Energy-efficient building refurbishment: Federal government must not continue the failure of its predecessors

Deutsche Umwelthilfe calls for immediate proposal for tax incentives for energy-efficient building refurbishment - Building sector makes decisive contribution to achieving climate protection targets - Increase refurbishment rate to 2 percent per year

Contrary to the agreements in the coalition agreement, the draft budget presented by the Federal Minister of Finance, Olaf Scholz, on 2 May 2018 does not include tax incentives for the energy-efficient refurbishment of buildings. Deutsche Umwelthilfe (DUH) considers this a worrying revelation. The environmental and consumer protection organisation calls on the federal government to immediately launch a programme for tax incentives for the energy-efficient refurbishment of buildings and to increase the refurbishment rate for existing buildings from the current 0.8 percent to at least 2 percent per year.

"If the Federal Minister of Finance does not anchor this measure, which was agreed in the coalition agreement and is central to climate protection, in his draft budget, then he shows that he has either forgotten or already abandoned the climate policy promises of the new government after only a few weeks in office.", says Sascha Müller-Kraenner, Federal Executive Director of DUH.

Energy-efficient building refurbishment is a central element of the energy transition and climate protection. However, climate protection in the building sector will only be successful if the renovation rate in the building stock increases from the current 0.8 percent to over 2 percent annually.

"The two previous governments already failed to set the course for tax incentives in time and thus make a decisive contribution to achieving the 2020 climate protection target"Müller-Kraenner continues. "The reservations of the Länder that tax incentives would create a budget gap for them have been known for a long time. It is time to bring acceptable counter-financing solutions to the table."

After all, tax incentives for refurbishment costs are an important incentive not only for large housing associations but also for private homeowners to invest their own funds. The starting signal for this must now be given urgently.

Source: DUH PM of 07.05.2018