German infrastructure bank talks up €100bn green investment plan
Germany’s national infrastructure bank KfW has this week confirmed it has cranked up its investment in renewable energy and energy efficiency projects, revealing that it now plans to provide €100bn of finance to the country’s green economy over the next five years.
As part of the bank’s half yearly update KfW revealed 41 per cent of its promotional business volume went to support projects involved in “environmental and climate protection”, totalling €12.1bn of loans.
It added that it now expects to deliver an “environment quota” of 36 per cent of its business for the whole of 2012, a significant increase on the 32 per cent quota delivered last year.
Dr Ulrich Schröder, chief executive of KfW Bankengruppe, said the increase in green investment was the first step in a five-year plan that will see the government-backed bank play a key role in Germany’s high-profile plans to transition away from nuclear power while slashing greenhouse gas emissions.
“In implementing the project of the century, the energy turnaround, KfW has taken responsibility as a promotional bank,” he said in a statement. “In the next five years we intend to extend loans totalling €100bn for renewable energies and energy efficiency.”
He also revealed that in supporting projects that are involved in the ‘Energy Turnaround Action Plan’ the bank had slashed interest rates on loans to a historic low of one per cent.
Specifically, the bank said that during the first six months of the year investment in environment and climate protection projects more than doubled year-on-year to €95m, while funding for renewable energy programmes rose from €4.1bn during the first half of 2011 to €4.9bn this year.
However, it also confirmed the bank’s offshore wind energy programme had not yet provided any funding commitments due to continuing delays over grid connections. “KfW is involved in considerations aimed at improving the financing situation of offshore project grid connection and further grid expansion,” the bank said.
The update came in the same week as KfW revealed it is providing €50m to a new research project from engine technology Tognum AG designed to produce more fuel-efficient diesel engines for ships, locomotives and land vehicles.
The news also comes as the Financial Times today revealed that the UK’s opposition Labour Party is working on proposals for a new National Investment Bank, which could provide government-backed finance to key infrastructure projects.
The proposals drew fresh calls from green NGOs for the government and opposition to agree to strengthen the planned Green Investment Bank and allow it to emulate Germany’s KfW by borrowing from the capital markets.
As part of the bank’s half yearly update KfW revealed 41 per cent of its promotional business volume went to support projects involved in “environmental and climate protection”, totalling €12.1bn of loans.
It added that it now expects to deliver an “environment quota” of 36 per cent of its business for the whole of 2012, a significant increase on the 32 per cent quota delivered last year.
Dr Ulrich Schröder, chief executive of KfW Bankengruppe, said the increase in green investment was the first step in a five-year plan that will see the government-backed bank play a key role in Germany’s high-profile plans to transition away from nuclear power while slashing greenhouse gas emissions.
“In implementing the project of the century, the energy turnaround, KfW has taken responsibility as a promotional bank,” he said in a statement. “In the next five years we intend to extend loans totalling €100bn for renewable energies and energy efficiency.”
He also revealed that in supporting projects that are involved in the ‘Energy Turnaround Action Plan’ the bank had slashed interest rates on loans to a historic low of one per cent.
Specifically, the bank said that during the first six months of the year investment in environment and climate protection projects more than doubled year-on-year to €95m, while funding for renewable energy programmes rose from €4.1bn during the first half of 2011 to €4.9bn this year.
However, it also confirmed the bank’s offshore wind energy programme had not yet provided any funding commitments due to continuing delays over grid connections. “KfW is involved in considerations aimed at improving the financing situation of offshore project grid connection and further grid expansion,” the bank said.
The update came in the same week as KfW revealed it is providing €50m to a new research project from engine technology Tognum AG designed to produce more fuel-efficient diesel engines for ships, locomotives and land vehicles.
The news also comes as the Financial Times today revealed that the UK’s opposition Labour Party is working on proposals for a new National Investment Bank, which could provide government-backed finance to key infrastructure projects.
The proposals drew fresh calls from green NGOs for the government and opposition to agree to strengthen the planned Green Investment Bank and allow it to emulate Germany’s KfW by borrowing from the capital markets.
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