Title page
Contents
Abstract 4
Résumé 4
Progress towards net zero 9
Progress in emission reduction has lost pace 9
Deep emissions reductions are required for Romania to reach net zero 10
Enhancing climate governance and the climate policy framework 11
Romania's climate governance has improved but implementation gaps persist 11
Improving the efficiency of public low-carbon investment is paramount 13
A broader, more cost-effective and fairer policy mix is needed 15
There is scope to increase and harmonise carbon prices outside the ETS 17
Removing support to fossil fuels should be a priority 19
The phase out of fossil fuel support related to the energy-crisis should be accelerated 20
Stronger emission pricing should go along with measures to alleviate energy poverty 20
Decarbonising electricity generation 22
Phasing out coal is imperative to get on track to net zero 23
Recent measures aim to remove barriers to renewables deployment 25
Setting the groundwork for low-emission transportation 31
Large infrastructure gaps hinder transport decarbonisation 31
Enhancing urban mobility systems is a top priority 32
Better price signals and charging networks are needed to transition to electric vehicles 33
Making buildings less energy- and carbon-intensive 37
Removing impediments to renovations is crucial 38
Moving away from firewood- and gas-based heating would provide multiple benefits 41
Policy options for abating emissions from industrial processes, agriculture and waste 42
Supporting workers in the transition to net zero 43
Coping with mounting climate change risks 46
Better governance and insurance markets would enhance resilience to climate impacts 47
Climate change wide-ranging impacts require tailored policy responses 49
References 53
Table 1. Key climate mitigation and clean energy transition targets and milestones 12
Table 2. Examples of streamlined procedures for renewable electricity in Europe 28
Table 3. Recommendations on decarbonising the economy 51
Figure 1. Carbon-intensive energy drives the GHG emission intensity of Romania's economy 8
Figure 2. Romania's progress in reducing GHG emissions has slowed down in recent years 9
Figure 3. Romania's energy mix relies on fossil fuels and generates most GHG emissions 10
Figure 4. Romania is not on track to achieve its 2030 and 2050 climate mitigation goals 11
Figure 5. Romania's Recovery and Resilience Plan focuses on decarbonising transport and improving energy efficiency 14
Figure 6. Climate policy has become more stringent but could better embrace market-based mitigation approaches 16
Figure 7. Romania's implicit carbon tax is among the lowest in Europe and uneven across fuels 17
Figure 8. Energy tax revenue grew with fuel use and is a high share of total tax revenue 19
Figure 9. A large and increasing share of the population cannot afford to pay for energy 21
Figure 10. Much of Romania's electricity still comes from burning fossil fuels 23
Figure 11. Electricity still plays a relatively little role in Romania's final energy use 23
Figure 12. Coal power generation declined and must be phased out 24
Figure 13. Investment in renewables capacity stalled and needs to accelerate 26
Figure 14. Lengthy permitting processes are slowing deployment of renewables 27
Figure 15. Rail transport is losing ground to driving 31
Figure 16. Public transport is widely used, but its role has declined to the benefits of private cars 32
Figure 17. The car fleet is expanding and ageing 34
Figure 18. A massive shift to alternative fuel cars is needed to advance on the net-zero path 35
Figure 19. Despite high electric car sales, new cars are carbon-intensive in international comparison 35
Figure 20. Romania has expanded EV charging infrastructure but lags other EU countries 37
Figure 21. Heating consumption in residential spaces is high and increasing 38
Figure 22. Most of Romania's population live in single-family houses, except in cities 40
Figure 23. Woody biomass is the dominant renewable energy source used for residential heating 41
Figure 24. Jobs in mining and energy-intensive industries are clustered and already declined 44
Figure 25. Participation in training grew but remains low, especially in vulnerable regions 46
Figure 26. Romania's population is highly exposed to river flooding 47
Figure 27. Insurance is rarely used in Romania to cover the risks of economic losses due to climate-related extreme weather events 48
Boxes
Box 1. Examples of climate framework laws 13
Box 2. The Recovery and Resilience Plan and EU Cohesion Policy are set to help decarbonise Romania's economy 15
Box 3. Romania's participation in the EU ETS 16
Box 4. Recycling carbon tax revenue for an equitable transition: The case of Ireland 22
Box 5. Romania's measures to promote renewable-based hydrogen 26
Box 6. Renewable acceleration areas: The new EU approach to permitting 28
Box 7. The benefits of energy communities and some international experiences 30
Box 8. Romania's long-standing car scrapping programme 36
Box 9. Targeting renovation subsidies to low-income households 40
Box 10. Romania's Just Transition Plans for coal regions 45
Box 11. Romania's natural catastrophe home insurance programme 48
Box 12. Green roofs against heat waves and urban floods: The case of Germany 50