Net Zero Compare
German Energy Efficiency Act (EnEfG)

German Energy Efficiency Act (EnEfG): Embedding energy efficiency considerations into operational and investment decisions

Onye Dike
Written by Onye Dike
Updated on April 7th, 2026

Summary

The German Energy Efficiency Act (Energieeffizienzgesetz, EnEfG) is a federal law adopted in 2023 to establish a comprehensive legal framework for improving energy efficiency across the economy. In force since November 2023, it sets binding targets for reducing primary and final energy consumption and introduces obligations for companies, public institutions, and data centres. The Act implements key elements of the EU Energy Efficiency Directive and is intended to support Germany’s climate targets by reducing energy demand and improving the efficiency of energy use.

Details

Jurisdictions
  • Germany
Mandatory for

Reporting obligations under the EnEfG apply to companies based on final energy consumption. In particular, companies with an average final energy consumption of more than 2.5 GWh per year are subject to reporting-related requirements.

Deep dive

3 min read
Updated Apr 7, 2026

📩 Stay ahead of climate regulation and reporting shifts

Regulatory updates, reporting standards, and new climate software — distilled into one concise weekly brief for decision-makers.

Thanks for signing up. Please check your inbox to confirm your subscription.

Practical updates. Once per week.


Overview

The EnEfG represents Germany’s first cross-sector legal framework dedicated specifically to energy efficiency. Its primary objective is to reduce overall energy consumption while strengthening energy security and contributing to climate mitigation. The law applies across multiple sectors, including industry, public administration, data centres, and other energy-intensive activities. It establishes national energy-saving targets for 2030 and outlines a longer-term trajectory toward 2045. A key feature of the Act is the shift from voluntary efficiency measures to legally binding obligations. It requires both public authorities and private sector entities to actively manage and reduce energy use, embedding efficiency considerations into operational and investment decisions.

Reporting requirements

Obligations for companies are based on energy consumption thresholds:

  • >7.5 GWh/year: Mandatory implementation of energy or environmental management systems (e.g. ISO 50001 or EMAS)

  • >2.5 GWh/year: Requirement to identify, document, and publish economically viable energy efficiency measures

  • All affected companies must address waste heat recovery and reporting

These requirements apply to both large companies and, for the first time, energy-intensive SMEs.

Data centre provisions

The Act introduces specific rules for data centres, including:

  • Minimum energy efficiency standards

  • Obligations to use and reuse waste heat

  • Requirements related to energy sourcing and operational efficiency

Penalties for non-compliance

The EnEfG establishes a system of administrative fines to enforce compliance with its requirements. Companies that fail to meet key obligations stated above may face penalties of up to €100,000, particularly where companies do not implement required systems or fail to comply fully or on time. Compliance is monitored by authorities such as the Federal Office for Economic Affairs and Export Control (BAFA), which conducts checks, including on a random basis, and can initiate enforcement actions.

Current status

The EnEfG entered into force in November 2023. Implementation is ongoing, with obligations phased in from 2024 onwards. Public sector energy-saving requirements and company compliance measures are being introduced progressively, with enforcement overseen by authorities such as the Federal Office for Economic Affairs and Export Control (BAFA). The Act is also expected to evolve further as Germany continues aligning national legislation with updates to the EU Energy Efficiency Directive.

Resources


Onye Dike
Added by:
Onye Dike
Sustainability Research Analyst
Onye Dike is a Sustainability Research Analyst at Net Zero Compare, where he contributes to research and analysis on environmental regulations, carbon accounting, and emerging sustainability trends.
Our principle

Cut through the green tape

We don't push agendas. At Net Zero Compare, we cut through the hype and fear to deliver the straightforward facts you need for making informed decisions on green products and services. Whether motivated by compliance, customer demands, or a real passion for the environment, you’re welcome here. We provide reliable information. Why you seek it is not our concern.

Added on Apr 6, 2026 by Onye Dike · Updated on Apr 7, 2026