Germany's federal government is set to present new key points this week for a reform of the controversial "Heating Law," officially the Building Energy Act (GEG). This legislation aims to accelerate the country's path to climate neutrality by reducing CO2 emissions from the building sector, which accounts for approximately one-third of total emissions, largely due to outdated oil and gas heating systems. The reform will focus on promoting new heating systems like heat pumps, district heating, solar thermal, and biomass. While the 65% renewable energy rule already applies to new buildings, its implementation in existing buildings is tied to the rollout of municipal heat plans, with larger cities needing to submit theirs by mid-2026 and smaller ones by 2028. The law includes provisions for functional oil and gas boilers, which only need replacement upon irreparable failure, alongside transition periods, subsidies, and hardship clauses. Despite these measures, the law has faced criticism from both the CDU/CSU for being too bureaucratic and unclear on funding, and from climate activists for being too hesitant. The upcoming reform, potentially renamed the "Building Modernization Act," seeks to distance itself from the negative perception of the previous "heating hammer" while maintaining climate goals.