Download KfW-Vorlage

Revolving EU structural fund means to promote energy
efficiency in housing - the Estonian example
Workshop on energetic building rehabilitation in Jelgava, 03.11.2009
KfW Bankengruppe in brief
● Promotional bank of the Federal Republic of Germany
● Founded in 1948
● Shareholders: Federal Republic of Germany (80%), German
federal states (20%)
● Headquarters: Frankfurt am Main; branch offices: Berlin and
Bonn
● Representative offices: around 50 offices and representations
worldwide
● Balance-sheet total at the end of 2008: EUR 395 billion
● Financing volume 2008: EUR 70,6 billion
● 4.228 employees in 2008
● Rating: AAA/Aaa/AAA
2
KfW Bankengruppe
Environmental and climate protection
Environmental and climate protection is a major promotional
priority!
●
Total commitments in this
sector in 2008:
EUR 19.5 bn
 Förderbank and Mittelstandsbank EUR 14.5 bn
 KfW Entwicklungsbank
 KfW IPEX-Bank
 DEG
●
EUR 1.7 bn
EUR 2.6 bn
EUR 0.7 bn
Commitments in 2008 for:
 renewables
 energy efficiency
EUR 5.3 bn
EUR 8.1 bn
KfW Bankengruppe is one of the world's biggest
financing institution for energy efficiency and renewable
energy
3
KfW‘s experience in Europe/CEE
In the 1990s
Implementation of the TRANSFORM Programme on behalf of the German Government1
Since 1991
Support of CEE governments regarding the set up of national promotional banks and support of
promotional banks and other partner banks in the design of promotional financial instruments e.g.
for SMEs and energy efficiency in housing
Since 1995
Funding of promotional loan programmes issued by promotional and commercial banks in Europe
 Total commitments in Europe (outside Germany) since 1995: 14 billion Euro
Since 1998
KfW IPEX-Bank committed about EUR 3 bn to TEN financing in Europe, frequently in
cooperation with EIB
Since 2000
Since 2005
Since 2007
EU mandates together with
CEB:
1
EU SME Finance Facility
EU Municipal Finance Facility
Energy Efficiency Finance Facility since 2007
A German technical assistance programme for the benefit of institutions and enterprises in CEE
4
Promotion of energy efficiency in the housing sector:
KfW-Efficiency House Standard and financing schemes
in Germany
Promotional financing schemes:
Subsidized loans, partial debt relief,
grants
KfW-130
ca.121-72 kWh/a
KfW-115
ca. 108-63 kWh/a
ca. 94-55 kWh/a
ca. 80-47 kWh/a
ca. 66-39 kWh/a
KfW-100
= 130 % of NL
= 115 % of NL
= 100% of NL
KfW-85
= 85 % of NL
KfW-70
= 70 % of NL
Better conditions of financial schemes
Primary Energy
Demand
Abbreviations:
NL = New Building Level according EnCO (German law)
5
Promotion of energy efficiency in the housing sector:
Results of KfW‘s housing schemes in Germany
Commitments
Effects
regarding
CO2-reduction
Effects on
the labour
market

From 1990 until 2008 a loan volume of more than 51 billion EUR was committed;
efficiency measures in app. 2.9 million homes were financed

The investments financed from 2006 until 2008 achieved a permanent reduction
of 2,4 million tons per annum in CO2 emissions1

In 2008 about 221,000 jobs could be safeguarded for at least one year, especially
in the construction industry
6
Broad scale financing scheme for building renovation –
Project idea
Revolving loan fund
Promotional
Institution
Funding
agreement
Government
Global loan
On-lending
bank
On-lending
bank


Long term loans
Low interest rates
7
Loan programme with a revolving fund versus grants to
promote energy efficiency investments
●
The substance of the fund remains for future investments (money
flows back to the fund)
●
Structural fund means invested into financial instruments count as
“disbursed”
●
Development of the “loan market” (e.g. maturity)
●
One-stop finance





Complete financing of the planned investment
Possibility of stable long term financing conditions
Usage of favourable refinancing conditions of promotional banks
Possibility of risk takeover
Possibility of a partial dept relief which combines the incentives of
a grant and a promotional loan without the disadvantages of a
grant
8
Broad scale financing scheme for building renovation –
Best-case model from Estonia
Revolving loan fund
KredEx2
CEB1
Funding
agreement
Global loan
EUR 29 Mio.
Objective: At least
20-30% of energy
savings
Government
Global loan
On-lending
bank
Energy
audit is
obligatory
Renovation
according to the
audit
Loan Maturity up to
20 years
On-lending
bank


Long term loans
Low interest rates
1
Council of Europe Development Bank
2
Estonian promotional institution
9