Promotion of Investments with Demonstration Character for the Reduction of Environmental Pollution (Environmental Innovation Program)
Nationwide funding of large-scale technical demonstration projects in Germany to reduce environmental pollution with investment or interest subsidies. Applications can be submitted at any time.
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Grant criteria
Funding objective
The Environmental Innovation Program supports large-scale pilot projects with a demonstration character that implement environmentally relieving technical processes in practice for the first time. The goal is to combine ecological and economic requirements, achieve multiplier effects, and accelerate the dissemination of innovative processes in companies and public institutions.
Eligible expenses
- Investment costs for machinery and equipment
- Construction costs for demonstration plants
- Commissioning costs
- Measurements for success monitoring
Non-eligible expenses
- Land acquisition
- Own contributions and internal personnel costs
- Regular operating resources
- Routine measurements
- Loan or financing costs
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Eligible to apply
- Companies
- Public Institutions
Funding requirements
- Permanent establishment in Germany
- Completed research and development
- Proof of demonstration character at a large technical scale
- Innovative environmentally friendly technical processes
- Submission of a project outline before project commencement
Documents required for application
- Project outline
- Application form
- Financial plan
- Technical description of the project
- UBA statement (brief opinion)
- Self-declaration on SME definition
- Annual financial statements
Evaluation criteria
- Innovative content of the project
- Environmental relief potential
- Transferability of the process
Description
Funding Objective and Program Profile
The Environmental Innovation Program supports companies and public institutions in Germany in the initial implementation of environmentally beneficial large-scale technologies at a practical scale. Funding is provided for large-scale pilot projects with a demonstration character in the areas of energy efficiency, renewable energies, smart cities, digitalization, research, innovation, as well as environmental and nature conservation. The goal is to combine ecological and economic requirements, achieve multiplier effects, and accelerate the dissemination of innovative processes. Small and medium-sized enterprises (SMEs) are given priority, as are municipal sponsors and legal entities under public law. Applications can be submitted at any time until December 31, 2026.
Funding Modalities and Participation Requirements
Funding is provided in the form of low-interest loans or non-repayable investment grants with funding rates ranging from 20% to 70% of eligible expenses. Considered costs include, among others, investment costs for machinery, equipment, construction costs for demonstration plants, commissioning costs, as well as measurements for success monitoring. Requirements include having a business location in Germany, completion of the R&D phase, proof of large-scale demonstration character, and innovative environmentally beneficial processes. A project outline must be submitted prior to project commencement. A complete application includes, in addition to the application form and project outline, a financing plan, a technical description, a brief opinion statement from the Federal Environment Agency, a self-declaration regarding SME status, and annual financial statements. Non-eligible costs include land acquisition, internal personnel costs, regular operating resources, loan costs, and value-added tax. Processing is handled by KfW on behalf of the Federal Ministry for the Environment, Nature Conservation, Nuclear Safety and Consumer Protection.
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