German Federal Government and KfW expand funding options in the federal promotional programme for energy efficiency in the commercial sector

In the wake of the German Federal Government’s more ambitious energy and climate policy targets, the focus of the energy transition in the industrial sector is now shifting to resource efficiency as well as energy efficiency. As a result, the promotional conditions of the very successful federal promotional programme for funding energy efficiency in the commercial sector (Bundesförderung für Energieeffizienz in der Wirtschaft), with around EUR 1 billion in promotional loans committed to date, will now be adjusted as of 1 November 2021 and continued as a federal promotional programme for energy efficiency and resource efficiency in the commercial sector.

Specifically, improvements will be made to promoting energy efficiency. In addition, new promotional options for resource efficiency, i.e. lower resource use in companies, and for transformation concepts will be added. Funding consists of low-interest loans combined with redemption grants from funds of the Federal Ministry for Economic Affairs and Energy (BMWi).

The promotion spans measures in cross-sectional technologies, process heat from renewable energy sources, measurement and control technology, sensor technology and energy management software, as well as energy- and resource-related optimisation of systems and processes.

The maximum loan amount per project is EUR 25 million. Companies are eligible to apply regardless of size. To provide even stronger incentives for investment, the maximum possible redemption grant will be increased from the previous EUR 10 million to EUR 15 million, depending on the investment project. With the aim of increasing the incentives for small and medium-sized enterprises in particular, the previously applicable CO2 cap for SMEs will be raised from EUR 700 to EUR 900 per tonne of CO2 savings.

In addition to low-interest KfW loans with redemption grants, the federal programme to promote energy and resource efficiency in the commercial sector offers direct investment grants from the Federal Office for Economic Affairs and Export Control (BAFA). In addition, companies can apply for grants of up to EUR 80,000 to plan and implement their individual transformation towards greenhouse gas neutrality (“transformation concepts”).

Applications can be submitted starting 1 November 2021. Further information is available at the following links:

Application for a direct grant (BAFA): www.bafa.de/eew

Application for a promotional loan with redemption grant (KfW): www.kfw.de/295 (German page)

Applications for funding transformation plans can be submitted through the project executing agency VDI/VDE Innovation + Technik GmbH: https://foerderportal.bund.de/easyonline/