Federal Subsidy for Efficient Buildings- Climate-Friendly New Builds (KFN)

BEG Subsidy for New Builds

The Federal Ministry of Building is supporting the development of climate-friendly new buildings with a new funding scheme that will start on 1 March 2023. This scheme is the first one to take into account a building’s entire life cycle - from its construction and operation to its potential demolition in the distant future. The buildings that qualify for KFN distinguish themselves through low greenhouse gas emissions over their life cycle, high energy efficiency, low operating costs and the use of a high percentage of renewable energies for generating heat and electricity. This funding scheme consequently contributes to climate protection and supports compliance with national climate targets.

The KFN subsidy requirements and information on the application procedure can be viewed under the following category headings depending on the relevant project and applicant:

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About the funding scheme: 

  • The scheme supports the construction and first-time purchase of newly build climate-friendly and energy-efficient residential and non-residential buildings whose greenhouse gas emissions over their life cycle fall below a certain limit and meet the energy standards of an Energy Efficiency House / Building 40 for new buildings.
  • Buildings that, in addition to the above, have also gained QNG Sustainable Building Certification (QNG), are eligible for a greater amount of funding.
  • The scheme's funding is provided in the form of subsidised loans for building climate-friendly residential and non-residential buildings. It can be applied for by investors, co-operatives, companies and private individuals through their banks.
  • In addition to the above, municipalities and counties also qualify for investment grants, such as for building housing, daycare centres or schools.
  • The funding scheme “Climate-friendly New Builds” is part of the Federal Subsidy for Efficient Buildings.
  • On 1 January 2023, responsibility for supporting new developments was passed from the Federal Ministry for Economic Affairs and Climate Action to the Federal Ministry for Housing, Urban Development and Building (BMWSB).
  • The BMWSB has commissioned KfW Bank with the implementation of the funding scheme. This is also where applicants will be able to submit applications for subsidies as of 01 March 2023. 

The Federal Subsidy for Efficient Buildings - Climate-friendly New Builds is a cross-sectoral climate protection measure. The new requirements for life cycle greenhouse gas emissions are, among other things, an important contribution to limiting ‘grey emissions’ (greenhouse gas emissions that can be traced back to the production and construction of buildings, including the supply chain).