World Bank Approves €599M Loan to Boost Romania’s Fiscal and Environmental Reforms

“The World Bank Group remains a steadfast partner in Romania's journey toward a more equitable and sustainable economy,” said Anna Akhalkatsi, World Bank Country Director for the European Union.

The World Bank Group Board of Executive Directors has approved a Development Policy Loan (DPL) for Romania totaling €599.1 million, aimed at advancing both economic and environmental sustainability in the country. The Romania Fiscal Management and Green Growth DPL is designed to support reforms that enhance Romania’s fiscal framework, promote green and inclusive growth, and stimulate private-sector investment.

This substantial loan will assist Romania in several key areas:

Fiscal Consolidation: Strengthening the country's fiscal sustainability and improving the equity of its pension system.

Decarbonization: Introducing incentives to support the reduction of greenhouse gas emissions in the transport sector, which has seen rising emissions.

Green Investment: Supporting Romania’s issuance of its first green bond to encourage public investment in environmentally sustainable projects.

The DPL also aims to lay the groundwork for increased private-sector involvement in renewable energy and energy efficiency. This includes novel financing for green investments, measures to promote offshore wind and green hydrogen, and strengthening public-private partnership legislation. These efforts are crucial for Romania to meet its commitments under the European Green Deal and achieve its climate mitigation goals, especially given its 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,” said Anna Akhalkatsi, World Bank Country Director for the European Union. “This new funding reflects our confidence in Romania’s ability to integrate inclusive growth with environmental stewardship. 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.”