Germany to scrap key parts of contentious heating law

BERLIN, Feb 25 (Reuters) - Germany's coalition parties have agreed to ditch a contentious heating law introduced by the previous government and allow homeowners to continue to install oil and gas heating systems.

Replacing the rules, pushed through by the Greens in 2023, was an electoral promise of conservative Chancellor Friedrich Merz in last year's campaign and follows weeks of wrangling with his Social Democrat coalition partners.

Here are some details:

• Government says changes maintain goal of cutting emissions from buildings, but gives households more freedom of choice over heating and technology

• Under new plans, gas and oil heating systems must be operated with increasing proportion of climate-friendly fuel, such as biomethane. Proportion is to be at least 10% in 2029 and rise in three further steps by 2040.

• Previous law from 2023 required most newly-installed heating systems to use at least 65% renewable energy

• Almost 80% of Germany's residential buildings are currently estimated to rely on oil or gas heating

• Germany aims to be climate neutral by 2045. Transport and building sectors have lagged on tackling climate change

• Merz's conservatives and SPD promised to ditch previous law in their coalition deal agreed last year

• Greens pushed through law in 2023 even though then Economy Minister Robert Habeck had to water down his original plans due to public outcry. A row within the three-way coalition of SPD, Greens and pro-business FDP caused backlash from homeowners and opposition parties, was widely viewed as beginning of end of that government

• Greens politicians are now furious about move, arguing it puts climate goals at risk

• Experts concerned that Germany may not have sufficient biomethane, other green fuel to cover demand