KfW Development Bank in 2022

*Differences in the totals are the result of rounding.

*Differences in the totals are the result of rounding.

*Differences in the totals are the result of rounding.

KfW has set up the world’s first financing platform for financing infrastructure for green hydrogen and its derivatives. On behalf of the Federal Ministry for Economic Cooperation and Development (BMZ) and the Federal Ministry for Economic Affairs and Climate Action (BMWK), the PtX platform is intended to support industrial projects for the production, transport, storage, use and further processing of green hydrogen (from renewable energy sources), particularly in developing countries and emerging economies. The PtX Platform offers investors targeted and interlinked financing products from a single source, such as equity investments, loans and grants from KfW Development Bank, KfW IPEX-Bank and DEG. The aim is to promote the global market ramp-up of green hydrogen.

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• Solar partnership: India has set itself the ambitious goal of increasing solar energy by a factor of eight in the coming years. KfW is supporting this with a loan of EUR 150 million as part of the solar partnership with India. The supported plants will produce a total of over 600,000MWh per year and a reduction in CO₂ emissions of 500,000 tonnes per year will be achieved.
• Sustainable urban development: KfW has signed a EUR 500 million loan agreement with the Indian Ministry of Finance for sustainable and climate-resilient urban development in the Indian state of Tamil Nadu. The funds are handed on to the state’s municipalities via the Tamil Nadu Urban Development Fund (TNUDF). The municipalities then use these funds to implement projects to improve the climate resilience of urban infrastructure. These include water supply and waste water disposal projects, improved waste management, the construction of rainwater channels, etc.
• Green corridors: KfW has been promoting the expansion of the Indian electricity grid in the form of “green corridors” for many years now. With these investments, it will be possible to feed the electricity generated from the sun and wind into the Indian power grid and thereby contribute to a sustainable electricity supply. In recent years, promotional funds amounting to EUR 1 billion have already been provided for this project. With the four newly signed contracts, a further EUR 460 million will be invested in the construction of substations and transmission lines.

South Africa has made the decision to phase out its use of coal. The aim is for the share of fossil fuels in the South African electricity mix to fall to a maximum of 48% by 2030, while the share of renewables shall increase to at least 38%. In order to make the energy transition in South Africa socially affordable, investments in vocational training and alternative sectors, such as green hydrogen and electric vehicles, are required. KfW is supporting this with a loan amounting to EUR 300 million, which will benefit the socially responsible and environmentally sustainable transformation of the energy sector in South Africa.

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On behalf of the Federal Ministry for Economic Cooperation and Development (BMZ), KfW has concluded a promotional loan of EUR 300 million for its Sustainable and Inclusive Energy Programme (SIEP) with Indonesia, which initiates and implements the necessary reforms in the Indonesian energy sector. The package of measures includes reforms to promote renewable energies, such as improved price mechanisms for feed-in tariffs, regulation for solar power systems and more ambitious energy efficiency standards.

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The W-Arly-Pendjari National Park Complex (WAP) is the largest interconnected savannah conservation area in West Africa. Its unique biodiversity is particularly impressive. To protect the Nigerien and Beninese sections of this area of natural heritage, KfW has signed contracts for a total of EUR 35 million with the West Africa Savannah Foundation (Fondation des Savanes Ouest-Africaines; FSOA) and its Beninese and Nigerien partner governments. The project funds are playing a significant role in funding the administration and expansion of the infrastructure within the national parks. This contributes to the fight against poaching and the support of local residents in the WAP region.

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KfW’s first cooperation with Banco do Brasil is financing the reforestation of degraded areas in deforestation hotspots. Deforestation and unsustainable agriculture account for a significant part of Brazil’s CO₂ emissions. KfW is financing measures to reforest and restore degraded areas with over EUR 80 million. More than 800 land-owning families are to benefit, with particular attention paid to small landowners. Reforestation of a total area of 46,000ha is expected to save 90,000 tonnes of CO₂ equivalent.

