Introduction

For Germany, decarbonising the residential building sector and improving its energy efficiency is not just crucial, considering the aforementioned challenges; it is also a significant hurdle due to the country’s high rate of rented dwellings, which stood at roughly 49% in 2019, one of the highest rates in Europe. This situation highlights the divergence of interests between landlords and tenants in the context of decarbonisation. The findings of this thesis significantly contribute to the academic discourse on energy poverty in Germany. It sheds light on an existing problem that the German government has yet to address. Furthermore, it conducts an analysis of the current state of the landlord-tenant dilemma, with a particular focus on vulnerable households. Given the trajectory of increasing energy prices, the proportion of this social group facing challenges may also rise. Additionally, this thesis proposes an innovative solution within the German legal framework for the landlord-tenant dilemma. At its core, the proposed solution does not involve redistributing the modernisation costs within the landlord-tenant relationship but rather advocates for financing energy modernisation through external sources beyond this contractual relationship.