Why is decarbonizing heat so important?

In 2020, the housing sector contributes to over 9% of total German greenhouse gas emissions (source BDEW), reducing emissions is going to be a challenging task.

A recent publication from BDEW shows the magnitude of what needs to be achieved to be consistent with EU Green deal objectives: -55% in less than 10 years compared to 44% achieved in 30 years.

Any policy around heating also needs to address energy poverty. A 2018 survey indicated that 2.7% of German population was unable to keep the home adequately warm and that 17.4% of households spend a high share of their income on energy expenditure (EU Energy Poverty Observatory).

What makes it so complicated to reduce GHG in the housing sector?

• There are 40 million homes in Germany and renovation rate is very low compared to other emitting sectors, around 3/4 use fossil fuel heating systems.
• Heating is provided via a wide range of installations, individual or collective, from a small gas boiler in a flat to a large district heating facility in cities.
• Renovation of heating systems or of housing to reduce consumption can quickly become a social issue. The recent discussions in Germany on who should pay the newly introduced price of CO2 between landlords and tenants is a good illustration of it.

What do we need to succeed?

• Regulatory schemes favoring a mix of low carbon solutions: electricity, geothermal energy, green gas and energy efficiency measures. No single solution can cover all needs.
• The overall energy supply system needs to be able to cover the seasonal and shorter-term variations of heating and cooling needs
• The set of measures will need to consider social issues and affordability of heating solutions

The German government has recently opened a dialogue with the various stakeholders to discuss the Wärmewende. Expect heated debates on this topic!