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	<title>2024 - EPG</title>
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	<title>2024 - EPG</title>
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		<title>Successful CfD Auction Brings Optimism, But Industry Challenges Persist </title>
		<link>https://www.enpg.ro/successful-cfd-auction-brings-optimism-but-industry-challenges-persist/?utm_source=rss&#038;utm_medium=rss&#038;utm_campaign=successful-cfd-auction-brings-optimism-but-industry-challenges-persist</link>
		
		<dc:creator><![CDATA[Energy Policy Group]]></dc:creator>
		<pubDate>Thu, 19 Dec 2024 09:09:25 +0000</pubDate>
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					<description><![CDATA[<p>Context&#160; Romania adopted Government Decision No. 318/2024 in April 2024, introducing a Contracts for Difference (CfD) scheme to support low-carbon emissions technologies. Throughout the summer of 2024, ANRE set out the methodology for determining and collecting CfD contributions, and the Ministry of Energy approved the state aid scheme.&#160;&#160; The first CfD auction has concluded and [&#8230;]</p>
<p>The post <a href="https://www.enpg.ro/successful-cfd-auction-brings-optimism-but-industry-challenges-persist/">Successful CfD Auction Brings Optimism, But Industry Challenges Persist </a> first appeared on <a href="https://www.enpg.ro">EPG</a>.</p>]]></description>
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<h2 class="wp-block-heading"><strong><strong>Context</strong>&nbsp;</strong></h2>



<p>Romania adopted Government Decision No. 318/2024 in April 2024, introducing a Contracts for Difference (CfD) scheme to support low-carbon emissions technologies. Throughout the summer of 2024, ANRE set out the methodology for determining and collecting CfD contributions, and the Ministry of Energy approved the state aid scheme.&nbsp;&nbsp;</p>
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<figure class="wp-block-image size-full"><a href="https://www.enpg.ro/wp-content/uploads/2024/12/EPG-Commentary_Romanias-CfD-Scheme.pdf"><img fetchpriority="high" decoding="async" width="1200" height="1200" src="https://www.enpg.ro/wp-content/uploads/2024/12/EPG-CFD-Commentary-Site-v1.png" alt="" class="wp-image-6228" srcset="https://www.enpg.ro/wp-content/uploads/2024/12/EPG-CFD-Commentary-Site-v1.png 1200w, https://www.enpg.ro/wp-content/uploads/2024/12/EPG-CFD-Commentary-Site-v1-300x300.png 300w, https://www.enpg.ro/wp-content/uploads/2024/12/EPG-CFD-Commentary-Site-v1-1024x1024.png 1024w, https://www.enpg.ro/wp-content/uploads/2024/12/EPG-CFD-Commentary-Site-v1-150x150.png 150w, https://www.enpg.ro/wp-content/uploads/2024/12/EPG-CFD-Commentary-Site-v1-768x768.png 768w, https://www.enpg.ro/wp-content/uploads/2024/12/EPG-CFD-Commentary-Site-v1-600x600.png 600w, https://www.enpg.ro/wp-content/uploads/2024/12/EPG-CFD-Commentary-Site-v1-696x696.png 696w" sizes="(max-width: 1200px) 100vw, 1200px" /></a></figure>
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<p><a href="https://energie.gov.ro/evaluarea-ofertelor-financiare-depuse-de-participanti-la-prima-licitatie-a-contractelor-pentru-diferenta-cfd-s-a-incheiat-cu-succes-au-fost-atribuite-contracte-pentru-peste-1500mw-capacitati-noi-d/" target="_blank" rel="noreferrer noopener">The first CfD auction has concluded and successfully procured the target c. 1.5 GW of installed capacity</a> (1,096 MW for onshore wind and 432 MW for solar). Following the technical evaluation, 47 bids were eligible for financial evaluation with 21 applicants awarded contracts. Maximum prices were set at €78/MWh for solar and €82/MWh for onshore wind and a weighted average of the strike prices were €51/MWh for solar and €65/MWh for wind, representing good value for money. A second auction with 3.5 GW (1.5 GW for onshore wind and 2.0 GW for solar) is scheduled for the third quarter of 2025. Future auctions may include other technologies, such as offshore wind and nuclear.&nbsp;&nbsp;</p>



<p>A CfD contract will last for 15 years. The Modernisation Fund supports the scheme with €3 billion until 2030, after which the cost of maintaining it is to be passed onto the consumer bills. This guaranteed revenue stream over 15 years enables developers to secure financing by ensuring predictable payback periods and minimum returns on investment, protecting investors from market fluctuations.&nbsp;&nbsp;</p>



<p>CfDs are an important tool meant to shield select power generation technologies from market volatility and to provide long-term stability. Despite this successful first auction, though, the Romanian renewables sector is still proceeding with caution, as some language in the CfD contract is less comforting than it first appeared.&nbsp;</p>



<p><strong>Industry concerns</strong>&nbsp;</p>



<p>Concerns over stability have been raised by some stakeholders, notably that the contract as written offers limited projection for power generators that are taking on more risk with the Romanian CfD than in CfD schemes in other states.&nbsp;&nbsp;</p>



<p><strong>Reference price methodology&nbsp;</strong>&nbsp;</p>



<p>The draft methodology for setting the reference price has been viewed positively by industry, although the final methodology has yet to be released by the energy regulator. The reference price definition poses a risk to generators as ANRE reserves the right to revisit the methodology at any point if they consider that the reference price is not adequately reflecting market trends. However, how exactly ANRE is to (re)assess the situation is not clear. This is a surprising contractual clause considering that the reference price is based on the average day-ahead power market, which should be a straightforward market reading. EPG suggests that wording around adjusting the reference price methodology should at least be limited to a specific percentage point to allow electricity producers to model for the worst-case scenario when deciding on submitting a bid in future auction rounds.&nbsp;&nbsp;</p>



<p><strong>Consumer Price Index</strong>&nbsp;</p>



<p>Concerns have been raised over the absence of cumulative Consumer Price Index (CPI) evolution. In theory, the CfD strike price should be adjusted every three years based on CPI; however, adjustment only applies if CPI increases more than 10%. Therefore, any inflation below 10% will not be adjusted for, leaving generators to deal with losses based on inflation of up to that threshold. Indeed, CPI-based adjustments are in line with the Eurozone Consumer Price Index, which is generally more conservative than the Romanian CPI. The long-term nature of CfDs means that real inflation could outstrip CfD payments and significantly impact returns. The unbalanced burden of managing inflation falling on the generator does not match the de-risking purpose of a CfD.&nbsp;&nbsp;</p>



<p><strong>State unilateral exit&nbsp;</strong>&nbsp;</p>



<p>The state has the right to unilaterally terminate a CfD contract at its convenience, which many in industry find unacceptable and undermining the scheme’s very sense: to allow for a long-term, predictable revenue stream.&nbsp;&nbsp;</p>



<p>Under this clause, the generator is entitled to payments which theoretically should amount to what they would have received had the contract lasted to full fruition. As always, though, the devil is in the details and the methodology used for calculating the termination payment is not clear-cut. Based on the formulas outlined in the contract, the termination compensation should equate to the generator’s market loss based on the historical weighted average of CfD difference payments since the start date and metered output from the previous year, including a discount rate. However, the generator risks the state terminating the contract following a stable year before the market takes a turn, leaving the generator to carry the burden alone. If the market remains relatively stable, the termination amount would reasonably closely match what the generator should have received. In this situation, though, why would the government choose to exit the contract?&nbsp;&nbsp;</p>



<p>Besides, the reference price calculations will play a significant role in the level of termination fee paid to generators. If these values are transparent and fair, there is a scenario where the generator is fairly compensated, but a clause which allows one party to unilaterally terminate the contract without cause does not inspire confidence.&nbsp;</p>



<p><strong>Regulatory</strong> <strong>aspects outside the generator’s control</strong>&nbsp;</p>



<p>The responsibility of achieving grid connection (ATR) falls on the electricity producer’s shoulders, with little recourse if decisions from the TSO are outside their control. At the auction stage, bidders must evidence the application for ATR. However, they are responsible for achieving ATR within six months of signing the CfD contract, and some bidders have justifiably expressed concerns over tight timelines, especially as decisions around grid connections are in the control of the TSO, while bidders have little control over the decision-making timelines.&nbsp;&nbsp;</p>



<p>The Government Ordinance 59/2013 stipulates that grid connection must be granted by the TSO within six months of application, but in practice it can take over a year. Generators therefore take a risk of not being granted connection agreements on time. The TSO’s ability to accommodate an influx of new grid connection agreements is known to be facing difficulties. If the TSO cannot come to a decision in the 6-month timeline, the CfD Counterpart is within their rights to enforce performance bonds on the bidder. Similarly, the process to obtain a building permit is not guaranteed and the risk of failure or delays may also affect the generator’s ability to see the project to fruition and incur significant penalties.&nbsp;&nbsp;&nbsp;</p>



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<figure class="wp-block-image size-full is-style-default"><img decoding="async" width="800" height="800" src="https://www.enpg.ro/wp-content/uploads/2024/06/Nadia-Maki-ENPG.png" alt="Nadia Maki ENPG" class="wp-image-5330" srcset="https://www.enpg.ro/wp-content/uploads/2024/06/Nadia-Maki-ENPG.png 800w, https://www.enpg.ro/wp-content/uploads/2024/06/Nadia-Maki-ENPG-300x300.png 300w, https://www.enpg.ro/wp-content/uploads/2024/06/Nadia-Maki-ENPG-150x150.png 150w, https://www.enpg.ro/wp-content/uploads/2024/06/Nadia-Maki-ENPG-768x768.png 768w, https://www.enpg.ro/wp-content/uploads/2024/06/Nadia-Maki-ENPG-600x600.png 600w, https://www.enpg.ro/wp-content/uploads/2024/06/Nadia-Maki-ENPG-696x696.png 696w" sizes="(max-width: 800px) 100vw, 800px" /></figure>
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<h5 class="wp-block-heading"><strong>Nadia Maki, </strong>EPG Senior Researcher</h5>



<p>Nadia Maki is a Senior Researcher within the Energy Systems Programme of EPG. She is an energy policy researcher focused on renewable energy financing, green technology and innovation and emerging economies.</p>



<p>Before joining EPG, Nadia worked as an independent evaluator for renewable energy financing schemes for the UK Department of Energy Security and Net Zero, evaluating schemes such as the Contracts for Difference scheme and the Capacity Market scheme. Nadia has extensive experience using theory-based evaluation methods. She has also contributed to projects for DG CLIMA, DG Environment, the Research Council of Norway, UN Women, the World Health Organization and ActionAid.</p>



<p>Nadia holds an MSc in Climate Change, Development and Policy from the Science Policy Research Unit and the Institute of Development Studies at the University of Sussex and a Bachelors of Arts degree from Queen’s University in Canada.&nbsp;</p>



<p>Contact: <a href="mailto:nadia.maki@enpg.ro" title="nadia.maki@enpg.ro">nadia.maki@enpg.ro</a></p>
</div>
</div><p>The post <a href="https://www.enpg.ro/successful-cfd-auction-brings-optimism-but-industry-challenges-persist/">Successful CfD Auction Brings Optimism, But Industry Challenges Persist </a> first appeared on <a href="https://www.enpg.ro">EPG</a>.</p>]]></content:encoded>
					
		
		
