Germany's Efficiency Funding

Blurb

Efficiency First is one of the guiding principles of the energy transition in Germany. The financing and funding of energy efficiency has a long history for which a robust regulatory framework for energy efficiency in buildings is the basis. This report outlines how the Federal Funding for Efficient Buildings (BEG) is designed and implemented, specficially through the KfW Bank, to fund efficient buildings, both new construction and renovation, in Germany. The report includes a regulatory overview, a short history and overview of the KfW financing scheme, details around the BEG funding, its implementation, success factors and outcomes.

Key elements to understand the workings of the programme include the on-lending principle of the KfW, the Efficiency House Standard, the individual renovation roadmap as well as the energy efficiency experts and the surrounding eco-system. Outcomes of the scheme include the effective establishment of technical standards that exceed regulatory standards for renovation and new construction, the implementation of quality control through a broad network of dedicated energy efficiency experts and the development of an overall awareness for the financing and the ecosystem around it.

This report has been prepared with the support of a programme by the German Federal Ministry for Economic Affairs and Climate Action (BMWK) to facilitate the Australia-Germany Energy Partnership.