Investment Component
Practical and effective – the investment component of the Export Initiative Environmental Protection
With its Green Tech programme “Export Initiative Environmental Protection” (EXI), the Federal Ministry for the Environment supports German companies in the implementation of their green projects worldwide. Since its foundation in 2016, the promotion has been continuously developed further. The objective was to increase practical relevance and efficiency. The result: Since 2021/22, the funding programme has had an investment priority.
Contact
Exportinitiative Umweltschutz +49 30 72618 0999 Email
Technological innovations for sustainable infrastructure development
Investment measures comprise the establishment, expansion or adaptation of technical facilities and other local physical infrastructures. These could, for example, be the testing of membranes in a treatment plant for drinking water, the use of measurement technology for the reduction of drinking water consumption, or isolated solutions to secure decentralised power supply with solar or green hydrogen and fuel cell technology.
Reorientation of promotion: more practical orientation, more prototypes
Promotion was further developed in 2021 in a targeted manner to further increase practical relevance and efficiency. This gave the programme an investment priority. This reorientation built on valuable knowledge gained from four successful funding calls (2016, 2017, 2019 and 2020). Feasibility studies, pilot and capacity-building measures have established a solid foundation for the implementation of targeted, practical “showcases” and their sustainable anchorage in the target countries.
Since 2022, promotion has taken a decisive step forward: the focus is now no longer only on proportional support for the acquisition, establishment and testing of physical infrastructure. Instead, the main focus is on the experimental development of innovative prototypes, demonstration measures and the testing of new procedures under realistic conditions.
Environmental protection programme with strong economic focus
EXI projects prioritise the application of innovative and tested environmental technologies and environmental knowledge of Germany-based companies and other relevant institutions (including associations and universities). These technologies are tested and further developed under real local, climatic, technical and social conditions. Particular focus is placed on the competence fields of the Federal Ministry for the Environment: circular economy, water and wastewater technology as well as innovative cross-sectoral technologies such as the decentralised use of green hydrogen. Embedded in the German foreign trade promotion of the federal government, EXI supplements the traditional export promotion of the Federal Ministry for Economic Affairs and Energy and the development policy programmes of the Federal Ministry for Economic Cooperation and Development with its environmental focus. In line with EU state aid schemes, EXI combines environmental protection with an economic focus.
Investment funding for the Export Initiative on track for growth
In the early years of the Export Initiative, the focus was placed predominantly on feasibility studies, pilot projects and competence-developing measures. At first, investment projects comprising the establishment or expansion of physical infrastructure were an exception. In the past few years, however, there has been a significant shift towards a stronger focus on investment.
Since 2020, a significant increase in the share of investment projects has been recorded. While their share was still 12 per cent in 2020, it reached 85 per cent in 2023. This development also reflects in the cumulative project volume, which rose from EUR 1.1 million to EUR 19.2 million during the same period (see Figure 1).
The number of investment projects also increased significantly during the funding period (see Figure 2). While these played only a marginal role at the beginning, their share increased substantially in the following funding calls. This emphasises a consistent strategic reorientation towards stronger practical implementation and experimental research.
Parallel to this increase, the financial scope of funding provided by the Federal Ministry for the Environment (excluding own funding) also grew. The total funding approved for investment projects rose from EUR 752,000 (2020) to EUR 4.5 million (2023), with a cumulative funding volume of EUR 16.3 million.
Although the budget for the Export Initiative item are limited and the budget deficit resulting from the decision of the Federal Constitutional Court led to a reduction in the provision of funds in 2024, the development so far shows a clear trend: Investment funding is increasing in importance and is contributing significantly to sustainable infrastructure development in an international context.
Sustainability "Made in Germany": EXI as a motor for SME promotion and international development
During the funding periods 2020 to 2024, 27 investment projects with a total project volume of approximately EUR 19.6 million were implemented as part of the Export Initiative Environmental Protection (EXI), of which around EUR 16.6 million was financed by funding. This targeted investment orientation enables small and medium-sized enterprises (SMEs) to test and further develop innovative environmental technologies in a practical environment. Once the funding has been completed, the companies can flexibly use the knowledge gained for economic activities at home and abroad. In addition, all project results are published transparently on the programme website.
The Export Initiative Environmental Protection of the Federal Ministry for the Environment, Climate Protection, Nature Conservation and Nuclear Safety (BMUKN) is an established environmental protection programme with a focus on the economy, which is in high demand amongst companies. The programme conceives and implements local systemic and sustainable solutions for environmental protection technologies (in particular in the area of public services in the thematic fields of circular economy, water management and sustainable environmental technologies). In the course of possible multi-year project funding, fixed and binding cooperation projects or contractual relationships are established. The investment focus of the programme since 2022 also enables the testing of know-how and technology under realistic conditions by means of pilot projects (proof of concept). Small and medium-sized enterprises and start-ups in the field of environmental protection technologies therefore receive more precisely customised support for potential investment decisions. The Export Initiative Environmental Protection of the BMUKN is embedded in the German foreign trade promotion of the federal government. Cooperation with the "Export Initiative Environmental Technologies” of the Federal Ministry for Economic Cooperation and Development, for example, is often given via the respective project partners.
Furthermore, EXI makes a considerable contribution to international development and is oriented to the United Nations Sustainable Development Goals (SDGs): All funded projects contribute not only to economic but also to social development in the respective target countries, the majority of which are amongst the countries with low or medium income according to the OECD. Therefore, an average of 80% of the annual funding expenditure has been credited to Official Development Assistance (ODA) since EXI began.
Considering changing social and funding policy framework conditions, it is decisive to maintain and further expand the Export Initiative Environmental Protection and in particular its investment priority in the long term in order to strengthen the international competitive capability of German environmental technologies in the future.
Selected examples of sustainable use of the results of investment projects
Export Initiative Environmental Protection factsheet
The Export Initiative Environmental Protection factsheet provides you with a compact and clear introduction to funding objectives and procedures, target groups and more.
Download Factsheet Export Initiative Environmental Protection (accesible pdf)