Policy

Outlines key policy measures to be implemented by 2020 to in order to reach Germany’s goal of cutting greenhouse gas emissions reduction target. Focuses on energy efficiency, building sector, transport sector, industry, agriculture, and emissions trading reform. The program will lead to a reduction of 62m-78m tonnes CO2 equivalent in 2020 compared with the current projection for 2020. In addition to this a further 3m-4m tonnes can be saved through soft, cross-sectoral measures, bringing about a total reduction of 82m tonnes.

Action Program on Climate Protection 2020

Policy

Between 2017 and 2019, companies in the oil industry have to reduce greenhouse gas emissions by 6% compared to the total quantity of gasoline fuel fossil diesel fuel and biofuel that they place on the market.

Federal Immission Control

Policy

Sets sustainability criteria for the production of biofuels.

Sustainability Requirements for Biofuels

Policy

Regulates the exploration, testing, and demonstration of permanent CO2 storage technology. It is the national-level implementing legislation for the EU Directive on the geological storage of CO2.

Carbon Capture and Storage Act

Policy

Provides for an annual storage of no more than 1.3m tons of CO2 and a maximum storage capacity of 4m tons of CO2 per year in Germany. Stipulates that permits can only be granted if an application for a CO2 storage facility has been made by 31 December 2016.

Carbon Capture and Storage Act

Policy

Aims to increase electricity generation from CHP plants, to support the launch of the fuel cell sector and funding for construction and expansion of heating and cooling systems.

Combined Heat and Power Act

Policy

By 2020, increase electricity generation from CHP by 25%.

Source: https://www.ecolex.org/details/legislation/combined-heat-and-power-act-lex-faoc150768/)

Combined Heat and Power Act

Policy

By 2025, increase net electricity generation from combined heat and power plants to 110 terawatt hours by 2020 and to 120 terawatt hours.

Combined Heat and Power Act

Policy

Establishes the Energy and Climate Fund. The fund provides finance for energy efficiency, renewable energy, energy storage and grid technology, energetic refurbishment of buildings, national climate action, international climate and environment action, and the development of electric mobility.

Energy and Climate Fund (EKFG)

Policy

Sets out a basic strategic approach for the transition to renewables and energy efficiency for a secure, environmentally compatible and competitive supply of energy. States that renewables should account for the main share of the energy supply.

Energy Concept 2010

Policy

Provides the basis and requirements for energy labeling of products in Germany. It transposes the EU Energy Labeling Directive into national law, introduces new classes of labeling (previously only A-G, now up to A+++), and introduces a requirement that not only energy-consuming equipment, but also energy-related products, which themselves do not consume energy, are marked with the EU energy label.

Energy Consumption Labeling Act

Policy

Act aims to enhance competition and secure the supply and sustainability of energy production. Requires electricity labeling according to type of energy source. Calls for consistent and efficient offshore grid expansion and introduces a binding offshore grid development plan.

Energy Industry Act

Policy

Creates the legal framework to promote energy transition in the buildings sector. It serves to implement Federal Government decisions on the energy concept and the energy transition and is based on European guidelines (EU Directive on the Energy Performance in Buildings 2010/31/EU).

Energy Conservation Act

Policy

Requires disclosure of key energy figures in real estate advertisements when selling and renting properties and that an energy performance certificate must be made available to a potential buyer or tenant of a building at the viewing stage. Extends requirement of the existing duty to display energy performance certificates in buildings used by public authorities and frequently visited by the public to smaller buildings.

Energy Conservation Ordinance

Policy

Requires the display of energy performance certificates in certain buildings which are frequently visited by the public, but which are not occupied by public authorities.

Energy Conservation Ordinance

Policy

Establishes the recording of efficiency classes in energy performance certificates for residential buildings as well as the obligation to provide notification in real estate advertisements when selling and letting property. And establishes an independent system for spot checks of energy performance certificates and reports on the inspection of air conditioning systems.

Energy Conservation Ordinance

Policy

Requires the decommissioning of constant temperature boilers installed before 1 January 1985 or which have been in service for more than 30 years (previous qualifying date of 1 January 1978; boilers in certain one and two-family dwellings occupied by the owner continue to be excluded from this regulation).

Energy Conservation Ordinance

Policy

Aims to expand grid infrastructure to encourage renewable energy supply. Simplifies the planning of grid expansion projects which involve several federal states or cross national boundaries: power line routes are centrally planned and approved by the Federal Network Agency in a process involving early public participation. Establishes the Federal Network Agency as responsible for the statutory planning approval procedure for grid expansion projects, which means it can define the precise route of the power lines. The transfer of the planning responsibility from state to federal level is intended to streamline the process and avoids the fragmentation of tasks.

