KfW launches new, improved corporate energy efficiency products

• Offer expanded and improved for all types of companies as of 1 July
• Interest rates starting at 1%
• Investing in energy efficiency – a matter of competitiveness and climate protection

From today,1 July 2015, KfW offers expanded and improved promotional products for companies of all sizes that wish to invest in energy efficiency. Specifically, changes are being made to the financing of investment in energy-efficient production facilities and processes by means of loans with particularly favourable interest rates as part of the “KfW Energy Efficiency Programme – Production Facilities/Processes”. At the launch of the programme, interest rates start from 1% (price category A), according to the principle: The greater the increases in efficiency, the more favourable lending conditions will be.

Companies can also now choose to finance the energy-efficient upgrading or new construction of commercial, non-residential buildings using funding from the CO2 building rehabilitation programme as part of the “KfW Energy Efficiency Programme – Energy-Efficient Construction and Refurbishment”. With this programme, KfW is implementing key measures in connection with the National Energy Efficiency Action Plan (NAPE) of the German Federal Ministry for Economic Affairs and Energy (BMWi). Interest rates have been set at 1% (price category A) for all terms, and companies also receive repayment subsidies of up to 17.5% if they upgrade their building to the standard of a KfW Efficiency House or carry out certain rehabilitation measures on the building shell or systems. KfW and BMWi are also offering major incentives to invest in the construction of new buildings with low energy requirements. At the same time, KfW is opening up its range of promotional products to companies of all sizes. “Experience has shown that all companies, from the small to the very large, can achieve substantial savings by investing in energy efficiency. Extending this range of products to cater to customers beyond the SME sector therefore makes perfect sense,” says Dr Ingrid Hengster, Member of the Executive Board of KfW.

A study conducted by KfW Research indicated that rapidly increasing energy prices have a disproportionately negative impact on companies with a high proportion of energy costs. This is especially true for companies in the manufacturing industry.

That is why Sigmar Gabriel, the German Federal Minister for Economic Affairs and Energy, stressed that, “Investment by companies in the energy efficiency of buildings is key to becoming more competitive. This is a way in which business owners can make a valuable contribution to climate protection. Efficiency measures also increase the value of property and benefit a company's image.”

Note:

You can find out more about the programmes on the following pages: www.kfw.de/276 (Energy Efficiency Programme – Energy Efficient Construction and Refurbishment, in German only) and www.kfw.de/292 (Energy Efficiency Programme – Production Facilities, in German only). You can also find out more about the subject of energy efficiency in companies at: www.kfw.de/Energieeffizienz_in_Unternehmen (in German only).

The study, “Will higher energy costs erode the profits of SMEs?” is available for download (in German language) at: www.kfw.de/PDF/Download-Center/Konzernthemen/Research/PDF-Dokumente-Fokus-Volkswirtschaft/Fokus-Nr.-69-August-2014.pdf.