2025

În luna noiembrie 2021, România a introdus schema de plafonare a prețurilor la energie electrică și gaze naturale prin Ordonanța de Urgență (OUG) 118/2021, pentru a sprijini consumatorii în sezonul rece 2021-2022. Măsura a fost adoptată la aproximativ un an după liberalizarea completă a pieței de energie electrică (1 ianuarie 2021) și gaze naturale (1 iulie 2020), ca urmare a creșterii prețurilor post-liberalizare, a impactului crizei Covid-19 și a conflictului din Ucraina. Ulterior, schema a fost prelungită în mod repetat pentru a proteja consumatorii, în special cei vulnerabili, de efectele creșterii prețurilor energiei în întreaga Uniune Europeană. Schema a avut rolul de a tempera șocurile din piața de energie cauzate de războiul din Ucraina, cu consecințe în ceea ce privește inflația, puterea de cumpărare a populației, cererea agregată și creșterea economică. La mai bine de trei ani de la introducerea schemei, începutul anului 2025 a fost marcat de o incertitudine privind prelungirea acesteia. Incertitudinea era determinată de faptul că termenul de aplicare era prevăzut să expire în luna martie. În februarie 2025, Guvernul României a adoptat OUG 6/2025, care prevede extinderea perioadei de plafonare a prețurilor pentru energia electrică cu încă trei luni, până la finalul lunii iunie 2025 și pentru gaze naturale cu un an, până la finalul lunii martie 2026. Conform notei de fundamentare a OUG, autoritățile justifică prelungirea prin contextul geopolitic din Ucraina, temperaturile scăzute de la mijlocul lunii februarie și sprijinul acordat de România Republicii Moldova după sistarea tranzitului de gaze prin Ucraina. Totuși, se poate aprecia că argumentele prezentate sunt insuficiente și necesită o fundamentare mai solidă pentru a susține în mod convingător poziția exprimată. Deși temperaturile au fost scăzute în luna februarie, România a avut o toamnă târzie și o primă jumătate de iarnă cu temperaturi mult mai ridicate decât media obișnuită a perioadei. Astfel, golirea stocurilor de gaze naturale nu poate fi explicată doar prin temperaturile scăzute din februarie, ci și printr-o problemă de gestionare, iar acest aspect este automat transpus în noile facturi. Un alt motiv invocat de autorități a fost sărăcia energetică, cu referire la raportul Băncii Mondiale din 2024. Această publicație oferă o analiză succintă menită să evidențieze potențialul impact determinat de eliminarea schemei de plafonare a prețurilor la energie asupra consumatorilor casnici. Documentul propune o serie de măsuri imediate pe care autoritățile le-ar putea lua în considerare pentru a atenua impactul asupra facturilor consumatorilor casnici. EPG va publica ulterior o analiză dedicată problemelor structurale care influențează prețurile energiei. Noua publicație va include o componentă extinsă privind sectorul industrial, în continuarea celei prezente, vizând recomandări de politici publice pe termen mediu și lung. Alexandru Ciocan, EPG Senior Researcher Alexandru Ciocan become a member of the EPG team at the end of 2023 and started working as a Senior researcher in the Energy System Programme. Previous he has working extensively for almost 10 years in the field of hydrogen-based technologies, renewable energies sources and lithium-ion batteries. Between 2012 and 2021 he held various research positions at the National R&D Institute for Cryogenic and Isotopic Technologies – ICSI Rm. Valcea. Nevertheless, Alexandru gained experience in the energy policy, following his contribution to the national strategic documents from the position of Senior Advisor within the Energy Policy and Green Deal Department into the Ministry of Energy of Romania between 2021 – 2023. Since 2017 Alexandru holds a PhD in engineering sciences from the IMT Atlantique as well as the University Politehnica of Bucharest. Contact: alexandru.ciocan@epg-thinktank.org

The EU industry is at a crossroads, and will undergo a profound transformation to maintain long-term competitiveness. For Central and Eastern Europe (CEE), the urgency of this transformation is enhanced by the continued economic and strategic importance of heavy industry and the potential to become a hub for clean industrial production. Among a portfolio of tools to support industrial transformation, lead market creation emerges as a key instrument to improve predictability of demand for clean industrial products and solidify the business case for switching to low-carbon industrial production. Green Public Procurement (GPP) could be a key tool in this sense, making the state and subnational procurement bodies the first big buyers of clean industrial products, particularly steel and cement which are extensively used in public construction and whose low-carbon transformation requires financial support and revenue certainty. With many CEE countries investing heavily in public infrastructure (roads, railways, bridges, and others) and a growing stock of public buildings, GPP could be an essential instrument to trigger the domestic production of clean steel and cement, two of the most emissions-intensive industries, helping to position CEE countries as key suppliers in industrial value chains as well as reduce the footprint of their booming construction sectors. Following a period of rapid deindustrialisation after 1990, the CEE region currently produces just under one-fifth of the EU’s steel and one-third of its cement. It is an important consumer of these industrial products, contributing nearly one-third of EU consumption in 2023 and one-third to cement consumption. This is accompanied by a rapidly-expanding CEE construction sector, faster-than-average growth in the buildout of transport and utilities infrastructure, and a continued key importance of the automotive industry, a major steel consumer. Certain CEE countries are significant and growing importers of steel and cement: Poland had steel imports equivalent to over two-thirds of its consumption in 2023, while cement imports in Romania saw a nearly 500% increase between 2016 and 2023. This shows potential opportunities for reducing import dependency by enhancing domestic production of steel and cement, particularly once the Carbon Border Adjustment Mechanism provides a level playing field for low-carbon European industry to compete with cheaper, emissions-intensive imports. To estimate the potential for using GPP to stimulate clean industrial production in CEE, this study provides a first-level estimate of the volume of steel and cement used in public construction in 12 CEE countries (Estonia, Latvia, Lithuania, Poland, Czech Republic, Slovakia, Austria, Hungary, Slovenia, Croatia, Romania, and Bulgaria). It uses a tailored methodology and a combination of data sources to estimate the quantities of flat and long steel products and cement purchased by public authorities, calculate the potential emissions reductions enabled by mandating carbon footprint thresholds in public procurement, and estimate the impact on national budgets for public procurement. We estimate total annual steel and cement consumption by public construction in the study countries to be 4.5 million tonnes (Mt) and 15.6 Mt, respectively. This is equivalent to 3.1% and 9.5% of all steel and cement consumption in the EU, respectively. Steel consumption is likely underestimated due to conservative estimates on the amount of steel typically consumed in European construction. Mandating near-zero emissions thresholds in CEE public construction results in estimated emissions reductions of 9.9 Mt CO2 annually across study countries, or €616 million in EU allowance (EUA) costs at current prices of €62/tonne CO2. The impact of near-zero steel and cement procurement on public budgets is difficult to ascertain, given the substantial uncertainty around the premium of clean steel and cement production. First-level estimates in our study indicate a cost impact ranging from 0.11% (Austria) to 1.35% (Romania) as a share of the total public procurement budget. The accuracy of these estimates will depend on the variations in industrial production costs across countries, driven by input prices (e.g., renewable electricity prices) and revenue support mechanisms for industrial producers (e.g., subsidies). The potentially sizable market of CEE public construction, to which private construction, vehicle manufacturing, shipbuilding, and other sectors could contribute additionally, indicates a key role for lead market creation mechanisms. To leverage the opportunities for launching a market for clean steel and cement in CEE, EU and national policymakers may want to consider several recommendations: Improve monitoring and data collection on public procurement, to allow the tracking of spending on construction materials and eventually compliance with environmental and/or local production criteria. Develop clear labels for green steel, cement, and concrete, based on ambitious decarbonisation trajectories and going beyond the existing benchmarks of the EU Emissions Trading System. Make GPP an integral part of other support instruments for industrial transformation, recognising the key role of infrastructure development and funding under the Cohesion Policy, as well as the automotive and shipbuilding sectors as sources of steel demand. Ensure that institutional capacity is sufficient to implement GPP robustly, guaranteeing sustainability of compliance and monitoring while avoiding disproportionate burdens on industrial producers (particularly SMEs). Increase regional cooperation across the CEE region to link supply and demand for clean steel and cement across the region, as well as for essential inputs for low-carbon industrial production such as renewable hydrogen and CO2 transport and storage. This report has been funded by the Bellona Foundation. The views expressed in the report are the sole responsibility of their authors, and do not necessarily represent Bellona’s position. Luciana Miu, EPG Head of Clean Economy 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.  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...