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		<title>Romania’s Offshore Wind Potential: Policy Pathways for Sustainable Development</title>
		<link>https://www.enpg.ro/romanias-offshore-wind-potential-policy-pathways-for-sustainable-development/?utm_source=rss&#038;utm_medium=rss&#038;utm_campaign=romanias-offshore-wind-potential-policy-pathways-for-sustainable-development</link>
		
		<dc:creator><![CDATA[Energy Policy Group]]></dc:creator>
		<pubDate>Tue, 17 Dec 2024 10:49:27 +0000</pubDate>
				<category><![CDATA[2024]]></category>
		<category><![CDATA[EPG Policy Papers]]></category>
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		<category><![CDATA[Mihai Constantin]]></category>
		<guid isPermaLink="false">https://www.enpg.ro/?p=6210</guid>

					<description><![CDATA[<p>Offshore wind energy is a crucial element of the European Union’s decarbonisation plan. With substantial untapped potential in the Black Sea, Romania has the opportunity to become a regional leader, particularly following the adoption of its Offshore Wind Law in 2024. This paper was written as part of the project BLUECEE – Strengthening Policy and [&#8230;]</p>
<p>The post <a href="https://www.enpg.ro/romanias-offshore-wind-potential-policy-pathways-for-sustainable-development/">Romania’s Offshore Wind Potential: Policy Pathways for Sustainable Development</a> first appeared on <a href="https://www.enpg.ro">EPG</a>.</p>]]></description>
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<p>Offshore wind energy is a crucial element of the European Union’s decarbonisation plan. With substantial untapped potential in the Black Sea, Romania has the opportunity to become a regional leader, particularly following the adoption of its Offshore Wind Law in 2024.</p>



<ul class="wp-block-list">
<li>Offshore wind energy has emerged as a pillar of the EU&#8217;s decarbonisation policy. The EU is aiming for 60 GW of offshore wind capacity by 2030 and 300 GW by 2050. <strong>Romania, with significant untapped technical wind potential in the Black Sea estimated between 76-94 GW, could become a regional leader in offshore wind development.</strong></li>
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<figure class="wp-block-image size-full"><a href="https://www.enpg.ro/wp-content/uploads/2024/12/EPG-POLICY-PAPER_Romanias-offshore-wind-potential.pdf" target="_blank" rel=" noreferrer noopener"><img decoding="async" width="1200" height="1200" src="https://www.enpg.ro/wp-content/uploads/2024/12/EPG-BLUECEE-Policy-Paper-Site-v1.png" alt="" class="wp-image-6208" srcset="https://www.enpg.ro/wp-content/uploads/2024/12/EPG-BLUECEE-Policy-Paper-Site-v1.png 1200w, https://www.enpg.ro/wp-content/uploads/2024/12/EPG-BLUECEE-Policy-Paper-Site-v1-300x300.png 300w, https://www.enpg.ro/wp-content/uploads/2024/12/EPG-BLUECEE-Policy-Paper-Site-v1-1024x1024.png 1024w, https://www.enpg.ro/wp-content/uploads/2024/12/EPG-BLUECEE-Policy-Paper-Site-v1-150x150.png 150w, https://www.enpg.ro/wp-content/uploads/2024/12/EPG-BLUECEE-Policy-Paper-Site-v1-768x768.png 768w, https://www.enpg.ro/wp-content/uploads/2024/12/EPG-BLUECEE-Policy-Paper-Site-v1-600x600.png 600w, https://www.enpg.ro/wp-content/uploads/2024/12/EPG-BLUECEE-Policy-Paper-Site-v1-696x696.png 696w" sizes="(max-width: 1200px) 100vw, 1200px" /></a></figure>
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<ul class="wp-block-list">
<li><strong>Romania&#8217;s adoption of the Offshore Wind Law in 2024 (Law No. 121/2024) is a major step forward in developing its offshore wind sector. </strong>However, there are still gaps that need addressing. <strong>A key issue is the timeline for actions outlined in the law, such as the public availability of information on the terms of reference for the Expert Study, which was supposed to be approved by September 2024</strong>. Additionally, the lack of a legally binding target is a concern, as it would help enforce timelines for secondary legislation and provide greater clarity to investors. Simplifying the permitting process is also crucial, given that developers must currently obtain approvals from multiple authorities.</li>



<li><strong>Offshore wind development in the Black Sea should prioritise environmental protection, given the basin&#8217;s unique characteristics and biodiversity risks.</strong> The enclosed nature of the sea, with limited water exchange and anoxic deep layers, makes it particularly sensitive to disturbances. Localised environmental studies are essential for understanding and mitigating the risks posed by offshore wind construction and operation. Lessons from Romania’s onshore wind projects and international offshore wind development can further guide environmentally responsible practices.</li>



<li><strong>Romania adopted its Maritime Spatial Plan in November 2023, marking a step forward in aligning maritime activities with sustainable development</strong>. However, the MSP faces challenges, including insufficient stakeholder engagement during its development, which resulted in limited input from sectors such as fisheries, tourism, and local authorities.</li>



<li><strong>Romania&#8217;s infrastructure and supply chain readiness are key to unlocking its offshore wind potential, but gaps remain.</strong> Future production from offshore wind, onshore wind, and new nuclear capacities will need accelerated grid reinforcements and new HVDC lines, to ensure the evacuation of electricity. The Port of Constanța, while partially equipped, needs an upgrade to handle the storage, assembly, and transport of offshore wind components in a scenario intended to promote rapid growth and a higher volume of installed capacities. A global shortage of installation vessels presents another bottleneck, exacerbated by Romania’s lack of domestic shipbuilding capacity following the Damen Mangalia shipyard’s insolvency. To address these challenges, Romania could adopt <em>Sector Deals</em> modelled on the UK and Poland examples.</li>
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<p>This paper was written as part of the project BLUECEE – Strengthening Policy and Governance Capacity for Blue Energy in Central and Eastern Europe. The project is part of the European Climate Initiative (EUKI) of the German Federal Ministry for Economic Affairs and Climate Action (BMWK). The opinions put forward in this report are the sole responsibility of the authors and do not necessarily reflect the views of the Federal Ministry for Economic Affairs and Climate Action (BMWK).</p>



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<figure class="wp-block-image size-full is-style-default"><img loading="lazy" decoding="async" width="800" height="800" src="https://www.enpg.ro/wp-content/uploads/2023/02/mihai-constantin-enpg-team.png" alt="mihai constantin enpg team" class="wp-image-4066" srcset="https://www.enpg.ro/wp-content/uploads/2023/02/mihai-constantin-enpg-team.png 800w, https://www.enpg.ro/wp-content/uploads/2023/02/mihai-constantin-enpg-team-300x300.png 300w, https://www.enpg.ro/wp-content/uploads/2023/02/mihai-constantin-enpg-team-150x150.png 150w, https://www.enpg.ro/wp-content/uploads/2023/02/mihai-constantin-enpg-team-768x768.png 768w, https://www.enpg.ro/wp-content/uploads/2023/02/mihai-constantin-enpg-team-600x600.png 600w, https://www.enpg.ro/wp-content/uploads/2023/02/mihai-constantin-enpg-team-696x696.png 696w" sizes="auto, (max-width: 800px) 100vw, 800px" /></figure>
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<h5 class="wp-block-heading"><strong>Mihai Constantin, </strong>EPG Researcher</h5>



<p>Mihai Constantin is a&nbsp;Researcher at the Energy Policy Group,&nbsp;where he focuses on energy policies on topics such renewable&nbsp;energy and decarbonisation policies. As part of the Energy Systems Department he has contributed to a series of reports and policy papers addressing topics such as offshore wind development, solar energy potential, coal phase-out etc. At the same time, he engaged in advocacy activities with different stakeholders in order to promote the collaboration between public authorities, industry, and civil society on topics such as the development of offshore wind (through the Black Sea Renewable Coalition) or designating acceleration areas for renewable energy.</p>



<p>Mihai has a Master Degree in European Economics at Bucharest University of Economic Studies.</p>



<p>He has expertise on public policies in the fields of energy, climate change and economics. He also occupies a position of Senior Energy Expert at the World Bank. Before joining EPG, he worked for WWF Romania as Climate &amp; Energy Manager and as Advisor on Public Policies in the Romanian Parliament.</p>



<p>Contact: <a href="mailto:mihai.constantin@enpg.ro" title="">mihai.constantin@enpg.ro</a></p>
</div>
</div><p>The post <a href="https://www.enpg.ro/romanias-offshore-wind-potential-policy-pathways-for-sustainable-development/">Romania’s Offshore Wind Potential: Policy Pathways for Sustainable Development</a> first appeared on <a href="https://www.enpg.ro">EPG</a>.</p>]]></content:encoded>
					
		
		
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		<title>Leveraging the EU Cohesion Policy for a Clean Industrial Revival</title>
		<link>https://www.enpg.ro/leveraging-the-eu-cohesion-policy-for-a-clean-industrial-revival/?utm_source=rss&#038;utm_medium=rss&#038;utm_campaign=leveraging-the-eu-cohesion-policy-for-a-clean-industrial-revival</link>
		
		<dc:creator><![CDATA[Energy Policy Group]]></dc:creator>
		<pubDate>Wed, 11 Dec 2024 12:28:58 +0000</pubDate>
				<category><![CDATA[2024]]></category>
		<category><![CDATA[Commentary]]></category>
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		<guid isPermaLink="false">https://www.enpg.ro/?p=6199</guid>

					<description><![CDATA[<p>Heavy industry, an engine for development The EU’s heavy industry is under enormous pressure. Across the continent, producers of steel, cement, chemicals, and other essential materials are announcing expensive transformation plans to maintain their competitiveness in a low-carbon world, while struggling to compete with cheap imports and to overcome the current sluggish demand for green [&#8230;]</p>
<p>The post <a href="https://www.enpg.ro/leveraging-the-eu-cohesion-policy-for-a-clean-industrial-revival/">Leveraging the EU Cohesion Policy for a Clean Industrial Revival</a> first appeared on <a href="https://www.enpg.ro">EPG</a>.</p>]]></description>
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<h2 class="wp-block-heading"><strong>Heavy industry, an engine for development</strong></h2>



<p>The EU’s heavy industry is under enormous pressure. Across the continent, producers of steel, cement, chemicals, and other essential materials are announcing expensive transformation plans to maintain their competitiveness in a low-carbon world, while struggling to compete with cheap imports and to overcome the current sluggish demand for green products. </p>
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<p>Said transformation plans are often dependent on state-led infrastructure development – both for enabling their execution (such as carbon dioxide transport infrastructure for carbon management projects) and for creating lead markets to increase the certainty of investment payback (for example, long-term contracts for purchasing green steel at a premium price tag). They are also costly, both in terms of capital and operational expenses, and will require innovative financial and fiscal instruments, including private sector mobilisation, to ensure deployment at the pace required to keep EU industries operating and competing within emissions and resource constraints.</p>



<p>In Central and Eastern Europe (CEE), heavy industry is both more <a href="https://iap.unido.org/data/sdg-9-industry?p=ROU&amp;s=DEU&amp;t=938">emissions-intensive</a> and more economically important than in the rest of the Union. Transforming it to a low-carbon industry could bring a significant payoff in terms of <a href="https://www.e3g.org/wp-content/uploads/E3G-Report-Industrial-transformation-for-all-Europeans.pdf">economic development and safeguarding of jobs</a> than in other countries. The demand for carbon-intensive products is also unquestionable, with the rapid economic development of CEE countries requiring large volumes of construction materials. However, the CEE countries’ climate policy push is also weaker, public purses are more constrained, and the recent fomenting of far-right agendas may put social “green-lash” high on the list of challenges facing industrial transformation. Under stringent EU climate targets, CEE border countries such as Romania and Bulgaria also face a higher risk of incurring an industrial trade deficit due to their <a href="https://www.globalcement.com/news/item/16394-cbam-the-godzilla-of-carbon-tariffs-goes-live">proximity to cheap extra-EU industrial production</a> &#8211; even in regional markets judged to have low trade intensity (such as cement). Transforming CEE industry is therefore as challenging as it is necessary – and its dependence on both infrastructure development and creative funding mechanisms, outlined above, may just be the key to achieving it.</p>



