Green Gas Quota: More Choice for Citizens and More Transformation in the Gas System

From the perspective of Die Gas- und Wasserstoffwirtschaft (The german gas and hydrogen industry), the key points of the new Building Modernization Act mark a fundamental shift in direction: more choice, more system responsibility, and fewer detailed technical requirements. At the heart of the proposal is the planned green gas quota, designed to organize the market ramp-up of climate-friendly gases. Dr. Timm Kehler, CEO of the association Die Gas- und Wasserstoffwirtschaft, comments:

“The new law introduces an important shift in perspective: more freedom of choice for citizens and more transformation within the gas system. Instead of detailed technical specifications in boiler rooms, policymakers are relying on market-based instruments and planning certainty in energy supply.

The green gas quota is the central lever. It obliges gas suppliers to gradually increase the share of climate-friendly gases placed on the market, thereby ensuring a reliable ramp-up of biomethane, synthetic methane, and hydrogen. Responsibility no longer lies solely with individual consumers; instead, the existing gas grid is systematically decarbonized – just as has already been done in the electricity and district heating sectors.

The green gas quota also enjoys strong public support. A recent Civey survey commissioned by us showed that two-thirds of homeowners believe it is the right approach to require energy suppliers to gradually inject more climate-neutral gases into the grid.

At the same time, available volumes are already substantial. Additional expansion potential exists through more efficient plant utilization, biological methanation, and international partnerships. Ukraine alone offers significant export prospects for biomethane to Germany, using existing pipeline connections.

As with green electricity and district heating, climate protection does not come at zero cost. However, a well-designed quota can limit additional costs – especially since green gases are exempt from the CO₂ price and do not require additional grid expansion.

With clear political framework conditions, green gases can be provided in sufficient quantities and at competitive prices. In this way, we combine climate protection, security of supply, and economic efficiency—achieving more energy transition per euro invested.”