CCUS narratives and why they matter Carbon capture, utilisation, and storage (CCUS) is a suite of technologies to capture, transport, and utilise carbon dioxide (CO2) or store it underground. CCUS has emerged internationally as a key technical measure for climate change mitigation, in particular for reducing the amount of CO2 ultimately emitted into the atmosphere by industries such as cement production and oil refining. These industries have much fewer viable options than others to deeply reduce their emissions at the pace needed to stay competitive in a low-carbon world. Capturing a portion of their emissions will therefore be unavoidable to reach net zero. Despite the urgency of deploying CCUS at a large scale in the European Union (EU), the project pipeline is lagging significantly. As large, complex projects with long lead times, CCUS is fraught with regulatory, financing, and infrastructure challenges–but one lesser-discussed challenge which may prove to be a key bottleneck is social resistance. Particularly for CCUS projects where the CO2 is ultimately stored underground, public concerns over real or merely perceived risks, poorly addressed by institutions or project developers, have sometimes led to the abandonment or severe delay of projects. Given the current turmoil faced by heavy industry and Europe’s ambitious CCUS targets for 2030, understanding the dynamics of public opinion about these technologies is a condition for their success. This is where we come to the role of narratives. Narratives are essentially “stories” developed around a particular issue, where events unfold as part of a plot, complete with characters, symbols, and dramatic moments. They are universally important elements of human cognition, highly persuasive compared to mere statement of facts, and used on a regular basis to convince an audience (sometimes subtly) to adopt a certain position or opinion. While research is still emerging, there is evidence that narratives around CCUS are evolving as the subject enters the public discussion, including in the media. Besides, given the current very low level of public awareness about CCUS, public opinion is likely to be much more volatile and susceptible to persuasion by strong narratives, even if they are misinformed. Stories of CCS across Europe Our research on has found that CCUS narratives vary significantly across countries. A distinct difference emerges between North-Western Europe and South-Eastern Europe (SEE), with many more media articles, institutional statements and emergent stories in the former, and not just dry facts. Indeed, North-Western Europe is much more advanced in deploying CCUS, and the subject has been part of the public debate for longer than in South-Eastern Europe. This does not mean that CCUS will stay out of the public realm for much longer in SEE. In fact, media reporting on CCUS has increased significantly in recent years, and is shifting from neutral and informative tones, with little original content, to actual narratives portraying heroes, villains, conspiracies, and positions on CCUS. Sensationalism is not absent either: a “dream team” heroically is innovating on CCUS in Greece, while in Romania CCUS would just “bury in toxins.” While North-Western European media is more sober, it also politicises the topic, for example linking CCUS to “climate offenders” conspiring with the Danish government for tax breaks. CCUS is still much less talked about than other topics of the clean energy transition, such as renewable energy or electric vehicles, yet European narratives around it are replete with warning signs that social resistance is not negligible. First, institutions shift their narratives depending on the mot du jour of public concern: whereas CCUS stories used to be almost exclusively in the context of climate change, they are now increasingly about economic and job security (i.e., helping industries stay competitive by relieving them of the financial pressure of their CO2 emissions). The issue is that CCUS is expensive, regulation around it is still catching up, and especially in SEE the political commitment around it is nowhere near what it needs to be. If CCUS continues to be portrayed by institutions in a “techno-optimistic” way, promising economic revival but failing to create an enabling environment to deploy it in the first place, this risks a harder fall from grace in terms of public trust when the promised benefits fail to materialise. Denmark is an example of good practice, having implemented regulation, funding, and infrastructure planning at a rapid pace, so that its increasingly confident institutional narratives have real substance. Second, the media will play a very important role in shaping public opinion, especially in countries where institutions withdraw or waver in response to media criticism. Across all the analysed countries, there was a variation in how likely the media was to create CCUS stories. For example, the Danish media are much more informative and neutral than the Romanian or the Greek media, use more scientific evidence, and are better-anchored due to the relative transparency of government actors on the topic. On the other hand, in countries lacking institutional positioning on CCUS and healthy debate by government actors, the media become the only source of information (and indeed, more trusted than government), and in many cases will create the stories of CCUS that serve its readership expectations, including by politicising the topic and imbuing it with sensationalism. Thus, rather than being seen as a technology with its own set of benefits, costs, and risks, CCUS risks being etched into the public imagination as a villain, a conspiracy, or an outright lie. What does the future hold? The future of CCUS in Europe depends on multiple factors, and the stories developing around it are just one piece of the puzzle. However, ignoring the narratives risks missing the opportunity to anticipate public opinion and concerns and engage effectively in transparent debate about the implications of deploying CCUS. The most important first step in this sense is to not withdraw from the debate before it has even started. In countries where CCUS is planned and/or needs to happen, institutional actors must adopt firm and transparent positions based on evidence and acknowledge the magnitude of challenge of keeping industry competitive. The EU can help by communicating expectations on government...

