Federal Ministry of Building launches "Climate-friendly New Construction" funding programme

The Federal Ministry of Transport, Building and Urban Affairs is supporting the climate-friendly construction of new buildings with a new funding programme that will start on 1 March 2023. For the first time, the entire life cycle of a building will be considered - from construction to operation to potential deconstruction in the distant future. The buildings are characterised by low greenhouse gas emissions in the life cycle, high energy efficiency, low operating costs and a high proportion of renewable energies for the generation of heat and electricity. This funding thus makes a contribution to climate protection and to meeting national climate targets.

Klara Geywitz, Federal Minister for Housing, Building and Urban Development: Climate-friendly building is no longer a can-do decision, but a must. Those who build today as they did in the past in order to save money are harming the climate and their wallets through horrendous ancillary costs.
With this 750 million euro annual funding programme, we exclusively promote climate-friendly new construction. Anyone can use the KfW-funded interest rate reduction. It helps exactly when it is often most difficult: when starting the financing for a home or apartment building.
It is important to see this funding programme as part of a large, social and climate-friendly construction funding programme of the federal government. Looking at the year 2023 alone, we are investing several billion in social housing, Trainee- and student housing, in the promotion of home ownership for families, the construction of apartment buildings and cooperative housing. Targeted funding, thinking about tomorrow today and excluding windfall profits - that is the funding principle of this federal government in building.

To the programme:

Funding is provided for the construction of new buildings and the initial purchase of newly constructed climate-friendly and energy-efficient residential and non-residential buildings that fall below specific limits for greenhouse gas emissions in the life cycle and meet the energy standard of an Efficiency House 40 / Efficiency Building 40 for new buildings.
There is greater support for buildings that also achieve the Quality Seal Sustainable Building (QNG).
Funding is provided in the form of low-interest loans for the construction of climate-friendly residential and non-residential buildings. Investors, cooperatives, companies and private individuals can apply through their development banks.
In addition, municipalities and districts receive investment grants e.g. for the construction of flats, day-care centres or schools.
The "Climate-friendly New Construction" funding programme is part of the federal funding for efficient buildings, which differentiates between funding for new construction projects and measures in existing buildings.
As of 1 January 2023, responsibility for new construction funding has been transferred from the Federal Ministry of Economics and Climate Protection to the Federal Ministry of Housing, Urban Development and Construction.
With the implementation of the funding programme, the BMWSB the Kreditanstalt für Wiederaufbau (KfW) has been commissioned. In future, applications for funding can be submitted there. Until then, it is ensured that the new construction funding programme "Efficient House / Efficient Building 40 Sustainability Class" of the BEG of the BMWK continues.

The federal funding for efficient buildings - climate-friendly new construction is a measure of cross-sectoral climate protection. The new requirements for greenhouse gas emissions in the life cycle are as follows a.o. an important contribution to limiting "grey emissions", the greenhouse gas emissions that can be traced back to the production and construction of buildings, including the supply chain. According to the BBSR-According to the study "Environmental Footprint of Buildings in Germany", the production, construction and modernisation of buildings accounts for around 7 % of national greenhouse gas emissions (about 65 million tonnes of CO₂-equivalents). Added to this are 35 million tonnes of CO₂-equivalents from suppliers abroad.

In addition, the new programme contributes to reducing greenhouse gas emissions in the building sector to 67 million tonnes of CO₂-equivalents and thus achieve both the national and the European energy and climate targets by 2030. The annual CO₂-equivalent reduction targets for the individual sectors are derived from the permissible annual emission quantities of the Federal Climate Protection Act.

Programme funds amounting to 1.1 billion euros are available from the Climate and Transformation Fund in 2023. Of this amount, 750 million euros will be allocated to the Climate-Friendly New Construction funding programme and 350 million euros to home ownership funding for families.

