Energy efficiency in companies – promotion by KfW boosts potential

• KfW's Energy Efficiency Programme an important element of energy efficiency policy in Germany
• Annual energy consumption reduced by 900 gigawatt hours and energy costs of promoted companies by EUR 150 million per year
• Annual greenhouse gas emissions reduced by 545 thousand tonnes
• Promoted investment safeguarding roughly 51,000 jobs for a year, particularly among SMEs

Boosting energy efficiency is becoming an increasingly important factor for implementing the energy turnaround. The first ever evaluation of KfW's Energy Efficiency Programme for industrial companies by Prognos AG has confirmed the programme's contribution to achieving Germany's national targets for reducing energy consumption, as well as its positive impact on the economy as a whole. Energy consumption is down, energy costs are falling, emissions of greenhouse gases are in decline and jobs have been safeguarded. The study, which was commissioned by the KfW Group, looked at the impact of KfW's Energy Efficiency Programme for the year 2012.

"Companies that reduce their energy requirements protect themselves against rising energy prices. In the manufacturing industry in particular, even a relatively small, single-digit percentage increase in energy costs can have a negative impact on the profitability of SMEs. That is why KfW's Energy Efficiency Programme aims to help companies plan their investment in a way that saves energy. It's a question of smart economic policy," said Dr Jörg Zeuner, Chief Economist at the KfW Group.

In 2012, KfW supported a total of 2,117 energy efficiency projects in the industrial sector, allowing final energy consumption to be reduced by almost 900 gigawatt hours per year. Annual greenhouse gas emissions have also been reduced by the equivalent of 545,000 tonnes of CO2. The companies benefit from a reduction in their annual energy costs in the region of EUR 150 million.

KfW's Energy Efficiency Programme has also proved positive for employment in Germany. The investment financed in 2012 safeguarded or created around 51,000 jobs for a period of one year, with roughly two thirds of them being in small and medium-sized enterprises.

All investment projects aimed at saving energy qualify for support provided they meet certain minimum requirements in terms of energy efficiency. These can include measures relating to commercial properties (both new construction and refurbishment), machinery or an efficient energy supply, for example.

You can find Prognos AG's full evaluation study at www.kfw.de/research.