Tenants and property owners might encounter substantial price hikes starting from 2027.
Starting from 2027, households might experience substantial price hikes due to CO2 pricing reform. A study conducted by the Munich Institute for Thermal Protection, sponsored by the German Association for Energy-Efficient Building Facades, suggests that the implementation of a European emissions trading system for fuels could lead to "financially distressing consequences" for property owners and renters.
This predicament primarily affects properties with inadequate insulation. As per Jan Peter Hinrichs, Managing Director of the German Association for Energy-Efficient Building Facades, which represents firms specializing in insulation materials and windows, "The energy inefficiency of numerous German buildings will start taking its toll from 2027 onwards." Consequently, numerous property owners and tenants will grapple with substantial additional expenses due to outdated facades, roofs, and windows. In the most extreme scenarios, this could escalate to tens of thousands of euros annually.**
Prompt action is vital to initiate a fresh renovation campaign in Germany to shield the populace from substantial additional burdens. The federal government should prioritize incentives for initiatives that lower the energy consumption of buildings.
The CO2 pricing reform, aimed at start in 2027, could amplify the financial struggles of property owners and renters due to The reform. To mitigate the impact of substantial price hikes, prompt action is necessary to encourage energy-efficient renovations in German buildings.
