Sector Guidelines – New Commitments in Line with the 1.5-Degree Target

KfW is committed to the goal of limiting global warming to 1.5 degrees, which the international community set for itself in 2015 in the Paris Agreement. For this reason, KfW Group has established binding, sector-specific minimum requirements for new commitments in the greenhouse gas-intensive sectors of oil and natural gas, power generation, iron and steel production, shipping, aviation, automotive industry, and buildings. These minimum requirements are derived scientifically from the International Energy Agency’s recognized climate scenarios, which specify the technology mix needed to reduce global emissions in each sector in line with the 1.5-degree target. Based on these sectoral decarbonization pathways and corresponding technology mixes, sector guidelines—including technology lists and volume limits—were defined. The Fraunhofer Institute for Systems and Innovation Research supported KfW in developing the sector guidelines and continues to assist with interpretation issues and updates.

Further information on the methodology of the “Paris-compatible sector guidelines” can be found here.

Below you will find the current version of the sector guidelines as well as the previous version. For new commitments in the domestic promotional business, new versions of the sector guidelines will take effect after a transition period, with the effective date specified separately (see below).