Grid Expansion Acceleration Act

Policy

Prohibits commercial hydraulic fracturing for the production of shale gas as well as shale oil (unconventional hydraulic fracturing). Limited test drillings (four authorized) will be carried out to provide for experts to prepare yearly reports to the German Bundestag. In 2021, the Parliament will reassess whether the ban of unconventional hydraulic fracturing should continue.

Prohibition and Minimization of the Risks of Fracking Technology

Policy

Allows conventional hydraulic fracturing in sandstone for the production of tight gas, a traditional technique used in natural gas fields, to continue despite fracking ban, but under more stringent conditions for permit application:

• An environmental impact assessment is required.
• Only non-hazardous or low hazardous fracturing fluids are allowed.
• In the case of damages due to seismic events, a reversal of evidence is provided: in case of doubt, the companies will have to prove that damage is not caused by hydraulic fracturing activities.

Prohibition and Minimization of the Risks of Fracking Technology

Policy

Requires that the heat requirement for new buildings (greater than 50 square meters) be covered proportionately with renewable energies. The owner can determine which form of renewable energy is to be used. Establishes a certain minimum proportion of the total heating and / or cooling needs to be generated by renewable energies. The proportion depends on which renewable energies are used:

• Solar radiation: at least 15 % of the heating and cooling energy requirements of the building must be covered by a solar thermal system
• Solid or liquid biomass: 50%
• Geothermal energy: 50%

Establishes replacement measures.

Renewable Energies Heat Act

Policy

Establishes a market incentive program for individual homeowners, businesses, and municipalities, allocating subsidies for the use of renewable energy. Funding is provided for private consumers who decide to have their heating system retrofitted to run on renewables. Funding is provided for the installation of solar thermal installations (with a collector area of up to 40 square meters), biomass-based heating systems (with a nominal heating capacity of up to 100 kW), and heat pumps (with a nominal heating capacity of up to 100 kW). The funding program places a special focus on setting up new installations in existing buildings. In the case of new buildings, funding is only available for certain innovative types of installations.

Market Incentives Program

Policy

Establishes guidelines for funding of renewable energy. Switches mechanism from prices fixed by government to prices set by competitive auctions. Sets specific deployment plans for each type of energy (funding will be auctioned for offshore wind energy, onshore wind energy, photovoltaics, biomass). Exempted: installations ≤ 750 kW (biomass: ≤ 150 kW). Auctions will cover 80% of newbuild.

Renewable Energy Sources Act

Policy

By 2020, 2.1% average annual increase in macroeconomic energy productivity from 2008 levels.

National Energy Efficiency Action Plan

Policy

Establishes quality control and optimization of existing energy consultancy services to support energy efficiency consulting for refurbishment plans of entire buildings, including groups of owners.

National Energy Efficiency Action Plan

Policy

Creates tax incentives for energy efficiency refurbishment targeted at improving energy efficiency and renewable heat usage in residential buildings.

National Energy Efficiency Action Plan

Policy

Extends funding and scope of CO2 Building Refurbishment Program — now applicable to commercial and communal properties, as well as residential.

National Energy Efficiency Action Plan

Policy

Creates pilot phase of energy efficiency tenders, “Step Up!,” (2015-2018). Total funding €300 million through 2018. ‘STEP up’ is designed to encourage companies to identify areas where they can improve their energy efficiency and implement measures that take longer than three years to amortize in terms of electricity costs. Funding is available for any kind of investment that is proven to reduce a company’s electricity consumption, no matter if this means changing standard components or developing tailored systems solutions or whether action is taken on the company’s premises or at their customer’s premises.

National Energy Efficiency Action Plan & STEP Up

Policy

Extends energy efficiency program to include two new levels of access to the program (“Starter” program at 10% energy savings, and the “Premium Standard” at 30%). The program supports private sector energy efficiency improvements through soft loans. 

National Energy Efficiency Action Plan

Policy

Establishes Energy Efficiency Network Initiative that targets the creation of 500 “Energy Efficiency Networks” by 2020 to provide implementation frameworks and tools for the government’s energy efficiency plan at a local level. 

National Energy Efficiency Action Plan

Policy

Establishes ‘Top-Runner Initiative’ to push for increased energy efficiency in supply chains and product development through the creation of higher standard at a national level and the granting of EUR 6 million in research support.

National Energy Efficiency Action Plan

Policy

Establishes national energy efficiency labeling for old heating systems and requires heaters and boilers to be given an energy efficiency grading during the existing mandatory chimney-sweep visits.

National Energy Efficiency Action Plan

Policy

Establishes a tax benefit for manufacturing companies bearing significant cost burdens due to electricity duty. Energy efficiency measures such as implementation of energy management systems and achieving energy efficiency targets are a requirement to benefit from the exemption.

Tax Benefit (Spitzenausgleich)

Policy

Provides funding for companies to implement highly efficient cross-cutting technologies. 2016 revision of the program puts an even stronger focus on the industrial sector.