<h1 class="wp-block-heading">The Cohesion Policy, a facilitator of development</h1>



<p>The progress of CEE countries in reducing their industrial emissions over the last three decades has been mostly driven by downsizing or shutting down legacy economically inefficient industrial facilities from the communist regime. As in the rest of Europe, concerns about competitiveness are reshaping the decarbonisation agenda to a dual “<a href="https://commission.europa.eu/document/download/97e481fd-2dc3-412d-be4c-f152a8232961_en">joint decarbonisation and development</a>” approach. For Central and Eastern Europe, this notion of development is still very much predicated (though likely not for much longer) on regional convergence with wealthier EU regions. This offers an opening into combining the economic development imperative with the need to mobilise finance for industrial decarbonisation in a way that can foster regional economic cohesion: the EU Cohesion Policy.</p>



<p>The EU Cohesion Policy, the “prime investment policy of the EU” is a broad funding mechanism aiming to reduce the economic, social, and territorial disparities still evident between more developed and less developed European countries. It is delivered through four main funds: the European Regional Development Fund (ERDF), the Cohesion Fund (CF), the European Social Fund Plus (ESF+), and Just Transition Fund (JTF). The majority of this funding is <a href="https://cohesiondata.ec.europa.eu/2021-2027-Finances/2021-2027-EU-cohesion-policy-JTF-budget-initial-al/v7xe-nn2c/data_preview">allocated to CEE countries</a>: of a total of €392 billion in the 2021-2027 financial period, Poland alone was allocated nearly €80 billion, and remaining CEE countries and Greece a total of €150 billion.</p>



<p>A substantial share of Cohesion Policy funding goes towards infrastructure, particularly transport. In the 2014-2020 period, <a href="https://www.europarl.europa.eu/RegData/etudes/STUD/2021/679107/IPOL_STU(2021)679107_EN.pdf">the single largest direct beneficiaries</a> of funding were the Polish and Romanian national companies for roads and highways, receiving just over €13 billion. <a href="https://cohesiondata.ec.europa.eu/cohesion_overview/14-20">Total funding for network infrastructures</a> in transport and energy amounted to €66 billion, while funding for low-carbon transformation totalled €50 billion, out of a total of €531 billion planned. The primary funding instruments for investment in these domains are the CF and ERDF.</p>



<p>The substantial share of Cohesion Policy funding available for investment in CEE infrastructure and low-carbon transformation highlights two things. Firstly, there is a well-established funding instrument for the economic development of less developed European regions, much of which goes to large construction projects requiring substantial volumes of steel, concrete, and other construction products. Secondly, there is an opportunity to improve the efficiency of Cohesion Policy funding (<a href="https://www.euractiv.com/section/economy-jobs/news/reform-of-eu-cohesion-policy-inevitable-german-official-says/">already a heated topic in Brussels</a>), by conditioning infrastructure spending on climate performance and mobilising investments in low-carbon products and services as part of a broad industrial transformation.</p>



<h1 class="wp-block-heading">Aligning development with climate through public procurement criteria</h1>



<p>How could climate conditionalities be implemented within Cohesion Policy infrastructure spending? One solution is to leverage the role of public entities as buyers of the products and services needed to develop new infrastructure. With <a href="https://www.europarl.europa.eu/RegData/etudes/STUD/2021/679107/IPOL_STU(2021)679107_EN.pdf">the vast majority of CEE countries</a> directing most of their funding to public entities, public procurement criteria applied to Cohesion Policy spending could unlock demand for industrial products meeting certain specifications – including their environmental and climate impact, with strong social safeguards in place.</p>



<p>Incorporating climate and environmental criteria into public procurement is far from a new idea, but is not legally mandated at EU level. Instead, the EU has a voluntary scheme for Green Public Procurement (GPP), covering <a href="https://green-business.ec.europa.eu/green-public-procurement/gpp-criteria-and-requirements_en">fourteen categories of products</a> – two of which are suitable for generating demand for clean industrial products to the scale required for a genuine transformation of heavy industry (office building construction and road construction). While some Member States have adopted their own Green Public Procurement frameworks at national level, these are mostly absent in Central and Eastern Europe (with some exceptions, for example <a href="https://circabc.europa.eu/ui/group/44278090-3fae-4515-bcc2-44fd57c1d0d1/library/c23dd7e0-3f7e-4983-a964-bd9d98a0bbf4/details">Lithuania</a>), or where they do exist, they include relatively vague criteria on the emissions and environmental performance of industrial products (e.g., Romania’s recently published <a href="https://www.mmediu.ro/app/webroot/uploads/files/PNAE%202024-2027.pdf">GPP action plan</a>).</p>



<p>Leveraging the existing framework for GPP criteria could serve as a starting point for introducing climate conditionalities in the disbursement of Cohesion Policy funding instruments. This means that Member States, who are responsible for selecting projects to be funded under these instruments, can introduce product-level or project-level criteria into their funding contracts, ensuring that beneficiaries (public and private alike) implement such criteria to reduce the life-cycle emissions of infrastructure projects and generate demand for low-carbon industrial products. Of course, <a href="https://www.enpg.ro/wp-content/uploads/2024/09/EPG-SLIDE-DECK-GPP-in-RO-a-key-tool-to-create-lead-markets.pdf">much will need to be done</a> to set clear criteria which genuinely incentivise industrial transformation, ensure transparency across the value chains of these complex infrastructure projects, as well as educate procurement bodies to implement, monitor, and evaluate performance against GPP criteria.</p>



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<figure class="wp-block-image size-full is-style-default"><img loading="lazy" decoding="async" width="800" height="800" src="https://www.enpg.ro/wp-content/uploads/2022/03/luciana-miu-epg.png" alt="luciana miu - epg" class="wp-image-2024" srcset="https://www.enpg.ro/wp-content/uploads/2022/03/luciana-miu-epg.png 800w, https://www.enpg.ro/wp-content/uploads/2022/03/luciana-miu-epg-300x300.png 300w, https://www.enpg.ro/wp-content/uploads/2022/03/luciana-miu-epg-150x150.png 150w, https://www.enpg.ro/wp-content/uploads/2022/03/luciana-miu-epg-768x768.png 768w, https://www.enpg.ro/wp-content/uploads/2022/03/luciana-miu-epg-600x600.png 600w, https://www.enpg.ro/wp-content/uploads/2022/03/luciana-miu-epg-696x696.png 696w" sizes="auto, (max-width: 800px) 100vw, 800px" /></figure>
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<h5 class="wp-block-heading"><strong>Luciana Miu, </strong>EPG Head of Clean Economy</h5>



<p>Luciana Miu is Head of Clean Economy at Energy Policy Group. She oversees the work of the Clean Economy division, including industrial decarbonisation, building energy efficiency, and climate governance and policy. Luciana also conducts in-depth research and stakeholder engagement primarily in the field of industrial decarbonisation and carbon capture and storage. </p>



<p>Luciana is an expert in industrial decarbonisation and building energy efficiency, with a focus on consumer behavior, systems thinking and policy. She is also trained in renewable energy engineering and a highly skilled communicator with significant experience in stakeholder engagement on sustainability projects. Luciana has extensive experience in data collection and analysis, including conducting nationally representative surveys and statistical analysis and modelling in STATA. She is also well-versed in behavioral frameworks and socio-technical systems approaches to sustainability.&nbsp;</p>



<p>She holds a PhD in energy efficiency from Imperial College London, and an MSc in Sustainable Energy Systems and BSc in Environmental Science from the University of Edinburgh. Her PhD thesis has resulted in 3 publications in peer-reviewed journals, including Energy Policy and Energy Research and Social Science.&nbsp;&nbsp;</p>



<p>Luciana is passionate about youth engagement in the energy transition, and is one of the founders of the European Youth Energy Network, the first network of youth-led, energy-focused organisations in the EU. She is a native speaker of Romanian and English, is fluent in French and has basic knowledge of German and Danish.&nbsp;&nbsp;</p>



<p>Contact: <a href="mailto:luciana.miu@enpg.ro">luciana.miu@enpg.ro </a></p>
</div>
</div><p>The post <a href="https://www.enpg.ro/leveraging-the-eu-cohesion-policy-for-a-clean-industrial-revival/">Leveraging the EU Cohesion Policy for a Clean Industrial Revival</a> first appeared on <a href="https://www.enpg.ro">EPG</a>.</p>]]></content:encoded>
					
		
		
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		<title>High-Level Roadmap for Decarbonising Cement and Lime Production in Romania</title>
		<link>https://www.enpg.ro/high-level-roadmap-for-decarbonising-cement-and-lime-production-in-romania/?utm_source=rss&#038;utm_medium=rss&#038;utm_campaign=high-level-roadmap-for-decarbonising-cement-and-lime-production-in-romania</link>
					<comments>https://www.enpg.ro/high-level-roadmap-for-decarbonising-cement-and-lime-production-in-romania/#comments</comments>
		
		<dc:creator><![CDATA[Energy Policy Group]]></dc:creator>
		<pubDate>Thu, 28 Nov 2024 07:12:10 +0000</pubDate>
				<category><![CDATA[2024]]></category>
		<category><![CDATA[Energy decarbonisation]]></category>
		<category><![CDATA[EPG Policy Papers]]></category>
		<category><![CDATA[Publications]]></category>
		<category><![CDATA[Corina Lazăr]]></category>
		<category><![CDATA[Luciana Miu]]></category>
		<category><![CDATA[Mihnea Cătuți]]></category>
		<category><![CDATA[Sabina Strîmbovschi]]></category>
		<guid isPermaLink="false">https://www.enpg.ro/?p=6182</guid>

					<description><![CDATA[<p>With stricter climate rules, industries that emit a lot of carbon face tighter deadlines to reduce emissions. To stay competitive, the cement and lime sectors must adopt new strategies and invest in low-carbon technologies. These changes will be costly and complex. While Romania lags behind other countries like Bulgaria and Poland in carbon capture projects, [&#8230;]</p>
<p>The post <a href="https://www.enpg.ro/high-level-roadmap-for-decarbonising-cement-and-lime-production-in-romania/">High-Level Roadmap for Decarbonising Cement and Lime Production in Romania</a> first appeared on <a href="https://www.enpg.ro">EPG</a>.</p>]]></description>
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<p>With stricter climate rules, industries that emit a lot of carbon face tighter deadlines to reduce emissions. <a href="https://www.enpg.ro/care-este-costul-tranzitiei-verzi-pentru-industriile-grele-din-romania/" target="_blank" rel="noreferrer noopener">To stay competitive</a>, the cement and lime sectors must adopt new strategies and invest in low-carbon technologies. These changes will be costly and complex. While Romania lags behind other countries like Bulgaria and Poland in carbon capture projects, cement and lime will still be vital for Romania&#8217;s growth. This is due to the country&#8217;s planned infrastructure projects, such as new roads and buildings by 2030.</p>



