1. Supporting the energy efficient rehabilitation of the building stock – The German experience Brussels, 16.11.2010

2. 2 Framework Promotional Programmes Energy Prices EnEV German Energy Conservation Ordinance Information and Consulting 7% 27,5% 15% 50% share of KfW‘s programmes 28% CO 2 reduction targets 2008 - 2012 housing sector climate action plan

3. 3 Building stockNew building Energy Efficient Construction and Rehabilitation  promotional loans  max. 75.000 EUR per housing unit  KfW-Efficiency House standard  five promotional stages  partial debt relief possible  grants as an alternative for owners of single and two family houses  additional special support available  promotional loans  max. 50.000 EUR per housing unit  KfW-Efficiency House standard  three promotional stages  partial debt relief possible Energy-Efficient ConstructionEnergy-Efficient Rehabilitation Higher energy efficiency means better conditions

4. 4 KfW Efficiency House Standard Abbreviations: NL = New Building Level according EnEV Primary Energy Demand (kWh/a) ca. 94-55 kWh/a ca. 80-47 kWh/a ca. 66-39 kWh/a = 85% of NL = 70 % of NL = 100 % of NL = 115 % of NL = 55 % of NL ca.108-63 kWh/a ca. 52-30 kWh/a KfW-115 KfW-85 KfW-100 KfW-70 KfW-55 = 40 % of NL ca. 38-22 kWh/a KfW-40

5. 5 refinancing loan (maturity e.g. 20 years) loan to homeowner (maturity e.g. 20 years) Interest rate: 2.65%* max. Bank Individual homeowner Interest rate: 1.90%* Margin for credit risk and handling 0.75%* max. German Government or KfW Capital market Interest subsidy Funding * p.a. eff. KfW ‘s On-Lending-Principle AAA-Rating

6. 6 Capability of energetic renovation in Germany ● 39 m housing units ● 75% built before 1979 ● potential of renovation 20 m housing units Programme started in 2001 ● More than 520.000 loans ● Commitment volume of 31 billion euros ● 1,5 m housing units Macroeconomic Evaluation since 2006 ● Sustained CO2 reduction of 3,9 m tons p.a. ● Investments of 51 bn euros ● On average 200.000 jobs per year safeguarded or created ● Accumulated Savings in heating costs of 950 m euros Volumes and Impacts

7. 7 Factors of success Open to all investor groups Focus on long term loans A brand for energy efficiency Higher energy efficiency is rewarded Distributional network and Funding

8. Thank you very much! Gudrun Gumb Vice President, Business Policy Europe Tel.: ++49 69 7431 3831 gudrun.gumb@KfW.de