|Some progress||KfW Development Bank and DEG provide technical assistance, in particular in reference to project scoping and conceptualisation. Alignment with the Paris agreement plays a role on case-by-case basis.|
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.
According to the Global Infrastructure Hub “while KfW offers extensive technical assistance internationally, this is more limited domestically”. Domestic support mostly focuses on optimising energy use for companies or support in setting up start-up or new businesses. KfW Development Bank and KfW DEG provide technical assistance for project preparation and conceptualisation.
KfW Development Bank and KfW DEG provide technical assistance, such as part of the GET FiT programme, or as part of DEG’s Africa Connect programme. While such initiatives may be related to objectives of the Paris agreement, there does not seem to be a systematic integration of Paris aligned objectives into technical assistance programmes.
As part of an evaluation study, KfW Development Bank outlines challenges, lessons learned and opportunities for technical assistance for green credit lines.
At COP26 in Glasgow, KfW Development Bank has launched the Latin American Green Bond Fund. LAGreen will provide technical support in the preparation of green bonds, cooperating with local issuers and will act as an anchor investor – making initial investments to reassure the quality of the bond to capital markets. KfW has invested €74 million in the fund, covering higher risk tranches of the fund.
Recommendation: KfW should expand its role as a standards setter and leader on impact management, as well as an innovator in sustainable and development finance for other peers. This implies that the progress KfW is making under the tranSform project and in other leading areas should come with a spillover effect for peer development banks.