Germany's lower house of parliament has passed a bill aimed at phasing out oil and gas heating systems. Under the new legislation, heating systems in new developments and older buildings in areas with municipal heating plans must use 65% renewable energy. It will apply to new buildings from 2024, existing buildings in municipalities with over 100,000 residents from 30 June 2026, and existing buildings in smaller communities from 30 June 2028. Gas heaters may still be installed from 2024 for a transitional period of 5 years if they can be converted to hydrogen, even in new buildings not part of new developments, provided they progressively increase the share of green gases or green oils (15% as of 2029, 30% as of 2035 and 60% as of 2040). The government plans to subsidize the transition with funds from its Climate and Transformation Fund, with the aim of reducing emissions in the building sector by 2030. The bill is part of Germany's plan to become climate neutral by 2045.
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