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°C. In 2022, KfW adapted these sector guidelines to the 1.5°C climate target. For this purpose, KfW is guided by the ambitious 1.5°C-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