Foaia de parcurs pentru renovarea Colegiului Național „Matei Basarab” din Râmnicu Vâlcea, județul Vâlcea, are ca scop prezentarea etapelor necesare pentru transformarea clădirii într-una cu performanță energetică nZEB (nearly Zero Energy Building). Documentul detaliază pașii optimi de renovare, sursele de finanțare aferente fiecărei etape, măsurile de monitorizare și verificare, precum și beneficiile suplimentare rezultate în urma implementării proiectului. Având în vedere că această clădire a beneficiat deja de lucrări de renovare, studiul pornește de la o analiză a situației actuale, luând în considerare factori precum sursele de energie utilizate și emisiile de gaze cu efect de seră generate de consumul energetic. Renovarea este planificată pe o perioadă de cinci ani, astfel încât fiecare etapă să contribuie la îmbunătățirea confortului interior și la reducerea consumului de energie. Fiecare etapă include: Modul de implementare a măsurilor de renovare; Detaliile tehnice pentru implementarea fiecărei măsuri; Estimarea costurilor de investiție și întreținere; Lista achizițiilor, avizelor și contractelor necesare. Proiectul OUR-CEE Depășirea Renovărilor Subperformante în Europa Centrală și de Est (Overcoming Underperforming Renovations in Central and Eastern Europe) face parte din Inițiativa Europeană pentru Climă (EUKI) a Ministerului Federal German pentru Afaceri Economice și Acțiune Climatică (BMWK). Opiniile exprimate în acest studiu sunt în întregime responsabilitatea autorului (autorilor) și nu reflectă neapărat punctul de vedere al Ministerului Federal pentru Afaceri Economice și Acțiune Climatică (BMWK). OUR-CEE abordează problema renovărilor subperformante ale clădirilor publice și modalitățile de depășire a acesteia. Proiectul se concentrează pe patru țări din Europa Centrală și de Est (CEE), care se confruntă în mod tradițional cu ambiții reduse de renovare și cu o calitate scăzută a fondului construit. Clădirile publice, care ar trebui să fie un exemplu în renovarea aprofundată, au fost supuse lucrărilor de renovare de mulți ani în CEE – însă o proporție semnificativă a acestor renovări nu reușește să genereze economii de energie adecvate.

Foaia de parcurs pentru renovarea Colegiului Ortodox „Mitropolitul Nicolae Colan” din Cluj-Napoca, are ca scop prezentarea etapelor necesare pentru transformarea clădirii într-una cu performanță energetică nZEB (nearly Zero Energy Building). Documentul detaliază pașii optimi de renovare, sursele de finanțare aferente fiecărei etape, măsurile de monitorizare și verificare, precum și beneficiile suplimentare rezultate în urma implementării proiectului. Având în vedere că această clădire a beneficiat deja de lucrări de renovare, studiul pornește de la o analiză a situației actuale, luând în considerare factori precum sursele de energie utilizate și emisiile de gaze cu efect de seră generate de consumul energetic. Renovarea este planificată pe o perioadă de trei ani, astfel încât fiecare etapă să contribuie la îmbunătățirea confortului interior și la reducerea consumului de energie. Fiecare etapă include: Modul de implementare a măsurilor de renovare; Detaliile tehnice pentru implementarea fiecărei măsuri; Estimarea costurilor de investiție și întreținere; Lista achizițiilor, avizelor și contractelor necesare. Proiectul OUR-CEE Depășirea Renovărilor Subperformante în Europa Centrală și de Est (Overcoming Underperforming Renovations in Central and Eastern Europe) face parte din Inițiativa Europeană pentru Climă (EUKI) a Ministerului Federal German pentru Afaceri Economice și Acțiune Climatică (BMWK). Opiniile exprimate în acest studiu sunt în întregime responsabilitatea autorului (autorilor) și nu reflectă neapărat punctul de vedere al Ministerului Federal pentru Afaceri Economice și Acțiune Climatică (BMWK). OUR-CEE abordează problema renovărilor subperformante ale clădirilor publice și modalitățile de depășire a acesteia. Proiectul se concentrează pe patru țări din Europa Centrală și de Est (CEE), care se confruntă în mod tradițional cu ambiții reduse de renovare și cu o calitate scăzută a fondului construit. Clădirile publice, care ar trebui să fie un exemplu în renovarea aprofundată, au fost supuse lucrărilor de renovare de mulți ani în CEE – însă o proporție semnificativă a acestor renovări nu reușește să genereze economii de energie adecvate.

