Reviewed by Vincent Crausaz, Business Developer · Updated May 2026
Regulatory Compliance · Germany · HeatingRegulatory status reviewed: April 2026
GEG Biomethane: Renewable Gas for German Heating
Around 49% of Germany’s residential heating systems run on gas (BDEW, 2022). The Building Energy Act sets a clear direction: rising renewable quotas from 2029, reaching 60% by 2040. This biomethane is the most accessible route — it works through the existing gas grid, without new infrastructure. BioGem Express structures the supply and documentation to make it work.
49%of German residential heating stock gas-based in 2022 (BDEW)
30 TWhBiomethane demand from GEG by 2040 (mid scenario, dena)
2029First mandatory renewable gas quota takes effect
Understanding GEG
What does the GEG mean for gas heating?
The Gebäudeenergiegesetz (GEG) — Germany’s Building Energy Act — entered into force on 1 January 2024 with a central requirement: new heating systems must generate at least 65% of their heat from renewable energy. Gas boilers were not banned. They remain a permitted option, but with a catch: operators must progressively increase the share of biomethane or hydrogen in their supply, starting from 2029.
The quota structure is straightforward. From 2029, gas heating systems outside designated heat planning zones must source at least 15% of their heat from biomethane or hydrogen. That rises to 30% in 2035 and 60% in 2040, according to the IEA’s policy overview of GEG. With around 49% of Germany’s residential heating stock currently gas-based (BDEW, 2022), the scale of the demand signal is real — and it’s building fast.
Sustainability proof has been mandatory for biomethane used under the EU ETS since 2022. With the current ETS I carbon price at roughly €55–60 per tCO₂, the cost advantage of certified biomethane over fossil gas is approximately €16 per MWh of CO₂ avoidance — a figure that grows significantly as allowance prices rise.
Regulatory update — May 2026: The CDU/CSU and SPD coalition presented a key issues paper in February 2026 for a new Gebäudemodernisierungsgesetz (GMG), which would shift GEG compliance obligations from building owners to gas and oil suppliers. The German government approved the draft GMG on 13 May 2026. The law is intended to replace the current GEG framework during 2026 and would introduce increasing renewable gas obligations for gas heating while replacing the existing 65% renewable heat requirement. Until the GMG enters into force, the GEG remains the applicable legal framework.
GEG at a glanceFull nameIn forceCore requirement2029 quota2035 quota2040 quotaHeat planning deadlinesMass balance
Gebäudeenergiegesetz
1 January 2024
New heating systems: ≥65% renewable energy
≥15% biomethane or hydrogen for gas heating
≥30% biomethane or hydrogen
≥60% biomethane or hydrogen
Cities >100k: June 2026 / Others: June 2028
Required: full supply chain from production to use (§22 GEG)
Compliance mechanism
How biomethane meets GEG obligations
Biomethane doesn’t need to be physically delivered to your boiler. It enters the gas grid certified, moves through the mass-balance system, and is contractually attributed to your building’s consumption.
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Certified at the source
Biomethane is produced from organic feedstocks — residues, manure, biowaste — upgraded to natural gas quality, and certified under a recognised RED voluntary scheme such as ISCC EU or REDcert EU. GHG savings must meet the applicable threshold — at least 80% for installations from 2026 onwards. Feedstock origin and chain-of-custody are documented throughout.
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Tracked through the grid
Certified biomethane is injected into the gas grid and tracked via a mass-balance system covering the full supply chain — from production to injection, transport, and extraction — as required by §22 Abs. 1 Nr. 2d GEG. The certified attributes follow the contractual allocation: your building receives the GEG-compliant share, not necessarily the specific molecules produced at the origin site.
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Quota obligation met
The building operator or gas supplier demonstrates the certified renewable share through documentation — sustainability proof, mass-balance records, and contract evidence. This covers the GEG quota requirement for the relevant year. Where a building is also subject to BEHG or EU ETS obligations, the same certified supply can be structured to address multiple compliance frameworks simultaneously.
What GEG compliance requires
Four things that need to be right
Not all biomethane qualifies under GEG — and simply holding a green gas tariff is not enough. Only 42 of 189 biogas tariffs available in Germany in 2025 fully met GEG requirements (Verivox, 2025).
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Sustainability & GHG requirements
Biomethane used under GEG must meet defined sustainability specifications, verified from production onwards. For installations from 2026, the minimum GHG reduction threshold is 80% against the fossil reference value.
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Full mass-balance chain (§22 GEG)
GEG requires mass-balance accounting across the entire supply path: from production through injection, transport in the gas grid, and extraction at the point of use. This rules out simple book-and-claim GoOs as the sole GEG compliance instrument. The documentation chain must be intact from producer to building, with no gaps in traceability. BioGem Express manages this chain on behalf of buyers.
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Feedstock eligibility
GEG sets a feedstock cap for new plants: installations from January 2024 may use no more than 40% cereals or maize in a calendar year (§71f GEG).
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EU MRV monitoring & FuelEU reporting
The GEG quota timeline depends partly on whether a building sits within a designated municipal heat planning zone. Cities above 100,000 inhabitants must complete heat planning by June 2026; smaller municipalities by June 2028. Buildings in zones designated as district heating or hydrogen network areas face different requirements. Knowing your building’s status matters for structuring the right supply timeline.
Our role
Your GEG biomethane partner
Getting biomethane right for GEG compliance isn’t just a sourcing question. It’s a documentation, certification, and timing question.
