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Supporting institution

KfW

Information presented in this profile is for reference only. The Initiative, its Supporting Institutions and the Secretariat do not endorse the activities, tools or reports included in this profile.

Last updated: November 2021

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Overview of climate mainstreaming approach and goals:

The transformation process towards a sustainable society is the most pivotal challenge of our times. As a transformative promotional bank, KfW Group therefore takes a particular responsibility for the successful transformation. Thus, KfW Group focuses on forward-looking Paris-compatible sector guidelines for greenhouse gas-intensive sectors, an exclusion list as well as high environmental and social standards in its financing activities. Further supported by a group-wide impact management system, KfW Group systematically contributes to its primary objective of sustainable promotion which is defined as the transformation of the economy and society with the aim of improving economic, ecological and social living conditions around the world.

Against this backdrop, KfW Group’s sector guidelines systematically focus on greenhouse gas-intensive sectors for which sector specific minimum requirements for the climate compatibility of technologies financed by KfW are defined. These minimum requirements are scientifically derived from highly recognized Paris-compatible climate scenarios published by the International Energy Agency (IEA) and concretely point out with which combination of use of transitional and technologies of the future the transformation process towards greenhouse gas neutrality can successfully be implemented. For its new financing activities to remain consistently “Paris compatible” while ensuring that the minimum requirements remain realistically achievable for clients and partners, KfW gradually increases its climate-compatibility requirements.

The first Paris-compatible sector guidelines were introduced on 1st July 2021 and define guidelines for the greenhouse gas intensive shipping, automotive and iron and steel production sectors. As of 1st September 2021, the scope of the sector guidelines was expanded to include further Paris-compatible guidelines for the building and aviation sectors as well as for power generation.

In addition to our traditional promotional business, KfW expands its green-bond activities, which are pursued to raise capital for the transition to an environmentally sustainable and climate-neutral economy. This commitment encompasses KfW’s dual role as an issuer and green-bond investor.

Principal Strategic Documents:

Principal Tools and Methodologies:

Key reports and other materials published by the institution: