The reduction of greenhouse gasses has gained widespread support in Germany, and regulation has been one government tool to promote this . There is a strong political will to tighten regulation in certain areas. Hence, Germany could be regarded as a lead market, catalyzing green tech innovation. It is expected that a tighter regulation of CO2-emissions from buildings will lead to more innovative activity in the building and construction sectors.

In Germany, the Federal Government and the KfW development bank has initiated a new regulated refurbishment programme aimed at reducing CO2 from buildings in the housing sector. The new regulations call for renovation/replacement of windows and heating systems combined with thermal insulation of the outer walls.

To ensure good quality on the technical level, all work must be carried out by professional companies. In effect, the German building and construction sectors are becoming experts in the CO2 area, and Germany is turning into a lead market. Assistance comes in the form of federal government loans of up to €50,000 per housing unit with very low interest rates. From 2006 to 2009, a total of €5.6 billion of federal funding is destined for energy-conserving refurbishment of the housing sector, including investments of €200 million a year earmarked for the building refurbishment programme to reduce CO2-emissions.

Source: http://www.bmvbs.de/en