1. The employment potential of the directive for energy efficiency European Parliament Brussels, 7 February 2012 David Denzer-Speck, KfW Bankengruppe

2. © KfW Bankengruppe 2 Energy efficiency and jobs KfW: Some facts and figures ● Promotional bank of the Federal Republic of Germany ● One third (EUR 22.8 bn) of new business volume for climate and environmental protection in 2011 ● Between 1990 and 2009: energy efficient renovation or new building of 3.1 million housing units were promoted by KfW loans and / or grants ● “energy efficient building and rehabilitation“ as benchmark programs. For 2010: ● New jobs or jobs secured for one year: 284.500 ● 73 % direct job effects, 27 % indirect job effects ● Jobs for SMEs: 82 % KfW: Facts and figures

3. © KfW Bankengruppe 3 Energy efficiency and jobs What are the special qualities of ‘efficient’ jobs? ●Product development and research: 7 incl. 2 technical experts●Technical audit of projects: ~ 100 ●Non-specific administrative tasks ●Product development and research: 7 incl. 2 technical experts●Technical audit of projects: ~ 100 ●Non-specific administrative tasks Programs: energy efficient building and rehabilitation ● External technical experts: 5 ● Evaluation: Institut Wohnen u. Umwelt, FZ Jülich, Bremer Energieinstitut ● Evaluation credit risk, loan decision, handling of loans: German banking sector Program for energy efficiency consulting (Energieeffizienzberatung) ●Decentralized network of KfW accredited experts (~ around 2000)●KfW partly pays for the consultancy ●Decentralized network of KfW accredited experts (~ around 2000)●KfW partly pays for the consultancy Within KfW Externally

4. © KfW Bankengruppe 4 Energy efficiency and jobs Realization of employment potential, actors & success factors ● Awareness:subsidized interest rates, branding (KfW 70) ● Conditionality: clear, transparent and technologically neutral conditions, checks and audits ● Broad access: decentralized on-lending, advertising ● Leverage:involvement of private capital (cap of EUR 50 K respectively EUR 75 per housing unit) ● Embedment:Close interconnection between promotional programs and the (legislative) framework Success factorsActors ●Public, government●KfW.●German banking sector●Ministry●Public, government●KfW.●German banking sector●Ministry

5. © KfW Bankengruppe 5 Energy efficiency and jobs What role can the Energy Efficiency Directive play? ● Reduction of final energy consumption in the German housing sector by 20 % until 2020.  Program evaluation 2010: ~2.700 GWh / a  20 % of the necessary reduction per year ● 40 % reduction of CO2 emissions within the housing sector until 2020:  Program evaluation 2010: 999.000 t / a.  45 % of the necessary reduction per year. General role of policy goals