Germany is supporting steps to increase energy efficiency in buildings, with subsidies and incentives worth 6 billion euros ($7.2 billion) this year. The measures supported by the federal government include programmes to modernize existing buildings with better insulation and more efficient heating systems. The building sector is an important factor if we want to make the energy transition a success.
The push should help the housing sector in Europe’s most populous country move towards its goal of becoming climate-neutral by 2050, and with it enable Germany to reach its wider climate protection targets over the next three decades. The modernization drive could, however, increase the cost of living for Germans as, by law, landlords can pass on the cost of investments by raising rents.