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Öko-Institut: Why a pure market solution would cause costs to skyrocket

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Published: February 13th, 2025,
Last updated: May 28th, 2025

Two heat pumps on a lawn of an apartment building in Düsseldorf.

If politicians left the heating transition exclusively to the market, heating costs for households would in all likelihood rise dramatically. This is the conclusion of a new joint study by the Öko-Institut and the „Paritätischer Gesamtverband.“ Their analysis is based on the assumption that the Building Energy Act (GEG) would be overturned and a carbon price alone would be used to make heating climate-friendly. The key result: „It would require a CO2 price of 524 euros for CO2 emissions to fall as much as they are expected to do by 2030 as a result of the Heating Act.“

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