revolving eu structural fund means to promote energy efficiency in housing - the estonian example
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Revolving EU structural fund means to promote energy efficiency in housing - the Estonian example. Workshop on energetic building rehabilitation in Jelgava , 03.11.2009. KfW Bankengruppe in brief. Promotional bank of the Federal Republic of Germany Founded in 1948 - PowerPoint PPT PresentationTRANSCRIPT
Revolving EU structural fund means to promote energy efficiency in housing - the Estonian example
Workshop on energetic building rehabilitation in Jelgava, 03.11.2009
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KfW Bankengruppe in brief
● Promotional bank of the Federal Republic of Germany
● Founded in 1948
● Shareholders: Federal Republic of Germany (80%), German federal states (20%)
● Headquarters: Frankfurt am Main; branch offices: Berlin and Bonn
● Representative offices: around 50 offices and representations worldwide
● Balance-sheet total at the end of 2008: EUR 395 billion
● Financing volume 2008: EUR 70,6 billion
● 4.228 employees in 2008
● Rating: AAA/Aaa/AAA
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KfW Bankengruppe Environmental and climate protection
Environmental and climate protection is a major promotionalpriority!● Total commitments in this
sector in 2008: EUR 19.5 bn
Förderbank and Mittelstandsbank EUR 14.5 bn KfW Entwicklungsbank EUR 1.7 bn KfW IPEX-Bank EUR 2.6 bn DEG EUR 0.7 bn
● Commitments in 2008 for:
renewables EUR 5.3 bn energy efficiency EUR 8.1 bn
KfW Bankengruppe is one of the world's biggest financing institution for energy efficiency and renewable energy
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In the 1990s Implementation of the TRANSFORM Programme on behalf of the German Government1
Since 1991Support of CEE governments regarding the set up of national promotional banks and support of promotional banks and other partner banks in the design of promotional financial instruments e.g. for SMEs and energy efficiency in housing
Since 1995Funding of promotional loan programmes issued by promotional and commercial banks in Europe Total commitments in Europe (outside Germany) since 1995: 14 billion Euro
Since 1998 KfW IPEX-Bank committed about EUR 3 bn to TEN financing in Europe, frequently in cooperation with EIB
KfW‘s experience in Europe/CEE
Since 2000Since 2005Since 2007
EU mandates together with CEB:
1 A German technical assistance programme for the benefit of institutions and enterprises in CEE
EU SME Finance Facility EU Municipal Finance Facility Energy Efficiency Finance Facility since 2007
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Promotion of energy efficiency in the housing sector: KfW-Efficiency House Standard and financing schemes in Germany
Abbreviations:NL = New Building Level according EnCO (German law)
Primary Energy
Demand
ca. 108-63 kWh/a
ca. 94-55 kWh/a
ca. 80-47 kWh/a
= 100% of NL
= 85 % of NL
= 115 % of NL
= 130 % of NL
= 70 % of NL
ca.121-72 kWh/a
ca. 66-39 kWh/a
KfW-130
KfW-100
KfW-115
KfW-85
KfW-70 Be
tte
r co
nd
itio
ns
of
fina
nci
al s
che
me
s
Promotional financing schemes: Subsidized loans, partial debt relief, grants
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Promotion of energy efficiency in the housing sector: Results of KfW‘s housing schemes in Germany
Commitments From 1990 until 2008 a loan volume of more than 51 billion EUR was committed;
efficiency measures in app. 2.9 million homes were financed
Effects regarding
CO2-reduction
The investments financed from 2006 until 2008 achieved a permanent reduction of 2,4 million tons per annum in CO2 emissions1
Effects on the labour
market
In 2008 about 221,000 jobs could be safeguarded for at least one year, especially in the construction industry
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Promotional Institution
On-lending bank
Long term loans Low interest rates
Fund
management
Revolving loan fund
Funding agreement
On-lending bank
GovernmentGlobal loan
Broad scale financing scheme for building renovation – Project idea
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Loan programme with a revolving fund versus grants to promote energy efficiency investments
● The substance of the fund remains for future investments (money flows back to the fund)
● Structural fund means invested into financial instruments count as “disbursed”
● Development of the “loan market” (e.g. maturity)
● One-stop finance
Complete financing of the planned investment Possibility of stable long term financing conditions Usage of favourable refinancing conditions of promotional banks Possibility of risk takeover Possibility of a partial dept relief which combines the incentives of
a grant and a promotional loan without the disadvantages of a grant
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Broad scale financing scheme for building renovation – Best-case model from Estonia
KredEx2
On-lending bank
Long term loans Low interest rates
Fund
management
Revolving loan fund
Funding agreement
On-lending bank
Government
CEB1 Global loan
Global loan
EUR 29 Mio.
EUR 17 Mio.
EUR 3 Mio.
Objective: At least20-30% of energysavings
Energy audit is obligatory
Renovation according to the audit
Loan Maturity up to 20 years
1 Council of Europe Development Bank
2 Estonian promotional institution