Klima-UFK ensures the supply of future energy carriers
For a sustainable and climate-friendly shaping of guarantees for untied financial loans
With the introduction of the Klima-UFK, the Federal Government is supporting transformation projects worldwide that have German participation. The Untied Loan Guarantee have so far mainly been used for raw materials. Now, this cover instrument will be expanded and also made available for projects that contribute to the supply of sustainable energy to German industry on the basis of long-term offtake contracts. In this way, the so-called “Klima-UFK” closes a gap in the supply chain by securing the availability of future energy carriers that cannot be produced in sufficient quantities in Germany itself. The instrument thus creates a specific incentive for supporting the German industry and Germany as a business location in its transformation efforts and in competition with other countries.
Scope of application
Previously mainly used for raw materials, the Untied Loan Guarantee instrument will be expanded to cover the following fields:
- Products and/or technologies eligible for cover in the field of climate protection and in the light of raw material supply considerations, in the case of
- energy carriers, such as “green” hydrogen, synthetic fuels or battery technologies;
- the chemical industry, such as “green” methanol or “green” ammonia
- other industries, such as “green” steel or electricity/power transmission
- Transformation projects abroad and thus mainly projects related to energy carriers as well as energy production and energy infrastructure as well as the projects of downstream, energy-intensive industries that make a significant contribution to decarbonisation
- Support for a German company in international business transactions with respect to the specific individual transaction.
Procedure
The risk assessment, the decision-making processes on the Interministerial Committee and the premium calculation are carried out in a manner similar to that applicable to the standard Untied Loan Guarantees.
Further information can be found in the product information (PDF).
Strategic support for foreign projects
The German foreign trade promotion instruments have proven their worth. However, competitors from third countries are increasingly competing with political support and comprehensive financing offers, particularly in tenders for large-volume foreign projects. This creates competitive disadvantages for German providers.
The key points of the Federal Government's strategy paper provide new impetus for international competition for major strategic projects in order to improve opportunities for Germany.
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The climate strategy for export credit guarantees
With its climate strategy for Export Credit Guarantees, the Federal Government is improving the cover available for climate-friendly projects. By the same token, cover for projects that are not in line with the 1.5°C pathway will be restricted. This not only supports the decarbonisation of the German export industry but also the transformation of the target countries. Climate categories will determine the transactions that are excluded as well as those for which improved cover is available.
