The 2020s
The digital transformation and promotional bankThe years 2020 to 2022 will not only go down in KfW history as the "coronavirus years", but also as a time of unprecedented challenges to the bank's financial, human and technical resources. At the same time, the global pandemic has shown the value to our society of a promotional system developed over many decades, especially in times of crisis. In addition to fighting the consequences of the coronavirus pandemic, KfW has not let up in its commitment to sustainable development, digitalisation and innovation.
KfW coronavirus aid
In collaboration with policymakers and the German banking industry, KfW launched its coronavirus aid programmes in March 2020. From the start of the programme until the end of 2021, KfW provided assistance to around 140,000 businesses to mitigate the impact of the pandemic from programme launch until the end of 2021. Nearly all of these were small and medium-sized enterprises. During this period, KfW committed around EUR 57 billion to businesses, non-profit organisations and students.
KfW continued to support the Federal Ministry for Economic Cooperation and Development (BMZ) in mitigating the consequences of the pandemic for developing countries and emerging economies. By the end of the year 2021, around EUR 2.7 billion had been mobilised through KfW for the implementation of the Emergency COVID-19 Support Programme.
Future Fund
A functioning start-up culture is particularly important for economic recovery. With the structuring and implementation of the 10-billion-euro Future Fund (Zukunftsfonds) by KfW Capital, the Federal Government has presented a mandate from which KfW expects decisive impetus for the development of innovative and pioneering solutions in the coming years, not least in the strategic fields of digitalisation and sustainability.
WIN Initiative
The WIN initiative (Growth and Innovation Capital for Germany) aims to improve the tax, legal and financial framework conditions in Germany for young innovative companies. The participants in the initiative have pledged to work together with politicians to structurally strengthen the start-up landscape in Germany and Europe through ten measures. At the same time, the participating companies will invest around 12 billion euros in young innovative companies by 2030. The interplay of measures and investments is intended to establish sustainable market-based structures for growth and innovation capital investments and at the same time expand Germany's competitiveness.
Digitalisation
As a promotional bank, KfW is not only driving the digital transformation in the economy and society, but in parallel also the digital transformation of KfW, for example in application and work processes or the connection to portals and platforms. More than 80,000 people interested in setting up a business have registered on the start-up platform Gründerplattform, which was launched together with the Federal Ministry of Economics Affairs and Climate Action and receive digital support from more than 600 partners in implementing their business idea.
The Smart Cities programme for sustainable digitalisation in municipalities was also launched with great success.
KfW is breaking new ground in digital education funding with its flagship project TUMO Berlin. In the German capital, KfW has opened a digital learning centre for young people modelled on the highly successful TUMO project in Armenia. Further TUMO centres will soon be opened in Mannheim, Essen, Frankfurt and other German cities with the support of KfW.
Energy security
In 2022, Germany ended its heavy energy dependence on Russia within just a few months and placed its energy supply on a broader basis. KfW supported energy security projects on behalf of the federal government in order to feed the liquefied natural gas LNG into the German gas grid and natural gas storage facilities as quickly as possible.
In Brunsbüttel, KfW participated in the construction of an LNG terminal that will first process liquefied gas and later green hydrogen for the German energy supply.
In addition to feeding LNG into the gas grid, the storage of gas was of particular importance for German energy security. KfW had provided credit lines worth billions for the extensive purchase of storage gas to protect Germany from the feared energy shortage.
NordLink
Opened in May 2021, NordLink is one of the most important projects in the European energy sector. The undersea cable between Norway and Schleswig-Holstein is an important contribution to the German energy transition, as it can transmit electricity generated from hydropower and wind power in both directions. .
Right next to the German NordLink converter in Wilster, SuedLink, which will transmit wind power from the north to Bavaria and Baden-Württemberg via an underground cable, will also be launched in 2028.
Hydrogen core network
The development of a hydrogen infrastructure is essential for the decarbonization of the energy supply and important branches of industry. KfW is therefore participating as a financier in the development of a hydrogen core network.
The first step is to convert existing gas pipelines and build new hydrogen-capable pipelines. The goal: the hydrogen core network will reach a total length of 9,040 kilometers by 2032. This will connect potential hydrogen locations and link important industrial centers. It is also an integral part of the European hydrogen network.
Chronicle
2020
- Since the beginning of the global pandemic, KfW has disbursed around EUR 57 billion in Germany and EUR 2.7 billion abroad for special coronavirus measures implemented at short notice to cushion the economic consequences. (as of 12/2021)
2021
- The Federal Government is providing an additional EUR 10 billion for an investment fund for future technologies (Future Fund/Zukunftsfonds) via KfW/KfW Capital. Start-ups in the growth phase with high capital requirements will benefit from this in particular.
- With the German-Norwegian electricity cable NordLink, KfW has co-financed one of the lighthouse projects of the European energy transition.
2022
- On behalf of the German government, KfW is involved in the construction of an LNG terminal in Brunsbüttel and is providing credit lines worth billions of euros for the extensive purchase of gas for the huge German storage facilities.
2023
- The launch of the growth fund, an important component of the future fund managed by KfW Capital, represents a milestone in the further development of the ecosystem for financing the growth of young technology companies in Germany, as it is one of the largest venture capital funds of funds ever launched in Europe; it is mainly funded by private capital.
- KfW is continuing to drive forward the modernisation and digitalisation of its promotional business: With the opening of the digital customer portal Meine.KfW ("My KfW"), customers in individual promotional programs were able to prepare their loan applications digitally themselves or apply for a grant. This has created a key prerequisite for efficiently implementing grant programs with high volumes in particular in the future.
2024
- The WIN initiative coordinated by KfW improves the tax, legal and financial framework conditions for young innovative companies in Germany. By 2030, the participating companies want to invest around EUR 12 billion in young innovative companies in order to expand Germany's innovation and competitiveness.
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