The CO2 costs are to be shared between tenants and landlords in the future. On Wednesday, the cabinet approved a draft law on a phased plan that is based on the energy balance of the respective building and places different burdens on both sides depending on this. Economics Minister Robert Habeck (Greens) spoke of a “fair” approach that also creates a “real incentive” to renovate apartments.

So far, tenants have paid the CO2 price alone. From the beginning of 2023 there will be a new model comprising ten stages: the worse the building’s energy balance, the higher the share to be borne by the landlord.

Construction Minister Klara Geywitz (SPD) spoke of “good news” for tenants in Germany. The 50-50 model that was also discussed did not prevail, but there is now an “incentive system for investments in the building stock”. Justice Minister Marco Buschmann (FDP) pointed out that the law also works “with little bureaucracy” because the assignment of the buildings was designed simply.