This loan is designed to promote both economic and environmental sustainability through the Romania Fiscal Management and Green Growth DPL. It aims to reinforce the country's fiscal framework, encourage green and inclusive growth, and stimulate private-sector investment.
This loan will support Romania's efforts in fiscal consolidation, enhance budgetary sustainability, and improve equity in the pension system. It also introduces measures to encourage decarbonization in the transport sector, where greenhouse gas emissions are still rising. It supports the issuance of Romania's first green bond to increase public investment.
Additionally, the loan aims to boost private-sector involvement in renewable energy and energy efficiency by introducing innovative financing for green investments, promoting offshore wind, green hydrogen, and other renewable energy sources, and strengthening public-private partnership laws. These initiatives are crucial for Romania to meet its obligations under the European Green Deal and achieve its climate goals, especially given the country's high vulnerability to climate change risks.
"The World Bank Group remains a committed partner in Romania's path toward a more equitable and sustainable economy. This funding demonstrates our confidence in Romania's ability to integrate inclusive growth with environmental stewardship," said Anna Akhalkatsi, World Bank Country Director for the European Union. "The operation supports a set of reforms aimed at making a lasting impact by enhancing inclusion in Romania and contributing to global climate change mitigation efforts."