Investment Grants for the Use of Highly Efficient Cross-Cutting Technologies

Policy

Funds energy audit for SMEs through the Federal Ministry for Economic Affairs and Energy. The grant covers 80% of the energy auditing costs, with the maximum amount set at €6,000. For smaller companies that spend less than €10,000 on energy bills, the maximum amount is €1,200.

Funding Energy Audits for SMEs

Policy

Establishes Energy Efficiency Fund to assist in a large number of different measures to improve energy efficiency in SMEs and industry, private consumers and municipalities.

Energy Efficiency Fund

Policy

Establishes the national framework for the enforcement of product-specific implementing eco-design measures, implementing EU’s Ecodesign Directive (2005/32/EC). Within this Act, eco-design regulations ensure that inefficient products are no longer allowed on the market, and with the energy label, EU countries intend to shift the market towards more energy-efficient products. 

Energy-Related Products Act/Eco-Design Implementation and 2017 EU Directive Update

Policy

Aims to reduce energy consumption in the EU through energy labeling. Establishes greater harmonization across the EU for energy labeling. States that the European Commission is establishing a product database accessible via an online portal. This database consists of a public and a non-public part. Public aspect: consumers and retailers can view product data and independent suppliers can perform evaluations to inform consumers. Non-public aspect: accessible only to the market surveillance authorities and the Commission, aimed facilitating efficient market surveillance across the EU. Expected delivery in 2019.

New Framework Regulation on Energy Labeling

Policy

Sets energy performance requirements for new and existing buildings in the instance of major renovation and regulates the issuing and display of energy performance certificates. Specifies that as of January 2016, the primary energy consumption of new-builds will have to be reduced by an additional 25%. Requires decommissioning of oil and gas boilers that provide central heating in apartment buildings that were installed before January 1985 or which have been in service for more than 30 years. Fines for non-compliance have been increased to €50,000.

Energy Conservation Ordinance

Policy

Provides financial incentives for companies to implement innovative pilot projects that  improve the energy efficiency of their industrial, commercial or residential customers with digital technologies. Various energy-saving measures are eligible, including: behavioral or usage changes, changed processes and operations, facilities maintenance or investment in equipment replacement. Up to 1 million euros can be distributed per applicant with a funding intensity of 25% up to 50%, half payable on the basis of proven project costs and the other half on the basis of proven saved kWh. Projects that are already (partially) financed by other federal grants are ineligible.

Pilot Program Einsparzähler

Policy

Provides funding for energy-efficient construction and retrofitting of buildings. Funding takes the form of grants or low-interest loans that may be combined with loan-repayment grants. As a rule, financial incentives rise with the level of energy efficiency achieved. Funding is available for residential, municipal and social service buildings, and commercial buildings.

CO2 Building Modernization Program

Policy

Provides funding for the modernization of heating and ventilation systems in homes. 165 million euros in funding is available and provided in the form of low-interest loans and grants.

Energy Efficiency Incentive Program (APEE)

Policy

Funds specialized contracting consultancy for municipalities and SMEs until through 2018.

Promoting Energy Performance Contracting (EPC)

Policy

Low-interest financing programs, made available by KfW, the German government-owned development bank, available for improving the energy efficiency of production processes and equipment.

KfW Energy Efficiency Programs

Policy

Provides funding for measures (the installation of highly-efficient heating and hot water circulation pumps, the use of hydraulic balancing and others) that require a small investment and creates incentives for consumers to improve their existing heating systems. Between 2018 and the end of 2020, €470 million will be available each year.

Program for Funding Heating Optimization via Highly Efficiency Pumps and Hydraulic Balancing

Policy

Provides funding for companies that are trying out, enhancing, and marketing digital solutions for reducing electricity, gas, heat and cooling consumption by providing these solutions to final consumers. Up to €1 million in funding is available per project.

Energy-Savings Meter Pilot Program

Policy

Introduces energy-efficiency networks, an initiative between the Federal government and business associations and organizations designed to encourage companies throughout Germany to form voluntary energy efficiency networks and commit to targets.

Energy Efficiency Networks Initiative

Policy

By 2020, set up 500 energy efficiency networks, a joint goal between the Federal Government and business associations and organizations.

Energy Efficiency Networks Initiative

Policy

Aims to encourage investments in highly efficient horizontal technologies, with a current focus on industrial pumps, alongside action to promote the in-house use of waste heat. Program covers investments to replace existing equipment as well as investments in new equipment and targets SMEs and large companies. A maximum of €30,000 is available for individual measures per project, or a maximum of €150,000 for measures to improve entire systems. The latter are eligible for funding if proof is furnished that these measures will increase the system’s energy performance by at least 25% and if an energy conservation plan to this effect is submitted.

Guidelines for Funding Highly Efficient Horizontal Technologies