Energy efficiency in residential buildings

completed

KfW is supporting the Chilean state development bank Banco del Estado de Chile with an FC development loan of USD 150 million or the EUR equivalent. The Energy Efficiency in Residential Buildings project funded with these funds is intended to support the Chilean government in its efforts to reduce CO2 emissions in the housing sector. The project includes the provision of low-interest, long-term loan financing for the construction and acquisition of around 2,500-3,000 residential properties with low energy consumption and CO2 emissions. By reducing energy consumption in the new construction sector, the aim is to make a contribution to increasing the sustainability of the energy system in Chile and to achieving Chile's mitigation goals. The demand for energy-efficient housing units generated by the project is also intended to create incentives on the supply side for the planning, construction and sale of additional energy-efficient new buildings that are not directly financed from the project's funds. The project also aims to support the Chilean government in implementing its energy agenda Energía 2050, published in 2014. This envisages a reduction in energy consumption in Chile by 20% by 2025, which is intended to ensure long-term security of supply even as energy demand grows. The framework for this project is the German-Chilean integrated intervention strategy in the context of renewable energies and energy efficiency. The project will launch the first loan program of its kind to promote energy-efficient housing in southern Latin America. It is therefore a model and is likely to attract attention beyond Chile.