BioGem Express sources biomethane from verified European producers.
“Energy transition shouldn’t feel like a maze. We handle the complexities. You get the results — and the proof to show for it.”
Marcel Hüberli — Head of Sales, BioGem Express
- Secure GEG-compliant biomethane from trusted and verified European suppliers
- Provide full mass-balance documentation across the entire supply chain, in line with §22 GEG requirements
- Structure long-term Biomethane Purchase Agreements (BPAs) to lock in compliant supply and pricing
- Ensure compliance coverage across key regulatory frameworks, including GEG, BEHG, and EU ETS
- Advise on heat planning status, quota timelines, and the implications of the proposed GMG reform for your supply strategy
FAQ
Key questions on GEG & Biomethane
The GEG (Gebäudeenergiegesetz) is Germany’s Building Energy Act, in force since 1 January 2024. It requires new heating systems to generate at least 65% of their heat from renewable energy. Gas boilers remain permitted, but must progressively run on higher shares of biomethane or hydrogen: 15% from 2029, 30% from 2035, 60% from 2040. With around 49% of Germany’s residential heating stock on gas (BDEW, 2022 data), the demand signal is large and building steadily.
The first mandatory quota takes effect on 1 January 2029 for gas heating systems installed from 2024 onwards in buildings outside designated heat planning zones. The heat planning deadline for cities above 100,000 inhabitants is 30 June 2026; for smaller municipalities, 30 June 2028. Buildings in designated district heating or hydrogen network zones follow a different timeline. Knowing your municipality’s status determines exactly when your obligations begin.
Biomethane qualifies under GEG when it is certified as a renewable gas under a recognised RED voluntary scheme and delivered via a full mass-balance system — from production to injection in the gas grid and extraction at the point of use, as required by §22 GEG. The certification must cover feedstock origin, GHG savings (≥80% for new installations from 2026), and chain-of-custody documentation. A Guarantee of Origin alone is not sufficient for GEG compliance.
The current GEG places the compliance obligation on building owners and operators. The proposed GMG (Gebäudemodernisierungsgesetz), presented in February 2026 with a draft issued in May 2026, would shift that obligation to gas and oil suppliers — who would be required to blend rising shares of green gas from 2029, starting at 10%, fulfillable via Guarantees of Origin. The GMG is not yet law. The GEG remains in force, and any supply strategy should be built around current legal requirements, with flexibility to adapt as the reform advances.
No. Under GEG, biomethane can be used on a mass-balance basis: certified volumes injected anywhere in the gas grid are contractually attributed to consumption at any connected point, without the specific molecules physically reaching your building. This is what makes cross-border European biomethane supply GEG-relevant — and it removes the need for any new grid infrastructure on the buyer’s side.
BioGem Express is a biomethane trading company operating across regulated European markets since 2020. We source GEG-compliant biomethane from verified producers, manage the full mass-balance documentation chain, and structure long-term supply agreements designed to cover your quota obligations. We also support clients with multi-framework compliance — covering BEHG, GEG, and EU ETS obligations from a single, certified supply structure.
Referenced sources
Sources used on this page
This page is built on regulatory and market data from the German authorities and sector organisations most authoritative on GEG biomethane requirements. All data reflects the most recent available information at the time of writing.
Key figures used: 49% gas-based residential heating stock from BDEW Heizungsstruktur des Wohnungsbestands (2022 data); 13–45 TWh additional biomethane demand by 2040 and the 30 TWh mid-scenario from the dena GEG demand study (2024); the 42/189 GEG-compliant tariffs from Verivox (2025); and the GMG reform key issues paper (February 2026) from Clean Energy Wire and Bird & Bird.
GEG policy overviewGermany’s Building Energy Act (GEG) — IEA Policy Overview
International Energy Agency, accessed April 2026. Overview of GEG requirements, quota structure, heat planning timelines, and the 65% renewable heating mandate.
Biomethane demandBiomethane Demand Based on the GEG
Deutsche Energie-Agentur (dena), January 2024. Source for demand projections: 13.4–44.6 TWh additional biomethane demand by 2040, scenario analysis, and quota structure implications.
German market dataBiomethane Industry Barometer 2025
Deutsche Energie-Agentur (dena), 2025. Source for German biomethane market figures including heating sector data, compliant tariff counts, and market development outlook.
GMG reformGerman government drops mandatory renewable share for heating
Clean Energy Wire, 2026. Source for the proposed GMG reform: shift of compliance from building owners to suppliers, 10% green gas quota from 2029, GoO-based fulfilment. Status: key issues paper only.
Certification frameworkISCC EU System Documents
ISCC System GmbH. Reference for RED-based sustainability certification requirements applicable to GEG-compliant biomethane, including GHG thresholds and mass-balance guidance.
Heat planning lawGEG Fact Sheet — German Federal Government
Federal Ministry for Housing, Urban Development and Building (BMWSB). Official summary of GEG requirements, heat planning (WPG) deadlines, and transition provisions for existing buildings.
Explore further
Related compliance frameworks
Germany · Fuel Emissions
BEHG & Biomethane
How certified biomethane reduces CO₂ certificate costs under Germany’s Fuel Emissions Trading Act.
Ready to plan your GEG biomethane supply?
The 2029 quota is closer than it looks. Our team can assess your compliance timeline, explain the certification requirements, and structure a long-term biomethane supply agreement built around your GEG obligations — and any BEHG or ETS exposure alongside.
