KfW has published its Green Bond Impact Report for 2023, detailing the results of all 22 green bond issuances, including re-openings, from that year. The report provides information on the Green Bond Framework updated in 2022, outlines all issuances, and explains how net proceeds were allocated. It also presents the environmental and social impacts of projects funded through KfW’s lending programs.
According to the report, projects financed by the 2023 green bonds are expected to achieve annual CO2 equivalent savings of about 195 tons per one million euros invested. With total net proceeds from these bonds amounting to 12.9 billion euros, KfW anticipates annual CO2 equivalent savings of around 2.5 million tons. External research institutes evaluated the impact data for each credit program.
The selection process for eligible projects follows KfW’s regularly updated Green Bond Framework. Projects covered in this report fall into three categories: renewable energy, energy efficiency, and clean transportation.
Petra Wehlert, Head of Capital Markets at KfW, commented:
"KfW’s consistent and widespread financing of green projects is reflected both in the volume of green bond issuances and in the dynamic evolvement of the framework."
"Green Bonds – Made by KfW" have meanwhile become an essential part of KfW’s issuance spectrum. Since 2014, KfW has issued green bonds with a total issuance volume of almost EUR 97 billion, making it one of the largest and most active Green Bond issuers worldwide. Since then, "Green Bonds – Made by KfW" have represented a significant refinancing instrument within KfW’s overall refinancing mix."
Tim Armbruster, Treasurer at KfW stated:
"KfW is firmly committed to the climate targets and promotes environmentally friendly technologies that pave the way to a climate-neutral future, as well as the protection of biodiversity. Sustainable financing, especially green bonds, are key instruments for directing capital purposefully in this direction."
Further details about project categories and calculation methods are available in the full Impact Report.