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10. March 2023
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Federal support for efficient buildings (BEG) has been restructured – climate-friendly construction is to pay off from now on

On March, 1st 2023, the new new construction funding “Climate-friendly new construction” (KFN) started. This heralds a funding turnaround that should lead to a building turnaround in Germany, according to the website of the Federal Ministry of Housing, Urban Development and Construction. Since the building sector, as one of the major greenhouse gas emitters, has to be climate-neutral by 2045, only climate-friendly buildings will now be subsidized.

Builders of straw bale buildings can now particularly benefit from this, because finally all life cycle phases of a building are examined and considered for their climate impact for eligibility! Since the primary energy demand of straw-insulated buildings is known to be particularly low, straw bale builders may in future be able to achieve the EH 40 standard more easily than other house builders and meet the requirements for interest rate reductions on KfW loans.

Here’s KFN at a glance

  • Subsidies in the form of reduced-interest loans. The interest rate reduction compensates for the discontinuation of repayment subsidies for new residential buildings from the BEG subsidy. At the start of the program, the interest rates are around 3 percentage points lower than comparable construction financing offers.
  • Increased funding upon proof of the additional Quality Seal Sustainable Buildings (QNG).
  • More info at:

What is funded at KFN?

Funding is available for the construction of new climate-friendly residential and non-residential buildings and for the initial purchase (within 12 months of acceptance of construction in accordance with Section 640 of the German Civil Code) of newly constructed climate-friendly residential and non-residential buildings. The construction costs (gross costs) including the technical installations are subsidized, as are the costs for specialist planning, construction support and sustainability certification.

How is funding provided?

There are two levels of funding. Depending on the proven sustainability level of the buildings, the following subsidies can be achieved:

Residential buildings

  • Climate-friendly residential building: up to 100,000 euros per residential unit
  • Climate-friendly residential building – with QNG: up to 150,000 euros per residential unit

Non-residential buildings

  • Climate-friendly non-residential building: up to 2,000 euros per square meter of net floor area, maximum 10 million euros per project

Who is eligible to apply?

All investors who construct a new climate-friendly building or purchase a newly constructed climate-friendly building (the first-time buyer) are eligible to apply. An expert must be consulted for the application process. A QNG certification body must be involved to achieve the Climate Friendly Residential Building – with QNG level. Quelle:

More good news for Bavarian builders: Wood construction subsidy in Bavaria is extended! Applications can still be submitted

Eligible is the stored carbon for new construction, expansion and addition of buildings of local authorities in timber construction and multi-storey residential buildings in timber construction. More information:

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