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Green Bonds - Made by KfW

Funds in the amount of the net proceeds of KfW Green Bond are used to finance projects for the generation of power from wind, water, photovoltaics as well as biomass and, since 2019, energy efficiency measures. These projects are financed under KfW's programmes “Renewable Energies” and “Energy-efficient Construction”.

Use of proceeds

Proceeds are used for two of KfW’s loan programmes:

Renewable Energies Programme

KfW is amongst the world's largest financiers of renewable energy. With the KfW Renewable Energies Programme projects in the areas of in particular wind and photovoltaics, but also biomass and hydropower are financed.

This loan programme and any investment in KfW Green Bonds translate into the generation of measurable, certified GHG emission savings. In addition, energy imports to Germany are avoided and costs for fossil fuels are lowered. The projects also help create and secure jobs.

Energy-efficient Construction

This KfW loan programme supports the energy-efficiency in new residential buildings in Germany with the overall aim of climate change mitigation. Measures that can be promoted are, among others, high standard insulation, ventilations systems with heat recovery and photovoltaic systems.

This loan programme and any investment in KfW Green Bonds translate into the generation of measurable, certified GHG emission savings.

Process for Project Evaluation and Selection

The common objective of all projects linked to KfW Green Bonds is climate change mitigation.

In the category “Renewable Energy” the following measures are financed.

The construction, expansion and acquisition of equipment and grids that meet the requirements of the act on the reform of the law promoting renewable energies in power generation (EEG) from 21 July 2014 (BGBI. I page1066). For example:

  • Photovoltaic equipment as well as joint projects that combine the generation of electricity with energy storage and/or load management,
  • On-shore wind power plants and repowering measures,
  • Hydro-electric power stations,
  • Equipment for the generation and use of biogas.

Equipment for the use of fossil fuels or nuclear power is not financed. Financing outside of the EU or OECD countries in each case is subject to a review in accordance with Sustainability guidelines of KfW Group.

The following measures are financed in the category “Energy Efficiency” (since 2019):

  • Construction of new energy-efficient buildings, including passive houses, which use 25% or less primary energy compared to the requirements of the current Germany energy saving ordinance for new buildings (EnEV 2016).

Management of proceeds

KfW is supporting the energy turnaround in Germany over the next few years with more than EUR 100 billion, making a crucial contribution to restructuring our energy supply as well as energy efficiency in housing.

Our prime objective is to finance measures in the area of climate change mitigation. The focus is to support renewable energies, improve energy efficiency, secure biodiversity and reduce environmental pollution. It is KfW’s ambition to boost responsible investments and to promote environmental investments via capital markets, as well as to support the transition to a low carbon economy. KfW believes that Green Bonds are an appropriate instrument to do so and that issuing “Green Bonds – Made by KfW” enhances KfW’s sustainability profile amongst stakeholders. An amount equal to the net proceeds is tracked and disbursed in favor of the eligible projects.


Following the issuance, the use of proceeds from KfW Green Bonds will be regularly monitored and reported annually until final allocation. Additionally, a final impact report will be published once the impact of the renewable energies programme and the impact of the energy efficiency programme have been evaluated by a mandated institution for the respective year.

External Review

Independent expert opinions on KfW Green Bonds are essential for us. Thus, KfW Green Bonds are certified by a qualified, non-profit research centre (CICERO) - Second Opinion by CICERO. In addition, the positive environmental impact of KfW's Renewable Energies Programme is evaluated by non-profit Center for Solar Energy and Hydrogen Research, Baden-Württemberg, Germany (ZSW). The impact evaluation for KfW’s loan programme “Energy-efficient Construction” has been done by the research institution IWU (Institute for Housing and Environment / Germany) until 2017.

Second Opinion by CICERO Framework v2019  (PDF, 431 KB, non-accessible)
Second Opinion by CICERO Framework v2014
Evaluation by ZSW - Full document (German only)
ZSW Evaluation (English Summary)


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