1. KfW Development Bank Promoting Energy Efficiency in Buildings
Claudia Loy
Asia Pacific Union for Housing Finance
New Delhi, 31 January 2012

2. Agenda KfW at a Glance The German Way The International Perspective 12 3
The International Perspective
India – Energy Efficiency in New Residential Housing
Southeast Europe – Promoting EE in SME and Housing
China – Energy Efficient Refurbishment of Residential Housing

3. KfW Public Promotional Bank with Wide Array of Functions
Domestic Promotion
International Business
We ensure inter-nationalisation
We promote development
We promote Germany
Promotion of
SMEs, business start-ups and environ- mental & climate protection
Promotion of
housing and
education
Financing of municipal infrastructure projects and promotion in Europe
International
project and
export finance
Promotion of
developing and
transition countries
Promotion of Environmental and Climate Protection

4. KfW A Strong Environmental and Climate Protection Bank
Commitments in 2010:
EUR 25,3 billion
for environmental and climate protection EUR 23 billion
for energy efficiency (EUR 11.5 bn)
and renewable energies (EUR 11.3 bn)
► KfW is the no. 1 Environmental Bank in Germany and one of the world’s leading financing institutions for EE and RE

5. Agenda KfW at a Glance The German Way The International Perspective 12 3
The International Perspective
India – Energy Efficiency in New Residential Housing
Southeast Europe – Promoting EE in SME and Housing
China – Energy Efficient Refurbishment of Residential Housing

6. System of Energy Efficiency Promotion
Information and
Consulting
Promotional
Programmes
Gives an impulse for investing in energy-efficient construction and rehabilitation
Regulations are the basis. In germany the most important regulation within the housing sector is the Energy Conservation Ordinance (called EnEV).
The EnEV defines the energy efficiency requirements for new and existing buildings
Instruments are necessary to realize the requirements in the housing sector
Two main Instruments:
Information and Consulting f.e. we have a Energy Performance Certificate for buildings, the energy consultant becomes more and more important in housing
Promotion: f.e. promotional programmes of KfW or BAFA (renewable Energies), different municipal and regional programmes
Legislation, Rules and Regulations, Technical Standards
► German Energy Conservation Ordinance (EnEV) 6 6

7. Making energy demand transparent!
One of the essential elements for promoting EE in Housing
Making energy demand transparent!
"KfW-Efficiency House" –
the performance standard for buildings
in Germany!
für Bauherren relevant: „der Wert ist entscheidend, nicht der Weg der Berechnung!“
kompetente Beratung über durchzuführende Maßnahmen notwendig.

8. Primary Energy Demand (kWh/m2/a)*
KfW Efficiency House Standard
Primary Energy Demand (kWh/m2/a)* B U I L D N G S T O
C K
KfW-115
e.g
= 115 % of NL**
KfW-100
e.g
= 100% of NL N E W B U I L D G S
e.g
KfW-85
= 85 % of NL
KfW-70
e.g
= 70 % of NL
The benchmark is the new building level according to EnEV
The blue bar symbolizes the primary energy demand, we have a range of absolute demand which is allowed for a new Building according to EnEV, depending on the type of building, there is a range from 94 to 55 KwH per square meter and year
Referring to this benchmark we defined the promotional stages :
The numbers refer to the demand of primary energy in relation to the new building level according to EnEV :
KfW-130 means f.e., within this standard the maximum primary energy demand of the building is 130% of demand allowed for a new building according to the EnEV
In general you can say: the smaller the number the higher the energy-efficiency and the higher our promotion.
KfW-55
e.g
= 55 % of NL
KfW-40
e.g
= 40 % of NL
*Acctual values vary, depending on the reference building according to the German Energy Conservation Ordinance (EnCO)
**NL = New Building Level according EnCO

9. construct. supervision
Promoting EE in housing – KfW in Germany Funding and On-lending system
Capital
market
Loan (maturity e.g. 30 years)
Loan (maturity e.g. 30 years)
Funding
Individual
homeowner
Bank
Interest
subsidy
Re-financing
Interest rate depending on efficiency standard
Margin for credit risk and handling 0.75%
German
Government
+ addl. bonus for
construct. supervision
(max. EUR 1,000)
+ addl. repayment
bonus (5% or 12.5%
of principal)

