Think tank wants to make building renovation more social

28.07.2025

Source: E & M powernews

The Zukunft Klimasozial think tank has put forward proposals for reforming federal funding for efficient buildings - with a focus on social differentiation and tenant protection.

The scientific think tank "Zukunft KlimaSozial" is proposing a fundamental reform of the federal subsidy for efficient buildings (BEG). The aim is to provide greater relief for low-income households and make the heating transition more socially just. The proposal published on July 24, 2025 combines a targeted graduated funding practice with supplementary measures under tenancy law.

"In order to achieve the climate targets in the building sector and at the same time not overburden anyone financially, we need a mix of instruments consisting of targeted, socially graduated funding and simple implementation," explained Director Brigitte Knopf. According to Knopf, it is crucial to retain the BEG as an established framework, but to focus more on social justice. Only in this way could the heating transition find broad acceptance and involve all sections of the population.

Specifically, the think tank proposes that the existing sub-programs of the BEG - such as for complete refurbishment, individual measures or heating replacement - should be staggered according to social criteria in future. For private homeowners, the funding should be based on the so-called equivalence-weighted net household income and not on taxable income, as is currently the case. For landlords, the rent control should serve as a benchmark.

Supporting low incomes and tenants

"The current BEG subsidy mainly reaches households with higher incomes," says Astrid Schaffert, consultant at Zukunft Klimasozial and main author of the reform proposal. In order to correct this imbalance, the support must be adjusted according to income. Households with very low incomes should be able to receive full funding through grants and low-interest loans.

In addition, the think tank recommends greater support for particularly inefficient buildings, so-called worst performing buildings. Measures for the more efficient use of living space and an expansion of funding for serial refurbishment - particularly in the area of external insulation - are also part of the concept. Funding is to continue to be awarded via the existing verification system in order to keep the administrative burden low.

Another focus of the reform proposal concerns the rental market. Rising heating costs and modernization levies could overburden low-income tenants financially if energy-efficient renovations are not carried out or if costs are passed on unchecked. According to Astrid Schaffert, subsidy bonuses should therefore be specifically linked to affordable rents, social commitments and letting for the common good.

Zukunft Klimasozial was founded in 2024 by climate scientist Brigitte Knopf. The think tank sees itself as a driving force for integrated climate and social policy and contributes scientific analyses to political and social discussions. With the reform proposal for the BEG, the organization wants to show how climate protection in the building sector is possible without social upheaval.

The proposal for social refurbishment funding is available to download as a PDF.

Author: Susanne Harmsen