Overall Description

The Environmental Innovation Programme supports the first large-scale application of advanced environmental technologies in Germany. Projects must demonstrate innovative processes or process combinations that significantly reduce environmental impacts and have strong potential for replication in the applicant’s sector or other industries.

The programme focuses on commercially relevant pilot investments rather than research and development. It aims to prove that innovative environmental technologies can operate successfully on both an ecological and economic basis.

Funding Amount

Applicants may choose between two funding options:

Investment grant:

• Up to 20% of eligible expenditure for large enterprises.
• Up to 30% for SMEs, other private-law legal entities and eligible public-sector applicants.
• Maximum grant: generally €7.5 million per project.
• Monitoring and evaluation activities may receive a grant of up to 50% of eligible expenditure.
• No minimum funding amount is specified.

Interest-subsidised loan:

• Up to 70% of eligible expenditure.
• No fixed maximum loan amount.
• Loan term of up to 30 years.
• Up to five repayment-free initial years.
• Interest-rate subsidy generally provided for five years.

Total programme budget: Not specified; funding is subject to the availability of federal budget resources.

Submission Deadlines

• No fixed deadline.
• Project outlines may be submitted on a rolling basis.
• Funding remains subject to available federal budget resources.

Submission Conditions

• Applications follow a two-stage procedure:
  1. Submission of a project outline to KfW.
  2. Submission of a formal application following a positive technical assessment.
• The outline must describe the technology, its novelty and the proposed implementation.
• Expected environmental benefits must be quantified.
• The project must be implemented in Germany.
• The installation or process must exceed the current state of the art or represent a novel process combination.
• It must be used for the first time in the applicant’s sector in Germany.
• The applicant and legally or economically associated companies must not already use the technology in Germany or abroad.
• The solution must be transferable to other companies or sectors.
• The project must comply with German environmental and social standards.
• The formal application must be submitted before the project begins.
• Projects started before funding approval are generally excluded, unless exceptional early commencement has been expressly authorised.
• Funding cannot generally be combined with other federal or state public funding containing State aid.

The following are not eligible:

• Research and development activities.
• Land acquisition.
• Buildings that are not the primary subject of the demonstration project.
• Legally mandatory equipment unless it substantially exceeds the state of the art.
• Applicants’ own work.
• Advertising and project-related public-relations activities.
• Financing costs.
• Recoverable VAT.

Eligible Types of Businesses and Organisations

• Small and medium-sized enterprises – given priority.
• Large enterprises.
• Foreign commercial enterprises with a permanent establishment in Germany.
• Other private-law legal entities.
• Companies with municipal ownership.
• Municipalities and districts.
• Municipal associations.
• Special-purpose municipal associations.
• Other public-law corporations and institutions.
• Municipal utilities and municipally owned companies.

Eligible Countries

• Germany
• All funded investments must be implemented in Germany. Foreign companies may apply if they operate a permanent establishment or branch in Germany.