The Energy Efficiency Act (EnEfG) has been in effect since 2023 and has, in many respects, proven to be a significant bureaucratic burden for businesses. In particular, the German law goes far beyond the requirements of the EU Energy Efficiency Directive (EED) and is therefore considered a prime example of so-called “gold plating.”

Clear Mandate in the Coalition Agreement

The coalition agreement includes a separate section on reducing bureaucracy, which states verbatim: “The Energy Efficiency Act and the Energy Services Act will be amended, simplified, and brought back into line with EU law.” The draft from the Federal Ministry for Economic Affairs and Energy (BMWE), which was leaked in December 2025, took this goal of a 1:1 implementation of the EU directive seriously and—despite criticism of specific details—was formulated in this direction in many respects.

BMWE vs. BMUKN

However, the matter has remained at the level of this leak so far. As of today—mid-March 2026—no cabinet decision has been reached. The reason appears to be a difference in philosophy between the two ministries. While the BMWE genuinely wants to reduce bureaucratic burdens for businesses, the BMUKN views the stricter regulatory framework in the EnEfG as an achievement that makes an important contribution to climate protection and should not be “rolled back” lightly.

The Business Community’s Position—and a Statement

The BDI does not question the goal of climate protection, and the BMWE—like the entire federal government—is known to remain committed to it. The question is what the best path to this goal is given the current economic and global situation. From the BDI’s perspective, one proven approach is the Energy Efficiency Networks initiative, which has been run since 2014 by 20 associations in collaboration with the BMWE and BMUKN and was conceived at the time as an alternative to regulatory measures. It has proven its effectiveness with measurable results that have been scientifically validated by Fraunhofer ISI and Adelphi. For example, savings of 2.62 metric metric tons of CO2 equivalents were achieved each year. In a joint letter from the BDI, DIHK, ZDH, VKU, and BDEW, the associations emphasized to the two ministries and the Chancellery that they would be happy to jointly extend this initiative—which has actually already expired—but only if the federal government convincingly eliminates “gold plating” in the Energy Efficiency Act (EnEfG). The ball is now in the BMUKN’s court, and it is to be hoped that the government will now swiftly get this important reform project on track and not delay it any further.