Romania: PNRR’s finances for green investments low, SEE Energy News
Bankwatch Romania and Declic performed an analysis which shows that only a quarter of the projects in the energy chapter that can be financed through PNRR are really green. The remaining 75 % is investment in projects that contribute to climate change. According to Bankwatch Romania, the National Recovery and Resilience Plan (PNRR) finances only 3.4 % of renewable energy investments undertaken by Romania until 2030.
Consequently, environmental organizations are asking the European Commission and the Romanian authorities to redirect these funds to truly green energy projects, in line with the European Union’s climate targets.
With these investment proposals, Romania will not achieve its emission reduction targets until 2030. The use of gas of any kind, either natural gas or hydrogen obtained from fossil fuels, to heat homes is one of the most inefficient, expensive and unsustainable methods of heating. The major investments provided in the PNRR are towards fossil gas projects.
The analysis concludes that the financed projects do not reduce greenhouse gas emissions from the energy sector. Currently, this sector is the most important source of greenhouse gas emissions in Romania, generating 66 % of emissions. In fact, the PNRR itself says that under the conditions of the current energy mix, Romania will not reach its emission reduction targets for 2030.
Regarding coal, although the PNRR estimates that it will be phased out by 2032, there are no financial allocations to replace it and support the communities affected by this process, although 10 of the 17.5 billion euros of the total European Just transition Fund will be granted through the Recovery and Resilience Mechanism.