Domestic promotion in 2023

We promote Germany

We support future-oriented investments in Germany on behalf of the Federal Government. In particular, we promote start-ups and SMEs in order to further strengthen the German economy. We also finance projects in the areas of structural change, the environment, and social and digital infrastructure - projects that advance people and society.

Promotional business volume in 2023: EUR 77.1 billion

Domestic promotion continued to amount to a very high level in 2023 with a promotional business volume of EUR 77.1 billion. However, this normalised the volume compared to the exceptional year 2022, in which commitments had reached a value of EUR 136.1 billion, in particular due to special financing to secure the energy supply. In addition to the significantly reduced special financing, the decline was mainly also due to lower commitments by the Federal Government to promote energy-efficient buildings. This effect resulted from the shift from broad-based promotion to focused promotion with more demanding promotional conditions.

The promotional business volume across all customer groups amounted to EUR 25.1 billion in the priority area of climate change and the environment. Particularly noteworthy here is the Federal Funding for Efficient Buildings with commitments amounting to EUR 16.1 billion. In the past financial year, there was a shift from broad-based promotion to focused promotion with more demanding promotional conditions. Compared to the previous year, this led to a reduction in the commitment volume.
In the solar power programme for electric cars, the Private Clients segment promoted the expansion of solar power for electric charging stations with a total of EUR 291 million. In addition to previous grants, for example for the purchase of a wallbox, this was another important step in achieving the target of 15 million electric cars by 2030.
The KfW Home Ownership Programme promotes the construction and acquisition of owner-occupied homes and flats in Germany with up to EUR 100,000 per project. In June 2023, the Residential property for families programme was launched to support, in particular, families with children and low- or middle-incomes in building or acquiring new owner-occupied and climate-friendly residential property. Over EUR 305 million in commitments were made last year.
Support for German companies affected by the Ukraine war continued in 2023, with only moderate demand for the UBR special programme with a total volume of EUR 91.3 million.
Using special financing, KfW helped to overcome the consequences of the Ukraine war and the associated gas supply crisis. KfW implemented the gas price brake in accordance with the German Federal Government’s Natural Gas Heat Price Brake Act (EWPBG) and paid a total of EUR 13.7 billion to gas and heat suppliers in 2023. These payments were used to compensate for the customer instalment payments capped by the Federal Government due to the gas price brake.
Special financing to secure the energy supply also included extensions of previous allocation transactions to energy companies. These amounted to EUR 11.5 billion, with partial waivers in the meantime.
Promotion through global loans to promotional institutions of the federal states (“Landesförderinstitute, LFI´s) was also of considerable importance in 2023. The volume of business of this strategically important cooperation exceeded the previous year’s value in 2023. With programme-based global loans, it was possible to implement EUR 4.9 billion, enabling KfW and state promoters to bundle their funding potential effectively. Commitments in the general refinancing significantly exceeded expectations with a volume of just under EUR 3.7 billion.
Within the global loans for leasing investments, KfW achieved a promotional business volume of an impressive EUR 600 million and has also been offering the sustainable ERP Global loan Leasing since 2023 to strengthen the promotion of sustainable leasing assets.

	2023 in EUR million	2022 in EUR million	2021 EUR million
Corporate investment	12,984	66,204	12,596
Start-ups	7,661	1,178	6,317
Innovation	4,312	4,539	2,191
Energy efficiency and renewable energy	23,223	46,159	48,109
Environment & Sustainability	1,908	1,034	533
Education	1,850	1,874	2,043
Residential & Housing	4,625	4,079	6,058
Public infrastructure	20,535	11,001	5,101
Total	77,098	136,068	82,947

Detailed information on commitments by priority area for each federal state and further details can be found in the current promotional report (available in German only).

	2023 in EUR million	2022 in EUR million	2021 in EUR million
Baden-Wuerttemberg	8,973	12,912	13,716
Bavaria	9,727	12,640	14,254
Berlin	2,680	17,739	3,888
Brandenburg	2,064	8,823	2,141
Bremen	540	624	884
Hamburg	2,460	2,184	2,142
Hesse	4,241	5,753	5,757
Mecklenburg-Western Pomerania	1,978	1,367	1,240
Lower Saxony	5,845	8,535	8,056
North Rhine-Westphalia	22,372	47,681	13,468
Rhineland-Palatinate	3,007	3,418	3,531
Saarland	588	689	818
Saxony	1,777	2,809	2,463
Saxony-Anhalt	1,596	1,846	1,584
Schleswig-Holstein	2,559	3,488	3,379
Thuringia	1,199	1,480	1,515
Total	77,098	136,068	82,947

Detailed information on commitments by priority area for each federal state and further details can be found in the current promotional report (available in German only).

Our promotional offering for private individuals, SMEs und public institutions

A positive impetus

We promote departments that aim to sustainably improve living conditions. In doing so, we support private individuals, companies and municipalities who are pioneers in their projects. In this way, we can provide impetus – for example when it comes to securing energy independence, energy-efficient refurbishment or the mobility transition.

