BAFA Transformation Plan: funding & roadmap to climate neutrality

Many industrial companies, from SMEs to large corporations, are facing pressing questions: How can we reduce our energy costs? Where are our biggest savings potentials? And how do we start decarbonizing? These questions highlight the growing pressure to act. This is exactly where the BAFA-funded transformation plan comes in. It provides a structured roadmap to greenhouse gas neutrality and combines carbon accounting with a systematic energy analysis—both of which are eligible for funding. This quickly makes it clear where companies can achieve significant economic and sustainability gains with relatively little effort.

The transformation plan (Module 5 of the Federal Funding for Energy and Resource Efficiency in Industry – EEW) is more than just a report. It is a practical master plan that combines climate protection with competitive advantage. Tanso and elocompanion support you in creating this plan and offer an integrated solution: digital emissions data collection within the Tanso software combined with expert consulting and action planning by our partner elocompanion.

• €60,000 in funding is available per site.
• Funding rates amount to 40% for large companies, 50% for medium-sized companies, and 60% for small companies.
• Up to €90,000 in funding is possible if your company is part of the “Energy Efficiency and Climate Protection Network” (IEEKN).

What a BAFA transformation plan includes

A transformation plan in line with BAFA requirements serves as your roadmap to climate neutrality by 2045. It contains all the key building blocks needed to define a clear path from the current-state analysis through concrete measures to achieving your climate targets.

• ‍GHG inventory (current state): For each site, a Corporate Carbon Footprint is prepared in accordance with the GHG Protocol or ISO 14064-1. Scope 1 and Scope 2 emissions must be included, while Scope 3 emissions are optional but recommended. This carbon inventory identifies the most important emission sources and creates a reliable data foundation. Elocompanion typically accounts for emissions across all scopes.‍
• Climate targets (target state): Clear interim targets are defined, for example reducing Scope 1 and Scope 2 emissions by at least 40% within ten years compared to the baseline. In addition, the company commits to achieving climate neutrality by 2045 at the latest, in line with Germany’s national climate goals. This creates a tangible net-zero roadmap that can also support frameworks such as the Science Based Targets initiative (SBTi).‍
• Action plan: A catalog of concrete climate protection measures describes how these targets will be achieved. Technical measures (such as efficiency improvements, process optimizations, or waste heat utilization) are developed in detail and assessed from an economic perspective, including estimated savings, investment costs, and payback periods. Different options are compared and prioritized based on feasibility. Importantly, at least one measure must directly address core production processes or plant technology (not only buildings) for the plan to qualify for funding.‍
• Integration and implementation: The plan outlines how implementation will be ensured internally and embedded in the company’s culture, for example by integrating it into environmental management systems such as EMAS or energy management systems like ISO 50001. This ensures the transformation plan becomes part of corporate strategy and operational processes rather than remaining a purely theoretical document.‍
• Controlling and monitoring: The plan defines how progress will be measured and reviewed regularly. Key performance indicators, such as specific emissions per product, help ensure the company stays on track.
  

Together, these elements form a comprehensive roadmap that guides your company from the initial GHG inventory to a tailored package of measures.

Key benefits of a transformation plan (checklist)

What concrete benefits does the BAFA transformation plan bring to your company? Below is a checklist of the seven main advantages, each with clear practical relevance for sustainability managers, ESG professionals, and executive leadership.

• Comprehensive carbon accounting per site (including Scope 3): For the first time, you receive a holistic CO₂ inventory of your company. This includes all direct emissions (Scope 1) and indirect emissions from purchased energy (Scope 2), and, where relevant, emissions across the value chain (Scope 3). This carbon accounting framework is essential for identifying emission hotspots and making future progress measurable.‍
• Clearly defined climate targets and strategy: The plan requires the definition of concrete targets (for example, reducing Scope 1 and Scope 2 emissions by 40% within ten years) and therefore the development of a net-zero strategy. With a long-term perspective extending to 2045, companies gain planning certainty and can initiate the necessary steps early.‍
• Catalog of measures with technical and economic evaluation: You receive a structured catalog of measures in which technical solutions - ranging from efficiency improvements to broader decarbonization strategies - are linked with a business case evaluation. Each measure is assessed based on its CO₂ reduction potential, investment costs, energy cost savings, net present value, and payback period. This allows companies to prioritize which projects should be implemented first, balancing quick wins with long-term strategic initiatives.‍
• Integration into existing management systems: The developed climate measures can be seamlessly integrated into existing sustainability or energy management systems. For example, they can become part of your EMAS environmental program or your ISO 50001 action plan. At the same time, the plan supports compliance with Science Based Targets (SBTi), as it clearly outlines how your emissions reduction goals will be achieved.‍
• Direct energy cost savings: Many of the proposed measures not only reduce CO₂ emissions but also generate immediate financial benefits. Typical efficiency gains - such as lower electricity and heat consumption - translate directly into reduced energy costs. This strengthens your competitiveness, an especially valuable advantage in times of rising energy prices.‍
• Decarbonization and long-term resilience: With a transformation plan, your business model is decarbonized step by step. Dependence on fossil energy sources is reduced, and your company becomes more climate-resilient. This helps you stay ahead of regulatory requirements and safeguard long-term competitiveness. Climate neutrality thus becomes a concrete project with clear milestones rather than a distant ambition.‍
• Funding and waste heat potential assessment included: An often overlooked advantage is that financing and funding opportunities are systematically evaluated as part of the plan, including federal and state subsidies, EU programs, and other funding schemes. In addition, a waste heat assessment is conducted to identify opportunities for recovering and utilizing excess heat. This ensures that companies make full use of external support while reducing investment costs.
  

Each of these elements delivers tangible value - from better data and measurable savings to softer benefits such as increased employee awareness and reputational gains through transparency. In short, the transformation plan provides clarity, structure, and momentum for your company’s climate action journey.

Practical examples of transformation plans

What do these plans look like in practice? Through our consulting projects, we have supported numerous success stories. Below are four concrete examples from transformation plans that demonstrate what results are possible. All of them were implemented in real-world mid-sized industrial companies.

These cases show that a transformation plan is not a theoretical concept, but a practical tool. It helps companies implement the right projects at the right time.

Conclusion: Take action now – a clear plan for a successful transition

The BAFA Transformation Plan provides companies with a clear and financially supported pathway to climate neutrality. It combines carbon accounting, strategy, technology, and financing into a coherent overall approach. This gives sustainability managers and executive leadership a reliable basis for decision-making, showing both the direction to take and how to reach the goal.

Especially in the context of increasingly strict climate regulations and rising energy prices, proactive action is essential—and the transformation plan offers the ideal tool to do so.

Thanks to government funding, companies can access this external expertise and in-depth analysis with significantly reduced internal investment. Tanso and elocompanion support you as experienced partners throughout the process. Together, we ensure that your transformation plan is technically sound, practical, and actionable—and successfully implemented in line with your sustainability goals.