Romania
Romania ranks 24th in this year’s CCPI, and is now among the countries showing medium performance.
Its performance is mixed, with low ratings in the Climate Policy and Renewable Energy categories, medium in Energy Use, and high in GHG Emissions.
No phase-out dates for gas and oil
Romania’s energy mix still relies heavily on fossil fuels, mainly oil and gas. A 2032 phase-out goal has been set for coal. No phase-out dates have been set for gas and oil. The country plans to use gas as a transition fuel; therefore, many investments in fossil gas are still planned through various strategic or programmatic documents. These investments consist of expanding the gas distribution system and new fossil gas-based units included in the decarbonisation plan of the largest coal producer (Oltenia Energy Complex [OEC]). Specifically, two new gas-fired power plants are expected to come online in 2026 and an offshore gas project started production in 2022.
The CCPI country experts want greater transparency in the OEC decarbonisation process and suggest publicising all relevant mine closures and rehabilitation timelines. Also, fewer gas investments should be planned.
Regarding renewables, the experts criticise that while the green certificate support scheme ended in 2016, no similar mechanism has been implemented to boost renewable energy investments, despite Romania‘s considerable potential. Progress has been made on a state aid scheme for wind and solar capacity investments. Under the Recovery and Resilience Plan, approved by the European Commission in March 2023, direct subsidies will be granted for wind and solar projects selected through a tendering process.
More public transport needed
In its National Energy and Climate Plan (NECP), Romania doesn’t specify a greenhouse gas (GHG) emissions reduction target for the transport sector, though the NECP will soon be revised. The Environmental Fund Administration has several support programmes for replacing old vehicles with low-emission and electric vehicles, and a programme for increasing the number of charging points for electric vehicles and plug-in hybrid vehicles.
The experts criticise that one of these existing national support schemes allows funding to be allocated to internal combustion engine vehicles, which does not help reduce GHG emissions. Regarding transport, the experts want to see more public transport, more bicycle lanes, and creation of low-emission zones in city centres.
The energy efficiency of buildings in Romania still needs to be improved. While the Environmental Fund Administration has implemented several programmes to increase efficiency, methodological standards are still needed for properly applying the law on energy/emission performance standards.
The experts offer several recommendations to improve Romania‘s climate policy. They want to see more ambitious climate and energy targets for 2030 and 2050 and more offshore wind sector development. Also, energy efficiency in all energy-intensive sectors should be improved and a concrete plan to alleviate energy poverty should be implemented.
It is important to note that the improved performance of Romania is influenced by new and updated data on the LULUCF sector.
Key Outcomes
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CCPI experts
- Laura Nazare (Bankwatch Romania)