Illustration of the expansion of energy independence in Germany — Expanding independence

In the Renewable Energy – Standard programme, EUR 5.4 billion was committed for the construction of 1,703 photovoltaic and 252 wind power plants. The Climate Action Campaign also promotes companies’ climate-friendly activities and thus makes an important contribution to accelerating the energy transition.

Illustration about the transport transition with sustainable means of transport — Achieving the mobility transition

Pedestrian and cycling traffic, public transport, the municipal fleet or optimised rail transport: the mobility transition takes place in many settings. KfW committed EUR 510 million to future-oriented transport projects and sustainable mobility for municipalities and companies.

Illustration shows eight charging points for electric cars with cars parked at them — Accelerating climate-friendly mobility

The mobility transition is an essential component for achieving climate targets. In addition to the switch to e-mobility, we promote forward-looking mobility projects with the aim of further reducing emissions. EUR 291 million was provided to subsidise the expansion of solar power for electric cars.

Illustration shows a craftsman with a heat pump and new material for a house renovation — Promoting energy efficient buildings

At EUR 15.8 billion last year, the Federal Funding for Efficient Buildings and the Climate-friendly construction programme accounted for a large part of the promotion with regard to climate change and sustainability. Owners of existing properties receive support in reducing greenhouse gas emissions through energy-efficient refurbishment and increasingly relying on renewable energy sources for heat supply.

Illustration of the KfW refurbishment calculator — Pointing out funding opportunities

In order to achieve the climate targets, the KfW renovation calculator was developed for financing advice in customer discussions as well as for property owners who are willing to renovate. It provides an initial energy balance with savings potential and ideas for renovation measures.

Innovation and digitalisation

We support ideas, projects and services that drive innovation in Germany. In addition to expanding the digital infrastructure, we provide targeted support for companies during their digital transformation process. We finance start-ups and innovative young companies by providing private capital.

Illustration shows two people reading information about a start-up platform on a screen and tablet — Supporting start-ups

Since its launch in 2018, the start-up platform, on which all the content and processes necessary for launching a business can be organised, has had around 11.5 million visitors and around 460 thousand registrations. A total of 75,000 founders were supported through the launch of their businesses, creating around 180,000 jobs. Since 2023, there has been an app in addition to the start-up platform that provides multilingual support for simple entrepreneurship “in 10 steps”.

Illustration of fibre optic expansion in Germany — Expanding networks

Private and public investments are necessary for digital transformation. KfW promotes both fields of action. With over EUR 500 million in loans to municipalities and municipal and private companies, KfW financed the expansion of fibre optics in Germany, thereby creating important prerequisites for digitalisation.

Illustration shows industry — Shaping growth

The ERP Digitalisation and Innovation Loan makes a significant contribution to the digital transformation and innovation capacity of SMEs. EUR 1.5 billion was committed in 2023 to strengthen the progress of German companies and drive growth.

Illustration shows map of Germany and industrial locations — Enabling innovation

Demand for the ERP Promotional Loan for SMEs (small and medium-sized enterprises) is showing a significant increase at EUR 6.6 billion. The KfW Promotional Loan for SMEs and other programmes promote business start-ups and investments. These strengthen the position of SMEs and the economic position of Germany.

Illustration shows a laptop and a magnifying glass — Mobilising capital

With the Venture Tech Growth Financing (VTGF), KfW and the Federal Government have not only sustainably supported rapidly growing technology-oriented start-ups with EUR 59 million, but also mobilised private capital in the amount of EUR 112 million for the financing ecosystem for high-growth technology companies. More than 1,800 future-oriented jobs have thus been secured or created.

Illustration shows three men standing on a bridge — Utilising cooperation

The RegioInnoGrowth initiative was launched in 2023 in cooperation with the state promotional institutions. The KfW Future Fund and the ERP Special Fund will make a total of EUR 450 million available by mid-2026, which will be used for regionally tailored financing solutions for start-ups and small medium-sized enterprises with innovative business models. Corresponding promotional offers were soon launched in four federal states.

Focusing on customer orientation

The customer is at the heart of numerous measures that were implemented in 2023. Customer communication in the form of live chats has been expanded and new chatbots have been developed. The new features serve to improve accessibility and appeal to a younger target group.

Illustration of two people at a desktop on the kfw.de website — Always up-to-date

More than 8.8 million users visited the domestic promotional business pages at kfw.de, which represents 94% of all visits. On average, each visitor accessed the website twice. It not only serves to provide information about KfW promotional offers, but is also increasingly used for the submission and administration of applications.

Illustration of a roboter — Improving accessibility

The kfw.de website has been expanded to include three additional chatbots. Questions about the Home Ownership Programme, the promotion of cooperative housing and solar power for electric cars are now also answered in chat form and around the clock. Personal advice on the student loan is also new in the chat. As soon as the chatbot can no longer provide a suitable answer, a consultant takes over.

Legal notice:
The information contained in this online Annual Report 2023 is based on KfW’s Financial Report 2023, which you can download here. Should this online Annual Report 2023, despite the great care taken in preparation of its content, contain any contradictions or errors compared to the Financial Report, the KfW Financial Report 2023 takes priority.

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Domestic promotion in 2023

We promote Germany