<p></p>
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<figure class="wp-block-image size-full"><a href="https://www.enpg.ro/wp-content/uploads/2024/11/POLICY-PAPER-High-Level-Roadmap-Cement-and-Lime.pdf" target="_blank" rel=" noreferrer noopener"><img loading="lazy" decoding="async" width="1200" height="1200" src="https://www.enpg.ro/wp-content/uploads/2024/11/EPG-PP-Site-High-Level-Roadmap-v1.png" alt="" class="wp-image-6173" srcset="https://www.enpg.ro/wp-content/uploads/2024/11/EPG-PP-Site-High-Level-Roadmap-v1.png 1200w, https://www.enpg.ro/wp-content/uploads/2024/11/EPG-PP-Site-High-Level-Roadmap-v1-300x300.png 300w, https://www.enpg.ro/wp-content/uploads/2024/11/EPG-PP-Site-High-Level-Roadmap-v1-1024x1024.png 1024w, https://www.enpg.ro/wp-content/uploads/2024/11/EPG-PP-Site-High-Level-Roadmap-v1-150x150.png 150w, https://www.enpg.ro/wp-content/uploads/2024/11/EPG-PP-Site-High-Level-Roadmap-v1-768x768.png 768w, https://www.enpg.ro/wp-content/uploads/2024/11/EPG-PP-Site-High-Level-Roadmap-v1-600x600.png 600w, https://www.enpg.ro/wp-content/uploads/2024/11/EPG-PP-Site-High-Level-Roadmap-v1-696x696.png 696w" sizes="auto, (max-width: 1200px) 100vw, 1200px" /></a></figure>
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<h2 class="wp-block-heading">Recommendations for the Next 5-10 Years</h2>



<p>To succeed, industries and the government must commit to using the best methods for cutting emissions. Here are key steps for the next 5 to 10 years:</p>



<ol start="1" class="wp-block-list">
<li><strong>Deploy new renewable energy capacities:</strong> As the sector moves towards decarbonisation, energy demand is expected to rise, particularly due to carbon capture. Ensuring that this additional energy demand is clean will require substantial amounts of low-carbon energy and additional capacities to support both self-consumption and reducing the carbon intensity of Romania’s grid electricity supply.</li>



<li><strong>Accelerate CO<sub>2</sub> transport and storage infrastructure development: </strong>Given the existing regulatory and permitting barriers and limited ambition for advancing CCS/CCUS technologies that have hindered progress on CO<sub>2</sub> transport and storage infrastructure, public authorities must strengthen their commitment to advancing CCS solutions.</li>



<li><strong>Strengthen the cooperation between the cement and lime industries and hydrocarbon producers:</strong> Romania’s significant potential for geological CO<sub>2</sub> storage capacities and its obligation to capture and store 9 Mt of CO<sub>2</sub> annually until 2030, as outlined in the NZIA, requires an accelerated dialogue between the owners of depleted gas and oil fields and industries that will rely heavily on CCS (such as the production of cement, lime, fertilisers and oil refining). The dialogue is particularly relevant given the discussions around the adoption of a National Carbon Management Strategy.</li>



<li><strong>Speed up investments and the disbursement of public funding:</strong> CCS is a costly yet essential technology for decarbonising the cement and lime sectors. Both the disbursement of funds and private financing are essential for kickstarting deep decarbonisation investments.</li>



<li><strong>Design complementary funding mechanisms:</strong> In addition to issuing green bonds to raise funding, it is important to design new financial mechanisms such as Carbon Contracts for Difference, a flexible funding mechanism offering industrial operators a stable carbon price through a contract between the operator and the government. This can <strong>help finance operational </strong>costs based on actual emissions reductions.</li>



<li><strong>Adopt a clear, ambitious yet feasible Green Public Procurement Plan for construction products:</strong> <a href="https://www.enpg.ro/achizitiile-publice-ecologice-primul-pas-esential-pentru-decarbonizarea-industriilor-grele-din-romania/" target="_blank" rel="noreferrer noopener">Implementing a well-designed and ambitious GPP system</a> is a complementary tool that can indirectly compensate decarbonisation costs and stimulate market creation for low-carbon cement, lime and other construction materials.</li>
</ol>



<h2 class="wp-block-heading">In conclusion </h2>



<p>In conclusion, the pace and effectiveness of the cement and lime industries’ transition toward decarbonisation depend not only on the companies’ investment plans but also on robust policy support.</p>



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<figure class="wp-block-image size-full is-style-default"><img loading="lazy" decoding="async" width="800" height="800" src="https://www.enpg.ro/wp-content/uploads/2023/11/Sabina-Strimbovschi-team-enpg.png" alt="Sabina Strîmbovschi team enpg" class="wp-image-4719" srcset="https://www.enpg.ro/wp-content/uploads/2023/11/Sabina-Strimbovschi-team-enpg.png 800w, https://www.enpg.ro/wp-content/uploads/2023/11/Sabina-Strimbovschi-team-enpg-300x300.png 300w, https://www.enpg.ro/wp-content/uploads/2023/11/Sabina-Strimbovschi-team-enpg-150x150.png 150w, https://www.enpg.ro/wp-content/uploads/2023/11/Sabina-Strimbovschi-team-enpg-768x768.png 768w, https://www.enpg.ro/wp-content/uploads/2023/11/Sabina-Strimbovschi-team-enpg-600x600.png 600w, https://www.enpg.ro/wp-content/uploads/2023/11/Sabina-Strimbovschi-team-enpg-696x696.png 696w" sizes="auto, (max-width: 800px) 100vw, 800px" /></figure>
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<h5 class="wp-block-heading"><strong>Sabina Strîmbovschi, </strong>EPG Senior Researcher</h5>



<p>Sabina works as a Senior Researcher in industrial decarbonisation within the Clean Economy Programme of EPG. She holds a PhD in Political Science (International Relations) from the National University of Political Studies and Public Administration (SNSPA, Bucharest). Before joining EPG, Sabina worked for one of the largest business support organizations in Romania, where she coordinated the activities of the European and international organizations office.</p>



<p>Over the last few years, she has been involved in two volunteer organizations. She served as&nbsp;an affiliated expert and board member at one of&nbsp;the most important think-tanks&nbsp;on European Affairs in Romania&nbsp;–&nbsp;the&nbsp;Center&nbsp;of European Expertise&nbsp;(Europuls). She is also a member of Future Energy Leaders Romania&nbsp;– the youth program of the Romanian National Committee of the World Energy Council.</p>



<p>Contact: <a href="mailto:sabina.strimbovschi@enpg.ro" title="">sabina.strimbovschi@enpg.ro</a></p>
</div>
</div><p>The post <a href="https://www.enpg.ro/high-level-roadmap-for-decarbonising-cement-and-lime-production-in-romania/">High-Level Roadmap for Decarbonising Cement and Lime Production in Romania</a> first appeared on <a href="https://www.enpg.ro">EPG</a>.</p>]]></content:encoded>
					
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		<title>Planul Social pentru Climă în România: o punte între politicile climatice, energetice și sociale</title>
		<link>https://www.enpg.ro/planul-social-pentru-clima-in-romania-o-punte-intre-politicile-climatice-energetice-si-sociale/?utm_source=rss&#038;utm_medium=rss&#038;utm_campaign=planul-social-pentru-clima-in-romania-o-punte-intre-politicile-climatice-energetice-si-sociale</link>
		
		<dc:creator><![CDATA[Energy Policy Group]]></dc:creator>
		<pubDate>Wed, 13 Nov 2024 11:12:29 +0000</pubDate>
				<category><![CDATA[2024]]></category>
		<category><![CDATA[EPG Policy Papers]]></category>
		<category><![CDATA[Governance and policy]]></category>
		<category><![CDATA[Publications]]></category>
		<category><![CDATA[Ana Niculicea]]></category>
		<category><![CDATA[Constantin Postoiu]]></category>
		<category><![CDATA[Daniel Duma]]></category>
		<category><![CDATA[Mihnea Cătuți]]></category>
		<guid isPermaLink="false">https://www.enpg.ro/?p=6128</guid>

					<description><![CDATA[<p>Fondul Social pentru Climă (FSC) se dorește a fi un instrument care sporește eficiența și atenuează impactul asupra bunăstării ca efect al extinderii tarifării emisiilor de carbon în sectoarele clădirilor și al transportului rutier prin introducerea sistemului de comercializare a certificatelor de emisii (ETS2). FSC va ajuta gospodăriile vulnerabile și utilizatorii de mijloace de transport [&#8230;]</p>
<p>The post <a href="https://www.enpg.ro/planul-social-pentru-clima-in-romania-o-punte-intre-politicile-climatice-energetice-si-sociale/">Planul Social pentru Climă în România: o punte între politicile climatice, energetice și sociale</a> first appeared on <a href="https://www.enpg.ro">EPG</a>.</p>]]></description>
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<p>Fondul Social pentru Climă (FSC) se dorește a fi un instrument care sporește eficiența și atenuează impactul asupra bunăstării ca efect al extinderii tarifării emisiilor de carbon în sectoarele clădirilor și al transportului rutier prin introducerea sistemului de comercializare a certificatelor de emisii (ETS2). FSC va ajuta gospodăriile vulnerabile și utilizatorii de mijloace de transport să reacționeze la creșterea prețurilor la combustibilii fosili prin facilitarea investițiilor în soluții cu emisii reduse de carbon.&nbsp; Acesta poate oferi, de asemenea, un sprijin direct temporar al veniturilor pentru a acoperi impactul inițial asupra grupurilor vulnerabile până când investițiile pe termen lung își produc efectele, dar acesta nu este principalul mecanism de sprijin<strong>.</strong></p>
</div>



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<figure class="wp-block-image size-full"><a href="https://www.enpg.ro/wp-content/uploads/2024/11/EPG_Policy-Paper_Social-Climate-Plan_RO.pdf"><img loading="lazy" decoding="async" width="1200" height="1200" src="https://www.enpg.ro/wp-content/uploads/2024/11/EPG-SCP-Policy-Paper-Site-v1-RO.png" alt="" class="wp-image-6134" srcset="https://www.enpg.ro/wp-content/uploads/2024/11/EPG-SCP-Policy-Paper-Site-v1-RO.png 1200w, https://www.enpg.ro/wp-content/uploads/2024/11/EPG-SCP-Policy-Paper-Site-v1-RO-300x300.png 300w, https://www.enpg.ro/wp-content/uploads/2024/11/EPG-SCP-Policy-Paper-Site-v1-RO-1024x1024.png 1024w, https://www.enpg.ro/wp-content/uploads/2024/11/EPG-SCP-Policy-Paper-Site-v1-RO-150x150.png 150w, https://www.enpg.ro/wp-content/uploads/2024/11/EPG-SCP-Policy-Paper-Site-v1-RO-768x768.png 768w, https://www.enpg.ro/wp-content/uploads/2024/11/EPG-SCP-Policy-Paper-Site-v1-RO-600x600.png 600w, https://www.enpg.ro/wp-content/uploads/2024/11/EPG-SCP-Policy-Paper-Site-v1-RO-696x696.png 696w" sizes="auto, (max-width: 1200px) 100vw, 1200px" /></a></figure>
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<p>Important este ca intervențiile FSC să abordeze în primul rând potențialul impact legat de introducerea ETS2. Această limitare a domeniului de aplicare, precum și cea a bugetului, înseamnă că acest instrument nu poate aborda problemele generale de sărăcie energetică ale unei țări. Cu toate acestea, veniturile suplimentare din ETS2 (sau alte surse de finanțare) pot fi utilizate în mod semnificativ pentru atingerea unor obiective similare în afara domeniului de aplicare direct al FSC, inclusiv prin mecanisme de finanțare complementare. &nbsp;</p>



