Germany’s freeze on subsidies for efficient houses continues to…

The Union faction in the Bundestag called on the government to reverse the funding freeze immediately. According to the BFW, more than 25,000 residential units are hanging in the balance.

The red-green-yellow federal government in Germany has come under pressure because of a controversial funding freeze for energy-efficient buildings. The topic is now being discussed in a conference of building ministers between the federal states and the federal government. The Union faction in the Bundestag called on the government to reverse the funding freeze immediately. The question of how to proceed with applications for funding that have been received but have not yet been decided remains open.

The Ministry of Economic Affairs led by Robert Habeck (Greens) had surprisingly announced that no new applications for federal funding for efficient buildings could be submitted to the state KfW-Bank with immediate effect. This applies to the so-called efficiency house (EH) 55 in the new building, the EH40 in the new building and the energetic renovation. In particular, the announcement by the previous government that the EH55 funding program would be discontinued at the end of January led to an unprecedented boom in applications from KfW. The rating means that the building consumes 55 percent or 40 percent of the energy that a standard house needs.

“The funding freeze threatens construction projects across the country, unsettles owners and ultimately causes rent increases,” said Ina Scharrenbach, Minister of Construction (Landesrätin) from North Rhine-Westphalia (NRW) on Thursday, the “hiccup” must be ended immediately. The CDU politician demanded that the stop be withdrawn or that a quick alternative be found that would be equivalent to the previous funding.

Union faction demands follow-up solution

The Union faction (CDU/CSU) in the Bundestag called on the government to create a “solid, viable and sustainable” follow-up solution, as can be seen from a motion for a resolution. Applications for funding that have already been submitted must be processed quickly and approved if the requirements are met.

According to the Federal Association of Independent Real Estate and Housing Companies (BFW), more than 25,000 residential units are hanging in the balance after the KfW stopped funding for energy-efficient buildings. This number only affects the member companies known to the association after a quick survey of 170 companies, said BFW President Andreas Ibel on Thursday. The associated funding volume, which is now missing, is estimated at hundreds of millions of euros. But the dimensions could be much larger.

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