05/22/2025

KfW Publishes Methodology Paper on Emission Assessment for Clean Transport Projects

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The Kreditanstalt für Wiederaufbau (KfW) today announced the publication of a comprehensive methodology paper detailing the assessment of greenhouse gas and air pollutant emission reductions expected to be achieved through clean transport projects. This paper, prepared by ifeu at KfW's request, aims to enhance transparency for KfW investors regarding impact calculations, allowing them to gain a deeper understanding of how KfW measures its impacts.

ifeu has developed the KfW methodology for transport and mobility and applied it to a financing year of the ‘Sustainable Mobility’ programme. With this programme, KfW promotes investments in sustainable and climate-friendly mobility within Germany in accordance with the EU taxonomy.

Key Highlights:

1. Scientific Foundation: For the first time, this report presents a scientifically sound methodology for systematically evaluating the impact of loan financing in the transport sector. This methodology is based on internationally recognized standards, including the GHG Protocol and guidelines from international financial institutions (IFIs). The report also discusses other approaches (pros and cons).
2. User-Friendliness and Automation: The methodology has been designed for future automated application by KfW, minimizing the burden on and the data required from applicants seeking KfW financing. Standardized emission factors and other parameters from recognized scientific sources, such as TREMOD and the Mobility Study (MiD), have been to reflect current developments in the mobility and energy sectors.
3. Applicability Across Project Types: The report includes numerous practical examples for various project types, covering both infrastructure and vehicle financing across different modes of transport (e.g. road, rail, water). This not only aids KfW's internal evaluation but also provides a solid reference and inspiration for other financial institutions.
4. Ex-Ante Emission Reductions: The focus of the report is on calculating emission reductions before project implementation (ex ante). The results are estimates of the effects expected from KfW financing, rather than actual measured reductions.

KfW is making this report available to market participants as an example of best practice. The aim is to encourage other issuers to strive for high-quality impact reporting standards and to foster a culture of transparency in the financial sector.

The methodology paper is now available for download on the KfW Investor Relations website: Methodology-Paper-Clean-Transportation.pdf

Further information on the project Calculation of the environmental impact of KfW's Clean Transport projects can be found here.