Media Tour to Germany s KfW Energy efficiency Programme Introduction of KfW Bankengruppe 8 th November 2012 Bank aus Verantwortung
More than 60 years of KfW Financing with a public mission Promotional bank of the Federal Republic of Germany Founded in 1948 as Kreditanstalt für Wiederaufbau Shareholders: 80% Federal Republic, 20% federal states Headquarters: Frankfurt am Main Branches: Berlin, Bonn and Cologne Representative offices: around 70 offices and representations worldwide Balance sheet total at end 2011: EUR 494.8 billion Financing volume 2011: EUR 70.4 billion Around 4,763 employees (2011) Best rating: AAA/Aaa/AAA 2
A bank with a wide array of functions Domestic promotion International business We promote Germany We ensure internationalisation We promote development Business Area Mittelstandsbank Promotion SMEs, business founders, start-ups Business Area Privatkundenbank Promotion construction of new housing and modernisation as well as education Business Area Kommunalbank Financing municipal infrastructure projects and global loans Germany/Europe agency business for Federal Government Business Area Export and Project Finance International project and export finance Business Area Promotion of Developing and Transition Countries Promotion of developing and transition countries Promotion of environmental and climate protection 3
Neutrality through on-lending principle in loan business No branch network of our own File loan application with their regular bank before start of investment If approved, customer s bank forwards application to KfW Customer Customer's bank Enter into the loan agreement and disburse the loan Refinances the loan at favourable refinancing interest rates 4
Media Tour to Germany s KfW Energy efficiency Programme Key results and key principles for the KfW Energy Efficiency Programme 8 th November 2012 Bank aus Verantwortung
Promotional programs for residential buildings Overview New Buildings Existing Buildings Programs can be combined Energy-efficient efficient Construction Energy-efficient efficient Refurbishment energy efficiency Age-appropriate Conversion improving accessibility KfW Home Ownership Programme home ownership 6
Key principles Energy- efficient construction and refurbishment German Energy Saving Ordinance (EnEV) is the baseline Based on legal framework Higher efficiency standard required Holistic approach Focused on energy efficiency and renewable energies Free choice of technology (heating system and building envelope) Cost efficiency and energy reduction crucial KfW-Efficiency House: brand for energy efficiency Technological standard for new and existing buildings Easy to understand: the smaller the number the higher the energy efficiency High transparency The Higher the energy efficiency, the higher the promotional incentives 7
KfW-Efficiency House Complex legal requirements for energy efficiency reduced to two values Annual Primary energy demand Q P required energy demand for heating, ventilation and hot water; considering the energy source, heat generation, storage, distribution etc.) Transmission heat loss H T energy loss of the building through its components (building envelope ) 8
Energy-efficient Construction Energy efficiency interest-rate rate 1,26 % p.a. (effective)** Annual primary Transmission heat loss energy demand (QP) (H T ) (in % of the reference building of EnEV 2009) KfW-EH 40 40 % 55 % KfW-EH 55 55 % 70 % KfW EH 70 70 % 85 % 100 % 100 % * EnEV 2009 2009 5 % 10 % Repayment subsidy * EnEV 2009, Anlage 1, Tabelle 2 * * 26.10.2012 loan amount max. EUR 50.000 per housing unit 9
Energy-efficient Refurbishment Loans Annual primary energy demand (QP) (in % of the reference building of EnEV 2009) KfW-Efficiency House 55 55 % 70 % Transmission-heat heat-loss (H T ) Repayment subsidy 12,5 % interest-rate rate 1,00 % p.a. (effective)* KfW-Efficiency House 70 70 % 85 % 10,0 % KfW-Efficiency House 85 85 % 100 % 7,5 % KfW-Efficiency House 100 100 % 115 % 5,0 % KfW-Efficiency House 115 115 % 130 % 2,5 % KfW-Efficiency House Monument 160 % - 2,5 % Individual measures - * 31.08.2012 loan amount max. EUR 75.000 per housing unit for KfW-EH and max. EUR 50.000 per housing unit for individual measures 10
Energy-efficient Refurbishment Grants as an alternative to loans for private house owners Annual primary Transmission-heat heat-loss energy demand (QP) (H T ) (in % of the reference building according to EnEV 2009) Investment grant* KfW-Efficiency House 55 55 % 70 % 20,0 % KfW-Efficiency House 70 70 % 85 % 17,5 % KfW-Efficiency House 85 85 % 100 % 15,0 % KfW-Efficiency House 100 100 % 115 % 12,5 % KfW-Efficiency House 115 115 % 130 % 10,0 % KfW-Efficiency House Monument 160 % - 10,0 % Individual measures 7,5 % * Basis of assessment: max. EUR 75.000 per housing unit for KfW-EH and max. EUR 50.000 per housing unit for individual measures 11
Promotional effects 2011 and 2012 Energy-efficient efficient construction and refurbishment Volume of commitment (million EUR) Energy-efficient efficient Construction 3.613 2.307 1.807 +28% Energy- efficient Refurbishment 2.897 2.179 1.114 +96% 1. HJ 2011 2011 81.244 1. HJ 2012 1. HJ 2011 2011 200.762 1. HJ 2012 housing units 40.309 48.253 +20% 78.184 113.949 +46% Reduction of annual CO 2 emissions with funded measures since 2006 : > 5,5 million tons 12
Promotional effects 2011 Energy-efficient efficient construction and refurbishment Energy reduction covers energy consumption of over 500 households End energy savings: 1,539 GWh/a Greenhouse gas reduction equates to 100,000 soccer fields planted with trees (45 millions) CO 2 -reduction: 542,000 t /a Promoting energy efficiency and renewable energy 52% thermal heat pumps and 12% biomass-derived heating in new buildings Value of reduced heating costs equals annual general consumption of 160,000 households Saving on heating costs: EUR 4,2 billion (over 30 years) Economic stimulus package for small and medium sized enterprises 251.000 new jobs created or saved for one year (83% SMEs) 13
Promotional effects 2010 Energy-efficient efficient construction and refurbishment Leverage effect of public money each of public money in promotional programs reliefs the public budgets about 4 to 5 s Leverage effect due to cost of investment 1.4 billion public money generate 8.9 billion promotional loans and 21.5 billion investment Economic stimulus package for small and medium sized enterprises 340.000 new jobs created or safeguarded for one year Effect on public households Reduced costs for unemployment and higher tax income Continuity till the year 2014 Yearly 1,5 billion federal money in 2012 to 2014 14
Contact Details KfW Product Development Dirk Markfort Technical Expert You have any questions? KfW Bankengruppe Press office Sonja Höpfner Palmengartenstr. 5-9 60325 Frankfurt a/m Phone +49 69 7431-4306 Fax +49 69 7431 3266 sonja.hoepfner@kfw.de 15