German bank plans for 100 billion Euros of green investment

KfW, Germany's national infrastructure bank, has confirmed it will invest significantly in renewable energy and energy efficiency projects. It plans to provide €100 billion of finance to the country's green economy over the next five years.

As part of the bank's half yearly update KfW revealed 41% of its promotional business volume went to support projects involved in environmental protection and climate change, totalling €12.1 billion of loans.

Dr Ulrich Schröder, chief executive of KfW Bankengruppe, said the increase in green investment was the first step in a five-year plan that will see the government-backed bank play a key role in Germany's high-profile plans to move away from nuclear power while significantly reducing greenhouse gas emissions.

He also revealed that in supporting projects that are involved in the 'Energy Turnaround Action Plan' the bank had slashed interest rates on loans to a historic low of 1%.

Specifically, the bank said that during the first six months of the year investment in environment and climate protection projects more than doubled year-on-year to €95 million, while funding for renewable energy programmes rose from €4.1 billion during the first half of 2011 to €4.9 billion this year.

However, it also confirmed the bank's offshore wind energy programme had not yet provided any funding commitments due to continuing delays over grid connections.

The update came in the same week as KfW revealed it is providing €50 million to a new research project from engine technology Tognum AG designed to produce more fuel-efficient diesel engines for ships, locomotives and land vehicles.

 

 

 

Image 01 - Renewable energy in Germany. Jürgen from Sandesneben, Germany