Financing sustainable energy - Ministerial Conference

In brief
KfW Entwicklungsbank is one of the leading financiers.
KfW Entwicklungsbank and the IBRD are the two leading donor agencies for renewable energies in
developing countries. This has been published by the global policy network REN21 (Renewable
Energy Policy Network for the 21st Century) in the new Global Status Report 2006.
Under German Financial Cooperation KfW Entwicklungsbank committed EUR 331 million as well
as an additional EUR 170 million under the Special Facility for Renewable Energies and Energy
Efficiency for projects in this area in 2005.
The World Bank (IBRD) committed development loans in a total of EUR 475 million for projects in
this sector.
KfW Special Facility for Renewable Energies and Energy Efficiency
KfW's Special Facility is used to finance investment in renewable energies and energy efficiency.
Acting on behalf of the German Federal Ministry for Economic Cooperation and Development
(BMZ), KfW Entwicklungsbank is providing EUR 500 million in additional funds for renewable
energies and energy efficiency in developing countries, thus assuming a pioneering role in the
energy turnaround.
Owing to the great demand from the partner countries, two years after the launch of the Special
Facility the BMZ has already committed EUR 300 million instead of the planned EUR 200 million.
Nine projects are being financed in Marocco, Azerbaijan, India, Brazil, Chile, the Andes, Ukraine
and Montenegro.
Numerous proposals have also been received from partner countries for 2007 and 2008. KfW
Entwicklungsbank is currently reviewing these proposals to determine which are eligible for
promotion under the Special Facility.
Carbon Fund is successful
The Carbon Fund of KfW Bankengruppe, which handles the trading in emission certificates in
accordance with the rules of the Kyoto Protocol, has met with a positive response. 26 companies
and institutions from Germany and abroad participated in the first tranche with a total amount of
almost EUR 84 million. Thus, the planned volume was exceeded by 70%. At the end of October
purchase agreements or letters of intent had already been concluded to acquire certificates
covering 50% of the Fund volume. The Carbon Fund purchases the certificates in developing and
transforming countries, where environmentally friendly technology reduces the emission of
greenhouse gases The Fund acquires the certificates on a trust basis and channels them to
German and European companies, thus enabling them to meet their climate protection obligations.
The Fund makes KfW Bankengruppe one of the pioneers paving the way for commercial carbon
credits trading.
Source: Roland Bunzenthal from FC Paper February 2007
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