Germany

As of 2008, Germany was one of four countries with the highest number of environmental funds in the European region (France: 40 Funds, Germany: 35 Funds, U.S.: 31 and the Switzerland: 28), followed by the Netherlands, Belgium, Ireland with 9 Environmental Funds.⁸

A number of environmental funds in Germany are:

▪ German Federal Environmental Foundation (Deutsche Bundesstiftung Umwelt dBu);

▪ Some of the funds for conservation projects (state funds) by the Ministry of Environment, Nature Conservation and Nuclear Safety (BMU) administered and supervised by the Federal Department of Nature / Federal Agency for Nature Conservation (BFN);

▪ Regional Environment Fund (Environmental Fund for Lebanon) by the German Ministry of Development Cooperation (BMZ) operated from 2007-2010;

▪ Some types of development funds of the German Federal Institute (e.g. GTZ, KfW...) as well as a number of funds and non-governmental organisations of the German Federal financial assistance in the field of biodiversity projects in the world;

▪ Other private funds.

German Federal Environmental Foundation (dBu) Background and objectives

German Federal Environmental Foundation (Deutsche Bundesstiftung Umwelt - dBu) is a fund established under the Civil Code of 1990 (the Law passed by the German Federal Parliament). The Fund was established through the privatization of steel group Salzgitter AG under state ownership, and is one of the largest funds in Europe.⁹

DBu plays an important role and is the driving force for the innovation process.

Through meetings of the Committee in January 12, 1990, the Fund made the main task is to encourage, promote environmental protection projects for small and medium enterprises.¹⁰

Areas of focus of dBu’s financial support are the following:

▪ Support for eco-products and environmentally friendly production processes;

8 Novethic, 2008, What role for environmental funds within Sustainable and Responsible Investment (SRI)

9Antoinette Bismark, 2007, Germany: Deutsche Bundesstiftung Umwelt DBU <German Environmental Foundation>

▪ Energy and climate protection: climate protection, energy efficiency and renewable energy sources;

▪ Architecture and Construction: Environmental Protection land, the building measures to save resources...;

▪ Application of environmental studies: the scholarship programmes, products and chemical methods of producing sustainable products and production methods of biotechnology;

▪ Sustainable Land Use: the production of agricultural products, sustainable forest use;

▪ Scope of nature: nature conservation in areas used for farming activities, restoration of degraded habitats, nature conservation in densely populated areas, conservation natural protected areas;

▪ Environmental communication: methods and communication tools, test and use new methods of communication, electronic communication, ecological management system for small and medium enterprises;

▪ Environmental Education;

▪ Environment and cultural property: the protection of cultural property from an environmental perspective, cooperation in the protection of cultural property and nature conservation...¹¹

Operation Structure

Figure 4. DBU’s organisational structure¹²

11Antoinette Bismark, 2007, Germany: Deutsche Bundesstiftung Umwelt DBU <German Environmental Foundation>

DBU Fund has the legal capacity under the civil law. The Regulation provides the organisational structure and activities in many different functional areas and capital management.¹³

Head of the Fund is the Fund's Executive Committee, consisting of 14 members appointed by the Federal Government. The Committee representing the Secretary General and is responsible for coordinating the activities of the Fund through the Fund office.

Sources and methods of financial support

The Fund's initial capital is 1,288,007,300 Euros through the privatization of steel group Salzgitter AG and the interest (income) each year from the funds that are used to finance environmental activities with approximately 50 million euro annually.¹⁴

Method of support: financial assistance (non-refundable grants) for individuals and legal bodies.

The project is required full description information: name, the goal of the project, state of technology, financial projection, duration of the project... technological innovation.¹⁵

DBu specially funds to encourage collaborative projects between small and medium enterprises with research institutes. Especially the project from research institutions to other institutions and individuals concerned shall be responsible for implementing and expansion projects.

Three main criteria for approval of project funding requests include:

▪ Innovation and technology projects which require modern technology compared with existing research.

▪ Characteristics of the model are required to apply widely and feasibly to the market conditions in a short time.

▪ Environmental benefits: innovative to bring new and additional measures for environmental protection activities. Decision on grant funding depends largely on the contribution of the project in reducing environmental degradation.¹⁶

A more important task of the Fund is to award annual Germany environmental award. This award is the largest environmental award in Europe (the prize is worth 0.5 million Euros).

13DBU, 2011, Innovation for the Environmental 20 years Deutsche Bundesstiftung Umwelt

14Antoinette Bismark, 2007, Germany: Deutsche Bundesstiftung Umwelt DBU <German Environmental Foundation>

15Antoinette Bismark, 2007, Germany: Deutsche Bundesstiftung Umwelt DBU <German Environmental Foundation>

16Antoinette Bismark, 2007, Germany: Deutsche Bundesstiftung Umwelt DBU <German Environmental

Performance

The success of the Fund principles: to help build foundation for technology development and is a pioneer in defining the objectives to be implemented in the coming years.

Over the course of operation 20 years (from 1991 to 2011) the Fund has supported more than 7,800 environmental protection projects with many different areas. In the field of biodiversity conservation: dBu has promoted conservation projects (with more than 46,000 ha of protected areas of national importance, and ensure the long term conservation purpose).

The results of its operation in the field of environmental protection is encouraging, such as funding for research projects of new products "eco washing powder - green powder", contributing to reducing waste during washing; climate protection by reducing CO2 emissions by 300,000 tons and a campaign to control the energy use in buildings....

In 2011, with a capital of 1.8 billion euro, the dBu is the biggest environmental fund in Germany and Europe. Total expenditure over the year (Euro) in 2003: 43.4 million euro; in 2005: 45.7 million euro; in 2006: 47.7 million euro. Spending on biodiversity in 2006: 20% of total spending.¹⁷

Reviews

In Germany, the number of small and medium enterprises account for more than 99%, these enterprises play a central role and also the driving force behind the economy.

dBu plays a key role in helping businesses prevent pollution and environmental protection. Specifically, to achieve both goals, the efficient use of resources, energy, raw materials and creating daily use environmentally friendly products and goods are prioritised.¹⁸

Fund established under the Civil Code in 1990 and has legal capacity, with large financial resources, long-term stability for the implementation of activities for environmental protection projects annually.

The departments maintain regular contact with individuals and organisations for financial support, necessary documents and additional requirements.

17Antoinette Bismark, 2007, Germany: Deutsche Bundesstiftung Umwelt DBU <German Environmental Foundation>

2.3 Experience of Environmental Funds in the World and lessons learnt for