<p>În România, cea mai mare incidență a ETS2 va fi limitată la minoritatea gospodăriilor conectate la rețeaua de gaze naturale, care se află în general în afara celor mai mici categorii de venituri. Pentru o gospodărie cu un consum mediu lunar de gaze naturale de 100 de metri cubi, un preț al carbonului de 45 EUR/t are un impact lunar de aproximativ 8,2 EUR/lună.</p>



<p>Deși nu intră direct în domeniul de aplicare al FSC, se preconizează că numeroasele gospodării rurale care utilizează biomasa lemnoasă pentru încălzire, deși nu sunt afectate în mod direct de ETS2, vor face tranziția către surse de încălzire mai convenabile &#8211; furnizarea de ajutor pentru ca acestea să treacă la soluții cu emisii reduse reprezintă o oportunitate. În zonele urbane, în ciuda declinului recent, încălzirea centralizată rămâne o opțiune relevantă care ar putea fi facilitată de FSC.</p>



<p>Impactul va fi mai răspândit în rândul utilizatorilor din sectorul transporturilor, unde combustibilii fosili reglementați de ETS2 domină mixul de combustibili. Pentru un preț al carbonului de 45 EUR/t, creșterea simulată a prețului este de 0,12 EUR pe litru de motorină și de 0,10 EUR pe litru de benzină. Îmbunătățirea accesului, a calității și a performanțelor în materie de emisii ale transportului public și accesul la vehicule cu emisii reduse sunt opțiuni viabile pentru punerea în aplicare a FSC.</p>



<p>În ansamblu, conformitatea cu FSC va necesita eforturi semnificative, colectarea de date, cartografierea programelor existente și justificări pentru măsuri și investiții suplimentare, precum și etape și obiective credibile. Cu toate acestea, acest proces vine, de asemenea, cu oportunități semnificative.</p>



<p><strong>Recomandări pentru decidenții din România</strong></p>



<ul class="wp-block-list">
<li><strong>Să profite de oportunitățile oferite de FSC pentru a aborda sărăcia energetică (și din perspectiva transporturilor) mai sistematic în România. </strong>Efortul necesar pentru colectarea datelor și conceperea PSC va fi substanțial și, cu ajutorul FSC sau al altor programe de asistență tehnică și de consolidare a capacităților finanțate de UE, ar putea fi utilizat în mod optim prin regândirea interacțiunilor dintre politicile climatice, energetice și sociale, prin colectarea și gestionarea mai multor date, reducerea erorii de excludere și abordarea surselor multiple și concomitente de vulnerabilitate.</li>



<li><strong>Să conceapă măsurile din PSC în sinergie cu alte instrumente de finanțare, existente sau potențiale. </strong>Există multe interacțiuni posibile între FSC și PNRR, Programul Regional, Programul de Dezvoltare Durabilă, Programul pentru Tranziție Justă și Administrația Fondului de Mediu. Atunci când intervențiile necesare nu se încadrează în domeniul de aplicare sau în bugetul FSC, acestea pot fi completate prin intermediul altor fonduri.</li>



<li><strong>Să permită o consultare cuprinzătoare și semnificativă pentru a se asigura că măsurile și investițiile sunt adaptate corect la nevoile grupurilor vulnerabile și sunt concepute într-o manieră incluzivă cu beneficiarii și autoritățile locale</strong>.</li>
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<h5 class="wp-block-heading"><strong>Ana-Maria Niculicea, </strong>EPG Researcher</h5>



<p>Ana-Maria Niculicea is a Researcher at Energy Policy Group, in the Clean Economy programme. She coordinates research activities on climate governance with a focus on&nbsp; enhancing national climate governance and the social acceptance of the transition to a low carbon economy. Additionally, she conducts research on social acceptance of CCUS technologies in the Horizon2020 ConsenCUS project.&nbsp;&nbsp;</p>



<p>She holds a MSc in Politics, Economics and Philosophy from University of Hamburg and a bachelor’s degree in Political Science from National University of Political Studies and Public Administration.</p>



<p>Contact: <a href="mailto:ana.niculicea@enpg.ro">ana.niculicea@enpg.ro</a></p>
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<p></p><p>The post <a href="https://www.enpg.ro/planul-social-pentru-clima-in-romania-o-punte-intre-politicile-climatice-energetice-si-sociale/">Planul Social pentru Climă în România: o punte între politicile climatice, energetice și sociale</a> first appeared on <a href="https://www.enpg.ro">EPG</a>.</p>]]></content:encoded>
					
		
		
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		<title>The Social Climate Plan in Romania: bridging climate, energy and social policy</title>
		<link>https://www.enpg.ro/the-social-climate-plan-in-romania-bridging-climate-energy-and-social-policy/?utm_source=rss&#038;utm_medium=rss&#038;utm_campaign=the-social-climate-plan-in-romania-bridging-climate-energy-and-social-policy</link>
		
		<dc:creator><![CDATA[Energy Policy Group]]></dc:creator>
		<pubDate>Wed, 13 Nov 2024 11:04:13 +0000</pubDate>
				<category><![CDATA[2024]]></category>
		<category><![CDATA[EPG Policy Papers]]></category>
		<category><![CDATA[Governance and policy]]></category>
		<category><![CDATA[Publications]]></category>
		<category><![CDATA[Ana Niculicea]]></category>
		<category><![CDATA[Constantin Postoiu]]></category>
		<category><![CDATA[Daniel Duma]]></category>
		<category><![CDATA[Mihnea Cătuți]]></category>
		<guid isPermaLink="false">https://www.enpg.ro/?p=6125</guid>

					<description><![CDATA[<p>The Social Climate Fund (SCF) is meant to be a tool that increases the effectiveness and mitigates the welfare impact of the expansion of carbon pricing to buildings and road transport through the introduction of the Emissions Trading System 2 (ETS2). The SCF will help vulnerable households and transport users respond to higher fossil fuel [&#8230;]</p>
<p>The post <a href="https://www.enpg.ro/the-social-climate-plan-in-romania-bridging-climate-energy-and-social-policy/">The Social Climate Plan in Romania: bridging climate, energy and social policy</a> first appeared on <a href="https://www.enpg.ro">EPG</a>.</p>]]></description>
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<p>The Social Climate Fund (SCF) is meant to be a tool that increases the effectiveness and mitigates the welfare impact of the expansion of carbon pricing to buildings and road transport through the introduction of the Emissions Trading System 2 (ETS2). The SCF will help vulnerable households and transport users respond to higher fossil fuel prices by enabling investments into low-carbon solutions.&nbsp; It can also provide temporary direct income support to cover the initial impacts on vulnerable groups until the long-lasting investments take effect, but this is not the main support mechanism.</p>
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<figure class="wp-block-image size-full"><a href="https://www.enpg.ro/wp-content/uploads/2024/11/EPG_Policy-Paper_Social-Climate-Plan.pdf"><img loading="lazy" decoding="async" width="1200" height="1200" src="https://www.enpg.ro/wp-content/uploads/2024/11/EPG-SCP-Policy-Paper-Site-v1-EN.png" alt="" class="wp-image-6133" srcset="https://www.enpg.ro/wp-content/uploads/2024/11/EPG-SCP-Policy-Paper-Site-v1-EN.png 1200w, https://www.enpg.ro/wp-content/uploads/2024/11/EPG-SCP-Policy-Paper-Site-v1-EN-300x300.png 300w, https://www.enpg.ro/wp-content/uploads/2024/11/EPG-SCP-Policy-Paper-Site-v1-EN-1024x1024.png 1024w, https://www.enpg.ro/wp-content/uploads/2024/11/EPG-SCP-Policy-Paper-Site-v1-EN-150x150.png 150w, https://www.enpg.ro/wp-content/uploads/2024/11/EPG-SCP-Policy-Paper-Site-v1-EN-768x768.png 768w, https://www.enpg.ro/wp-content/uploads/2024/11/EPG-SCP-Policy-Paper-Site-v1-EN-600x600.png 600w, https://www.enpg.ro/wp-content/uploads/2024/11/EPG-SCP-Policy-Paper-Site-v1-EN-696x696.png 696w" sizes="auto, (max-width: 1200px) 100vw, 1200px" /></a></figure>
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<p>Importantly, the SCF interventions need to primarily address potential impacts related to the introduction of ETS2. This limitation of scope, as well as that of budget, mean that this instrument cannot address the overall energy poverty problems of a country. However, additional ETS2 revenues (or other funding sources) can be used meaningfully toward similar aims outside the direct scope of SCF, including through complementary financing mechanisms. &nbsp;</p>



<p>In Romania, the highest incidence of ETS2 will be limited to the minority of households connected to the natural gas grid, who are generally outside the lowest income brackets. For a household with an average monthly consumption of natural gas of 100 cubic meters, a carbon price of 45€/t results in a monthly impact of around €8.2/month.</p>



<p>While outside the direct scope of the SCF, the numerous rural households who use woody biomass for heating, while not directly affected by ETS2, are expected to transition to more convenient heating sources &#8211; providing help for them to leapfrog to low-emissions solutions represents an opportunity. In urban areas, despite the recent decline, district heating remains a relevant option that could be enabled by the SCF.</p>



<p>The impact will be more widespread on transport users, where fossil fuels covered by ETS2 dominate the fuel mix. For a carbon price of 45€/t, the simulated price increase is 0.12€ per liter of diesel and 0.10€ pe liter of gasoline. Improving access, quality and emissions performance of public transport and access to low-emissions vehicles are viable options for the implementation of the SCF.</p>



<p>All in all, compliance with the SCF will require significant efforts, data collection, mapping of existing programmes, and justifications for additional measures and investments, as well as credible milestones and targets. However, this process also comes with significant opportunities.</p>



<p><strong>Recommendations for Romanian decision makers</strong></p>



<ul class="wp-block-list">
<li><strong>Seize the opportunity of the SCF to tackle energy (and transport) poverty more systematically in Romania. </strong>The effort needed for collecting data and designing the SCPs will be <strong>substantial</strong> and could, with the help of SCF or other EU-funded technical assistance and capacity building programmes, be used optimally by rethinking the climate-energy-social policy interactions, by acquiring and managing more data, reducing the exclusion error, and tackling the multiple and concurring sources of vulnerability.</li>



<li><strong>Design SCP interventions in synergy with other funding instruments, either existing or potential.</strong> There are many possible interactions between SCF and the NRRP, Regional Programme, Sustainable Development Programme, the Just Transition Programme, and the Environmental Fund Administration. When needed interventions do not fit within the scope or budget of the SCF, they can be complemented through other funds.</li>



<li><strong>Enable wide and meaningful consultation to ensure the measures and investments are correctly tailored to the needs of vulnerable groups and are designed in an inclusive manner with beneficiaries and local authorities</strong>.</li>
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<h5 class="wp-block-heading"><strong>Ana-Maria Niculicea, </strong>EPG Researcher</h5>



<p>Ana-Maria Niculicea is a Researcher at Energy Policy Group, in the Clean Economy programme. She coordinates research activities on climate governance with a focus on&nbsp; enhancing national climate governance and the social acceptance of the transition to a low carbon economy. Additionally, she conducts research on social acceptance of CCUS technologies in the Horizon2020 ConsenCUS project.&nbsp;&nbsp;</p>



