The World Bank Group Board of Executive Directors approved a Development Policy Loan (DPL) for Romania amounting to €599.1 million. The Romania Fiscal Management and Green Growth DPL aims to strengthen the country's fiscal framework, promote green and inclusive growth, and stimulate private-sector investment.
The loan supports Romania’s efforts in fiscal consolidation, enhancing fiscal sustainability, and increasing equity in the pension system. It introduces incentives for decarbonizing the transport sector and supports the issuance of Romania's first green bond to boost public investment.
Additionally, the loan aims to increase private-sector participation in renewable energy and energy efficiency by introducing novel financing mechanisms for green investments. This includes measures to enhance offshore wind, green hydrogen, and other renewable energy capacities while strengthening public-private partnership legislation. These steps are crucial for Romania to meet its commitments under the European Green Deal and achieve climate mitigation goals, given the country's high vulnerability to climate change risks.
"The World Bank Group remains a steadfast partner in Romania's journey toward a more equitable and sustainable economy. This new funding reflects our confidence in Romania's capacity to integrate inclusive growth with environmental stewardship,” said Anna Akhalkatsi, World Bank Country Director for the European Union. “The operation supports a package of reforms designed to create a lasting impact that boosts inclusion in Romania and contributes to global efforts to combat climate change.”