Key points of the Building Modernization Act (GMG)
February 25, 2026
Status: February 2026 (subject to change)
The German government is sticking to its goal of climate neutrality by 2045. The GMG is to come into force on 01.07.2026. The EU Buildings Directive (EPBD) will be implemented 1:1, making full use of national leeway.
- The requirements of the Heating Act (GEG §§ 71-71p) will be deleted. The obligation to operate new heating systems with at least 65 % renewable energy will no longer apply to new and existing buildings.
- Technology openness: Owners are given full freedom of choice when replacing their heating system. Both electric systems such as heat pumps and gas or oil systems are permitted, provided they are operated with an increasing proportion of CO₂-neutral fuels (biomethane, synthetic fuels) from 2029.
- Biogenic share & CO₂ costs: Specifically, a biogenic share of at least 10 % is prescribed from 01.01.2029, which will be gradually increased and on which the CO₂ levy will be waived. (Price dynamics for gas mixtures are to be expected due to future demand).
- Industry & commerce: These sectors are likely to be exempt from the quota regulations for energy sources (final review recommended). This will continue to enable tailor-made solutions for hall heating systems, as the climate targets will be maintained.
- Investment security & funding: The GMG ends the investment-inhibiting wait-and-see attitude that was triggered by the previous law. The state BEG subsidy for climate-neutral heating solutions remains secured until at least 2029.
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