Germans Criticize Government's Fast

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Jun 17, 2023

Germans Criticize Government's Fast

Germany’s ambitious plan to achieve net-zero emissions by 2045 is facing some

Germany's ambitious plan to achieve net-zero emissions by 2045 is facing some backlash as citizens criticize the government's proposal to ban oil and gas boilers in favor of heat pumps. Concerns over the swift implementation and the financial burden associated with the transition have sparked outrage among the population.

According to the recently announced government plan, fossil fuel-powered boilers will be prohibited, effectively compelling households to switch to heat pumps as the primary environmentally friendly alternative, particularly for those without access to district heating.

However, the estimated cost of the ban, surpassing €9 billion ($10 billion) annually until 2028, has raised eyebrows. The Scholz government assures that costs will decrease by nearly half beyond 2028, thanks to increased heat pump production and the expansion of wind and solar energy capacities.

While the government has offered financial assistance equivalent to 30% of the transition cost, many Germans remain unconvinced by the incentive. The Financial Times notes that according to a recent survey by the GIH, a trade body for energy consultants, German authorities are taking an average of 125 days to process heating and renovation grant applications.

Criticism of the government's plan has been widespread, with citizens expressing frustration and anger over the accelerated timeline. Petra Uertz of the Residential Property Association voiced the discontent, stating, "People are outraged and furious. They can't understand why it has to happen so quickly."

Marie-Agnes Strack-Zimmermann, a senior member of the liberal Free Democratic Party (FDP), highlighted the unease surrounding the legislation, stating, "This law affects 66 million Germans … and there is enormous disquiet."

The FDP, a coalition partner in the government led by Olaf Scholz, is openly opposed to the gas boiler ban. Strack-Zimmermann criticized the Green Party's insistence on passing the ban as law before the summer break, deeming it absurd.

In a surprising turn of events, the Green Party, the driving force behind the boiler ban, has seen a decline in public support. Recent data, also reported by the Financial Times, reveals that the party's popularity rating has fallen to 14%, placing it behind the right-wing Alternative for Germany party.

Paradoxically, the government's proposed ban on gas boilers has led to a surge in demand for them. Since the ban would only take effect in January next year, individuals are rushing to install gas boilers before the end of this year to retain their ability to use them.

Germany's oil and gas boiler ban follows similar moves in the US and Canada.

In March, San Francisco Bay Area's Air District approved new regulations that will gradually phase out nitrogen oxide (NOx) emissions from natural gas furnaces and water heaters by 2027. In May, New York became the first state in the US to ban the use of natural gas for heating and cooking in new buildings starting in 2025.

In Canada, meanwhile, Toronto voted to ban the sale and installation of natural gas equipment used in homes, condos, and apartment buildings by 2030. The council quietly voted on the decision during the pandemic at the end of 2021.

don't laughthis is policy in Toronto passed during the pandemic Council voted Dec 15, 2021 to ban the sale and installation of natural gas equipment used in Toronto homes, condos and apartment buildings before 2030 https://t.co/zhRvemtCoH… https://t.co/u5LumBmo7k pic.twitter.com/kGg25MDow7

Information for this story was found via the Financial Times, CBC News, Twitter, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.