Planning and Environmental Issues
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Planning and Environmental Issues Start Comparison
Who has authority over land development and environmental regulation?

Land development is mainly carried out by the authorities on municipal and district level. Planning law sets forth the legal framework for municipal land planning through zoning plans (Flächennutzungspläne) and building plans (Bebauungspläne) and determines whether a construction project is permissible under the applicable local planning law. While the zoning plan constitutes the basic guideline for land use within a community and is only binding to the planning authorities, the building plan determines the use of the land it is issued for and defines whether land may be used as a residential area, commercial area, mixed zone or others, and designates the type of buildings permissible in such area.

Environmental issues are typically handled by district and regional authorities or, in case of major cities, on a municipal level.

What environmental laws affect the use and occupation of real estate?
  • Nature conservation laws
  • Soil protection laws
  • Waste laws
  • Laws on handling hazardous substances, e.g., chemicals 
  • Regulations on the use and transportation of energy and renewable energy, etc.
  • Water resources laws
  • Emission protection regulations, e.g., with regard to noise, odor and pollutants
  • Laws on nuclear safety and radiation protection 
What main permits or licenses are required for building or occupying real estate?

Except for certain small projects, construction of a building or plant is subject to governmental authorization. This authorization can either be granted in the form of a separate building permit or, for certain installations that are listed in an ordinance, as part of an emission-control permit issued under the Federal Emission Control Act.

A building permit is required for the construction of a new building, for material amendments or the change of use of existing premises and for the demolition of an existing building. A building permit is granted upon written application by the competent authority if the envisaged project complies with local planning laws and the technical standards set forth under building laws. Furthermore, the project may not conflict with any other requirements established under public law (e.g., monument protection law or emission limits pertaining to the project).

The construction and operation of installations which are likely to cause harmful effects on the environment because of their emissions are specifically regulated in the Federal Emission Control Act. If a permit under the Federal Emission Control Act is issued, no separate building permit is required. For certain facilities – e.g., power plants, combustion plants or wind farms – an emission control permit must be obtained to erect and operate such installation.

Can an environmental cleanup be required?

Generally, the authorities may require remediation of historic contamination if necessary to avert hazards to human health and the environment. Measures may be addressed inter alia to the owner of the land, to the polluter or to their legal successor.

Are there minimum energy performance requirements for buildings?

The Buildings Energy Act, which entered into force in 2020 and replaced the former Energy Saving Act, the Energy Saving Ordinance and the Renewable Energies Heat Act, is the central legal instrument aimed at increasing energy efficiency and the use of renewable energies in the building sector in Germany. It was amended as of 1 January 2023 to further tighten energy performance requirements.

In principle, all new buildings must be constructed as "nearly zero-energy buildings". As of 1 January 2023, this means that annual primary energy consumption (for hot water, heating, ventilation and cooling) must remain below 55% of the equivalent value of the statutory reference building ('EH55 standard'). The German Government has already announced plans to introduce an even stricter EH40 standard to take effect on 1 January 2025. Under the Buildings Energy Act, changes to existing buildings are also subject to certain energy performance requirements and existing buildings can also be subject to (rather limited) renovation obligations. Additionally, the Buildings Energy Act sets minimum requirements regarding the use of renewable energies in buildings and regarding the energy certification of buildings.

The Federal Government announced plans for a second amendment of the Buildings Energy Act. According to the initial proposals, all newly installed heating systems would be required to be powered by at least 65% energy from renewable energy sources.

Apart from these specific requirements for the building sector, the Act on Energy Services and Further Energy Efficiency Measures requires so-called large enterprises to conduct an energy audit of the entire enterprise including all buildings owned or used by the enterprise at least every four years. A large enterprise is a company with a staff headcount of at least 250 and/or with an annual turnover exceeding EUR 50 million and an annual balance sheet exceeding EUR 43 million. Under certain circumstances, similar buildings may be clustered and only one building per cluster can be audited. Energy auditors may be internal or external experts as long as they render independent advice and fulfil the professional requirements.

Are there other regulatory measures that aim to improve the sustainability of newly constructed and existing buildings?

Under statutory lease regulations, in principle, landlords may improve the sustainability of existing buildings without the tenant’s consent, but subject to an extraordinary termination right for the tenant (Sections 555b, 555d and 555e Civil Code). Energetic modernization works must be tolerated by the tenant without being entitled to reduce the rent during that period. Modernization costs may be partly shifted to the tenant. The statutory lease regulations also facilitate heating contracting.

Additionally, the Federal support program for efficient buildings (Bundesförderung für effiziente Gebäude - BEG) promotes energy efficiency and renewable energies in the building sector and provides financial incentives for, among other things, the use of new heating systems, the optimization of existing heating systems and the use of optimized systems technology.