Foaia de parcurs pentru renovarea Liceului „Nicolae Bălcescu” din Medgidia, județul Constanța, are ca scop prezentarea etapelor necesare pentru transformarea clădirii într-una cu performanță energetică nZEB (nearly Zero Energy Building). Documentul detaliază pașii optimi de renovare, sursele de finanțare aferente fiecărei etape, măsurile de monitorizare și verificare, precum și beneficiile suplimentare rezultate în urma implementării proiectului. Având în vedere că această clădire a beneficiat deja de lucrări de renovare, studiul pornește de la o analiză a situației actuale, luând în considerare factori precum sursele de energie utilizate și emisiile de gaze cu efect de seră generate de consumul energetic. Renovarea este planificată pe o perioadă de cinci ani, astfel încât fiecare etapă să contribuie la îmbunătățirea confortului interior și la reducerea consumului de energie. Fiecare etapă include: Modul de implementare a măsurilor de renovare; Detaliile tehnice pentru implementarea fiecărei măsuri; Estimarea costurilor de investiție și întreținere; Lista achizițiilor, avizelor și contractelor necesare. Proiectul OUR-CEE Depășirea Renovărilor Subperformante în Europa Centrală și de Est (Overcoming Underperforming Renovations in Central and Eastern Europe) face parte din Inițiativa Europeană pentru Climă (EUKI) a Ministerului Federal German pentru Afaceri Economice și Acțiune Climatică (BMWK). Opiniile exprimate în acest studiu sunt în întregime responsabilitatea autorului (autorilor) și nu reflectă neapărat punctul de vedere al Ministerului Federal pentru Afaceri Economice și Acțiune Climatică (BMWK). OUR-CEE abordează problema renovărilor subperformante ale clădirilor publice și modalitățile de depășire a acesteia. Proiectul se concentrează pe patru țări din Europa Centrală și de Est (CEE), care se confruntă în mod tradițional cu ambiții reduse de renovare și cu o calitate scăzută a fondului construit. Clădirile publice, care ar trebui să fie un exemplu în renovarea aprofundată, au fost supuse lucrărilor de renovare de mulți ani în CEE – însă o proporție semnificativă a acestor renovări nu reușește să genereze economii de energie adecvate.

Romania has finalised its National Energy and Climate Plan (NECP), setting ambitious targets to support the EU's 2030 climate goals. Originally due by 30 June 2024, the updated plan was submitted on 16 October 2024. It outlines Romania’s strategy to cut emissions, expand renewable energy, and improve energy efficiency. Key highlights include a 12.7% reduction in ESR sector emissions, a 62% cut in EU ETS emissions, and a 41% renewable energy share (RES) by 2030. The plan also aims for higher energy efficiency, capping final energy consumption at 22.47 Mtoe (261.3 TWh). For a detailed breakdown, including sector-specific strategies and policy measures, download the full slide deck.

In recent years, Romanian steelmakers have faced the significant challenges felt by all EU industries, grappling with rising energy costs, increased competition from non-EU producers, and fluctuating demand, all of which have put immense pressure on the industry’s operations and competitiveness. Romania is one of the last remaining countries in Central and Eastern Europe (CEE) with primary steel production, and steelmaking contributes significantly to the national economy and employment. The competitiveness of the steel industry is at risk due to high and volatile energy prices, uncertainty around future hydrogen and steel scrap availabilities, constrained capacity to secure financing, and the lack of a green steel market. In the long-term, maintaining competitiveness necessarily implies a transition from conventional to low-carbon steelmaking, requiring affordable low-carbon energy, the transformation of production processes and substantial investments. With significant renewable energy potential, an important automotive sector, and booming infrastructure development, Romania is well-positioned to advance a transition to competitive low-carbon steel. However, it suffers from policy and regulatory bottlenecks, leading to underutilisation of EU funding, high energy prices, and low investment certainty due to lagging national planning for hydrogen infrastructure and supply chains for high-quality steel scrap. In the context of major pressure to compete in a low-carbon world, as well as the policy push of the Clean Industrial Deal and forthcoming Steel and Metals Action Plan, Romania must urgently implement key concrete actions to maintain its steel industry. These include ramping up renewable electricity deployment, developing hydrogen infrastructure, labelling steel scrap as a critical resource, proactively absorbing and efficiently disbursing EU funding, setting up novel funding and derisking instruments and leveraging private funding, and creating robust lead markets in the construction, automotive, and shipbuilding sectors. Mara Bălașa, EPG Associate Mara is an Associate within the Clean Economy programme of the EPG. With a background in economics and political science (BSc University of Warwick), applied economic analysis, and data analysis (MSc Stockholm School of Economics), she is currently researching the green transition with a focus on industrial policy. Mara has been a PhD Fellow at the Center for Statecraft and Strategic Communication, Stockholm School of Economics, since 2022. During her master’s degree, she was the recipient of the UniCredit Foundation Masterscholarship for top students.  Previously, Mara was a market operations analyst at the European Central Bank and a research executive in public affairs in Brussels, focusing on energy and transport. She has also briefly worked in public administration at the Ministry of Economy in Romania and at the Permanent Representation of Romania to the European Union. Contact:mara.balasa@epg-thinktank.org Sabina Strîmbovschi, EPG Senior Researcher 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. Over the last few years, she has been involved in two volunteer organizations. She served as an affiliated expert and board member at one of the most important think-tanks on European Affairs in Romania – the Center of European Expertise (Europuls). She is also a member of Future Energy Leaders Romania – the youth program of the Romanian National Committee of the World Energy Council. Contact: sabina.strimbovschi@epg-thinktank.org

