In the struggle to split the climate tax on heating costs between tenants and landlords, the federal government has reached an agreement.

According to information from the German Press Agency from government circles, details should be announced on Sunday.

Economics Minister Robert Habeck (Greens), Building Minister Klara Geywitz (SPD) and Justice Minister Marco Buschmann (FDP) are responsible.

So far, the tenants bear the costs for the so-called CO2 price alone, but the traffic light coalition wants to relieve them.

Most recently, a model with seven stages was up for debate.

In essence, this envisaged: the worse a building is insulated and the older the heating system, for example, the higher the CO2 burden should be for the landlord and the greater the relief for tenants.

This should create incentives for energy-efficient refurbishment of apartments.

The CO2 price has made fossil fuels such as oil and gas more expensive in the transport and heating sectors since 2021.