10. Promoting EE in housing – KfW in Germany Results
Year
Budget Subsidies
(million €)
Loan Commitments
CO2-reduction
(1000 tons p.a.)
Housing Units
(in 1000)
Investments
2007
850
3,336
568
204
5,127
2008
1,300
767
280
8,552
2009
2,035
8,677
1,452
617
17,724
2010
1,337
8,746
1,049
953
21,330

11. Key Elements of Success
Financial incentives based on energy performance of building - not individual measures
Performance Assessment Tool robust and easy to handle
Accepted Performance Standards or Label - more important than legal building codes
Training of auditors
High energy prices

12. THANK YOU! For more information, please contact: Claudia Loy,
Head of Energy Sector and Policy Division
Silke Hermes,
Senior Project Manager
KfW Development Bank,
Energy - Asia,
KfW Office Building “Westarkade”,
Electricity Consumption: 98 kWh/p.sqm/p.a.

13. Agenda KfW at a Glance The German Way The International Perspective1
The German Way 2 3
The International Perspective
India – Energy Efficiency in New Residential Housing
Southeast Europe – Promoting EE in SME and Housing
China – Energy Efficient Refurbishment of Residential Housing

14. Promoting EE Buildings in India Results-based Tool and Label
Joint Assessment Tool developed by Fraunhofer Institute and TERI, India
Based on the whole-building-approach (Flexibility)
Robust energy performance assessment (Comparability)
- Easy to use by architects and auditors (Scalability)
Easy to compare different EE design, material and technology combinations (Optimization)
Basis for Energy Efficiency Label (Communication)

15. Agenda KfW at a Glance The German Way The International Perspective 12
The International Perspective 3
India – Energy Efficiency in New Residential Housing
Southeast Europe – Promoting EE in SME and Housing
China – Energy Efficient Refurbishment of Residential Housing

16. South East Europe Promotion of EE in SME and Housing
Key Features:
EE loan programmes for SMEs & Housing via various partner banks
Average loan size: EUR 115,000 (SME), EUR 2,200 (Housing)
No/ only slightly reduced interest rates
Total loan volume: EUR 215 million (2010)
Additional TA for Capacity Building & co-finance of energy audits
target: minimum of 20% savings on energy
Typical Measures for Energy Efficiency in Residential Buildings:
High-performance windows;
Installation of thermostatic valves; etc.
Insulation of walls, roof and basement ceilings and pipe
Modernization of hot water boilers and meters, heat systems;

17. Agenda KfW at a Glance The German Way The International Perspective 12 3
The International Perspective
India – Energy Efficiency in New Residential Housing
Southeast Europe – Promoting EE in SME and Housing
China – Energy Efficient Refurbishment of Residential Housing

18. China Energy Efficient Refurbishment of Housing Blocks
Starting Point: GiZ Pilot Scheme 3 pilot buildings in Tangshan (2006 – 2009)
30-50% reduction of energy demand for heating by thermal insulation of walls and roofs, double-glazed windows, refurbishment of heating systems
Current stage: KfW Program Climate Protection in Urban Areas
Tangshan: Volume: € m, refurbishment of 800,000 m²
Tonghua: Volume: € m, refurbishment of 1,100,000 m²
Aim: 50-60% reduction of energy demand for heating
CO2 Reduction of 0,32 m tons per year
agreement on high efficiency standards
Choice of most cost-effective measures Know-how transfer & quality control during planning and implementation
Before refurbishment
After refurbishment
355 kWh/m²y
144 kWh/m²y
GER: kWh/m²y
Germany: kWh/m²y

19. KfW Development Bank Promoting EE in Buildings Worldwide - Examples
Housing
Public Buildings
Commercial Buildings
Southeast Europe
EUR 30 million
India
EUR 50 million
China
EUR 60 million
(in planning)
Mexico
EUR 85 million (in planning)
South Africa
Jordan
EUR 34 million
Albania
Turkey
EUR 20 million
EUR 35 million
Croatia
EUR 25 million
Global: EUR 290 million
Global: EUR 150 million
Global: 150 million
Global: approx. sum of ongoing and planned programmes and the respective share under these going into EE buildings
Commercial Buildings: currently under EE Lines of Credit for SMEs, in cold climate high share of loans for isolation of plant buildings (assuming up to 50% of LoC).

