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Germany’s goal to become greenhouse gas neutral by the middle of the century is officially made the guiding principle of the EEG 2021. 2050 greenhouse-gas neutrality in the power sector becomes part of the law By 2027, the government wants to propose how, and by when, renewables funding via the EEG could be stopped entirely – provided a market-driven renewables expansion is to be expected. Subject to various changes in the past, the EEG’s next overhaul is staying true to the act's latest principles of making renewable power producers more market-ready by sticking to renewable tenders while incorporating new developments such as the 2020 national hydrogen strategy and electricity pricing for e-car charging. Together with offshore wind and hydro power, these renewable sources now cover half of the country’s electricity consumption. Germany’s renewables legislation, which was launched 20 years ago, is responsible for the significant growth in onshore wind, solar PV, and biogas by establishing grid priority for these power sources and guaranteeing them generous feed-in tariffs. This factsheet gives an overview of the most important provisions in the new law. The EEG 2021, as it has been named by the Ministry for Economic Affairs and Energy ( BMWi) that is in charge of the bill, was approved by the federal parliament (Bundestag) in December 2020 after introducing some last minute changes. After two big reforms of Germany’s Renewable Energy Act ( EEG), the latest amendments came into effect on 1 January 2021.