Sustainability pays off – focus on public funding

published on 14 november 2023 | reading time approx. 3 minutes

There are several factors that can drive business change in the area of sustainability. More and more companies are recognizing the need to implement sustainable practices to reduce environmental impact, take social responsibility and ensure long-term success. But the need for an environmentally responsible future is not the only driver of corporate change.

The government in particular is constantly promoting the sustainable development of the economy and society through support measures. In order to achieve its climate and environmental goals, the German government has put together generous funding packages. A range of funding options are available, particularly in the context of energy efficiency.

The following overview shows a selection of possible funding programs at federal level. In addition to the federal programs shown, various funding options are also available at state and EU level.

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Program	Short description	Type of funding	Application	Link
Energy efficiency in the economy
Decarbonization in the industry	Promotion of energy-intensive industry in the reduction of process-related greenhouse gas emissions	Grant support	Two-stage application procedure Application deadline consecutive	Funding \| Kompetenzzentrum Klimaschutz in energieintensiven Industrien (KEI)
Federal funding for energy and resource efficiency in the economy – Grat	Promotion of measures to save energy and reduce carbon dioxide emissions: Cross-sectional technologies Process heat supply from renewable energiesMSR technology, sensors and energy management software Energy-related optimization of systems and processes Transformation concepts Electrification of micro and small enterprises	Grant support	The application must be submitted electronifically via BAFA*.	BAFA - Bundesförderung für Energie- und Ressourceneffizienz in der Wirtschaft – Zuschuss und Kredit (German)
Federal funding for energy and resource efficiency in the economy – Loan	Promotion of measures to save energy and reduce carbon dioxide emissions: Cross-sectional technologies Process heat supply from renewable energies I&C technology, sensors and energy management software Energy-related optimization of systems and processes Transformation concepts Electrification of micro and small enterprises	Loan with repayment subsidy	Loan application directly via the financing bank (not via KfW**)	KfW (German)
Federal funding for energy efficiency in the economy – funding competition	Promotion of investment measures to improve energy efficiency and the provision of process heat from renewable energies (competition criterion: ratio of funding euro to CO2 savings)	Grant support	Two-stage application procedure Several competition rounds per year (the current round runs from 1.7.2023 to 31.8.2023)	BMWK-Förderwettbewerb Energie- und Ressourceneffizienz (German)
SME-innovative: Resource efficiency and climate protection	High-risk R&D projects in the areas of Raw material efficiency Energy efficiency and climate protection Conservation of biodiversity Sustainable water management Sustainable land management	Grant support	Two-stage application procedure Project outlines can be submitted at any time Evaluation deadlines for project outlines are April 15 and October 15 of each year	Federal Ministry of Education and Research (German)
Promotion of measures in the area of the export of green and sustainable (environmental) infrastructure	Promotion of green and sustainable technologies and infrastructures abroad: Feasibility studies Pilot and model projects Initial projects	Grant support	Two-stage application procedure Project outlines can be submitted until 1st march every year	Exportinitiative Environmental Protection (German)
Development, design and acceptance of environmentally friendly consumer goods	In particular, support for the development of durable consumer goods whose production and use have as little environmental impact as possible	Grant support	Two-stage application procedure Project outlines can be submitted at any time	DBU
Environmental innovation program	Promotion of large-scale plants with an innovative character	Investment subsidy or interest subsidy	Two-stage application procedure Project outlines can be submitted at any time (except for funding priorities and funding initiatives within the funding program)	Environmental innovation program (German)
Innovative climate protection projects	Promotion of non-investment projects that contribute to the German government's climate protection goals (pilot projects and nationwide dissemination)	Grant support	Two-stage application procedure Submission deadlines 2023: 15.6.2023 to 15.9.2023	Innovative Klimaschutzprojekte \| Nationale Klimaschutzinitiative des Bundesministeriums für Wirtschaft und Klimaschutz (German)
KfW Environment program	Investments in environmental protection and sustainability, avoidance or reduction of environmental pollution	Low-interest loan	Two-stage application procedure Applications can be submitted continuously	KfW (German)
7. Energy research program	Applied research, development, and demonstration	Grant support	Two-stage application procedure Applications can be submitted continously or depending on the submission deadline of the current funding intitiatives	Research centre Jülich (German)
Refrigeration and Air Conditioning Directive	Refrigeration generators with non-halogenated refrigerants in stationary refrigeration and air conditioning systems as well as vehicle air conditioning systems in buses and trains	Grant support	Applications can be submitted continuously until 31.12.2023	Climate protection initiative of the Federal Ministry of economics and climate protection (German)
KfW Program Renewable energies standard	Construction, expansion and acquisition of plants for the generation and storage of electricity and heat based on renewable energies Heating/cooling networks Measures to make electricity demand and supply more flexible supply and for the digitalization of the energy transition	Loan	Loan application directly cia the financing bank (not via KfW)	KfW (German)
BAFA Module 5: Transformation concepts	Supporting companies in planning and implementing their own transformation towards greenhouse gas neutrality (including funding for the costs of energy consultants and other consulting costs in connection with the creation of a transformation concept)	Grant support	The application must be submitted electronically via BAFA*	BAFA Module5 Transformation concepts (German)
Hydrogen
National Innovation Programme Hydrogen and Fuel Cell Technology	Focus on sustainable mobility	Grant support	One-step application procedure The respective deadlines will be announced in separate calls	Research centre Jülich
Ideas competition “Hydrogen Republic of Germnay” – Basic research on green hydrogen	Promotion of highly innovative solutions for key green hydrogen issues along the entire value chain, materials research, system studies	Grant support	Project outlines can be submitted at any time	Research centre Jülich (German)

In addition to the above-mentioned funding instruments in the area of hydrogen, selected energy-intensive industries are also subsidized by means of “carbon contracts for difference”. This involves subsidizing the higher CO2 avoidance costs resulting from more cost-intensive technologies compared to the purchase of emission certificates. The first preparatory procedure was launched on June 6, 2023.

Whether cumulation of the above-mentioned programs is possible must be examined with regard to the program-specific requirements and state aid law with regard to maximum permissible aid intensities.

In principle, it is important to carefully check the respective guidelines and requirements of the funding providers and ensure that your projects meet the required criteria. In addition to the specific investment project, specific requirements regarding eligibility to apply, minimum technical requirements and potential deadlines must also be taken into account.

*BAFA: Federal Office of Economics and Export Control

**KfW: German Reconstruction Loan Corporation

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