<p>She holds a MSc in Politics, Economics and Philosophy from University of Hamburg and a bachelor’s degree in Political Science from National University of Political Studies and Public Administration.</p>



<p>Contact: <a href="mailto:ana.niculicea@enpg.ro">ana.niculicea@enpg.ro</a></p>
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</div><p>The post <a href="https://www.enpg.ro/the-social-climate-plan-in-romania-bridging-climate-energy-and-social-policy/">The Social Climate Plan in Romania: bridging climate, energy and social policy</a> first appeared on <a href="https://www.enpg.ro">EPG</a>.</p>]]></content:encoded>
					
		
		
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		<title>Varianta finală a Planului Național Integrat în domeniul Energiei și Schimbărilor Climatice: obiective mai ambițioase dar lipsite de traiectorii clare.  </title>
		<link>https://www.enpg.ro/varianta-finala-a-planului-national-integrat-in-domeniul-energiei-si-schimbarilor-climatice-obiective-mai-ambitioase-dar-lipsite-de-traiectorii-clare/?utm_source=rss&#038;utm_medium=rss&#038;utm_campaign=varianta-finala-a-planului-national-integrat-in-domeniul-energiei-si-schimbarilor-climatice-obiective-mai-ambitioase-dar-lipsite-de-traiectorii-clare</link>
		
		<dc:creator><![CDATA[Energy Policy Group]]></dc:creator>
		<pubDate>Wed, 06 Nov 2024 14:25:22 +0000</pubDate>
				<category><![CDATA[2024]]></category>
		<category><![CDATA[Publications]]></category>
		<category><![CDATA[Reaction]]></category>
		<guid isPermaLink="false">https://www.enpg.ro/?p=6111</guid>

					<description><![CDATA[<p>Ministerul Energiei a transmis recent Comisiei Europene versiunea finală a Planului Național Integrat în domeniul Energiei și Schimbărilor Climatice (PNIESC), documentul-cadru prin care România își stabilește obiectivele și măsurile pentru decarbonizare, aliniate cu țintele europene pentru 2030 și cu angajamentul de a atinge neutralitatea climatică până în 2050.&#160; Publicat pentru prima oară pentru consultare la [&#8230;]</p>
<p>The post <a href="https://www.enpg.ro/varianta-finala-a-planului-national-integrat-in-domeniul-energiei-si-schimbarilor-climatice-obiective-mai-ambitioase-dar-lipsite-de-traiectorii-clare/">Varianta finală a Planului Național Integrat în domeniul Energiei și Schimbărilor Climatice: obiective mai ambițioase dar lipsite de traiectorii clare.  </a> first appeared on <a href="https://www.enpg.ro">EPG</a>.</p>]]></description>
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<p>Ministerul Energiei a transmis recent Comisiei Europene versiunea finală a Planului Național Integrat în domeniul Energiei și Schimbărilor Climatice (PNIESC), documentul-cadru prin care România își stabilește obiectivele și măsurile pentru decarbonizare, aliniate cu țintele europene pentru 2030 și cu angajamentul de a atinge neutralitatea climatică până în 2050.&nbsp;</p>



<p>Publicat pentru prima oară pentru consultare la finalul anului 2018, proiectul Planului a trecut printr-o lungă serie de modificări până la varianta finală.</p>
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<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="1200" height="1200" src="https://www.enpg.ro/wp-content/uploads/2024/11/NECP-Reaction-Site-v2.png" alt="" class="wp-image-6112" srcset="https://www.enpg.ro/wp-content/uploads/2024/11/NECP-Reaction-Site-v2.png 1200w, https://www.enpg.ro/wp-content/uploads/2024/11/NECP-Reaction-Site-v2-300x300.png 300w, https://www.enpg.ro/wp-content/uploads/2024/11/NECP-Reaction-Site-v2-1024x1024.png 1024w, https://www.enpg.ro/wp-content/uploads/2024/11/NECP-Reaction-Site-v2-150x150.png 150w, https://www.enpg.ro/wp-content/uploads/2024/11/NECP-Reaction-Site-v2-768x768.png 768w, https://www.enpg.ro/wp-content/uploads/2024/11/NECP-Reaction-Site-v2-600x600.png 600w, https://www.enpg.ro/wp-content/uploads/2024/11/NECP-Reaction-Site-v2-696x696.png 696w" sizes="auto, (max-width: 1200px) 100vw, 1200px" /></figure>
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<p>În ultimii ani, experții EPG au participat la consultările organizate de Ministerul Energiei privind acest document cu o deosebită importanță strategică și au comunicat necesitatea unei serii de ajustări, astfel încât planul să fie aliniat obiectivelor europene cât și altor strategii relevante ale României. Versiunea actualizată a PNIESC propune ținte mai ambițioase pentru creșterea ponderii energiei regenerabile până în 2030, reflectând o mai mare determinare în direcția decarbonizării economiei și a sectorului energetic.&nbsp;&nbsp;</p>



<p>Cu toate acestea, versiunea finală a Planului prezintă încă unele ambiguități ce vor necesita clarificări prin strategii viitoare. Printre prioritățile menționate de experții EPG se regăsesc dezvoltarea producției de hidrogen regenerabil, extinderea infrastructurii de transport și stocare, cât și dezvoltarea infrastructurii necesare pentru captarea și stocarea carbonului. Ministerul Energiei are responsabilitatea de a aborda aceste aspecte esențiale pentru a asigura României un cadru complet și durabil în tranziția către o economie cu zero emisii nete.&nbsp;</p>



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<h2 class="wp-block-heading"><strong>Citate</strong></h2>



<p class="has-text-align-right"><strong>Radu Dudău – EPG Co-founder &amp; President:</strong></p>



<p>&#8220;Noul PNIESC, publicat de Ministerul Energiei, în formă actualizată, în octombrie 2024, reprezintă un remarcabil pas înainte în asumarea de către Guvernul României a unor ținte mai ambițioase în tranziția către un sistem energetic eficient, rezilient și cu emisii scăzute de gaze cu efect de seră.&nbsp;&nbsp;</p>



<p>Printre elementele notabile de progres se numără ținta pentru surse regenerabile de energie de 38,4% în 2030 din consumul total final de energie la nivel național (față de doar 30,7% în planul din 2021); stabilirea unui obiectiv de reducere a emisiilor din sectoarele guvernate de ESR (<em>Effort Sharing Regulation</em>, adică transporturi, clădiri, agricultură, mică industrie și deșeuri) de -12,7% până în 2030 (față de ținta precedentă de doar -2%, stabilită în 2018); și asumarea unui obiectiv de decarbonizare a economiei mai ambițios decât în Strategia pe termen lung de reducere a emisiilor de gaze cu efect de seră (STL): 96% în 2040 și 105% în 2050 față de nivelul de emisii al anului 1990.&nbsp;</p>



<p>Astfel, alături de STL și de recent-publicata Strategie Energetică Națională, PNIESC articulează un parcurs mai ambițios și mai coerent al sectorului energetic românesc, mai bine aliniat la comandamentele Pactului Verde European. Pe de altă parte, o serie de politici și măsuri pentru realizarea obiectivelor PNIESC sunt încă lipsite de substanța necesară, astfel că Planul rămâne, parțial, un document de intenții a căror realizare va trebui să fie determinată pe parcurs.&#8221;</p>



<p class="has-text-align-right"><strong>Luciana Miu</strong> <strong>– EPG Head of Clean Economy:</strong></p>



<p>&#8220;Noua versiune a PNIESC este considerabil mai ambițioasă decât varianta inițială din &nbsp;2023, vizând o reducere a emisiilor cu 96% până în 2040 și atingerea de emisii nete negative în 2050, în principal prin intermediul rezervoarelor naturale de carbon, precum pădurile. În ciuda ambițiilor crescute, dependența PNIESC de absorbțiile naturale de carbon are limite, mai ales fiindcă este bazată pe o revizuire a modului de raportare, mai degrabă decât pe o dezvoltare sporită a absorbțiilor. În plus, incertitudinile legate de impactul schimbărilor climatice asupra potențialului de absorbție al pădurilor nu sunt neglijabile.&nbsp;</p>



<p>Pe de altă parte, PNIESC intensifică măsurile de decarbonizare pe termen scurt, stabilind obiective ambițioase pentru clădiri, industrie și transporturi. Se propun mai multe măsuri de sprijin financiar, inclusiv extinderea achizițiilor publice ecologice, stimulente pentru decarbonizarea industriei și angajamente pentru noi strategii de gestionare a carbonului. Sunt incluse măsuri specifice pentru atenuarea sărăciei energetice, ceea ce face ca planul să fie mai robust în ceea ce privește sprijinirea unei tranziții echitabile din punct de vedere social. Cu toate acestea, persistă discrepanțe substanțiale, în special în ceea ce privește obiectivele sectoriale specifice, infrastructura pentru captarea carbonului și planurile detaliate pentru hidrogenul regenerabil.&nbsp;</p>



<p>În ansamblu, PNIESC consolidează planificarea în domeniul climei, însă rămân lacune critice în ceea ce privește dezvoltarea infrastructurii, prioritizarea resurselor regenerabile și planurile socioeconomice pe termen lung. Atingerea reducerii de 96% până în 2040 va necesita investiții substanțiale, planificare strategică și acțiuni imediate pentru a consolida aceste obiective ambițioase, domenii în care Planul ar fi putut oferi orientări mai clare.&nbsp;&#8220;</p>



<p class="has-text-align-right"><strong>Alina Arsani – EPG Head of Energy Systems:</strong></p>



<p>&#8220;Varianta finală a PNIESC aduce îmbunătățiri notabile față de versiunea inițială din 2023. Pe lângă ținte mai ambițioase pentru reducerea emisiilor de gaze cu efect de seră și creșterea capacităților instalate din surse regenerabile de energie (SRE) pentru 2050 la 33,3 GW energie solară și 21,3 GW energie eoliană față de 30,5 GW, respectiv 16 GW în varianta anterioară a planului, remarcăm și creșterea capacităților de stocare a energiei până la 1,2 GW pentru 2030 și 2,0 GW pentru 2035. Acestea din urmă sunt esențiale pentru facilitarea integrării SRE și implicit deciziile de investiții. &nbsp;&nbsp;</p>



<p>Cu toate acestea, au rămas anumite aspecte care necesită clarificări și ajustări, precum necesitatea unui plan concret privind utilizarea gazului natural până în 2040, respectiv 2050, care să ofere mai multe informații despre tranziția către hidrogen, precum capacitățile instalate din SRE necesare producerii de hidrogen regenerabil, infrastructura de transport și stocare, importurile și exporturile și, nu în ultimul rând, integrarea biometanului în rețelele existente. În plus, sectorul energetic ar trebui să vizeze o țintă mai ambițioasă pentru reducerea emisiilor de gaze cu efect de seră. Conform analizelor EPG, decarbonizarea sectorului energetic este posibilă în anul 2040 într-un scenariu în care capacitatea instalată din SRE este mai ambițioasă, corelată cu capacități semnificative de stocare a energiei electrice.&nbsp;</p>



<p>Salutăm creșterea obiectivelor privind vehiculele electrice și plug-in; totuși, este nevoie și de un cadru mai ambițios privind stimularea achiziției de autoturisme electrice și plug-in și descurajarea achiziției de autoturisme cu ardere internă second-hand. Apreciem și menționarea Legii privind energia eoliană offshore în document, alături de ținta pentru primele capacități instalate în anul 2032. Totuși, considerăm că ar trebui evidențiată mai clar diferența dintre energia eoliană offshore și onshore, având în vedere diferențele semnificative de factori de capacitate și costuri între cele două tehnologii.&#8221;</p>



