SDG 7 – Affordable and clean energy
Responding to rising demand sustainably
Electricity from a socket – this is still far from the norm in numerous countries. Modern energy is a key factor in successful economies and necessary for the fight against poverty. Global demand for energy is rising and according to the forecasts of the International Energy Agency (IEA), it will increase by around 40% by 2040. Developing countries and emerging economies account for the majority of this growth. For people's quality of life, access to modern forms of energy is an essential step. And only with a reliable energy supply can small and large businesses produce competitively. This is a crucial prerequisite for investment, jobs and income.
In view of climate change, it is clear that the current and increasing future energy demand cannot be met with fossil resources. KfW supports its partner countries in developing and converting energy systems sustainably.
The aim of UN Development Goal 7 is to “ensure access to affordable, reliable, sustainable and modern energy for all” by 2030. KfW Development Bank is working to achieve this goal with its projects, which also contribute to increasing the share of renewables in the energy mix worldwide and boosting energy efficiency.
In addition to the expansion of renewable energy capacities, their successful integration into local electricity markets is crucial for the success of a global energy transition. This requires huge investments in modern energy systems, especially in grid expansion, cross-border electricity trading, storage technologies and the digitalisation of consumption and grid management. KfW also advises its partner countries on how to adapt their regulatory framework to integrate the new technologies into the energy industry.
In 2020, KfW helped more than two million people gain access to modern energy for the first time or significantly improved their access. With KfW’s support, more than 1,100 MW of electricity from renewable energy sources was additionally installed in 2020. The promotion of energy efficiency has saved just under 900,000 MWh of energy. Overall, KfW’s projects contributed to the production of 2.4 TWh of energy in 2020.
Around EUR 1.2 billion of KfW Development Bank's commitments in 2020 were for SDG 7. Including the other business areas, which also promote climate-friendly energy generation in Germany and Europe, KfW Group is one of the largest financiers of renewable energy in the world.