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The move is part of a steering mechanism in the Climate Change Act in response to the building sector emitting two million more tons of CO2 in 2020 than the yearly maximum of 118 million tons of CO2 allowed by law.
Peter Altmaier, Federal Minister for Economic Affairs and Energy states: “We will provide another €11.5 billion for the energy efficient renovation of buildings in 2021. These are record amounts and well-invested money for climate protection and employment. The incentives are working. Homebuilders are using the incentive programs. €10.6 billion in incentives had already been approved by mid-September. We expect approvals for the whole year to total more than €15 billion, maybe even up to €18 billion. On top of that, we will make €1 billion available in 2022 for climate-friendly social housing. This will enable new highly-efficient social housing to be built or existing social housing to be renovated. We must ensure climate protection and affordable living are not a contradiction.”
The incentives will be delivered through the successful BEG “Federal Incentive for Energy Efficient Buildings” program. Applications to the BEG are at record levels: