Federal Funding for Energy and Resource Efficiency in Industry (Loan) – Support for Energy- and Resource-Related Optimization of Equipment and Processes (Module 4)

The federal funding for energy and resource efficiency in the economy – Module 4 of KfW (Loan No. 295) supports technology-neutral investments that sustainably reduce the energy and resource demand of industrial and commercial facilities. The focus is on measures that reduce GHG emissions and unlock efficiency potentials: for example, process modifications, waste heat utilization through heat exchangers or heat pumps, optimization of process engineering plants, as well as electrification and decarbonization projects. Both replacement, initial, and expansion investments as well as component retrofits are funded, with attractive repayment grants of up to 45% of the investment costs depending on the company size. A decarbonization bonus of up to 10 percentage points can be applied for measures involving renewable electricity use, hydrogen, and external waste heat.

The loan application is submitted via a financing partner, with the application deadline ending on 31 December 2028. A proof of the GHG savings potential in a binding savings concept is decisive, prepared by listed efficiency experts or plant operators with ISO 50001/EMAS certification. Either total investment costs or, upon request, additional investment costs are eligible for funding; besides investment and installation, planning as well as testing and measurement costs are considered ancillary costs. Approval is subject to available budgetary funds, so a binding commitment is only possible after review. Following implementation and a successful verification of proper use, the repayment grants are offset against the final installments. The comprehensive funding package offers companies of all sizes a structured path to resource-efficient and climate-friendly production.