Big cat habitats provide a variety of ecosystem services for the local population. KfW is providing around EUR 15 million to promote the improved management of selected big cat habitats and the reduced vulnerability of their prey, as well as to support the local population in the sustained exercising of their livelihoods.

In 2022 a ceremony marked the completion of the German-funded International Labour Organisation (ILO) and Lebanon Mountain Trail Association (LMTA) project to restore and maintain Lebanon’s longest hiking trail.

Lebanon is in a serious crisis, and so tourism has become an even more important economic factor, especially for rural areas. The commercial opportunities for the neighbouring communities of the Lebanon Mountain Trail will be enhanced by the promotion of socially responsible tourism that safeguards the region’s natural, cultural and historic heritage.

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Large sections of the Afghan population rely heavily on external support to secure their livelihoods. Germany’s development cooperation is also contributing to this following the Taliban takeover of power. Projects worth EUR 360 million in total were reviewed in 2022 and some of them have already been committed. Through UNICEF, for example, KfW supports food security for pregnant and breastfeeding women, and finances solar panels on the roofs of schools via UNDP, provided girls are also allowed to learn there. The ARTF (Afghanistan Reconstruction Trust Fund) managed by the World Bank was also restructured and provided with a substantial German contribution. Finally, KfW is also able to continue the successful work of the PATRIP Foundation it established in Afghanistan. KfW will conclude the projects that have not yet been completed with the support of UNOPS – insofar as this is possible in view of sanctions – and/or secure the construction sites.

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KfW Development Bank is supporting Ukraine with 31 ongoing projects amounting to around EUR 1.1 billion (Federal Ministry for Economic Cooperation and Development (BMZ) grants and budget fund loans, EU mandates and untied financial loans from market funds [UFK promotional loans]). A further project amounting to around EUR 100 million is in the preparation stages. On 6 December 2022, a grant agreement for EUR 200 million was signed with the Ukrainian Ministry of Finance to support a Ukrainian aid programme for internally displaced persons. Through this programme, internally displaced persons receive grants to cover their most urgent needs, such as clothing, food, medicines and housing.

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KfW Development Bank has been supporting the reconstruction and stabilisation of Iraq on behalf of the German Federal Government since 2016 with a portfolio of more than EUR 1.37 billion. In addition to cooperation with UNDP and other UN organisations, KfW is implementing a loan from the German Federal Foreign Office in the amount of EUR 500 million to rebuild basic supply infrastructure in the areas formerly occupied by the Islamic State.

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The German Federal Government has decided to present a strategy for an international digital policy for the first time. Federal Minister for Development Svenja Schulze therefore invited a broad network of international partners from the digital scene and ICT industry to the kick-off event for the strategic realignment of Federal Ministry for Economic Cooperation and Development (BMZ) digital policy in December 2022. This laid the cornerstone for the development policy network [digital.global] and with that for interdisciplinary exchange on the various levels of digital transformation.

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KfW had originally developed remote project management, or Remote Management, Monitoring and Verification (RMMV), for use in fragile states. Since the pandemic, however, these technologies and methods have also proven to be extremely helpful in other regions. KfW has now summarised its experience with RMMV in a guidebook. This contains many recommendations for the use of technologies that are helpful for the development of digital approaches and components in projects – even beyond RMMV. The handbook is considered to be a “digital public good”, i.e. it is available to the public free of charge for download and use.

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Of Georgia’s 3.7 million inhabitants, 1.3 million live in the capital Tbilisi and in Batumi. Personal transport and urbanisation have increased significantly in recent years – and so has air pollution. Projects worth a total of EUR 47 million are intended to align traffic management and transport modes in the two cities with climate action objectives in the future. Sensors collect data about urban traffic flow, control technology optimises traffic flow, traffic jams are reduced. At the same time, fast bus lanes for local public transport will be expanded and green corridors for cycle paths and footpaths will be created. The measures are intended to provide incentives for residents to switch from using cars to local public transport and, in so doing, further advance the transport transformation.

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