Greenhouse gas accounting at project and portfolio level

Paris alignmentReasoning
UnalignedKfW currently does not apply a systematic greenhouse gas accounting of its portfolio. This assessment will be adjusted once a system is in place.
KfW Development Bank (and to a limited extend DEG) already assess emissions at project level.
Year startedInclusion threshold (CO2e/ year)Sectors  
Exp. 2022n/an/an/a

KfW Development Bank

Year startedInclusion threshold (CO2e/ year)Sectors  
Exp. 2022n/aAll projectsn/a
Disclaimer: KfW Group is comprised of four institutions: KfW Development Bank, KfW IPEX Bank (International project and export finance bank), DEG (private sector finance in developing and emerging markets) and a branch for domestic lending and support. Unless specified otherwise, the provided information concern the entire KfW Group.


KfW currently does not apply a systematic greenhouse gas accounting of its portfolio.

The bank does not provide any information on the degree to which it has already used GHG accounting on the project level. Upon request, KfW has informed E3G that the Bank uses an internal system based on the Partnership for Carbon Accounting Financials methodology. KfW assesses emission reductions and removals since 2009. Since 2018, KfW assesses the absolute emissions of a project. KfW greenhouse gas footprint assessments are furthermore aligned with the International Financial Institutions’ harmonized standards for GHG assessments.

As part of its TranSForm project, which is expected to run until 2024, KfW identified the goal to establish a GHG accounting system for the entire portfolio that enables the bank to systematically verify to what extent the sector guidelines effectively steer its financings towards the objective of a GHG-neutral portfolio by 2050. The goal is to have a group wide GHG accounting system running by 2022.

The system will encompass a bank-wide estimation of the carbon footprint of KfW’s financing activities. The bank plans to include mitigation effects and sequestration of carbon (such as carbon capture and storage) in the accounting. KfW has not communicated any GHG emission reduction targets publicly.

Recommendation: KfW should consider the best practice example of the European Investment Bank which sets out which sectors are covered and the inclusion of thresholds for the accounting.


Last Update: November 2022

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