Pe 26 februarie, Comisia Europeană a publicat Clean Industrial Deal (CID), o strategie amplă menită să sprijine transformarea sectoarelor industriale ale UE. Este un document non-legislativ care prevede o serie de viitoare măsuri legislative  în domenii precum energia, investițiile, achizițiile publice și prețul carbonului. A fost anunțat pentru prima dată ca o politică-cheie în EU Competitiveness Compass, ca parte a efortului de a consolida poziția Uniunii în cursa globală către un viitor cu emisii nete zero, inovator și sigur. Clean Industrial Deal a fost lansat împreună cu Affordable Energy Action Plan, care are scopul de a asigura energie accesibilă, eficientă și curată.  Citate Luciana Miu – EPG Head of Clean Economy: "Clean Industrial Deal este un semnal binevenit al angajamentului UE față de o industrie competitivă și cu emisii reduse de carbon. Acesta urmărește să abordeze provocările urgente evidențiate în raportul Draghi și include propuneri practice și relevante pentru a stimula cererea de produse cu emisii reduse de carbon, a facilita accesul la energie curată accesibilă și a consolida lanțurile de aprovizionare (inclusiv cele circulare), printre altele.  Cu toate acestea, acordul nu reușește să genereze schimbarea de paradigmă necesară în politica industrială europeană pentru a asigura o acțiune concertată. Principalul punct nevralgic al transformării industriale – costul energiei – este abordat în mare parte prin reciclarea reformelor deja convenite sau prin recomandări adresate statelor membre. Aproape că nu este mobilizată nicio nouă finanțare publică pentru transformarea industrială – deși acest fapt poate fi de înțeles în contextul altor priorități stringente, se ratează o oportunitate de a valorifica fluxuri de finanțare-cheie precum fondurile de dezvoltare regională, de exemplu prin condiționalități legate de achizițiile publice verzi.  Pentru țările din Europa Centrală și de Est, aceste deficiențe sunt amplificate de lipsa recunoașterii importanței cooperării regionale. EPG a demonstrat recent că o abordare regională a transformării industriale poate optimiza cheltuielile publice, construi capacități și genera beneficii indirecte. Deși CID reprezintă un pas înainte demn de apreciat, nu reușește să atingă nivelul de elaborare a politicilor necesar pentru noua ordine mondială în care se află Europa. " Mihnea Cătuți – EPG Executive Director: "Deși au existat mesaje politice contradictorii în ultimele săptămâni, Clean Industrial Deal consolidează ideea că decarbonizarea și reindustrializarea trebuie să meargă mână în mână. Comisia s-a angajat acum să propună un obiectiv de reducere cu 90% a emisiilor de gaze cu efect de seră până în 2040, întrucât UE va trebui să gestioneze simultan criza climatică, preocupările legate de competitivitate și îmbunătățirea rezilienței economice. Costurile asociate vor fi însă semnificative.  Din păcate, propunerea financiară nu vine cu schimbări revoluționare și este puțin probabil să mobilizeze finanțarea necesară. Realocarea unei părți din Fondul pentru Inovare poate avea doar efecte limitate, iar utilizarea STEP Sovereignty Seal poate altera obiectivele acestui instrument financiar. Redirecționarea resurselor MFF într-un nou Fond pentru Competitivitate va implica negocieri dificile, dar ar putea oferi cel puțin o soluție parțială pentru deficitul de finanțare publică preconizat după 2026.  Planul pare, de asemenea, să confirme că politica industrială rămâne în mare măsură o prerogativă națională, cu o dimensiune europeană limitată. Documentul nu prezintă  nicio măsură credibilă de guvernanță la nivel european. Reforma cadrului de ajutor de stat prelungește în esență status quo-ul stabilit prin Temporary Transition and Crisis Framework și General Block Exemption, cu puține măsuri suplimentare pentru a preveni subvențiile naționale distorsionante pentru Piața Unică. Nu a fost propus niciun mecanism nou de redistribuire fiscală, iar revizuirea ETS din 2026 ar aduce doar câteva schimbări vagi ale regulilor de utilizare a veniturilor rezultate din comercializarea certificatelor de carbon.  Dezvoltarea unor standarde armonizate și simplificate pentru oțel verde și ciment verde este o propunere promițătoare, mai ales că textul menționează în mod explicit utilizarea acestora în cheltuielile bugetului UE și operaționalizarea lor la toate nivelurile administrației publice.  Acțiunea UE pare promițătoare și prin noile Parteneriate pentru Comerț și Investiții Curate (CTIPs), care vor spori cooperarea cu țările terțe, consolidând reziliența lanțurilor de aprovizionare, mobilizând finanțare și creând cadre de reglementare comune. O revizuire clară a necesității de extindere a domeniul de aplicare al CBAM pentru a include emisiile indirecte reprezintă un pas pozitiv, iar Comisia s-a angajat să deschidă o discuție dificilă despre subvenții pentru exporturi." Pentru mai multe detalii, îi puteți contacta pe Luciana Miu la luciana.miu@epg-thinktank.org și pe Mihnea Cătuți la mihnea.catuti@epg-thinktank.org.

On February 26th, the European Commission published the Clean Industrial Deal (CID), a wide-ranging strategy aimed at supporting the transformation of the EU’s industrial sectors. It is a non-legislative document, foreseeing a number of future legislative measures in the fields of energy, investment, procurement, and carbon pricing, among others. It was first announced as a key policy piece in the EU Competitiveness Compass, as part of an effort to enhance the Union’s position in the global race to a net-zero, innovative, and secure future. The Clean Industrial Deal was released together with the Affordable Energy Action Plan, which has the purpose of securing affordable, efficient and clean energy.   Quotes Luciana Miu – EPG Head of Clean Economy: "The Clean Industrial Deal is a welcome signal of the EU’s commitment to a competitive, low-carbon industry. It seeks to address the urgent challenges highlighted in the Draghi report and includes practical, relevant proposals to enhance demand for clean products, unlock access to affordable clean energy, and strengthen supply chains (including circular ones), among others.   However, the Deal falls short of the paradigm shift in European industrial policy needed to ensure concerted action. The primary pain point of industrial transformation – the cost of energy – is addressed mostly through recycling already-agreed reforms or recommendations to Member States. Almost no new public funding is mobilised for industrial transformation – while this may be understandable in the context of other pressing priorities, an opportunity is missed to leverage key funding streams such as regional development funding, for example through conditionalities on green public procurement.  For countries in Central and Eastern Europe, the above shortfalls are compounded by a lack of recognition of the importance of regional cooperation. We have shown recently that a regional approach to industrial transformation can unlock efficiencies in public spending, build capacity, and create spillover benefits. While the CID is a commendable step forward, it rather misses the mark on the kind of policymaking that is needed for the new world order Europe is now in." Mihnea Cătuți – EPG Executive Director: "Despite the mixed political messages over the past few weeks, the Clean Industrial Deal reinforces the idea that decarbonisation and reindustrialisation go hand in hand. The Commission has now committed to proposing a 90% GHG emissions reduction target for 2040, as the EU will have to focus simultaneously on dealing with the climate crisis, addressing competitiveness concerns, and improving economic resilience. The associated price tag will significant.  Unfortunately, the financial proposal brings more of the same and will likely fall short of mobilising the necessary finance. Reallocating some of the Innovation Fund can only render limited results and the utilisation of the STEP Sovereignty Seal can change the nature of the financial instrument. Reshuffling MFF resources in a new Competitiveness Fund will face tough negotiations, but can offer at least a partial solution to the public finance gap expected post-2026.  The plan also seems to concede that industrial policy remains firmly within national remit, with limited EU-level action. The document does not envision any credible EU-level governance tool. The reform of the state aid framework effectively prolongs the status quo under the Temporary Transition and Crisis Framework and the General Block Exemption, with few additional safeguards for avoiding national subsidies that are distortive to the Single Market. No new fiscal redistribution mechanism has been proposed, while the revision of the ETS in 2026 appears to only bring some vague changes to revenue utilisation.   The development of harmonised and simplified standards for green steel and green cement is a promising proposition, especially as the text explicitly mentions their utilisation in EU-budget spending and making them operational for all levels of public administration.   Promising EU-action is also foreseen with the new Clean Trade and Investment Partnerships (CTIPs) which will increase the cooperation with third countries to increase supply chain resilience, mobilise finance and set up regulatory frameworks. A clear review of the need to increase the scope of CBAM to cover indirect emissions is also a positive step forward, while the Commission has also committed to entering the difficult conversation on export rebates." For further details, you may contact Luciana Miu at luciana.miu@epg-thinktank.org and Mihnea Cătuți at mihnea.catuti@epg-thinktank.org

