BMU Environmental Innovation Program

Generally: Everyone.
In detail:

• Domestic and foreign companies in the commercial sector with investment projects in Germany
• Other natural and legal persons of private law
• Municipal territorial bodies, self-employed businesses and municipal associations
• Other associations or public bodies of public law The investment must be realized in Germany. Small and medium-sized enterprises are preferred.

Promoted are large-scale facilities with a demonstration character, i.e. the planned technology is not yet applied or known technologies are combined in a novel way in Germany.

Promoted are:

• Structural, mechanical or other investments including the expansion or improvement of facilities or installations that are a functional part of the demonstration project,
• Costs of commissioning of facilities or installations, unless they are regular operating costs,
• Expert opinions or measurements, if they are a prerequisite for the implementation or proof of the success of the project.

Not eligible for funding are:

• Costs of land acquisition,
• Costs for advertising, sales and representation,
• Financing costs,
• Value added tax, insofar as it is deductible according to § 15 of the Value Added Tax Act,
• Regular administrative and operating costs,
• Follow-up costs.

Projects for research and development are also not eligible for funding.

Two options are available for funding:

1. Investment grant You will receive a direct grant of up to 30% of eligible expenses.
2. Interest subsidy to reduce the cost of a KfW loan You will receive a subsidized loan of up to 70% of eligible expenses. The terms and conditions for a loan can be found here.

Both types of funding are without a maximum amount. Please indicate the type of funding you wish to apply for in your application. Eligible expenses will be determined by KfW in cooperation with the Federal Environment Agency.

The Environmental Innovation Program is subject to the rules of EU state aid law.

The application process for the Environmental Innovation Program is two-stage:

1. Submission of a project outline If you are interested in funding from the Environmental Innovation Program, you can submit your project idea in the form of a project outline for preliminary assessment. Please use the Project Outline form and send it fully completed to KfW. Project outlines can be submitted at any time.

Your project outline will be formally assessed by KfW and technically assessed by the Federal Environment Agency. If a positive short vote is received, KfW will invite you to submit an application.

1. Submission of a formal project application Your project application will be subject to an administrative review by KfW and a more in-depth technical review by the Federal Environment Agency. As part of this assessment, KfW and the Federal Environment Agency may have questions. If the assessment is positive, KfW will recommend funding to the Federal Ministry for the Environment, which will make the funding decision. If the funding decision is positive, you will receive a grant notification from KfW.

The project must not be started before the funding decision has been made. In justified exceptional cases, a funding-neutral early start of the project may be granted.