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    Home EUROPE Germany

    Biofuels: The state in the boiler room

    The Analyst by The Analyst
    May 6, 2026
    in Germany
    Biofuels: The state in the boiler room


    Damn, the federal government is keeping its word. It even looks as if the Union has prevailed this time. This will please your voters and especially Chancellor Friedrich Merz, who recently seemed like a watered-down poodle with the Social Democratic tail constantly wagging.

    READ ALSO

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    Building Modernization Act: Instead of heat pumps – now comes bioheating

    As agreed in the coalition agreement at the insistence of the CDU and CSU, the controversial heating law will be abolished, or more precisely: the requirement in the Building Energy Act that two-thirds of boilers must run on renewable energy. Instead, new oil and gas plants are still possible, but they must use more and more biofuels.

    This can be seen as a good compromise, especially since the incentive to switch to heat pumps or district heating remains. Because green gas and oil are rare, competitive and expensive.

    Seen this way, you could also avoid the detailed government requirements in the boiler room entirely: If the CO₂ costs and network fees increase – due to falling usage – then users will switch to green technologies on their own. This is called a market and the Union should also remember this from time to time.



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