Connect with us

Hi, what are you looking for?


Clean Power

Germany Is The Biggest Global Lender Of Clean Tech Funding

Sign up for daily news updates from CleanTechnica on email. Or follow us on Google News!

Originally published on Energy Transition.
By Craig Morris

A decade ago, the Economist accused Germany of taking solar panels away from developing countries with its brand-new feed-in tariffs:

Since the German government fixed the price for solar power at munificent levels, the country has been sucking in huge numbers of solar panels that could be put to better use in sunnier climes.

If we always looked at the world this way, we would find that many things we have in developed countries “could be put to better use in sunnier climes,” but we rarely see things that way (it would require sharing). The statement was clearly uninformed anyway; at the time, German development bank KfW was already the single largest lender for clean tech, with a volume twice as big as even the World Bank. But I did not know how other comparable bank groups stacked up in comparison, and I never investigated the matter further.

Then, in 2015, BNEF published the data I wanted a decade ago. As the chart below shows, KfW is now three times bigger than the World Bank in terms of clean tech loans and 2 ½ times bigger than the European investment bank in second place. According to that report, this list alone accounts for a third of total funding in the sector. KfW makes up a third of the total investments in the chart (83.9 billion), so this German development bank alone covers 1/9 of loans for clean energy worldwide.

GET_en__3A9_German_development_bank_by_far_biggest_clean_tech_lenderTo put this into context, Germany spent around 12.5 billion euros on Official Development Aid (ODA) in 2014. Clean energy makes up only a fraction of total ODA, however. So we see that the special funding Germany provides for clean tech is not only far greater than what other countries provide, but also twice its own development aid.

Cherish the irony—the Economist accused Germany of taking clean energy technology from the poor when it was actually the largest enabler. Repeatedly, that weekly draws seemingly logical conclusions without actually bothering to check its assumptions (say, whether German policy is indeed not taking renewables away from developing countries because its development bank is the biggest enabler of renewables for them). My favorite is the “insulation instead of photovoltaics” meme. Here is the Economist again from January 2014:

The largest source of renewable energy in Europe is wood. The cost of subsidies has been far greater than anyone had expected: €16 billion ($20 billion) in Germany in 2013, which works out at a massive €150-200 per tonne of carbon dioxide. (Home insulation, in contrast, saves money while reducing emissions.)

The meme has taken a beating since that publication as the cost of PV continues to plummet and oil and gas prices drop (thereby making investments in insulation less profitable). But most of all, the Economist once again merely draws a logical conclusion without bothering to check its assumptions in the real world. It turns out that the Germans (along with the Swiss and Austrians—I should probably say “the German-speaking world”) are leaders in Passive House architecture, which they invented. And incidentally, the UK is the biggest consumer of fresh timber in the power sector; Germany is a net exporter of wood pellets, which it mainly uses in more efficient processes for heat, and it focuses on waste products, not fresh timber.

Slowly, however, the Economist is coming around to renewables. They still don’t like solar in Germany—here’s what they had to say about the global success of solar (thanks partly to Germany’s commitment over the past decade):

Rather than the rooftop panels popular in Germany, countries where solar irradiance is much stronger than northern Europe are creating vast parks with tens of thousands of flexible PV panels supplying power to their national grids.

You’re welcome. But perhaps the clearest sign that the British weekly now accepts solar even in the UK—which is cloudier than Germany!—came this week in a piece calling for an end to the new nuclear project at Hinkley Point. After claiming that “the days of big, ‘baseload’ projects like Hinkley are numbered,” the weekly added:

In the past six years Britain’s government has reduced the projected cost of producing electricity from… solar power by nearly two-thirds…

With all respect to Downing Street, I’m pretty sure the British government didn’t do that alone. And while we’re at it—when are the British going to start helping clean tech be built in “sunnier climes” and not just at home?

Craig Morris (@PPchef) is the lead author of German Energy Transition. He directs Petite Planète and writes every workday for Renewables International. He is co-author of Energy Democracy, the first history of Germany’s Energiewende.

Reprinted with permission.

Have a tip for CleanTechnica? Want to advertise? Want to suggest a guest for our CleanTech Talk podcast? Contact us here.

EV Obsession Daily!

I don't like paywalls. You don't like paywalls. Who likes paywalls? Here at CleanTechnica, we implemented a limited paywall for a while, but it always felt wrong — and it was always tough to decide what we should put behind there. In theory, your most exclusive and best content goes behind a paywall. But then fewer people read it!! So, we've decided to completely nix paywalls here at CleanTechnica. But...
Like other media companies, we need reader support! If you support us, please chip in a bit monthly to help our team write, edit, and publish 15 cleantech stories a day!
Thank you!

Tesla Sales in 2023, 2024, and 2030

CleanTechnica uses affiliate links. See our policy here.
Written By

We publish a number of guest posts from experts in a large variety of fields. This is our contributor account for those special people, organizations, agencies, and companies.


You May Also Like


Chinese models start showing up on the radar.


Sign up for daily news updates from CleanTechnica on email. Or follow us on Google News! August saw plugin EVs take 37% share of...


Sign up for daily news updates from CleanTechnica on email. Or follow us on Google News! Several years ago, the German government expressed its...


Sign up for daily news updates from CleanTechnica on email. Or follow us on Google News! The final production plant where an EV rolls...

Copyright © 2023 CleanTechnica. The content produced by this site is for entertainment purposes only. Opinions and comments published on this site may not be sanctioned by and do not necessarily represent the views of CleanTechnica, its owners, sponsors, affiliates, or subsidiaries.