Making Romania Fit and Resilient for the Net-Zero Transition

Selected Issues Papers, December 13, 2023

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Romania is on track to become ‘fit for 55’—reducing its absolute emissions by 55 percent (relative to 1990) by 2030, consistent with the European Green Deal.
Becoming carbon-neutral by 2050 in an economically resilient and competitive manner would require an accelerated decarbonization path, especially in the transport and building sectors.
The transport and building sectors are emission-intensive and are projected to raise Romania’s carbon footprint over time without additional measures.
Complementing existing decarbonization measures with further national carbon pricing instruments in these sectors could put Romania on track to carbon neutrality.
Complementary measures would:
- Incentivize green private investment.
- Boost energy security.
- Enhance Romania’s resilience.
- Unlock Romania’s potential in global green value chains.

Current trajectory aligns with the “fit for 55” objective (55 percent reduction relative to 1990 by 2030).
To reach carbon neutrality by 2050, an accelerated decarbonization path is required, with priority on:
- Transport sector decarbonization.
- Building sector decarbonization.
The paper’s analysis demonstrates that adding national carbon pricing instruments targeted at these sectors can shift Romania onto a carbon-neutral trajectory while supporting economic resilience and competitiveness.

Implement further national carbon pricing instruments focused on transport and buildings to complement existing decarbonization measures.
Use carbon pricing to:
- Mobilize and direct green private investment.
- Strengthen energy security.
- Increase resilience to transition risks.
- Integrate Romania into global green value chains.