Germany’s federally-owned KfW banking group has committed to making renewable energy and energy efficiency investments in Germany with €100 billion (over £87 billion) over the next five years. The cash injection will decrease investment risk and accelerate the country’s move to renewable energy, the bank says.
The KfW loans target energy efficiency, smart grids, as well as wind and solar energy generation. In 2010, 40% of photovoltaic installations were financed by the KfW Bankengruppe.
KfW was recently placed in the top quarter of firms in the Principles of Responsible Investment Report 2011. By signing the UN-PRI about five years ago, KfW committed itself to continually implement the six principles, to orientate its investment practices towards sustainability and to encourage other market players to make responsible investments.