20. Back-up

21. KfW Financing with a public mission
Founded in 1948 as promotional bank of the Federal Republic of Germany
Shareholders: 80% Federal Republic, 20% federal states
Headquarter: Frankfurt am Main Branches: Berlin and Bonn
Representative offices: around 70 offices and representations worldwide
Balance sheet total at the end of 2010: EUR 450 billion
About 4,530 employees (2010)
Top rating: AAA/Aaa/AAA
Zero-weight under Basel II

22. KfW Development Bank Global Energy Sector Commitments 2006 - 2010
Total Commitments in the Energy Sector (cumulative ): EUR 3,739 million
of which renewable energy: EUR 2,281 million
Commitments for Demand-Side Energy Efficiency since 2006: Asia 31 %
Europe/Caucasus 27 %
Latin America 23 %

23. Promoting EE Buildings in India Energy Efficient New Housing Programme
Loan (Eur 50 million) and Technical Assistance (EUR 1.5 million)
to the National Housing Bank (NHB) as apex bank to
refinance sub-loans for buyers of energy efficient new urban apartments
Highest energy savings potential in new apartment blocks for middle income residents: 46-51% depending on climate zone - out of which ► 20-36% Building Envelope ► 16-22% Appliances
Investments to achieve up to 40% savings financially attractive at 5 yr. payback (Average FIRR 25%)
Preconditions for feasibility:
- optimization of whole building design at planning stage
- early contact to advise architects/developers
- robust energy performance assessment tool
- training of auditors and energy advisors

24. Promoting EE Buildings in India Promotional Programme Status
Early stage of implementation: Agreements signed 12/2010, first disbursement 07/2011, TA tender ongoing
Five residential housing developments located in the composite climate zone being evaluated:
23 individual buildings assessed and optimized with the Fraunhofer/TERI assessment tool
Energy efficiency certificates under preparation by TERI:
Covering 17,000 apartment units to be built in the next 5 yrs with
Savings of up to 2000 kwh p.a. per apartment; and
Expected total savings of 22,000 tCO2 p.a.
Fraunhofer/TERI tool is being amended for the hot-dry and warm-humid climate zones (by November 2011)
Wo in Indien: NOIDA/Delhi, Lucknow, Nagpur
Project 1 Lucknow:
kwh/m² p.a. actual bldg 67,00 77,00 42,00 49,00
kwh kwh/m² p.a. ref. Bldg 87, ,00 61,00 65,00
Project 2 Nagpur:
kwh/m² p.a. actual bldg
kwh kwh/m² p.a. ref. Bldg
Project 3 NOIDA:
kwh/m² p.a. actual bldg
kwh kwh/m² p.a. ref. Bldg
Project 4 NOIDA:
kwh/m² p.a. actual bldg
kwh kwh/m² p.a. ref. Bldg
Project 5 NOIDA:
kwh/m² p.a. actual bldg
kwh kwh/m² p.a. ref. Bldg
Developers: 3C, Sahara
PLIs: HDFC, talks to Dt. Postbank, LIC

25. Promoting EE Buildings in India Promotional Programme – Next Steps & Challenges
Next steps under the Programme TA:
Establish the „Energy Efficient Housing“ brand and label in the Indian market
Train energy auditors and architects in the energy assessment of new residential buildings with the Fraunhofer/TERI tool
Achieve EE assessment and certification endorsement by public and private institutions
Continuous Challenges to the Promotional Programme:
No mandatory minimum EE standard for residential buildings
Multiple ministries and public agencies dealing with the residential building sector
Lack of sustainable financial incentives to promote EE residential buildings
Endorsement of tool and label to be seeked by BEE; Indian Green Building Council, GRIHA, etc.
Ministries: Ministry of Power/BEE, Ministry of Urban Development; Ministry for New and Renewable Energy; MHUPA Ministry of Housing and Urban Poverty Alleviation, BIS Bureau of Indian Standards and National Building Code

26. Apartment Developer Website

27. Pre-Constructed Housing Company Website

28. Construction Material & Pre-Constructed Housing Company Advertisement

29. Real Estate Agent Advertisement

30. Energy Efficiency House Label