Romania's renewable energy sector is expanding, but access to financing remains a challenge for smaller players. Does BCR have dedicated financing schemes for independent renewable energy producers, prosumers, or community-led energy projects?
 
Energy is a strategic sector for both Romanian economy and BCR, with an important GDP share and opportunities coming from green transition targets and energy security objective. We have huge CAPEX needs driven by both refurbishment and replacement of existing out-dated capacities and development of new capacities, mainly renewables and nuclear in line with Long term strategy decarbonization plan of Romania and updated NECP 2030.

For BCR, the financing of energy projects has been and continues to be a strategic priority. We support initiatives that contribute to competitiveness, energy security and the development of a resilient economic ecosystem. In addition  to the expertise we have in structuring energy financing and understanding the complexity of the market, we strongly believe in supporting energy security in the region, and the strategic role that Romania has, as a hub of climate and energy diversity in the region. We offer access to an extensive network of expertise and financial resources. We facilitate cross-border collaboration and the development of innovative energy solutions at regional level.

BCR provides dedicated loan products designed to assist individuals and corporate businesses in installing renewable energy systems, such as photovoltaic panels, for own consumption. These financing solutions feature favourable terms, including extended repayment periods, dedicated approval flows and competitive costs, to encourage the adoption of sustainable energy practices and we offer these products in cooperation with partners, EPC contractors or other consultants.
 
BCR supports larger-scale renewable energy initiatives through specialized financing programs, project loans, investment credits, and co-financing arrangements, with terms tailored to the project's scale and financial structure. We consolidate our role as key financing partner of the sector, with a strong focus on financing sustainable and bankable projects and companies, also by co-financing projects under EU funds umbrella.
We note the increased appetite of investors to invest into new renewables capacities  in Romania and also utilities companies strategies to invest in distribution and transportation networks, smart grids and efficiency projects. Also CfD schemes and development of storage capacities would produce opportunities for financing. 
In 2024, the value of financing granted by BCR for energy projects is over EUR 530 million. Around €300 million has been allocated to green energy projects, large and small scale, approx 640 MWh, through bilateral or syndicated structures. BCR has granted new financing worth €65 million for the development and modernization of energy distribution networks. These investments are essential for improving Romania's energy infrastructure. In addition, it is important to talk here about ensuring an efficient distribution of energy to consumers.

What are BCRs plans for investment in renewable energy in Romania for this year?
 
The energy transition needs balance. We need to be aware of its need and find a sustainable pace of implementation. 2025 has started under the sign of major challenges in the energy sector, both at European and international level. Geopolitical tensions, changes in the structure of energy imports and the need to maintain a balance between sustainability and economic competitiveness will influence market dynamics.
 
Romania has demonstrated in 2023 that it can cover its domestic gas consumption at the limit from its own production and storage, having one of the lowest import dependencies at EU level (28% of domestic consumption).

Europe has a high degree of energy dependence (58%), which confirms the need to accelerate the transition to renewable sources. We must continue to invest in renewables, and in parallel also support energy-intensive industrial sectors, in order to avoid the risk of relocating industries to less regulated markets. 
We are here to support an acceleration of investments, and BCR will always be a partner for the energy sector. We expect to see an increase in demand for green energy projects, with a high interest in renewable sources, but also for storage infrastructure and grid modernization.
We are looking now at projects in solar and wind energy, also adding storage capacities. Currently we have under assessment more than 4 GW of RES projects.
 
How much does BCR plan to invest in green energy projects in Romania in the coming years?
 
If we analyze our potential for sustainable finance, also in view of reaching our 25% target by 2026, RES has significant potential, taking into account Romania ambitious roadmap for energy efficiency and implementation of RES projects. In 2024 financing for RES projects counted for more than 40% of sustainable financing in BCR, a ratio that we would like to keep.
 
What are the primary challenges BCR faces in promoting green finance and implementing its ESG strategy in the Romanian market?

The energy transition must be seen as a competitive advantage, not as an obstacle. It is true that here we open a broader topic and start discussing implementation, legislative framework and support policies, but beyond that we need to be aware of the benefits.