In the appendix you will find the Guideline for the "Climate-friendly new construction" programme

Source: PM BMWSB 25.1.2023

Keywords: DE-News, Funding, Climate protection, Quarters, Settlements, Environmental policy, Housing, Housing policy

Published 19 June 2020

Bundestag passes new building energy law

On 18 June 2020, the German Bundestag passed the Building Energy Act (GEG) in its third reading. With this law, the federal government is combining the existing requirements of the Energy Saving Ordinance (EnEV), the Renewable Energies Heat Act (EEWärmeG) and the Energy Saving Act (EnEG). For the information programme Zukunft Altbau (Future of Old Buildings), which is supported by the Baden-Württemberg Ministry of the Environment, the specifications of the new law are not ambitious enough. To bring climate-friendly building and renovation nationwide on the way is not possible in the future. "The legislator has missed it to introduce more demanding standards," says Frank Hettler of Zukunft Altbau. "For a sustainable building stock in Germany, however, these are urgently needed to achieve the climate targets." The GEG will now be forwarded to the Bundesrat, which, however, does not require approval, and is expected to come into force by the end of the year.

The Building Energy Act brings together the previously inconsistent specifications for energy requirements for existing buildings and new buildings as well as the use of renewable energies. "Unfortunately, the opportunity to simplify, reduce bureaucracy and take climate policy necessities into account is not being seized," criticises Hettler. "With the GEG, almost nothing changes for building owners. This is a problem: the climate policy goals of the federal government and the EU, as well as the Paris Climate Agreement of the UN, cannot be achieved in this way. The goals for the building sector defined by the federal government in the Climate Protection Plan 2050 will be missed with the legal requirements if those willing to renovate are guided by them."

Important course missed

If Germany wants to achieve the climate protection targets it has set itself, new buildings and refurbishments must be significantly better in terms of energy than the GEG requires. Otherwise, in addition to the necessary purchase of CO2 certificates and high compensation payments to more exemplary EU neighbouring countries, there is also the threat of decades of lock-in effects. After all, once insufficient insulation thicknesses have been installed, they can no longer be improved economically. Buildings constructed or refurbished in accordance with legal requirements would therefore have to be refurbished again at a disproportionately early stage in order to meet future standards and climate protection requirements. If, on the other hand, they are not refurbished, this means high long-term expenses for the owners in the form of energy costs and CO2 pricing.

In accordance with European law, the next review of the GEG will not take place until 2023, when the energy standards for residential and non-residential buildings are to be further developed. In plain language, this is a further delay of several years. These long, unused periods of time, combined with the minimum standards that have been set too low - especially for renovations - are far from adequate for the building sector to make an appropriate contribution to averting the climate crisis.

Better promotion provides important support

Building owners should therefore not only adhere to the GEG specifications, but also tackle new construction and renovation with an eye to the future, recommends Hettler. The financial subsidies that have been greatly improved since this year, for example from the KfW development bank, are helpful in this respect. As a rule, they compensate for the additional costs incurred for construction measures on the building envelope. Since the beginning of the year, the Federal Office of Economics and Export Control (BAFA) has been awarding extensive financial subsidies for the replacement of heating systems - especially existing oil heating systems - if renewable energies are used and legal standards are exceeded.

Conclusion: Those who rely on ambitious, individually tailored energy concepts will save money in the long run - and also protect the climate, advises Hettler. In accordance with this requirement, it is advisable to use at least the KfW Efficiency House Standard (EH) 40 as a basis for new buildings and at least EH 55 as a standard for extensive renovations. To simplify the integration of local renewable energy sources such as geothermal or solar thermal energy, it is also advisable to switch to low-temperature heating systems - provided there are no restrictions such as listed buildings.

Neutral information to questions approximately around the energetic reorganization gives it also free of charge at the consulting telephone of future old building under 08000 12 33 33 (Monday to Friday from 9 to 13 o'clock) or by E-Mail to consultingphone(at)zukunftaltbau.de.

Up-to-date information on the energy-efficient refurbishment of residential buildings is also available at
www.zukunftaltbau.de

Background
Zukunft Altbau provides neutral information to home and building owners about the benefits of energy-efficient renovation and promotes qualified and holistic building energy advice. The information programme, which is funded by the Baden-Württemberg Ministry for the Environment, Climate and Energy Management, provides neutral, interdisciplinary and free advice. Zukunft Altbau is based in Stuttgart and is implemented by KEA Klimaschutz- und Energieagentur Baden-Württemberg.

Keywords:
Stock, DE-News, Quarters, Settlements, Environmental policy, Housing, Housing policy