Since 2023, it has been mandatory for landlords to contribute to the CO2 costs of heating and hot water for their rented properties. This legal innovation aims to encourage owners to invest in energy-saving measures. The Carbon Dioxide Cost Allocation Act (CO2KostAufG) takes into account the fact that the characteristics of heating systems and the structural condition of buildings have a significant influence on energy consumption and therefore CO2 emissions.
The distribution of CO2 costs is based on a fixed tier model, which is based on the amount of annual CO2 emissions per square meter of living space. For buildings with very high emissions, landlords must bear up to 95 percent of the CO2 costs. This is intended to create a financial incentive to invest in modern and efficient heating technologies in order to save energy costs in the long term and minimize environmental pollution.
Landlords must provide tenants with a transparent breakdown of the CO2 costs and deduct their own share directly. Tenants can use online tools and advice centers such as the consumer advice center or the Federal Ministry for Economic Affairs and Climate Protection to find out and calculate what proportion of the costs must be borne by the landlord.
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