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Energy & Sustainability – Austria approved the Renewable Heat Act (2023)


The Austrian government has agreed on the Renewable Heat Act (Erneuerbaren-Wärme-Gesetz, EWG), which regulates the phase-out of fossil-fuel heating such as coal, oil and gas heating by 2040.

The law stipulates, among other important points, that as of 2023, gas heating may no longer be installed in new buildings. The recent Russian invasion of Ukraine speeded up the process to achieve independence from Russian oil and shortened the initial deadline set for 2025 for the phase-out of gas heating in new Austrian buildings. The piece of legislation now needs to be reviewed and it is expected to be passed quickly.

In a recent press release, Austria’s green climate minister stated, “every gas heater we get rid of is a step out of our dependence on Russian gas” To date, a million households in Austria are heated with gas, and approximately 80% is imported from Russia – 87% in March 2022 as per the calculations of the Austrian NEOS party. “By 2040, all gas heating systems in Austria must be replaced by a modern, renewable heating system or run on biogenic gas”, the press release read.

But what are the provisions enlisted in this important law, in detail?
  • From 2023 onwards, gas heating systems may no longer be installed in new buildings in Austria, with some exceptions for buildings that have already been approved/planned/constructed.
  • From the same date, all broken oil and coal heating systems, which have already been banned since 2020 for new buildings may only be replaced by renewable heating systems.
  • From 2025, the mandatory replacement of particularly old coal and oil heating systems (ie. built before 1980) shall start. Extensive subsidies will be made available for this.
  • By 2035, all old coal and oil heating systems must be replaced by a modern, renewable heating system. “We support people in switching to renewable heating systems such as pellet heating or heat pumps with €7,500. In addition, there are subsidies in the federal states. And for people with little money, we pay for the entire exchange” (Minister Gewessler).
  • By 2040, all gas heating systems in the country shall be replaced by a modern, renewable heating system or run on biogenic gas.
  • In the case of decentralised systems like gas floor heating in flats, in areas with extended district heating, the changeover is to be made by 2040 at the latest. Owners of individual units (flats) are to be enabled to connect to a climate-friendly central heating system.

Source: additional information and explanations, as well as the text of the law (in German) are available here: 212/ME (XXVII. GP) - Erneuerbare-Wärme-Gesetz – EWG | Parlament Österreich