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<p>Pentru declarații suplimentare, îi puteți contacta pe colegii noștri la <a href="mailto:radu.dudau@enpg.ro">radu.dudau@enpg.ro</a> (Radu Dudău), <a href="mailto:luciana.miu@enpg.ro">luciana.miu@enpg.ro</a> (Luciana Miu) și <a href="mailto:alina.arsani@enpg.ro">alina.arsani@enpg.ro</a> (Alina Arsani).</p>



<p></p><p>The post <a href="https://www.enpg.ro/varianta-finala-a-planului-national-integrat-in-domeniul-energiei-si-schimbarilor-climatice-obiective-mai-ambitioase-dar-lipsite-de-traiectorii-clare/">Varianta finală a Planului Național Integrat în domeniul Energiei și Schimbărilor Climatice: obiective mai ambițioase dar lipsite de traiectorii clare.  </a> first appeared on <a href="https://www.enpg.ro">EPG</a>.</p>]]></content:encoded>
					
		
		
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		<title>The Whole-Lifecycle Approach in the Romanian Buildings Sector: Overcoming the Barriers</title>
		<link>https://www.enpg.ro/the-whole-lifecycle-approach-in-the-romanian-buildings-sector-overcoming-the-barriers/?utm_source=rss&#038;utm_medium=rss&#038;utm_campaign=the-whole-lifecycle-approach-in-the-romanian-buildings-sector-overcoming-the-barriers</link>
		
		<dc:creator><![CDATA[Energy Policy Group]]></dc:creator>
		<pubDate>Mon, 28 Oct 2024 12:01:56 +0000</pubDate>
				<category><![CDATA[2024]]></category>
		<category><![CDATA[EPG Policy Papers]]></category>
		<category><![CDATA[Governance and policy]]></category>
		<category><![CDATA[Publications]]></category>
		<category><![CDATA[Catalin Lungu]]></category>
		<category><![CDATA[Luiza Zăpucioiu]]></category>
		<category><![CDATA[Radu Dudău]]></category>
		<guid isPermaLink="false">https://www.enpg.ro/?p=6029</guid>

					<description><![CDATA[<p>The revised Energy Performance of Buildings Directive (EPBD) demands EU member states to introduce measures addressing the whole-life carbon (WLC) impact of buildings, encompassing both operational emissions and embodied emissions across the production, construction, renovation, and end-of-life stages. Implementing these measures requires extensive structural transformations, posing challenges for countries that are institutionally unfamiliar with the [&#8230;]</p>
<p>The post <a href="https://www.enpg.ro/the-whole-lifecycle-approach-in-the-romanian-buildings-sector-overcoming-the-barriers/">The Whole-Lifecycle Approach in the Romanian Buildings Sector: Overcoming the Barriers</a> first appeared on <a href="https://www.enpg.ro">EPG</a>.</p>]]></description>
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<p>The revised Energy Performance of Buildings Directive (EPBD) demands EU member states to introduce measures addressing the whole-life carbon (WLC) impact of buildings, encompassing both operational emissions and embodied emissions across the production, construction, renovation, and end-of-life stages. Implementing these measures requires extensive structural transformations, posing challenges for countries that are institutionally unfamiliar with the concept, such as Romania.</p>



<p>An effective implementation of WLC requires a multidisciplinary and integrated approach to building decarbonisation, combining technology innovation, economic strategy, and adapted legislation. Likewise, it requires collaboration and coordination between a variety of actors in the buildings sector that play key roles in the stages of the building lifecycle and the wider ecosystem of sustainable construction.</p>
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<figure class="wp-block-image size-full"><a href="https://www.enpg.ro/wp-content/uploads/2024/10/EPG_Policy-Paper_WLC-Overcoming-barriers.pdf"><img loading="lazy" decoding="async" width="1200" height="1200" src="https://www.enpg.ro/wp-content/uploads/2024/10/2024-10-24-PP-Site-CE-WLC-in-Buildings-v1.png" alt="" class="wp-image-6032" srcset="https://www.enpg.ro/wp-content/uploads/2024/10/2024-10-24-PP-Site-CE-WLC-in-Buildings-v1.png 1200w, https://www.enpg.ro/wp-content/uploads/2024/10/2024-10-24-PP-Site-CE-WLC-in-Buildings-v1-300x300.png 300w, https://www.enpg.ro/wp-content/uploads/2024/10/2024-10-24-PP-Site-CE-WLC-in-Buildings-v1-1024x1024.png 1024w, https://www.enpg.ro/wp-content/uploads/2024/10/2024-10-24-PP-Site-CE-WLC-in-Buildings-v1-150x150.png 150w, https://www.enpg.ro/wp-content/uploads/2024/10/2024-10-24-PP-Site-CE-WLC-in-Buildings-v1-768x768.png 768w, https://www.enpg.ro/wp-content/uploads/2024/10/2024-10-24-PP-Site-CE-WLC-in-Buildings-v1-600x600.png 600w, https://www.enpg.ro/wp-content/uploads/2024/10/2024-10-24-PP-Site-CE-WLC-in-Buildings-v1-696x696.png 696w" sizes="auto, (max-width: 1200px) 100vw, 1200px" /></a></figure>
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<p>Barriers that may impede the effective application of the WLC approach in Romania’s construction sector, along with proposed solutions to each, are categorised as technological, economic, legislative and regulatory, and cultural and public perception-based, with each set of barriers and solutions distributed across different stages of the building lifecycle.</p>



<p>Some of the most salient recommendations to accelerate the adoption of sustainable practices in the building sector are:</p>



<ul class="wp-block-list">
<li>establishing a strong regulatory framework and standards for sustainable, local construction materials as well as secondary, recycled materials, alongside expanding the recycling infrastructure.</li>



<li>driving investment and demand in sustainable constructions through instruments such as tax reductions.</li>



<li>prioritising renovation over new builds.</li>



<li>strengthening building stock databases.</li>



<li>conducting awareness and education campaigns to raise awareness of the WLC principles and the significance of addressing life-cycle emissions in buildings</li>
</ul>



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<figure class="wp-block-image size-full is-style-default"><img loading="lazy" decoding="async" width="800" height="800" src="https://www.enpg.ro/wp-content/uploads/2022/03/radu-dudau-2022-epg.png" alt="radu dudau 2022 - epg" class="wp-image-2028" srcset="https://www.enpg.ro/wp-content/uploads/2022/03/radu-dudau-2022-epg.png 800w, https://www.enpg.ro/wp-content/uploads/2022/03/radu-dudau-2022-epg-300x300.png 300w, https://www.enpg.ro/wp-content/uploads/2022/03/radu-dudau-2022-epg-150x150.png 150w, https://www.enpg.ro/wp-content/uploads/2022/03/radu-dudau-2022-epg-768x768.png 768w, https://www.enpg.ro/wp-content/uploads/2022/03/radu-dudau-2022-epg-600x600.png 600w, https://www.enpg.ro/wp-content/uploads/2022/03/radu-dudau-2022-epg-696x696.png 696w" sizes="auto, (max-width: 800px) 100vw, 800px" /></figure>
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<h5 class="wp-block-heading"><strong>Radu Dudău, </strong>EPG Co-founder &amp; President</h5>



<p>Radu Dudău is President and co-founder of EPG. He was, from 2007 to 2023, an Associate Professor at the Bucharest University. From 2006 to 2010 he was Deputy Director at the Romanian Diplomatic Institute (Ministry of Foreign Affairs).</p>



<p>He graduated in Physics and Philosophy from the University of Iași. He holds a Dr. Phil. degree in Philosophy (magna cum laude) from Konstanz University (Germany) and a PhD in Political Science (International Relations) (summa cum laude) from the National School of Political and Administrative Studies (SNSPA, Bucharest).</p>



<p>He was a Fulbright Fellow with the National Security Program at Harvard Kennedy School of Government (2011), a New Europe College Fellow at the Danish Institute of International Relations (Copenhagen, 2006) and an OSI/FCO-Chevening scholar at Oxford University (1999-2000).</p>



<p>His work focuses on energy policy, energy technology, and energy markets.</p>



<p>Contact: <a href="mailto:radu.dudau@enpg.ro" title="radu.dudau@enpg.ro">radu.dudau@enpg.ro</a></p>
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<p></p><p>The post <a href="https://www.enpg.ro/the-whole-lifecycle-approach-in-the-romanian-buildings-sector-overcoming-the-barriers/">The Whole-Lifecycle Approach in the Romanian Buildings Sector: Overcoming the Barriers</a> first appeared on <a href="https://www.enpg.ro">EPG</a>.</p>]]></content:encoded>
					
		
		
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		<title>Beyond Fit-for-55: How can Romania align with the EU’s 2040 climate target?</title>
		<link>https://www.enpg.ro/beyond-fit-for-55-how-can-romania-align-with-the-eus-2040-climate-target/?utm_source=rss&#038;utm_medium=rss&#038;utm_campaign=beyond-fit-for-55-how-can-romania-align-with-the-eus-2040-climate-target</link>
		
		<dc:creator><![CDATA[Energy Policy Group]]></dc:creator>
		<pubDate>Thu, 24 Oct 2024 09:08:45 +0000</pubDate>
				<category><![CDATA[2024]]></category>
		<category><![CDATA[Commentary]]></category>
		<category><![CDATA[Governance and policy]]></category>
		<category><![CDATA[Publications]]></category>
		<category><![CDATA[Ana Niculicea]]></category>
		<category><![CDATA[Ioana Maria Vasiliu]]></category>
		<category><![CDATA[Luciana Miu]]></category>
		<guid isPermaLink="false">https://www.enpg.ro/?p=6019</guid>

					<description><![CDATA[<p>In 2024, the EU proposed a target of reducing GHG emissions by 90% by 2040, compared to 1990 levels. This target not only secures the pathway to climate neutrality by 2050, but also gives a clear signal of what the 2030-2040 decade will look in terms of fossil fuel phase-out, cleantech development and just transition, [&#8230;]</p>
<p>The post <a href="https://www.enpg.ro/beyond-fit-for-55-how-can-romania-align-with-the-eus-2040-climate-target/">Beyond Fit-for-55: How can Romania align with the EU’s 2040 climate target?</a> first appeared on <a href="https://www.enpg.ro">EPG</a>.</p>]]></description>
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<p>In 2024, the EU proposed a target of reducing GHG emissions by 90% by 2040, compared to 1990 levels. This target not only secures the pathway to climate neutrality by 2050, but also gives a clear signal of what the 2030-2040 decade will look in terms of fossil fuel phase-out, cleantech development and just transition, among others. The proposed 2040 target underscores the EU&#8217;s commitment to aligning with the Paris Agreement while making significant progress towards its long-term goal of climate neutrality by 2050.</p>