The industrial base of Central and Eastern Europe is a key driver of the region’s economy, and its transformation will be essential for maintaining regional manufacturing in the long term. Transforming it will require concerted action by CEE states as well as a regional approach to exploit synergies, improve cost-effectiveness, and cooperate on mutually beneficial solutions. However, to date there has been insufficient action and regional coordination to enable an industrial transformation which capitalises on the region’s strengths. This publication presents a bird’s eye view of the region and its countries, reflects on the opportunities for cooperation, and puts forward concrete suggestions for anchoring the new industrial reality of Central and Eastern Europe in clean industry hubs fit for the future.​ Introduction and aims of this study: Central and Eastern Europe (CEE) has significant potential to become a pole of clean industrial production, but lacks the regional coordination essential for an efficient industrial transformation​ The current nationally siloed approach misses key opportunities to deliver industrial transformation, including coordinated infrastructure planning to leverage key resources across the region, and exploiting a regional market for industrial products​ The need for regional coordination comes in a time of pressure for CEE heavy industry to transform by decarbonising existing manufacturing and enabling new cleantech manufacturing, which will be essential to maintain the regional industrial base long-term, even if it poses challenges in the short-term​ Rising carbon prices, an incoming phase-out of free allowances under the EU Emissions Trading System (ETS), new regulations to nudge the consumption of lower-carbon industrial products, and an aggressive global cleantech race all mean that CEE countries must act now​ At the same time, the industrial policy landscape of the EU is undergoing a massive shift in the wake of Russia’s invasion of Ukraine, which exacerbated the existing pressure of high energy prices, and the 2024 Draghi report, which highlighted major gaps in the EU’s industrial competitiveness further addressed in the recently-published EU Competitiveness Compass​ Competitiveness will be a major driver for industrial transformation in the EU, and the forthcoming Clean Industrial Deal is expected to lay down rules and incentives for decarbonising industrial production in the EU, anchored in competitively advantageous sectors and promoting a coordinated approach​ Given the current context, it will be key for CEE to unlock cost efficiencies for its industrial transformation and align its national priorities to ensure that advancing EU competitiveness does not come at the expense of strategic considerations for autonomy and cohesion​ The purpose of this study is to reflect on the specificities of CEE countries which contextualise their outlook for industrial transformation, and to provide a high-level assessment for the benefits of a regional approach anchored in competitive and strategic industrial clusters​

