First “Capital Markets Conference on Energy Transition” for Germany:

• Major interest from German and international investors in energy projects
• Attendance by more than 180 high-ranking representatives of institutional investors from the German and international financial and energy industry as well as politics
• The energy transition requires substantial investments worldwide, with around EUR 300 billion required for grid infrastructure in Germany alone by the mid-century

Major interest in KfW’s first investor conference in cooperation with Deutsche Bank AG: More than 180 high-ranking representatives of institutional investors from the national and international financial and energy industry and politics met in Frankfurt am Main on 9 July 2024 to discuss investment opportunities in the energy sector in Germany. The aim of the first Capital Markets Conference on Energy Transition for Germany, under the patronage of Federal Minister for Economic Affairs and Climate Action, Dr Robert Habeck, was to initiate a dialogue between institutional investors, the financial industry, energy companies and politics. The one-day conference addressed the opportunities a climate-neutral energy supply in Germany can offer for domestic and foreign investors.

Federal Minister for Economic Affairs and Climate Action, Robert Habeck:

"Germany wants to be climate-neutral by 2045 and increase the proportion of electricity generated from renewable energies to 80% by 2030. With renewables covering more than half of the electricity supply in Germany for the first time in 2023, these binding climate targets are within reach. The next major milestone in the energy transition is the expansion of energy infrastructure. We have already noticeably accelerated the expansion of the grid, and the construction of the hydrogen core grid is starting. We are pursuing long-term goals and have embarked on robust paths that offer a reliable, long-term and rewarding investment field for investors. This conference brings together relevant players from the world of finance, the energy industry and politics, enabling valuable discussions on financing paths for the German energy transition."

Stefan Wintels, Chief Executive Officer of KfW, stated:

"The German energy transition is highly attractive for international investors under reliable framework conditions. The strong interest shown in today’s conference is evidence of this. In order to take advantage of the opportunities offered by the 'Investment Case Germany', a strong capital market is needed, especially as this will play an even more important role in financing the transformation in the future. To this end, we are promoting dialogue between the financial industry, the real economy and politics, and we are advocating for investment-friendly framework conditions."

Christian Sewing, Chief Executive Officer of Deutsche Bank AG:

"The restructuring of the energy supply is one of the primary tasks that needs to be undertaken to secure the competitiveness of the German economy. At the same time, it is a major opportunity: Investing in affordable, reliable and sustainable sources of energy can contribute to the economic growth we urgently need in Germany. However, this requires both significant investments and a strong capital market to finance them. As a global bank with access to the international capital markets, we want to contribute to improving capital market structures in Germany and Europe and expanding dialogue with investors."

The expansion of renewables required for the transformation calls for suitable and flexible transmission and distribution networks, which implies significant investment. According to a forecast study on behalf of KfW, additional investments of around EUR 300 billion will be required for the network infrastructure alone by the middle of the century. The funds for this cannot come from the public sector alone, but must be sourced, for the most part, from private donors or via the capital market. In the coming years, interesting investment opportunities will also arise in the area of hydrogen networks and storage infrastructure.

The participating companies included international infrastructure funds, pension funds and insurance companies, asset management companies, banks, and companies of the energy industry.

Statement by Stefan Wintels at the CMCET press conference on 9 July 2024(PDF, 76 KB, non-accessible)

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