The employment potential of the directive for energy efficiency

European Parliament

Brussels, 7 February 2012

David Denzer-Speck, KfW Bankengruppe

2© KfW Bankengruppe

Energy efficiency and jobsKfW: 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

Energy efficiency and jobsWhat 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

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

With

in K

fWE

xternally

4© KfW Bankengruppe

Energy efficiency and jobsRealization 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 factors Actors

● Public, government

● KfW .

● German banking sector

● Ministry

5© KfW Bankengruppe

Energy efficiency and jobsWhat 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 / a20 % 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