Existing climate protection targets, price increases, and a tendency to wait and see have led to increased pressure to act in the heating sector, which continues to account for a large proportion of carbon dioxide (CO₂) emissions, not only in Germany. In this book contribution, the authors examine the socioeconomic challenges of the heating transition using the city of Berlin as an example. Berlin has set itself the goal of becoming climate neutral by 2045. The building sector plays a key role in this, as a large proportion of CO₂ emissions come from heat supply, which has so far been based almost entirely on fossil fuels. At the same time, the building stock is predominantly old, and a significant proportion of it is listed as historic buildings, which makes energy-efficient renovations even more difficult. The climate targets can only be achieved by switching to renewable energies for heat generation and reducing final energy consumption through more comprehensive measures to improve building efficiency. However, there are major hurdles to overcome, two of which are examined in more detail in this article: the social issue and the shortage of skilled workers in the construction and skilled trades sector.

Berlin is a city with a high proportion of renters and high rental costs, especially for low-income households. The calculations show the impact of energy efficiency measures and renewable heat supply on tenants and landlords. Energy-efficient renovations can reduce energy costs in the long term, but often lead to rent increases in the short term. Whether a renovation is neutral for tenants in terms of warm rent depends heavily on the behavior of landlords – in particular, whether subsidies are used and maintenance costs are correctly calculated. Without subsidies, ambitious renovations can lead to significant additional costs and displacement. 

Social compensation mechanisms, clear rules on cost allocation, and mandatory use of subsidies are crucial to reconciling climate protection, social justice, and acceptance of the heat transition. Another obstacle is the shortage of skilled workers in the construction and crafts sectors. If the renovation rate, which is currently very low, were to increase even moderately, this would require thousands of additional skilled workers. At the same time, a large proportion of today's employees will retire in the coming years, while the number of trainees is insufficient to compensate for this. Migration can partially cover the demand, and training, further education, and retraining should also be expanded. 

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