Effective climate action could play a crucial role in revitalizing Moldova's economy, creating jobs, and protecting its citizens from extreme weather events, according to the World Bank Group’s Moldova Country Climate and Development Report (CCDR).
Moldova's national development strategies already incorporate many necessary policy measures for achieving a low-carbon and resilient economy. However, the country faces structural challenges such as weak growth and rising poverty. Addressing these issues could accelerate integration with European Union markets.
"As a small, landlocked country on the doorstep of Europe, embracing an ambitious program of climate action presents a significant opportunity for Moldova to achieve its development objectives," said Inguna Dobraja, World Bank Group Country Manager for Moldova. "The CCDR provides a comprehensive and actionable roadmap for the country to address its climate challenges while fostering inclusive and resilient economic growth."
Moldova is one of Europe's most energy-vulnerable countries, importing nearly all its coal, gas, and oil products. It has high greenhouse gas emissions per $1,000 of GDP compared to the EU average. This exposes Moldova to risks from the EU’s carbon-related trade tariffs that will be enforced in 2026.
Reliance on drought-prone agriculture contributes to weak economic growth and rising rural poverty. Severe flooding is common, droughts are more frequent and severe, and air pollution causes up to 3,000 deaths annually. Economic losses from multiple hazards are estimated at around $164 million annually.
A green transition offers considerable benefits by modernizing Moldova’s economy, creating better jobs, improving health outcomes by reducing air pollution-related deaths, and enhancing energy security.
The report emphasizes a people-centric approach focusing on opportunities for people while safeguarding vulnerable groups. Enhancing social protection and preparing people for skills required in a low-carbon economy are essential steps.
Key recommendations include:
- Energy Security and Efficiency: Scaling up renewable energy is vital for enhancing energy security.
- Adaptation Investments: Significant investments are needed in agriculture due to vulnerability to climate hazards.
- Policy Priorities: Implementing smart macro-fiscal policies can promote sustainable growth.
- Private Sector Participation: Most funding will need to come from private sector investments.
Over the next 30 years, Moldova would require an estimated $31 billion to meet government goals with an additional $8 billion needed to reach net-zero emissions. Two-thirds of this investment must come from the private sector.
To mobilize private investment:
- Enhance investment attractiveness through policies that improve financial returns.
- Leverage state assets via Public-Private Partnerships or privatization.
- Establish supportive regulatory frameworks for green transitions.
With support from multilateral development banks and government initiatives like green credit lines or bonds aligned with EU standards could drive climate-focused lending.
The World Bank Group’s CCDRs explore interlinkages between climate change and development helping countries prioritize impactful actions fostering low carbon transitions while delivering broader development goals.