Government agrees to split heating CO2 price between landlords and tenants – media reports

The German government coalition has agreed on key points to create a tiered model for the distribution of CO₂ costs for heating between tenants and landlords, reports Zeit. The price breakdown between tenants and landlords would depend on the CO2 fitness of the building. The less CO₂ it causes, the higher the proportion tenants pay.

According to AFP news agency, the CO₂ emissions in the tiered model are given in kilograms per square meter per year. If a building’s emissions are less than five kilograms, the lowest tier, the tenants have to bear the entire CO₂ costs for heating. If the emissions are above 45 kilograms, for example in poorly insulated and poorly renovated buildings, they only bear ten percent of the CO₂ costs. AFP reports the data for non-residential buildings is insufficient and the model only applies to residential buildings. Some MPs are sceptical over whether the tax can be rolled out quickly. In the Bild newspaper, Daniel Föst said that a "start during the year" was "hardly operationally possible and would produce many errors".

Since the beginning of 2021, a price has been charged in the building sector for CO₂ emissions caused by the combustion of fossil fuels. The price aims at making the switch to climate-friendly alternatives more attractive. The last government could not reach an agreement over who is responsible for covering the costs - tenants can’t control how CO2 much the building emits, and landlords can’t control how much fuel is being used.