## Making Romania Fit and Resilient for the Net-Zero Transition

_Selected Issues Papers, December 13, 2023_

## Source details

**Canonical URL:** [Making Romania Fit and Resilient for the Net-Zero Transition](https://www.imf.org/en/publications/selected-issues-papers/issues/2023/12/13/making-romania-fit-and-resilient-for-the-net-zero-transition-542452)

## Other formats

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## Bibliographic details
- Published: December 13, 2023
- Series: Selected Issues Papers
- DOI: https://doi.org/10.5089/9798400263736.018

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### Key findings
- 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.

### Analysis and projections
- 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.

### Policy recommendations
- 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.

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## Content in this bundle

- **Sipea2023063**
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_Source: https://www.imf.org/en/publications/selected-issues-papers/issues/2023/12/13/making-romania-fit-and-resilient-for-the-net-zero-transition-542452_