Instructions for completing the CO₂ Cost Sharing Act

Explanation for completing the annual cost and user statement

Read here what data we need from you as landlords and property managers to show the breakdown of CO₂ costs for heating cost billing and what to pay particular attention to.

The CO₂ Cost Sharing Act requires landlords to share CO₂ costs between tenants and landlords. Failure to do so can result in a 3 percent rent reduction for tenants. This applies to heating seasons beginning on or after January 1, 2023. Buildings heated with electricity, wood, or biogas are exempt.

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The obligation to share CO₂ costs depends on the heating medium. Therefore, this option can be activated or deactivated independently via the cost recording process in step 1 or 2. For all affected heating media such as gas, heating oil, or district heating, the option is already pre-selected. However, it is also possible that district heating suppliers do not charge CO₂ costs, or that CO₂ sharing is not required for a homeowners' association (HOA), in which case the sharing must be deactivated manually.

Recording the amount of CO₂ and CO₂ costs

In order to determine the emissions levels and costs, we first need the CO₂ emissions in kilograms and the CO₂ costs as stated on the energy provider's invoice. The energy provider is legally obligated to disclose this information according to the CO₂CostAdjustment Act (CO₂KostAufG) .

You record these two pieces of information in addition to the usual energy consumption.

Special features of heating media with storage

For heating media with storage, such as heating oil, Minol typically determines energy consumption and energy costs according to the first-in, first-out (FIFO) principle. Minol will also apply this principle to CO₂ costs and, in addition, determine the initial and remaining inventory levels.

When determining the initial inventory during the transition phase, no CO₂ cost allocation is required for any payments received before January 1, 2023. However, we will calculate the annual CO₂ consumption for the classification of all payments using the emission factor. It is possible during the transition phase that payments from 2022 may cover the consumption for 2023 or even 2024, meaning no CO₂ costs need to be allocated for these billing periods. In these cases, no calculation will be performed, and the following message will be displayed for the building's classification: "No allocation (CO₂ costs = €0,00)." We will then print a note for the tenants on the billing document, and no fees will be charged.

Building information

Under point 2.1a in the cost recording, additional information is requested once so that we can make the correct classification.

Building living area:

The CO2 Cost Allocation Act (CO2KostAufG ) defines the building's living space as the basis for calculating the tiered pricing . Living space refers to the sum of the chargeable floor areas of the rooms belonging exclusively to a single dwelling (according to the German Residential Space Ordinance). Commercial spaces, such as offices, are also relevant for the tiered pricing and must therefore be taken into account.

As a guide, the area stored with Minol (usable area or heated usable area) is pre-filled. However, this area may differ from the actual living area and should therefore be checked and adjusted if necessary. This does not affect the area used in the billing.

Building use:

Two methods are used to allocate CO₂ costs. For residential buildings, the allocation is based on the 10-stage model.

10-step model for the distribution of CO₂ costs between landlords and tenants.

A mixed-use building is considered a residential building if residential use predominates, § 6 para. 1 CO2KostAufG in conjunction with § 3 para. 1 no. 33 GEG . All floor areas must be taken into account. Predominant means more than 50 percent.

In the case of a non-residential building, a flat-rate division of 50 percent each is made between the tenant and the landlord.

Condominium Owners Association (WEG):

Condominium owners' associations (WEG) are not covered by the law, as it refers to tenants and landlords. However, if a condominium is rented out, the CO₂ costs must also be shared.

If the property is a condominium association (WEG), we will itemize the deductible portion for each user in the individual statement. This allows the landlord to deduct the CO₂ landlord costs directly from the tenant's bill. However, the landlord's CO₂ share will not be deducted from the heating bill, for which the building manager is responsible. Otherwise, the building manager would have to reclaim the individual amounts from the owners.

If the allocation for a homeowners' association (WEG) is to be handled in the same way as for a rental management company, the WEG identifier must be removed.

Additionally, there is an optional feature to indicate which apartments are rented in the user list. This has the advantage that we can already deduct the CO2 costs in the individual statements for the tenant and landlord.

Exception to public law regulations:

If public law regulations preclude a significant energy efficiency improvement of the building or a significant improvement of the building's heating and hot water supply, the percentage share of carbon dioxide costs that the landlord would have to bear must be reduced by half (= 50 percent for the landlord and 50 percent for the tenant). In this case, select the option "Restriction § 9 (1) CO2KostAufG".

The requirements include, for example,

1. restrictions under historic preservation law,
2. legal obligations to use heat supplies, especially in the case of mandatory connection and use, as well as
3. the fact that the building is located within the area of ​​application of a preservation statute pursuant to Section 172 Paragraph 1 Number 2 of the Building Code.

If public law regulations prohibit both a significant energy efficiency improvement of the building and a significant improvement of the building's heating and hot water supply, then the carbon dioxide costs will not be shared (100 percent for the tenant). In this case, select the option "Restriction § 9 (2) CO2KostAufG".

The landlord can only invoke this justification if they can prove to the tenant the circumstances that entitle them to a reduction in their share of the rent. We cannot assess whether a landlord can make use of any of these regulations. It may be advisable to inquire with the city or municipal administration.

Exception for district heating systems:

There is also an exception for district heating systems. If a building was first connected to the district heating network after January 1, 2023, the CO2 Cost Allocation Act ( CO2KostAufG ) does not apply (§ 2 para. 3 sentence 2 CO2KostAufG). In this case, Minol will not allocate CO2 costs, but will include a printed statement on the bill free of charge to prevent tenant inquiries.

Optionally reduce tenant share:

It is possible to voluntarily reduce the tenant's share by any desired amount. The difference is then borne by the landlord.

Emission factor:

Additionally, the calorific value-related emission factor must be reported annually via the cost accounting. Multiplying the emission factor by the energy consumption yields the CO₂ emissions for the building. This factor must also be shown on the energy supplier's invoice, as required by law. If you do not have this factor, Minol can calculate it for you (CO₂ emissions / energy consumption = emission factor). Please note that we cannot assume any legal responsibility for this calculation.

Results display:

To ensure that the respective share can be understood in advance, we display the result as part of the cost accounting. If the parameters have been changed, the calculation can be restarted via the gear icon.