The new “Climate-friendly new construction in the low-price segment” (KNN) funding programme began on 1 October 2024, providing targeted support alongside social housing assistance and the “Climate-friendly new construction” (KFN) energy-efficiency funding scheme.
Climate protection and construction belong together
The programme focuses on limiting construction costs, reducing CO2 emissions and optimising living space. This makes the new housing not only affordable, but also climate-adapted. A total of 350 million euros is available for the programme this year, with a further 1.65 billion euros next year. Klara Geywitz (SPD), Federal Minister for Housing, Urban Development and Building, says: “With KNN, we will demonstrate that climate protection and construction can go hand in hand. […] In doing so, we will further stabilise the construction and property sector, create housing in the lower and middle price segments, and implement innovations such as life-cycle analysis in residential construction.”
Funding and requirements
Funding is provided through low-interest KfW loans. At launch, the interest rate for a loan with a 35-year term and a 10-year fixed-interest period will be around 2.0 per cent. On 1 October 2024, loans with a 10-year term and a 10-year fixed-interest period are available at an interest rate of around 1.0 per cent.
Requirements for obtaining funding include compliance with the Efficiency House 55 or Efficiency House 40 energy standards, the exclusion of fossil fuels and compliance with greenhouse-gas emissions requirements. The cost ceiling is not static. It depends on various project-specific factors, including where construction takes place, how the building is heated, how much heating energy is required and the current construction price index. All key information and requirements can be found on the KfW Bank website (KfW loan no. 296).