În urma alegerilor parlamentare din decembrie 2024 și a negocierilor ulterioare, s-a format o nouă coaliție de guvernare compusă din PSD, PNL, UDMR și grupul minorităților. Prezența în coaliție a două partide care au făcut parte și din guvernarea anterioară indică o relativă continuitate la nivel politic, însă nu și în ceea ce privește politicile climatice și de decarbonizare. Acest lucru reiese din programul de guvernare al noii coaliții, publicat la finalul lui 2024, care oferă o privire de ansamblu asupra priorităților la nivel național pentru următorii patru ani. Viziunea noului guvern este influențată inclusiv de noua realitate politică determinată de rezultatele alegerilor parlamentare și anularea alegerilor prezidențiale de către Curtea Constituțională. Deși economia europeană a resimțit puternic efectele pandemiei de Covid-19 și ale crizei energetice, iar discursul global cu privire la schimbările climatice devine treptat mai ostil, Uniunea Europeană și-a reafirmat poziția și intențiile de a fi un lider climatic la nivel global. Noul mandat al Comisiei Europene urmărește să continue procesul de tranziție climatică pentru continent, printr-o abordare pragmatică ce ar îmbina obiectivele de decarbonizare, competitivitate și creștere economică prin revitalizarea producției industriale. Uniunea are deja o țintă de reducere a acestor emisii cu 55% până în 2030 și urmează să adopte o țintă pentru 2040, pornind cel mai probabil negocierile de la o țintă de reducere cu 90% a emisiilor. Aceste ținte ambițioase trebuie, însă, cuplate cu nevoia de creștere a competitivității industriale, sinonimă cu transformarea proceselor de producție și lansarea de noi industrii  ale tehnologiilor curate. Așadar, dezvoltarea economiei și reindustrializarea României ar trebui să meargă în tandem cu aceste angajamente, poziționând România ca un lider în tranziția spre o economie curată. Aceste obiective însă nu pot fi atinse fără un program ambițios de investiții publice și scheme de susținere, care sunt necesare într-o perioadă cu spațiu fiscal redus la nivel național. Actualul program de guvernare nu reflectă pe deplin aceste provocări și priorități.  Guvernanța schimbărilor climatice, pe plan secund în lista priorităților de guvernare La momentul actual, România se află în plin proces de aderare la Organizația pentru Cooperare și Dezvoltare Economică (OCDE) cu obiectivul de a deveni membru până în anul 2026. În anul 2024, OCDE a recomandat întărirea sistemului de guvernanță climatică prin adoptarea unei legi cadru a climei și înființarea unui consiliu științific consultativ pentru schimbări climatice. Aceste recomandări au fost integrate în programul de guvernare 2023-2024, însă au fost doar parțial implementate: înființarea unei legi a climei nu s-a concretizat, iar recomandarea privind consiliul științific consultativ a avut un parcurs anevoios până la legiferare, nefiind nici acum înființat. Astfel, aceste obiective, deși asumate de fostul guvern, rămân nerealizate.  Schimbările climatice sunt menționate sporadic în noul program de guvernare, iar adoptarea unei legi-cadru a climei nu mai este menționată. În domeniul schimbărilor climatice, noul guvern își propune doar continuarea asigurării surselor de finanțare pentru „implementarea proiectelor actuale în domeniile reducerii de emisii și adaptarea la schimbările climatice, în contextul îndeplinirii de către România a obligațiilor privind reducerea emisiilor de gaze cu efect de seră”. Această formulare vagă lasă semne de întrebare, mai ales având în vedere că țintele de reducere a emisiilor de gaze cu efect de seră diferă între documentele principale de planificare climatică strategică, Strategia pe Termen Lung a României de Reducere a Emisiilor de Gaze cu Efect de Seră, (SLT) și Planul Național Integrat pentru Energie și Schimbări Climatice (PNIESC).  STL, care setează obiectivele și programele României pentru abordarea schimbărilor climatice pe termen lung, este deja învechită. Neconcordanța acestei strategii cu PNIESC, recent actualizat, evidențiază lipsa coerenței între politici, pe care o lege cadru a climei ar putea-o rezolva. Pe lângă această abordare insuficientă a atenuării schimbărilor climatice, nici adaptarea la schimbările climatice nu beneficiază de mai multă atenție. Impactul schimbărilor climatice este din ce în ce mai vizibil, dar nu există referințe clare la implementarea Strategiei Naționale de Adaptarea la Schimbările Climatice, care fără o susținere politică puternică riscă să întâmpine deficiențe de punere în aplicare. Programul de guvernare prezintă lacune și în ceea ce privește impactul socio-economic al politicilor climatice, și conștientizarea publicului asupra acestuia. Spre exemplu, coaliția nu prezintă un plan pentru a gestiona potențialul impact asupra cetățenilor al noului sistem de comercializare a certificatelor de emisii (ETS2), adoptat la nivel de Uniune în 2023, ca parte a revizuirii directivei ETS. Această directivă prevede, în esență, impunerea unui preț asupra emisiilor de CO2 care rezultă din consumul de combustibili fosili în sectoarele transportului rutier și al clădirilor. Atenuarea impactului asupra consumatorilor vulnerabili este prevăzută la nivel de Uniune printr-un Fond Social pentru Climă (FSC), care ar urma să fie gestionat de statele membre prin Planuri Sociale pentru Climă. Programul de guvernare menționează doar că 30% din fondurile din FSC alocate României vor fi distribuite până în 2028, fără a oferi alte detalii. ETS2 este un instrument cu beneficii importante la nivelul UE (reducerea emisiilor cu 42% până în 2030), astfel contribuind la atenuarea schimbărilor climatice și stimularea adoptării de alternative cu emisii reduse de CO2 în gospodării și în transportul rutier. Potențialul impact al ETS2 asupra gospodăriilor, chiar dacă nu va fi dramatic în primii ani, riscă să creeze probleme de acceptare socială cu privire la necesitatea unor astfel de politici climatice. Fondul Social pentru Climă reprezintă o oportunitate pentru decidenți de a răspunde mai multor provocări socio-economice existente. Măsurile desemnate ar putea preveni potențialul impact asupra celor vulnerabili în urma introducerii ETS2, dacă sunt formulate și țintite corespunzător în urma unui dialog constructiv cu publicul și părțile interesate. În general, dialogul cu publicul despre politicile climatice trebuie ancorat în cele mai noi dovezi științifice, întărind legitimitatea măsurilor climatice la nivelul opiniei publice și contracarând narativele false și dezinformarea. O mai bună utilizare a expertizei științifice, spre exemplu prin consiliul consultativ pentru climă, ar putea contribui la îmbunătățirea politicilor climatice prin intermediul consilierii independente a experților și sporirea capacității instituționale. Programul de guvernare menționează doar susținerea cercetării în domenii strategice și provocări societale precum schimbările climatice, dar nu menționează concret ariile de cercetare și integrarea acestei munci în procesul de dezvoltare de politici publice. Reindustrializarea economiei...