<p>To help reach the Union’s climate targets, Member States are required under the EU Governance Regulation to develop long-term strategies for climate change mitigation.</p>
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<figure class="wp-block-image size-full"><a href="https://www.enpg.ro/wp-content/uploads/2024/10/EPG-COMMENTARY-Beyond-Fit-for-55.pdf"><img loading="lazy" decoding="async" width="1200" height="1200" src="https://www.enpg.ro/wp-content/uploads/2024/10/2024-10-04-Commentary-SoMe-Industrie-v1.png" alt="" class="wp-image-6017" srcset="https://www.enpg.ro/wp-content/uploads/2024/10/2024-10-04-Commentary-SoMe-Industrie-v1.png 1200w, https://www.enpg.ro/wp-content/uploads/2024/10/2024-10-04-Commentary-SoMe-Industrie-v1-300x300.png 300w, https://www.enpg.ro/wp-content/uploads/2024/10/2024-10-04-Commentary-SoMe-Industrie-v1-1024x1024.png 1024w, https://www.enpg.ro/wp-content/uploads/2024/10/2024-10-04-Commentary-SoMe-Industrie-v1-150x150.png 150w, https://www.enpg.ro/wp-content/uploads/2024/10/2024-10-04-Commentary-SoMe-Industrie-v1-768x768.png 768w, https://www.enpg.ro/wp-content/uploads/2024/10/2024-10-04-Commentary-SoMe-Industrie-v1-600x600.png 600w, https://www.enpg.ro/wp-content/uploads/2024/10/2024-10-04-Commentary-SoMe-Industrie-v1-696x696.png 696w" sizes="auto, (max-width: 1200px) 100vw, 1200px" /></a></figure>
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<p>Romania’s Long-term Strategy (LTS), adopted in 2023, sets a target of achieving climate neutrality by 2050, provides a framework for interim targets, and proposes policies to achieve a cohesive and sustainable approach to climate change mitigation. It defines a clear interim target of 78% emission reduction by 2030 (compared to 1990 levels), reaching 91% in 2040. The adopted LTS could enhance Romania&#8217;s contribution to he EU’s collective emission reduction efforts and achievement of climate neutrality by 2050.</p>



<p>These interim goals serve as benchmarks on the pathway towards achieving Romania’s longterm climate objectives, as they enhance predictability, safeguard against potential setbacks, and enable earlier investments in new technologies and infrastructure. Although the LTS aligns with the proposed EU 2040 target, Romania does not have a legally binding target for 2040 and the strategy still exhibits gaps and uncertainties regarding its implementation. These shortcomings add to other challenges Romania faces in meeting its climate objectives, especially given its reliance on fossil fuels, hard-to-abate industries, regulatory uncertainties and limited fiscal capacity. Uncertainties and risks may also arise from various technological, economic, or political factors, as well as public resistance to climate policies and geopolitical shocks. These risks must be mitigated through clear, robust policies and commitments at national and sectoral level. &nbsp;</p>



<p>Moreover, Romania has already submitted to the Commission the final version of its updated NECP (which is more ambitious than the LTS) and has adopted other key sectoral strategies (the National Hydrogen Strategy, the National Adaptation Strategy, the National Energy Strategy and the Romanian Industrial Strategy 2024-2030). According to the Governance  Regulation, Member States should update their long-term strategies only if they deem it necessary. To align with the latest national and EU policy developments, enhance coherence, and increase certainty in the achievement of existing emissions targets and trajectories, a revision of the existing LTS may be due.</p>



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<figure class="wp-block-image size-full is-style-default"><img loading="lazy" decoding="async" width="800" height="800" src="https://www.enpg.ro/wp-content/uploads/2024/01/ioana-vasiliu.png" alt="ioana vasiliu - enpg" class="wp-image-4865" srcset="https://www.enpg.ro/wp-content/uploads/2024/01/ioana-vasiliu.png 800w, https://www.enpg.ro/wp-content/uploads/2024/01/ioana-vasiliu-300x300.png 300w, https://www.enpg.ro/wp-content/uploads/2024/01/ioana-vasiliu-150x150.png 150w, https://www.enpg.ro/wp-content/uploads/2024/01/ioana-vasiliu-768x768.png 768w, https://www.enpg.ro/wp-content/uploads/2024/01/ioana-vasiliu-600x600.png 600w, https://www.enpg.ro/wp-content/uploads/2024/01/ioana-vasiliu-696x696.png 696w" sizes="auto, (max-width: 800px) 100vw, 800px" /></figure>
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<h5 class="wp-block-heading"><strong>Ioana Vasiliu, </strong>EPG Senior Researcher</h5>



<p>Ioana works as a Senior Researcher within the Clean Economy Programme of EPG. She holds a bachelor degree in management for public administration and a post university diploma as expert for sustainable development both from the Economic Academy of Bucharest.</p>



<p>Before joining EPG, Ioana worked for Romanian Ministry of Environment, Waters and Forests as european affairs advisor within Climate Strategies and Reporting Department.</p>



<p>Over the last years, she has been involved in addressing climate change at national level, by developing policies and strategies for reducing greenhouse gas emissions and adapting to the effects and impacts of climate change.</p>



<p>At international level she acted as rapporteur for climate change adaptation policies and NECP, is member of UNFCCC expert roster and coordinated Romania’s accession process to the OECD, in the field of climate change.</p>



<p>Contact:<a href="mailto: ioana.vasiliu@enpg.ro" title=" ioana.vasiliu@enpg.ro"> ioana.vasiliu@enpg.ro</a><a href="mailto:luciana.miu@enpg.ro"> </a></p>
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<p></p><p>The post <a href="https://www.enpg.ro/beyond-fit-for-55-how-can-romania-align-with-the-eus-2040-climate-target/">Beyond Fit-for-55: How can Romania align with the EU’s 2040 climate target?</a> first appeared on <a href="https://www.enpg.ro">EPG</a>.</p>]]></content:encoded>
					
		
		
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		<title>Untapping Romania’s Biogas and Biomethane Potential</title>
		<link>https://www.enpg.ro/untapping-romanias-biogas-and-biomethane-potential/?utm_source=rss&#038;utm_medium=rss&#038;utm_campaign=untapping-romanias-biogas-and-biomethane-potential</link>
		
		<dc:creator><![CDATA[Energy Policy Group]]></dc:creator>
		<pubDate>Tue, 15 Oct 2024 11:11:56 +0000</pubDate>
				<category><![CDATA[2024]]></category>
		<category><![CDATA[Energy decarbonisation]]></category>
		<category><![CDATA[EPG Policy Papers]]></category>
		<category><![CDATA[Governance and policy]]></category>
		<category><![CDATA[Publications]]></category>
		<category><![CDATA[Ciel Bovary]]></category>
		<category><![CDATA[Corina Lazăr]]></category>
		<category><![CDATA[Nadia Maki]]></category>
		<category><![CDATA[Radu Dudău]]></category>
		<guid isPermaLink="false">https://www.enpg.ro/?p=5993</guid>

					<description><![CDATA[<p>Biogas and biomethane will play an important role in achieving a cleaner energy mix and safeguarding the EU from external energy price fluctuations. Current projections estimate fossil gas to make up only between 2.5-6.6% of Romania’s energy demand in buildings by2050 (Energy Policy Group, 2022). Achieving the European Union’s net-zero target by 2050 requires reducing [&#8230;]</p>
<p>The post <a href="https://www.enpg.ro/untapping-romanias-biogas-and-biomethane-potential/">Untapping Romania’s Biogas and Biomethane Potential</a> first appeared on <a href="https://www.enpg.ro">EPG</a>.</p>]]></description>
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<p>Biogas and biomethane will play an important role in achieving a cleaner energy mix and safeguarding the EU from external energy price fluctuations. Current projections estimate fossil gas to make up only between 2.5-6.6% of Romania’s energy demand in buildings by<br>2050 (Energy Policy Group, 2022). Achieving the European Union’s net-zero target by 2050 requires reducing natural gas usage, and decarbonising gas where reductions are not possible. Biogas and biomethane have the technical potential to replace natural gas to a significant extent as a fuel of choice, especially for industry.</p>



<p><strong>The use of biogas and biomethane incurs several advantages. Notably:</strong></p>
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<ul class="wp-block-list">
<li>Biogas and biomethane can also build on the circular economy by improving waste management strategies and overall resource efficiency Biogas and biomethane offer the same system-level benefits as natural gas (seasonal storage, flexibility on the power market, heating, and ability to transport efficiently over distances).</li>



<li>Anaerobic digestion uses the same methane from decomposing organic matter which would otherwise be released into the atmosphere.</li>



<li>Biomethane has the technical ability to use the current gas grid, in theory avoiding some stranded assets. However, realising this benefit’s full potential requires high economies of scale, which are not yet foreseen.</li>



<li>Biogas and biomethane can also build on the circular economy by improving waste management strategies and overall resource efficiency</li>
</ul>



<p>Nonetheless, there are some limitations to what can be achieved through these alternative fuels. Despite their high technical potential, projections of future biogas and biomethane production do not always properly consider sustainability criteria, resulting in exaggerated figures. Therefore, given the value of these resources and limitations in feedstock availability, the Romanian energy sector could benefit from a regulatory framework to incentivise the production of biogas and biomethane and ensure they are targeted where they can have the greatest decarbonisation benefits. </p>



<p>This paper gives an overview of Romania’s biogas and biomethane strategic targets and examines the existing Romanian production potentials in the context of the sustainability criteria specified in the new Renewable Energy Directive (RED III, 2023) to illustrate the gap. The paper will then outline lessons learned from EU countries that have successfully increased their production and examine trade-offs which must be considered in any future biogas and biomethane strategy in Romania.</p>



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<figure class="wp-block-image size-full is-style-default"><img loading="lazy" decoding="async" width="800" height="800" src="https://www.enpg.ro/wp-content/uploads/2024/06/Nadia-Maki-ENPG.png" alt="Nadia Maki ENPG" class="wp-image-5330" srcset="https://www.enpg.ro/wp-content/uploads/2024/06/Nadia-Maki-ENPG.png 800w, https://www.enpg.ro/wp-content/uploads/2024/06/Nadia-Maki-ENPG-300x300.png 300w, https://www.enpg.ro/wp-content/uploads/2024/06/Nadia-Maki-ENPG-150x150.png 150w, https://www.enpg.ro/wp-content/uploads/2024/06/Nadia-Maki-ENPG-768x768.png 768w, https://www.enpg.ro/wp-content/uploads/2024/06/Nadia-Maki-ENPG-600x600.png 600w, https://www.enpg.ro/wp-content/uploads/2024/06/Nadia-Maki-ENPG-696x696.png 696w" sizes="auto, (max-width: 800px) 100vw, 800px" /></figure>
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<h5 class="wp-block-heading"><strong>Nadia Maki, </strong>EPG Senior Researcher</h5>



<p>Nadia Maki is a Senior Researcher within the Energy Systems Programme of EPG. She is an energy policy researcher focused on renewable energy financing, green technology and innovation and emerging economies.</p>



<p>Before joining EPG, Nadia worked as an independent evaluator for renewable energy financing schemes for the UK Department of Energy Security and Net Zero, evaluating schemes such as the Contracts for Difference scheme and the Capacity Market scheme. Nadia has extensive experience using theory-based evaluation methods. She has also contributed to projects for DG CLIMA, DG Environment, the Research Council of Norway, UN Women, the World Health Organization and ActionAid.</p>



<p>Nadia holds an MSc in Climate Change, Development and Policy from the Science Policy Research Unit and the Institute of Development Studies at the University of Sussex and a Bachelors of Arts degree from Queen’s University in Canada.&nbsp;</p>



<p>Contact: <a href="mailto:nadia.maki@enpg.ro" title="nadia.maki@enpg.ro">nadia.maki@enpg.ro</a></p>
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</div><p>The post <a href="https://www.enpg.ro/untapping-romanias-biogas-and-biomethane-potential/">Untapping Romania’s Biogas and Biomethane Potential</a> first appeared on <a href="https://www.enpg.ro">EPG</a>.</p>]]></content:encoded>
					
		
		
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