Supporting the energy efficient rehabilitation of the building stock – The German experience

Brussels, 16.11.2010

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Framework

Promotional Programmes

Energy PricesEnEV

German Energy Conservation

Ordinance

Information and

Consulting

7%27,5%

15%50%

share of

KfW‘s

programmes

28%CO2 reduction

targets 2008 - 2012

housing sector

climate action plan

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Building stockNew building

Energy Efficient Construction and Rehabilitation

promotional loans max. 75.000 EUR per housing unit KfW-Efficiency House standard five promotional stages partial debt relief possible grants as an alternative for owners

of single and two family houses additional special support available

promotional loans max. 50.000 EUR per housing unit KfW-Efficiency House standard three promotional stages partial debt relief possible

Energy-Efficient Construction Energy-Efficient Rehabilitation

Higher energy efficiency means better conditions

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KfW Efficiency House Standard

Abbreviations:NL = New Building Level according EnEV

Primary Energy Demand (kWh/a)

ca. 94-55 kWh/a

ca. 80-47 kWh/a

ca. 66-39 kWh/a

= 85% of NL

= 70 % of NL

= 100 % of NL

= 115 % of NL

= 55 % of NL

ca.108-63 kWh/a

ca. 52-30 kWh/a

KfW-115

KfW-85

KfW-100

KfW-70

KfW-55

= 40 % of NLca. 38-22 kWh/a KfW-40

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refinancing loan (maturity e.g. 20 years)

loan to homeowner (maturity e.g. 20 years)

Interest rate: 2.65%* max.

BankIndividual

homeownerInterest

rate: 1.90%* Margin for

credit risk and handling

0.75%* max.German Government

or KfW

Capital market

Interestsubsidy

Funding

* p.a. eff.

KfW ‘s On-Lending-Principle

AAA-Rating

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Capability of energetic renovation in Germany● 39 m housing units ● 75% built before 1979● potential of renovation 20 m housing units

Programme started in 2001● More than 520.000 loans● Commitment volume of 31 billion euros● 1,5 m housing units

Macroeconomic Evaluation since 2006● Sustained CO2 reduction of 3,9 m tons p.a.● Investments of 51 bn euros● On average 200.000 jobs per year safeguarded or created● Accumulated Savings in heating costs of 950 m euros

Volumes and Impacts

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Factors of success

Open to all investor groups

Focus on long term loans

A brand for energy efficiency

Higher energy efficiency is rewarded

Distributional network and Funding

Thank you very much!

Gudrun Gumb Vice President, Business Policy Europe Tel.: ++49 69 7431 3831gudrun.gumb@KfW.de