Vulnerable households in Germany need more state help to tackle energy poverty – report
Clean Energy Wire
Some 10 percent of 30 million households in Germany still reliant on fossil fuels for heating are unable to adequately warm their homes or are "heavily burdened" by rising energy costs, according to the Federal Environment Agency (UBA).
More than 80 percent of these "vulnerable households" live in multi-family buildings and almost all of them are renters, according to the report on tackling energy poverty in Germany in light of rising fossil fuel prices. The report also found that the country lacked a clear definition of energy poverty, making it more challenging to address, but added it should be understood as a problem in its own right and not as part of general poverty.
Sustainable development consultancy Institute for Applied Ecology (Öko-Institut), which carried out the report for the UBA, found low-income households were "unable to react sufficiently to rises in fossil fuel costs, for example as a result of CO2 pricing, by investing in energy-efficient refurbishment or renewable heat."
Climate measures such as CO2 pricing are disproportionately impacting low-income households, and the report advocates for policies that address social impacts and offer support. A new European Union emissions trading scheme (ETS II) for the transport and building sectors is set to take effect in 2027 and could drive up energy prices further. The EU is establishing a Social Climate Fund alongside ETS II and requires member states to identify vulnerable groups and design policies to help them transition to climate-friendly technologies, according to the report.
Öko-Institut and UBA suggest the "socially differentiated" French subsidy programme MaPrimeRénov' (My Renovation Premium) as a model for Germany to make its energy transition more equitable. The French model offers low-income households higher financial support for energy-efficient building renovations.
"Such a programme would go beyond the current income bonus for replacing heating systems and focus on complete refurbishment and the efficiency gains that can be achieved as a result. It would target vulnerable groups and at the same time promote energy efficiency and CO2 reduction," said researcher Katja Schumacher.
