BMU programme for promoting investments in the reduction of environmental pollution abroad (pilot projects abroad)

1. Aims of the funding

The Federal Environment Ministry's (BMU) programme "pilot projects abroad" provides financial support for projects pursuing joint environmental goals in the countries that have joined the EU since 2004 and in EU candidate countries. The programme has two main objectives::

1. to support environmental pilot projects which will have direct transboundary environmental effects on Germany
2. to support environmental pilot projects which focus on measures against global climate change

These include:

• "philosophy transfer" for effective climate protection in the framework of cooperation to be developed
• multiplier effect using cost-efficient model solutions for improving the environmental situation in these countries ("lighthouse projects")
• increasing public acceptance of environmental protection.

It should be stressed that the main goal of the BMU programme "pilot projects abroad" is environmental. It does not aim to improve infrastructure (as, for example, in corresponding EU programmes).

2. Key areas of funding

Under the objective referred to in 1a), financial support is given for example to projects which can directly and measurably reduce pollution in boundary waters (Elbe, Oder, Baltic Sea etc), or air pollution in border regions (Erz Mountains, etc). This will increasingly involve the shift from end-of-pipe purification technologies to integrated solutions - including concepts for efficient energy utilisation. Now that large firing installations have for the most part been brought up to date technologically, as well as dealing with small and district heating power stations which are often operated at municipal level, these projects will also focus more on the private energy consumer. As in the past, projects like these will in particular be supported in the Republic of Poland and the Czech Republic.

Under the objective named under 1b), "lighthouse projects" especially will point the way to climate-friendly economic development in the new EU member states and candidate countries. They will be model projects aimed at achieving a multiplier effect. They aim to promote willingness to initiate projects and where needed give guidance to contribute to overcoming possible barriers for actors in government, industry and private households.

Model projects in the transport sector that benefit climate protection can also be supported.

3. Form of financing

The project funding is provided from interest rate subsidies and investment grants. There must be appropriate investment from the operators of the plants.

Interest rate subsidies are granted in conjunction with loans for full financing through the KfW Bankengruppe (www.kfw-foerderbank.de). Limited investment grants can also be provided for training and exchange programmes related to the projects.
The KfW Bankengruppe takes over the overall running of the projects for the Federal Environment Ministry (BMU) in the form of a trust.

Further details can be found in the relevant BMU/KfW information sheet and the BMU/KfW checklist.

4. Application procedure

Investors interested in receiving funding in the framework of the above programme should first approach the environment ministry or another competent authority in the target country with their project ideas. After this authority has reviewed the project proposal, a written request for funding should be addressed to the BMU. The BMU's funding decision takes into consideration aspects of environmental policy and availability of budget resources.

To implement a project, interministerial agreement between the Federal Environment Ministry (BMU) and the partner ministry in the target country is concluded and other contracts between the recipient, banks and a prime contractor are signed for the environmental pilot project concerned [see chart - in German].

To simplify this procedure, the BMU concluded interministerial framework agreements with the environment ministries in the Czech Republic, the Republic of Latvia, the Republic of Poland and the Republic of Turkey in the years 2004 to 2006. These lay down the principles of bilateral cooperation in this field independently of individual projects, thus making individual framework agreements superfluous. Other aspects of the application procedure remain unchanged.

5. Environmental pilot projects funded by the Federal Environment Ministry

Since 1992, the BMU has provided funding of around 65.6 million euros for a total of 17 environmental pilot projects in the Czech Republic, the Republic of Poland and in the Republic of Latvia (see list below).

The implementation of further environmental pilot projects was simplified with the interministerial framework agreements concluded between 2004 and 2006 with the Czech Republic, the Republic of Poland, the Republic of Latvia and the Republic of Turkey. However, the shaping and realisation of projects often remains difficult for the parties involved in the target country for a variety of reasons. This is why it was unfortunately not possible to implement several projects that were already agreed on. Through detailed assessments of successful projects, including any obstacles that had to be overcome, the BMU aims to make recommendations, together with partner ministries in the target countries, on simplifying follow-up projects (for example, see the project "Energy-related modernisation of residential buildings.")

The following overview provides information on the most recent projects. Click on the project name for a brief description.

Pilot Projects Abroad

• Latvia
• Poland
• Czech Republic

Note:
Click on the country for an enlarged image (map partly in German)

Note:
Click on the country for an enlarged image (map partly in German)

Projects 11, 12, 13, 14, 17 and 18 from the interdepartmental agreements of 8 December 1999 and 18 June 2001 had to be cancelled.