Six sector guidelines for greenhouse gas-intensive sectors geared towards the 1.5 degree Celsius climate target

• Goal: Paris-compatible management of new commitments in greenhouse gas-intensive sectors of the economy
• Effective contribution to the transformation towards greenhouse gas neutrality

KfW has concluded the revision of six sector guidelines for Paris-compatible management of its new commitments in greenhouse gas-intensive sectors. With their implementation and publication, they are now effective for new financings (new commitments) of KfW Group.

The sector guidelines are group-wide, binding minimum requirements for new commitments in line with the Paris Climate Agreement, in six selected sectors: automotive, iron and steel production, buildings, aviation, power generation and shipping. These are greenhouse gas-intensive sectors of the economy which also account for a significant share of KfW’s total commitments. The sector guidelines define specific requirements for the climate compatibility of investments in these sectors. By focusing on greenhouse gas-intensive sectors, the global transformation process towards greenhouse gas neutrality is supported specifically.

KfW’s Paris-compatible sector guidelines were initially drawn up in 2021 on the basis of the internationally acknowledged “Sustainable Development Scenario” of the International Energy Agency (IEA), which corresponds to a limitation of the temperature increase to 1.65 degree. In 2022, KfW adapted these sector guidelines to the 1.5 degree climate target. For this purpose, KfW is guided by the ambitious 1.5 degree-compatible “Net Zero by 2050” scenario of the International Energy Agency, and in the shipping sector by the Poseidon Principles.

Note: The updated version of KfW’s sector guidelines and further information on KfW Group’s sustainable finance concept can be found here:

Sustainable Finance | KfW