KfW releases Green Bond Impact Report for the years 2022 and 2021

Today, KfW publishes its latest Impact Report on “Green Bonds - Made by KfW”. Covering the years 2022 and 2021, the report completes the reporting cycle for these years.

This Impact Report contains relevant information on the applicable Green Bond Frameworks, an overview of all 57 issuances (incl. re-openings) in the reporting years, information on the allocation of the amounts corresponding to the net proceeds, as well as on the environmental and social impacts of the projects financed under the relevant lending programmes of KfW in the respective years.

Here are some highlights:

The projects linked to KfW Green Bonds issued in the years 2022 and 2021 are expected to result in annual CO2 equivalent savings per €1m invested of 218 tons for the year 2022 and 136 tons for the year 2021. Considering the entire €26.8bn net proceeds of KfW Green Bonds issued in 2022 and 2021, they are expected to result in annual CO2 equivalent savings of 4.5m tons.

Eligible projects are selected in accordance with KfW’s Green Bond Framework, which is regularly updated. The present Impact Report refers to Green Bonds issued under the Green Bond Framework 2019 and the Green Bond Framework 2022. Besides “Renewable Energy” and “Energy Efficiency” projects, the report , for the first time, also covers financings in eligible “Clean Transportation” projects.

Currently, KfW engages external research agencies to evaluate the impact data for the individual loan programmes. Nevertheless, the medium-term goal is to augment the in-house collection of relevant impact data and to refine KfW’s reporting processes.

Petra Wehlert, Head of Capital Markets says:

“Transparency is key to us. Consequently, we are continuously striving to enhance the impact reporting on our green bonds. A crucial prerequisite for this is comprehensive data collection, while simultaneously ensuring the highest standards of data quality.”

This year, KfW is celebrating it’s 10-year green bond anniversary. Since 2014, KfW has issued green bonds with a total volume of more than €80bn, making it one of the largest and most active green bond issuers worldwide. Over the last decade “Green Bonds – Made by KfW” became an increasingly important funding instrument in KfW’s overall funding mix with an average share of around 15% of its yearly issuance volume.

Tim Armbruster, Treasurer at KfW comments:

“With our Green Bonds – Made by KfW, we are making an important contribution to greater sustainability on the capital market. We not only act as a regular and reliable green bond issuer, but also aim to provide important impetus for the further development of the market as a whole. The continuous revision of our Green Bond Framework in line with the latest legislation and the ongoing dialogue with other market participants are just a few examples for this.”

For more details on impacts in individual years and project case studies, as well as the calculation methodologies, we encourage you to take a closer look at our full Impact Report.

Net Proceeds 2021: EUR 16.2 bn

Net proceeds 2022: EUR 10.6 bn