We see the following challenges:
1. Regulatory and reporting complexities:
The evolving landscape of ESG regulations, particularly within the European Union, necessitates continuous adaptation. BCR must align its financial products and services with the EU's ESG taxonomy, which requires significant adjustments in internal processes and reporting standards. This alignment is crucial for ensuring compliance and meeting stakeholder expectations. However, omnibus proposal intends to implement the European Commission's effort to balance the need for robust sustainability reporting with the desire to reduce administrative burdens on businesses, particularly smaller ones. This initiative reflects an ongoing dialogue between regulatory bodies, industry stakeholders, and environmental advocates to achieve sustainable economic growth, will reduce the scope and data reported and will postpone reporting deadlines under CSRD and CSDDD.

A significant number of small and medium-sized enterprises (SMEs) may experience reduced regulatory pressures, allowing them to allocate resources more efficiently without the extensive reporting requirements.
 
2. Market awareness and education:
There is a noticeable gap in ESG awareness and understanding among Romanian companies and investors. Many businesses view non-financial reporting primarily as a compliance obligation rather than a strategic initiative. This perception challenges for companies to promote sustainable finance products, as clients may lack the necessary knowledge or motivation to engage in ESG-oriented financial activities.
 
3. Data availability and transparency:
Effective ESG implementation relies heavily on the availability of accurate and comprehensive data. In Romania, inconsistent ESG reporting practices among companies lead to data gaps, making it difficult for financial institutions to assess risks accurately and make informed investment decisions. This lack of transparency can hinder the development of tailored green finance products.
 
4. Balancing profitability with sustainability:
Integrating ESG considerations into financial decision-making requires balancing traditional profitability metrics with long-term sustainability goals, taking into account financial impact of climate risks on balance sheet and profit and loss items and companies valuation metrics (including cost of capital and revenues streams).
 
5. Infrastructure and technological constraints:
The successful promotion of green finance is contingent upon robust infrastructure and technological support. Romania's current infrastructure may not fully support the rapid deployment of certain green projects, such as renewable energy installations.
Addressing these challenges requires a multifaceted approach, including regulatory alignment, market education, enhanced data practices, strategic financial planning, and infrastructure development. By tackling these areas, BCR can strengthen its role in promoting green finance and effectively implementing its ESG strategy in the Romanian market.
 
What do you think the financing trends will be for 2025?
 
Aligning with the European Green Deal, Romania has set ambitious targets to reduce greenhouse gas emissions by 78% by 2030 and achieve climate neutrality by 2050. The country is leveraging green financing instruments, such as green bonds, to fund renewable energy projects and sustainable infrastructure. The energy sector remains a focal point for investment, with significant projects underway to enhance energy security and sustainability, including projects into expansion of gas and nuclear capacities. These projects aim to diversify energy sources and reduce reliance on fossil fuels.
 
In summary, Romania's 2025 financing trends are shaped by efforts to achieve fiscal discipline, diversify funding sources, invest in sustainable energy, and navigate political challenges to maintain economic stability.
 
How does BCR support green financing in the real estate sector, and what specific programs or financial instruments are available for developers prioritizing sustainability?
 
Banca Comercială Română (BCR) is committed to advancing sustainability in Romania's real estate sector by offering specialized financial solutions and support for developers prioritizing green building practices. While specific programs and financial instruments may evolve, BCR's approach includes:
 
1. Sustainable Financing:
BCR provides loans tailored for real estate developers focusing on certified sustainable projects. These loans offer favorable terms for developments that meet established environmental standards, such as energy efficiency and reduced carbon footprints. Loans in commercial real-estate sector represents more than 60% from total sustainable finance portfolio, while in residential mortgages, sustainable finance mortgages Casa Mea Natura (EPC A) represents more than 20% of the mortgage retail portfolio.
 
2. Advisory Services and Capacity Building:
Beyond financing, BCR offers advisory services to developers, guiding them through the process of integrating sustainable practices into their projects. This includes assistance in meeting certification requirements and optimizing resource efficiency.