CO₂ Cost Development & Emissions in the Building Sector

A practical overview of all legally defined and upcoming CO₂ prices for common heating systems and typical emissions.

The building sector in Germany accounts for around 30 % of energy-related CO₂ emissions. To achieve climate goals, the federal government increasingly relies on fiscal steering instruments – including the CO₂ levy on fossil fuels. At the same time, climate-friendly renovations are made attractive through subsidies (e.g. BEG/KfW).

Since 2021, CO₂ costs have been rising continuously. For property owners and tenants, it therefore makes economic sense to invest early in efficient heating technologies and insulation measures. This is especially worthwhile for fossil heating systems such as oil and gas boilers.

On this page, you will find reliable information on the emission levels of common heating technologies, CO₂ costs, and a link to our interactive CO₂ calculator for comparing system efficiency.

Overview of CO₂ Prices per Ton

The CO₂ price in Germany started in 2021 at 25 €/t and will gradually increase to at least 55 €/t by 2025. From 2026 onwards, a market-based emissions trading system will apply within the heating and transport sectors.

These values serve as a calculation basis for the additional annual costs of fossil heating systems and the potential savings through renewable alternatives.

Emissions by Heating Type (Approximate Values)

Heating Type CO₂ Emissions (kg/m²·year) Comment
Oil heating ~320 High CO₂ emissions, declining subsidy eligibility
Gas heating ~250 Still widely used, but facing tightening regulations
District heating ~180 Varies depending on energy mix
Heat pump (electric) ~50–80 Particularly low emissions when powered by renewable electricity

The differences illustrate the potential for significant CO₂ and cost reductions through modernization measures. In addition, energy-efficient refurbishments increase the property’s value and comfort.