Splitting CO₂ costs between landlord and tenant: how does the tier model work?
Reading time 7 min · Updated 05.07.2026
Key facts at a glance
- 10-tier model under § 5 CO2KostAufG for residential buildings — landlord share 0 % to 95 %.
- Metric: specific emissions in kg CO₂ per m² of living area per year.
- The landlord’s share rises as efficiency worsens (a retrofit incentive).
- The carbon price sits inside the fuel bill (gas, oil) — the kg CO₂ from it is the basis.
- The landlord’s share is not recoverable and reduces the recoverable heating-cost pool.
The 10-tier model for residential buildings (§ 5)
The heart of the Act is a ten-tier table mapping the building’s specific emissions to a landlord share; the tenant bears the rest.
| kg CO₂/m²·a | Landlord share | Tenant share |
|---|---|---|
| < 12 | 0 % | 100 % |
| 12 bis < 17 | 10 % | 90 % |
| 17 bis < 22 | 20 % | 80 % |
| 22 bis < 27 | 30 % | 70 % |
| 27 bis < 32 | 40 % | 60 % |
| 32 bis < 37 | 50 % | 50 % |
| 37 bis < 42 | 60 % | 40 % |
| 42 bis < 47 | 70 % | 30 % |
| 47 bis < 52 | 80 % | 20 % |
| ≥ 52 | 95 % | 5 % |
How to compute the share
- Take the CO₂ quantity and cost from the fuel/heat invoice (§ 6).
- Compute specific emissions: kg CO₂ ÷ heated living area (m²), annualised for shorter periods.
- Read the tier and apply the landlord share to total CO₂ costs.
Disclosure and reduction
Suppliers must state the fuel delivered, the CO₂ it contains and its CO₂ costs (§ 6). If missing, the tenant may reduce their share by 3 % (§ 6 (3)). District-heat suppliers apply the landlord share themselves.
How Torch Real Estate solves this
Torch Real Estate derives the correct tier from CO₂ quantity, area and period, deducts the landlord share from the heating pool and allocates only the rest under the HeizkostenV — annualising partial periods automatically.
Frequently asked questions
How is the landlord’s CO₂ share calculated?+
Determine the building’s specific emissions in kg CO₂ per m² of living area per year and read the landlord share from the 10-tier § 5 table. At, say, 35 kg/m²·a the landlord share is 50 %.
Where do the kg CO₂ come from?+
From the fuel or heat-supply invoice. Since 2023 suppliers must state the energy delivered, the CO₂ it contains and the CO₂ costs on it (§ 6). For heating oil the landlord derives the figures from the delivered volume.
Does the tier model apply to commercial space?+
Non-residential buildings currently use a flat 50/50 split (§ 8) until a dedicated tier model is introduced. The 10-tier table here applies to residential buildings.
How does the landlord share affect the statement?+
The landlord’s CO₂ share is not recoverable. It is deducted from the heating block; only the remaining pool is allocated to tenants under the HeizkostenV.
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This article reflects the general legal position at the stated date and is not legal advice. State law, individual circumstances and current case law may differ — when in doubt, consult a tenants' association, lawyer or tax advisor.