Energy Efficiency in Germany Continues to Rise

Germany’s state run development bank, KfW, has released figures for 2016 showing that funds for the promotion of energy efficiency increased strongly during the previous 12 months with emphasis on domestic efficiency projects.

The environment and energy sector achieved particularly positive growth in 2016 with a funding of €10.7 billion (up from €9.3 billion in 2015), largely due to the energy efficiency programme, which was restructured and significantly improved in 2015.

Since May 2016, the promotion of systems aimed at avoiding or using exhaust heat has tapped into additional potential for reducing energy consumption. At €4.7 billion, the high volume achieved in the previous year by KfW’s renewable energies programme (€4.5 billion) was exceeding again in 2016. Overall, the KfW reported funding volume of €81 billion for 2016, up €1.7 billion on 2015. Expenditure for the promotion of domestic business projects, a key spur for the continued steady growth of the German economy was €55.1 billion, while 44 per cent of all commitments were to environmental and climate change projects.

Growth was very strong in the housing sector, in particular. Commitments reached €20.8 billion, up from €16.5 billion in 2015, with more than €11 billion disbursed in the energy-efficient construction programme alone.

“This is a welcome insight into the way a crucial area of the energy transition project is working,” said Rob Compton, Manager of Energy Efficiency and Smart Cities at Germany Trade & Invest

“Energy efficiency is a core element of the Energiewende. Much of the media focus to date has been on Germany’s remarkable expansion of renewable electricity, but these new figures show that the state is serious about delivering incentives to meet its ambitious energy efficiency targets as well.”

“By supporting and incentivizing growth in the energy efficiency sector in both buildings and industry, Germany has created a thriving business ecosystem and a world-leading market. In Germany, energy efficiency is not merely an environmental business consideration; it creates a clear competitive advantage that can be reflected on all three bottom lines.”

Photo credit: Material used in the preparation of this article has been drawn from Germany Trade and Invest (GTAI).

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