BAFA – probably very few people in this country can do anything with this abbreviation. The BAFA has an influence on many areas of their lives: traffic, the energy transition, the education system.
BAFA is the short form of “Federal Office of Economics and Export Control”. The facility is part of the portfolio of the Federal Ministry of Economics and Climate Protection. So the authority headed by Robert Habeck (Greens).
Die “Frankfurter Allgemeine Zeitung” (FAZ) recently described BAFA as the “engine room of the Federal Ministry of Economics”. There are good reasons for that. After all, BAFA implements many of the decisions made in Berlin. It is considered one of the most powerful federal agencies.
BAFA is divided into seven departments
“BAFA performs important administrative tasks of the federal government in the areas of foreign trade, economic development, energy and auditor supervision,” it says on the federal agency’s website.
BAFA consists of a total of seven departments that deal with a wide variety of topics. There is a section for business and medium-sized business development, a section for the Supply Chain Due Diligence Act and one for energy efficiency and renewable energies.
BAFA comes into play when it comes to state subsidies for replacing a heating system or premiums for electric cars. It is responsible for the payment of the so-called environmental bonus. In other words: extra money when buying or leasing an electric car. And it has been awarding grants since 2021, for example for the installation of a heat pump or the replacement of a window. So it is clear that BAFA plays a key role in the energy transition. At least in theory.
BAFA can hardly keep up
In practice, however, BAFA does not have a good reputation. Example: the new law for the installation of climate-friendly heating systems, which the traffic light government has agreed on.
Many Germans already want to take advantage of the government funding that BAFA handles. The new law is likely to increase the demand for such subsidies enormously. Which is problematic. As the “Spiegel” reports, the BAFA can hardly keep up with the processing of the applications.
Energy consultants told the “Spiegel” about months of processing times, hardly reachable hotlines and notifications of delivery that are still sent by post. One would like to work more digitally, but that is not possible for legal reasons, BAFA explained to the magazine.
On average, BAFA needs 125 days for an application
According to the report, the authority’s funding portal should also be user-unfriendly. And: BAFA obviously needs a lot of time to process individual applications.
According to a member survey by the Association of Building Energy Consultants, Engineers, Craftsmen (GIH), the average is 125 days. BAFA told the “Spiegel” that the customers are also to blame for this situation. Incomplete documents would increase the processing time.
Torsten Safarik, who has been at the head of the authority since 2019, explained to the “FAZ” that his employees are doing their best to meet all requirements. And they have grown over the past few years.
If you take a look at the figures, you will see that the number of applications for funding has increased massively. According to “FAZ”, there were 330,000 applications for individual energy measures in 2021, such as new heating systems. Last year, the value increased to 780,000.
In 2022, 7.4 billion euros in funding were paid out
With the new building energy law, there could be even more. At BAFA, however, they try to remain optimistic. “I think it’s great that so many citizens are submitting applications. That shows that something is happening in climate protection,” said Ina Bartmann of the “FAZ”.
She works for the federal authority as a department head for climate protection and buildings. Bartmann emphasized that applications are now being processed faster again.
According to its own statements, BAFA paid out 7.4 billion euros in subsidies last year. The majority of the subsidies paid out directly went to “the energetic renovation of buildings and the promotion of electromobility”.
BAFA also deals with exports to Russia
The federal authority is not only concerned with the energy transition. Georg Pietsch, for example, is responsible for export control procedures. His department – or rather: his everyday work – has changed as a result of the Ukraine war.
This is due to the sanctions that the EU has imposed on Russia. They are said to weaken the country “economically and financially”, as shown on the Government website is to read.
In the economic area, they include, among other things, export bans for so-called “dual-use and advanced tech goods”. Dual-use goods are “goods that could be used for civil but also military purposes”.
BAFA’s tasks include not only determining whether the export of a good requires and can be approved. The authority should also control embargoes.
BAFA has around 1200 employees
Pietsch deals intensively with exports to Russia. As he told the “FAZ”, the punitive measures against Moscow cost him 60 percent of his working hours. “Much of what was previously allowed is now forbidden. The bans are constantly being expanded.”
After all, BAFA hired some new employees. Not only in Pietsch’s department. In 2019, the federal agency had 860 employees. Today there are 1200, spread over the Eschborn, Berlin, Merseburg, Weißwasser and Borna locations. Ascending trend.
BAFA boss Safarik writes in an article on the authority’s website: “In the coming year we will welcome numerous new colleagues to deal with the many tasks in the areas of economy, foreign trade and climate protection”.
