Overview
- SPD parliamentary leader Matthias Miersch says the government will present key points for the reform in the Bundestag’s last February sitting week.
- After months without agreement between Katherina Reiche and Verena Hubertz, negotiations have shifted to party leaders and specialists, and earlier January milestones were missed.
- The core dispute remains the 65 percent renewables requirement for new heating systems, which the SPD wants to keep while the Union pushes a technology‑neutral alternative.
- Industry groups Buveg, BWP and GIH propose allowing energy‑efficiency renovations to count toward compliance, citing an ITG/FIW study showing targeted upgrades can deliver larger CO2 cuts than swapping heating systems alone.
- Market and legal pressure are mounting, with overall heating sales slumping as heat‑pump sales surge, a court order requiring a new climate program by March 25, 2026, and a Greenpeace‑commissioned opinion warning that scrapping the 65 percent rule could violate constitutional climate duties.