WASHINGTON, July 25, 2024-The World Bank Group Board of Executive Directors today approved a Development Policy Loan (DPL) for Romania in the amount of €599.1 million. With a dual focus on economic and environmental sustainability, the Romania Fiscal Management and Green Growth DPL enables reforms to strengthen the country's fiscal framework, foster green and inclusive growth, and stimulate private-sector investment.
Through this loan, the World Bank supports Romania's fiscal consolidation, strengthens fiscal sustainability, and increases equity of the pensions system; introduces incentives to support the decarbonization of the transport sector, where greenhouse gas emissions continue to rise; and supports the issuance of the first green bond in Romania to boost public investment.
The loan also helps lay the foundations for increased private-sector participation in renewable energy and energy efficiency by introducing novel financing for green investments, measures to boost offshore wind, green hydrogen, and other renewable energy capacity, and by strengthening public-private partnership legislation. Such steps are essential for Romania to meet its commitments under the European Green Deal and achieve climate mitigation goals, particularly given the country's high vulnerability to the risks of climate change.
"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."
