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Tracking Climate Finance in the German Building Sector: A Landscape of finance flows for building decarbonisation in 2016

Emmrich, Julie LU (2018) In IIIEE Masters Thesis IMEN56 20181
The International Institute for Industrial Environmental Economics
Abstract
Germany’s Energy Concept aims to reduce the building sector’s primary energy demand by 80% compared to 2008 levels, of which 20% are to be achieved by 2020. This requires significant investment in integrated renewables and thermal. Public funds cannot finance such transition alone. Therefore, it is crucial to not only understand current investment levels and potential investment gaps, but also to analyse how public finance can leverage private investment. This thesis tracks public and private climate-specific investment in the German building sector in 2016. Finance flows are tracked from their source, through intermediaries and financial instruments, to the beneficiary measures and the building type. The thesis seeks to answer three... (More)
Germany’s Energy Concept aims to reduce the building sector’s primary energy demand by 80% compared to 2008 levels, of which 20% are to be achieved by 2020. This requires significant investment in integrated renewables and thermal. Public funds cannot finance such transition alone. Therefore, it is crucial to not only understand current investment levels and potential investment gaps, but also to analyse how public finance can leverage private investment. This thesis tracks public and private climate-specific investment in the German building sector in 2016. Finance flows are tracked from their source, through intermediaries and financial instruments, to the beneficiary measures and the building type. The thesis seeks to answer three questions. First, how is climate finance organised in terms of key funding sources, investors, financial instruments and mitigation activities. Second, what are the main trends in the last five years and how are they aligned to sector targets. The thesis concludes that in 2016, climate-specific investment in the German buildings sector almost reached EUR 30 billion, of which EUR 24 billion went to thermal and electrical efficiency with a 67% share to new buildings. Households invested the most, with close to EUR 19 billion. The development bank KfW plays the key role in facilitating private investment through its concessional loan programmes. The Ministry BAFA provides grants for innovative renewable and energy efficiency measures. Regional banks have proven to play a role in climate finance, yet due to data gaps, their contribution was not quantified. This thesis also finds that common climate finance reporting standards and tracking methodology are needed to enable accurate climate finance tracking and a fair comparison between different publications. (Less)
Please use this url to cite or link to this publication:
author
Emmrich, Julie LU
supervisor
organization
course
IMEN56 20181
year
type
H2 - Master's Degree (Two Years)
subject
keywords
Climate finance, Energy transition, Investment tracking, Climate finance Landscape
publication/series
IIIEE Masters Thesis
report number
2018:4
ISSN
1401-9191
language
English
id
8958325
date added to LUP
2018-09-10 12:52:38
date last changed
2018-09-13 12:13:40
@misc{8958325,
  abstract     = {Germany’s Energy Concept aims to reduce the building sector’s primary energy demand by 80% compared to 2008 levels, of which 20% are to be achieved by 2020. This requires significant investment in integrated renewables and thermal. Public funds cannot finance such transition alone. Therefore, it is crucial to not only understand current investment levels and potential investment gaps, but also to analyse how public finance can leverage private investment. This thesis tracks public and private climate-specific investment in the German building sector in 2016. Finance flows are tracked from their source, through intermediaries and financial instruments, to the beneficiary measures and the building type. The thesis seeks to answer three questions. First, how is climate finance organised in terms of key funding sources, investors, financial instruments and mitigation activities. Second, what are the main trends in the last five years and how are they aligned to sector targets. The thesis concludes that in 2016, climate-specific investment in the German buildings sector almost reached EUR 30 billion, of which EUR 24 billion went to thermal and electrical efficiency with a 67% share to new buildings. Households invested the most, with close to EUR 19 billion. The development bank KfW plays the key role in facilitating private investment through its concessional loan programmes. The Ministry BAFA provides grants for innovative renewable and energy efficiency measures. Regional banks have proven to play a role in climate finance, yet due to data gaps, their contribution was not quantified. This thesis also finds that common climate finance reporting standards and tracking methodology are needed to enable accurate climate finance tracking and a fair comparison between different publications.},
  author       = {Emmrich, Julie},
  issn         = {1401-9191},
  keyword      = {Climate finance,Energy transition,Investment tracking,Climate finance Landscape},
  language     = {eng},
  note         = {Student Paper},
  series       = {IIIEE Masters Thesis},
  title        = {Tracking Climate Finance in the German Building Sector: A Landscape of finance flows for building decarbonisation in 2016},
  year         = {2018},
}