Energy Efficiency and Climate Finance

Protecting the climate means more than „shifting the trillions“. That's why we explore effective climate finance.

Energy Efficiency and Climate Finance

Protecting the climate means more than „shifting the trillions“. That's why we explore effective climate finance.

The Energy Efficiency and Climate Finance department investigates and evaluates financing options for climate protection and energy transition at local, national, European and global level.

The ambitious global goals of energy and climate protection policy require a change in thinking. Those goals can only be achieved if substantial investments are made and investment strategies are aligned with sustainability and climate protection criteria. It will be difficult for public authorities to address this challenge on their own. IKEM examines instruments to activate private investments in order to better exploit existing energy efficiency potentials. Our researchers investigate the structure of climate investments, financing schemes and models and develop recommendations for policymakers and businesses.

The Energy Efficiency and Climate Finance department works closely with bilateral and multilateral investors, governments, and international financial intermediaries (IFIs). Through global networking and an ongoing exchange of knowledge, IKEM has developed extensive expertise in climate and energy efficiency finance. The Institute brings this knowledge to its numerous international climate change projects, ranging from the European Union to Central Asia and countries in the Commonwealth of Independent States (CIS).

Head of Energy Efficiency and Climate Finance Aleksandra Novikova, PhD is lead author of the Fourth Assessment Report and Sixth Assessment Report of the Nobel Peace Prize-winning International Panel on Climate Change (IPCC).
The mission of the IPCC is to regularly provide reports on the current state of knowledge regarding climate change in order to provide governments at all levels with information that they can use to develop their climate policies.

Energy poverty
Energy efficiency is closely linked to energy poverty. The energy efficiency of homes occupied by low-income tenants is often below health and comfort standards. The proportion of these endangered households in Germany is significant. In 2019, around 15% of households were at risk of monetary poverty and can therefore be considered low-income households. While the number of low-income households has decreased in recent years, it is expected to increase again due to the economic crisis caused by the Covid-19 pandemic.

Germany, the laboratory of the energy transition, has long been criticized for not adequately addressing the challenges of energy poverty. To date, this phenomenon has not been legally defined in Germany. At IKEM, we deal with the challenges for the energy transition that this social phenomenon entails and work out proposals for the further development of the legal and financial framework in order to identify and combat energy poverty in Germany.

Jana Karras’ dissertation examines how the rental apartments of socially disadvantaged households, which are often also affected by energy poverty, can be decarbonized without exacerbating the landlord-tenant dilemma.

Head of Department


IKEM – Institute for Climate Protection,
Energy and Mobility e.V.