the legal framework for energy efficiency, heating requirements, and the use of renewable energy in the existing building stock.

The Building Energy Act (GEG) as the Core Regulation

The GEG regulates energy efficiency requirements for new buildings, minimum energy standards for major renovations, and obligations regarding heating system replacement. Effective 2024: Newly installed heating systems must be powered by renewable energy sources for at least 65%. Transition periods apply to existing buildings, which are linked to municipal heat planning. Owners of older buildings with oil-fired heating systems and old gas boilers must check whether a retrofitting or replacement obligation applies.

EU Energy Performance of Buildings Directive (EPBD) and Renovation Obligations

The revised EU Energy Performance of Buildings Directive (EPBD, 2024) requires member states to gradually renovate the worst-performing buildings by 2030 (minimum energy standards). Germany must transpose this directive into national law. For property owners, this means that buildings with poor energy efficiency ratings (F, G, H) could be required to undergo renovation measures in the medium term. This has significant implications for the value and rentability of older buildings.

Municipal Heating Plans and Their Consequences for Property Owners

Cities and municipalities are required to develop municipal heating plans that outline which areas will be supplied with district heating or hydrogen in the future and where property owners must rely on decentralized renewable heating systems. These planning processes are currently underway in Nuremberg and other major Bavarian cities. Owners should be familiar with their municipality’s heating plan before making investment decisions regarding new heating systems.

Impact on Property Values and Rentability

Increasingly stringent climate protection legislation has a direct impact on the real estate market. Buildings with poor energy efficiency (Classes F, G, H) are already facing price discounts in many regions because buyers must factor in renovation costs. Studies show that existing buildings with poor energy efficiency face a 10-25% price discount in the medium term compared to similarly energy-efficient renovated properties.

For landlords, energy efficiency is increasingly a factor in rentability: tenants are increasingly comparing rent including utilities-and an apartment with a poor energy performance certificate and high heating costs is harder to rent than one that has been energy-efficiently renovated. The pressure to invest in energy efficiency is therefore growing not only due to regulations but also driven by market forces.

Bavarian Specifics and Regulations

With the Bavarian Climate Protection Act (BayKlimaG), Bavaria has introduced its own regulations that may go beyond the federal level. Municipalities are granted expanded planning authority for district heating areas. For property owners in Bavaria, this means that local stipulations (e.g., mandatory district heating zones in Nuremberg) can specify and override federal regulations. The implementation of the GEG in Bavaria is being overseen by the Bavarian State Government-transition periods and special regulations should be reviewed on a case-by-case basis.

Practical Tip for Property Owners in Nuremberg and Franconia

In Nuremberg and the Franconia metropolitan region, climate protection legislation affects many owners of older buildings with oil or gas heating systems. Nuremberg itself is currently developing a municipal heating plan that designates areas for district heating connections and areas for decentralized heat pumps. Before deciding to replace your heating system, you should be aware of the heating plan for your specific neighborhood.

We recommend: Check your building’s current energy performance certificate and consult an energy advisor to determine which measures are legally required and economically viable in your specific case. Replacing your heating system early as part of the subsidy program (BAFA heating subsidy of up to 70% for heat pumps) can be significantly cheaper than a forced replacement under time pressure. At my-home.de, we provide information on a property’s energy performance metrics and their significance for value and rentability.

Frequently Asked Questions

Do I have to replace my oil heating system immediately?

No, not immediately. The GEG provides for transition periods. Oil heating systems installed after January 1, 2026, in areas without municipal district heating planning must meet the 65% renewable energy requirement. Existing, functional heating systems can generally continue to be operated; however, the new regulation applies in the event of a total failure or voluntary replacement. Municipal heating planning may extend local deadlines.

What does the EU Buildings Directive specifically mean for my home?

Germany must transpose the EPBD into national law by 2026. Specific obligations for owners depend on the national implementation. Minimum standards for existing residential buildings are expected to be introduced, making renovations mandatory for certain energy efficiency classes. Owners of buildings in the lowest energy efficiency classes (F-H) should start researching this now.

How do I find out what energy efficiency class my home has?

The energy efficiency class is listed on the building’s energy performance certificate. When selling or re-renting a property, presenting the energy performance certificate is required by law. If an energy performance certificate is missing or outdated, it must be reissued by a certified issuer.

What subsidy programs are available for replacing heating systems?

Replacing a heating system with renewable energy sources (heat pump, pellets, solar thermal, district heating) is subsidized through the BAFA program “Federal Funding for Efficient Buildings - Individual Measures” (BEG EM) with up to 70% of the investment costs (depending on income level and a bonus for replacing old heating systems). For an investment of €20,000 in a heat pump, a subsidy of €10,000-14,000 can be applied for. Applications are submitted via the BAFA online portal; the application must be filed before hiring the installer.

How does climate protection legislation affect the rentability of older buildings?

In regions with a tight housing market, such as Nuremberg, there is a growing disparity in demand between energy-efficiently renovated and unrenovated rental apartments. Tenants are increasingly factoring in the total rent-an apartment with an Energy Performance Certificate (EPC) rating of F and high heating costs is becoming less attractive compared to a comparable apartment with an EPC rating of C or better, despite a lower base rent. In a landlord’s market with a limited housing supply, this effect is still minor; however, it is likely to intensify as energy prices continue to rise and regulatory requirements become stricter. We recommend that landlords in Nuremberg actively highlight the energy efficiency rating of their properties as a selling point and prominently feature it in the property listing for new leases.

Climate Protection Ordinance and Grandfathering

Older buildings often benefit from grandfathering provisions, which mean they do not have to be retrofitted immediately with every change in the law. However, these provisions do not apply to all modernization measures: if major renovations significantly alter the building, the grandfathering may expire and current GEG standards become applicable. Landlords and owners should therefore check, prior to undertaking major modernization measures, which GEG requirements are triggered by the planned work. In Bavaria, the energy advisory offices of the Bavarian State Ministry of Economic Affairs and Energy, as well as the Bavarian Consumer Advice Center, provide free consultation on this matter.

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