Sector Study: Sustainable Construction in Germany in 2025

Germany's construction sector is undergoing a major transformation. New regulations—including the updated Building Energy Act (GEG) and the Heat Planning Act (WPG)—are creating significant opportunities for sustainable construction solutions. Since 2021, comprehensive reforms have mandated progressive transitions towards renewable heating, accelerating the decarbonisation of the nation's ageing building stock. This legislative push comes with substantial financial backing: in 2025, the German government allocated over EUR 14 billion for energy-efficient retrofitting through expanded Federal Funding for Efficient Buildings (BEG) programmes. Meanwhile, themes such as renewable heating, life-cycle emissions, circularity, serial renovation, and digitalisation are increasingly being addressed in an integrated manner. The new German government is prioritising infrastructure investment, digitalisation, and reduced administrative burden to revitalise the economy and tackle housing shortages.

The Netherlands' expertise in sustainable and circular construction positions Dutch companies well to capitalise on these developments. However, navigating Germany's regulatory landscape and identifying the right market segments and partners requires targeted market intelligence.

adelphi supported the Netherlands Enterprise Agency (RVO) and its Business Support Office in Germany (NBSO) in updating its 2021 sector study on sustainable construction opportunities in Germany. Building on our earlier work, the study analysed recent policy developments, mapped promising market trends across residential, non-residential, and public buildings, and identified practical pathways for Dutch companies to enter the German market.

Conducted over summer 2025, the project combined desk research with stakeholder interviews—including experts from the German Energy Agency (dena) and the German Federal Construction Business Association (HDB). adelphi also supported a fact-finding mission to Hamburg, connecting Dutch companies directly with German partners from government, industry, and research.

The project began with a public webinar organised by the NBSO under the title "Duurzaam Bouwen in Duitsland" in July 2025, targeting Dutch SMEs and start-ups. adelphi provided expert insights on current policy and market trends in the German construction sector and gathered input from participating Dutch stakeholders to refine the study's scope.

The final study provided:

• An overview of the German building stock
• Analysis of regulatory frameworks and recent developments
• Mapping of the construction sector's structure and key players
• Identification of key market trends—including sustainable heating, digitalisation, and circular construction

The report was published on the RVO website and presented in a second webinar for Dutch companies in November 2025, equipping them with actionable recommendations to successfully navigate Germany's evolving sustainable construction landscape.