Federal Funding for Efficient Buildings – Climate-Friendly New Construction (KFN) – Municipalities

The federal funding program “Climate-Friendly New Construction (KfN) – Municipalities” supports public-law entities in the realization of energy-efficient new buildings in Germany. The goal is to reduce CO₂ emissions through the construction of buildings according to the EH55 or EH40 efficiency house standards. Municipal corporations, including cities, municipalities, and municipal associations, can receive a repayment subsidy of 17.5% to 20% of the eligible expenses. Funding is provided primarily for construction costs, technical systems for heating, ventilation, and air conditioning, as well as planning and ancillary construction costs. A prerequisite is a prior energy efficiency expert confirmation and compliance with the technical minimum requirements according to the Federal Funding for Efficient Buildings (BEG). The evaluation is based on the CO₂ reduction potential and the efficiency house category, thereby benefiting particularly ambitious new construction projects.

A funding application can be submitted continuously and requires the submission of an official application form from KfW, complete construction and planning documents, as well as a cost estimate or financing plan. Land and ongoing operating costs are not eligible for funding. This provides sponsors with planning security and financial relief when constructing municipal infrastructure projects that meet the highest climate and energy standards. The KfW Banking Group, as the processing agency, and the Federal Ministry for Housing, Urban Development and Building thus create a framework that promotes sustainable urban development and the modernization of the public building stock. Continuous application submission allows flexible project planning for modern administrative buildings, educational institutions, or sports halls, taking into account ecological and urban planning requirements.