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Germany splits carbon tax for heating between landlords and tenants

(EurActiv, 5 Apr 2022) Tenants living in well-insulated homes in Germany will have to shoulder the lion’s share of their CO2 costs for heating, while the burden in inefficient buildings will fall on landlords, reports Clean Energy Wire.

The less CO2 a building emits, the higher the proportion tenants should pay, according to a tiered model agreed by the ministries of justice, buildings and the economy.

The German government said the split is socially fair and will boost emissions reductions in the building sector, which is lagging behind in the country’s energy transition.

“Landlords have an incentive to invest in energy-efficient renovations. Tenants remain motivated to reduce their own energy consumption,” said buildings minister Klara Geywitz.

The new system will ensure that an outdated heating system and leaky windows will translate into higher CO2 costs for landlords because tenants have less options to reduce consumption in this scenario, said Robert Habeck, Germany’s economy and climate minister.

“Conversely, a landlord who has renovated the building well in terms of energy efficiency can also apportion the costs” because it now falls on the tenants to save energy, he added.

On average, the splitting mechanism will save tenants between €12 and €72 per year, according to price comparison website verivox, reported Tagesspiegel.

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EurActiv, 5 Apr 2022: Germany splits carbon tax for heating between landlords and tenants