Nature-based climate action:

KfW and the German Federal Ministry for the Environment, Nature Conservation, Nuclear Safety and Consumer Protection (BMUV) support municipalities with new grant programme

• “Nature-based Solutions for Climate and Biodiversity in Municipalities” helps to make cities more liveable and preserve biodiversity
• Numerous projects, from supporting urban forests to restoring small local water bodies, are eligible for funding
• Assistance is available for up to 90% of costs

Starting in February, KfW and the German Federal Ministry for the Environment, Nature Conservation, Nuclear Safety and Consumer Protection will start providing further support for towns and municipalities in the financing of measures for nature-based climate action. Municipalities will receive grants of up to 90 percent of the financing costs. The promotion will be used to plant trees, create and upgrade small, near-natural parks in residential neighbourhoods (known as PikoParks), convert nature experience areas and urban forests to near-natural green space management and restore small bodies of water in urban areas. The objective of the promotional offer is to contribute to climate action through measures that promote biodiversity and ultimately make our cities and communities more sustainable and more liveable. The grants are made available under the “Action Plan on Nature-based Solutions for Climate and Biodiversity” (ANK).

Katharina Herrmann, Member of KfW’s Executive Board:

“People are feeling the effects of climate change wherever they live, whether they are residents of large cities or small rural communities. With our new promotional grants, we are helping municipalities to make nature their ally and to take swift, effective measures that also benefit citizens.”

Steffi Lemke, Federal Minister for the Environment:

“We support municipalities in climate action by preserving nature and biodiversity. There is a high demand for greenery that provides a cooling effect, especially in populated areas. Trees and natural green spaces such as parks offer effective climate protection; they are cool on hot days and are also attractive as a habitat for animals and plants.”

Protecting the climate and preserving biodiversity are key tasks to protect the basis of life. Healthy ecosystems are a prerequisite for climate action and climate change adjustment. Green spaces, trees and parks designed with nature in mind are able to absorb and store rain water and provide valuable cooling through evaporation and shade, especially in summer. Healthy ecosystems store carbon and provide habitats for numerous animal and plant species. Targeted investments in the conservation of habitat diversity and biodiversity will thus also make an important contribution to nature-based climate action in urban areas.

Applications for this “Nature-based Solutions for Climate and Biodiversity in Municipalities” promotional programme can be submitted to KfW from 1 February 2024. Commitments can be made as soon as the 2024 Federal Budget has come into force and KfW has been authorised by the Federal Government.

Information on the new KfW programme can be found at: www.kfw.de/444.

Further information:

Information about the Action Plan on Nature-based Solutions for Climate and Biodiversity can be found here.

The Competence Centre for Nature-Based Climate Action (the central point of contact for the topic of nature-based climate action at German federal level) provides further information on advice and promotion and can be found at: https://www.kompetenzzentrum-nk.de/.