Association proposes key points for new GEG

04.02.2026

Source: E & M powernews

The German Business Initiative for Energy Efficiency (Deneff) has presented five key points for a building modernization law that will stimulate investment and end uncertainty.

According to the German Business Initiative for Energy Efficiency (Deneff), the ongoing debate surrounding the so-called Heating Act is leading to a reluctance to invest in the building sector. According to the association, modernization projects are currently being postponed or abandoned altogether. This is affecting owners, tenants, tradesmen and investors. The renovation backlog is growing, energy is being consumed unnecessarily and heating costs remain high.

Against this backdrop, Deneff has presented five key points for the government's planned Building Modernization Act (GMG), previously known as the Building Energy Act (GEG). The aim is to create a simple and reliable legal framework that enables investment without triggering further fundamental system changes. According to the association, Christian Noll, Managing Director of Deneff, explained that people need "clarity instead of political ping-pong" so that planning and investments can be made again.

Benefiting from saving energy

According to Deneff, the energy modernization of buildings is not just about climate protection. Efficiency measures reduce energy requirements and therefore act as a cost brake for private households, companies and the state.

At the same time, the building sector is of great economic importance. According to the initiative, around 600,000 jobs and around 2.5 percent of gross domestic product in Germany depend on energy-efficient building refurbishment. More efficient buildings also reduce the need for energy imports and thus strengthen security of supply and independence.

In the first key point, the authors argue that the future GMG should adhere to the familiar logic of the previous Building Energy Act (GEG). Efficiency requirements and the use of renewable energies should continue to be clearly taken into account.

The initiative believes that the implementation of the EU Energy Performance of Buildings Directive (EPBD) is possible quickly on this basis. The zero-emission standard for new buildings is economically achievable and could serve as a guide for investors.

Renovate the worst buildings first

As a second focus, the organizations propose prioritizing refurbishments where the highest energy consumption occurs. According to the so-called "worst first" principle, the buildings with the worst energy performance should be modernized first.

For non-residential buildings, the initiators suggest minimum standards as provided for in EU law. For residential buildings, they advocate voluntary orientation values that are combined with funding offers and as little bureaucracy as possible. According to the assessment, this would allow the greatest savings potential to be leveraged first.

The third key point concerns the requirements for new heating systems. According to Deneff, these could be significantly simplified without causing further uncertainty. Replacing heating systems should continue to be an incentive to switch to predominantly renewable solutions.

At the same time, flat-rate compliance options should reduce the burden of proof. The initiatives also call for operational optimization and monitoring of systems to be strengthened so that they work efficiently on a day-to-day basis. Where possible, digital solutions should be recognized for inspection obligations.

More transparency for energy certificates

The fourth cornerstone addresses greater transparency in existing buildings. According to Deneff, energy performance certificates have so far been difficult to compare and are often not very user-friendly. In future, they should be digitized and integrated into a national building and energy database. This could facilitate decisions when buying, renting or financing and at the same time reduce administrative work.

The fifth proposal aims to speed up the introduction of technical innovations. According to the initiative, outdated calculation standards often slow down new, more efficient and more cost-effective solutions. The reference to current standards and a so-called innovation correction factor, with which new technologies can be recognized more quickly, should provide a remedy.

Author: Susanne Harmsen