Action by KfW Entwicklungsbank
Third Largest Financier of Renewable Energies
The promotion of environmentally friendly and sustainable energy supplies in developing countries is particularly important for KfW. Over the last five years, commitments by KfW in this area amounted to 3.8 billion euros. In 2010 alone more than one third of all Financial Cooperation (FC) commitments went towards renewable energies and energy efficiency.
Financial Cooperation Commitments in the Energy Sector
Energy projects receiving funding from KfW cover the entire range of power generation, transmission and distribution and, to a lesser extent, domestic energy supply. Support for adequate framework conditions can also be a component of an FC project. The lion’s share of commitments between 2006 and 2010, roughly 54 per cent, were made for power generation (grid-based and non-grid-based). Renewable energies continue to gain in importance. In 2010, 1.3 billion euros (75 per cent of total commitments in the energy sector) were allocated for renewable energies. According to the Global Status Report by REN 21, this made KfW Entwicklungsbank one of the three largest financiers of renewable energy sources in developing countries.
Financial Cooperation Commitments by Promotional Area
KfW’s commitments for energy projects in 2010 are making a direct contribution to climate protection by saving at least 7.6 million tonnes of carbon dioxide (CO2) annually. This is equivalent to the annual emission of CO2 by a city like Frankfurt (in 2008, without transport sector). A total of 21 million people in developing countries are benefiting from improved energy supply through FC commitments for 2010.
Further Information
Ren21 Global Status Report on Renewable Energy
Last updated: July 2011