District heating (DH) systems provide multiple economic and environmental benefits. Their inherently high efficiency contributes to lowering the cost of heating in dense urban areas and industrial centres. The combined production of heat and power (CHP) leads to higher fuel efficiency and lower emissions of greenhouse gas and local air pollutants. The role of DH systems in decarbonising heat supply has been strengthened in the recent revision of EU energy and climate legislation. The Energy Efficiency Directive and the Energy Performance of Buildings Directive introduced new requirements for efficient district heating and cooling systems, which determine eligibility for certain types of public funding. Additionally, they mandate municipalities with more than 45,000 inhabitants to develop strategies for district heating. Romania, with its extensive DH network of over 4,380 km and approximately 1.05 million customers, should be well-positioned to reap the benefits of centralised heating. However, decades of infrastructure neglect, uneconomic business models dependent on public subsidies, and outdated system design have resulted in consistent decline of connections to the DH networks. The regulated prices of heat have relied on subsidies to cover operational costs and shield consumers from higher prices. This has strained local budgets and left little room for financing the necessary maintenance works, which increased the network losses. Out of the 10.7 TWh of centralised heating produced in 2022, only 6.7 TWh was sold to consumers – energy losses and operational consumption have therefore accounted for no less than 38% of the energy produced. The highest losses were recorded in Constanța, Iași, and Arad, cities with some of the lowest shares of households supplied by the local DH networks. The system was operated most efficiently in Râmnicu Vâlcea, which is also the municipality with the highest share industrial heat consumption from its DH network. As DH operators have been unable to bankroll their own investments, they have come to rely on investments from EU funding and different types of public support. While most infrastructure retrofitting has been funded by governmental and EU grants, the investments implemented so far often lack strategies for reducing fossil fuel use and integrating modern renewable technologies, heat pumps, and waste heat. Meanwhile, several European cities have already pioneered initiatives to store thermal energy, capture and use energy from wastewater, deploy heat pumps, and integrate renewable energy and waste heat. The strategies implemented at the local level for thermal energy provision within the 11 municipalities analysed in this paper show an overwhelming focus on maintenance and refurbishment of existing networks. These priorities are coupled with investments to replace existing thermal plants with new gas-fired CHPs. This reliance on gas can be partially explained by Romania’s anticipated expansion of natural gas supply, but such investments can only lead to incremental emissions reductions and fail to account for the long-term evolution of fossil fuel and carbon prices, and larger EU-level shifts in primary energy demand. Multiple actions are needed to more effectively address current challenges and prepare the Romanian DH systems for the future: Adopt clear and ambitious national and local strategies for district heating and cooling. Such plans should outline a clear vision for the refurbishment, decarbonisation and even potential expansion of DH systems. The latter is particularly important given the upcoming expansion of carbon pricing to cover residential heating. Local authorities should be more ambitious in promoting plans aimed at maximising the use of locally available renewables, reusing waste heat, and developing heat storage solutions. To maximise impact, such strategies should be complemented by ambitious building renovation plans.   Identify and remove legislative and regulatory barriers. Focus on enabling the implementation of new technologies that facilitate system integration, reduce limitations on the autonomy of local municipalities, improve data transparency, and enable private entities to participate more actively in the market. Gradually channel investment towards cleaner energy sources. While some investment in gas-fired CHPs is urgently needed for the short term to continue the uninterrupted supply of heat, decarbonised solutions are needed to ensure the long-term viability of these plants. Partially switching to hydrogen or biomethane may be implemented in some locations, but this requires clear roadmaps for how such fuels will be produced, transported, and stored. In the medium- to long-term, DH networks should incorporate solutions such as large-scale heat pumps, renewable energy (including geothermal), waste heat (metro stations, industrial halls, data centres, etc.), and heat storage to the maximum extent possible. With rising temperatures in urban areas during the summer, district cooling solutions should also be pursued. Improve the business model and fund investments in new technologies. A careful balancing act is needed to both gradually expose consumers to price signals in order to reduce reliance on subsidies and shield households from unaffordable heating prices. In the short- to medium-term, most investments will still need to be funded through public grants, including from EU funding sources. These investments will need to prioritise the refurbishment and modernisation of heat distribution infrastructure, as well as fund pilot projects which implement innovative technologies. Gradually, public funding should be made available increasingly through loans and state-backed guarantees to maximise the number of beneficiary municipalities. The long-term objective should be to develop financially self-reliant systems. Alexandru Ciocan, EPG Senior Researcher Alexandru CIOCAN become a member of the EPG team at the end of 2023 and started working as a Senior researcher in the Energy System Programme. Previous he has working extensively for almost 10 years in the field of hydrogen-based technologies, renewable energies sources and lithium-ion batteries. Between 2012 and 2021 he held various research positions at the National R&D Institute for Cryogenic and Isotopic Technologies – ICSI Rm. Valcea. Nevertheless, Alexandru gained experience in the energy policy, following his contribution to the national strategic documents from the position of Senior Advisor within the Energy Policy and Green Deal Department into the Ministry of Energy of Romania between 2021 – 2023. Since 2017 Alexandru holds a PhD in engineering sciences from the IMT Atlantique as well as the University Politehnica of Bucharest. Contact: alexandru.ciocan@epg-thinktank.org

The revisions of EU legislative files, aligning with the net-zero emissions target for 2050 and the 55% net emissions reduction by 2030, are ushering in opportunities for the building sector to accelerate emissions reductions through increased energy efficiency and decarbonisation measures. Driven by advancements in energy efficiency and low-emissions HVAC systems, the building sector has shown significant untapped potential for decarbonisation.  To meet the updated energy efficiency targets, Romania must prioritise and accelerate the depth and pace of building renovations, focusing on upgrading the least energy-efficient buildings (classified as E, F, and G) to achieve higher performance ratings of class B or A. At least 16% of the building stock, starting with the most inefficient structures, should undergo these renovations.  Achieving the 2030 targets will require a substantial increase in renovation rates. In the residential sector, the current rate of 0.5% must rise to 2.5% by 2025 and 4% by 2045, while in the non-residential sector, the renovation rate must reach 2.4% by 2025 and 3% by 2030, stabilising at this rate through 2050. The role of municipal actors in delivering these targets has grown in importance. Setting realistic and achievable goals for heat pump adoption, alongside reevaluating energy consumption projections under the NECP, is critical for the clean transition in the built sector.  Constantin Postoiu, EPG Head of Data Analytics Constantin Postoiu is the Head of Data Analytics at EPG, coordinating the process of collecting, processing and managing the data needed in EPG’s research projects. In addition, he coordinates data intensive projects that need advanced statistics or modelling techniques.  For the past nine years, using extensive knowledge in data analysis, Costin provided support for data-driven decision making both in the public and private sector. He is also a member of the Consultative Council for the Impact Assessment of Normative Acts (CCEIAN) within the Romanian Government, where he analyses the compliance of the supporting documents that accompany the draft normative acts, the impact studies and the reports on the implementation of the normative acts with the requirements and standards provided by the legislation in the field of impact assessment. Costin holds a PhD in Economics, thesis Endogenous regional growth in Romania, from the Bucharest University of Economic Studies. During this time, he published several papers on refereed journals, mostly on regional development. He also holds a Master and Bachelor in Economics from the Bucharest University of Economic Studies. Contact: constantin.postoiu@epg-thinktank.org

The energy sector of Romania is transitioning from an emission-intensive power generation towards less carbon-intensive methods of electricity production. Natural gas power plants, relying on gas turbines, are seen by many as an intermediate step to a fully decarbonised energy sector. Significant natural gas-based power generation is currently under development in Romania. These projects have been included in the country’s strategic plans and consist of the development of at least 3.5 GW of CCGT power plants until 2027. While gas combustion emits less CO2 than coal, these capacities would still be important emission sources. To overcome this, these new installations are expected to become “hydrogen ready”, so that they can initially be fuelled with natural gas and, from 2036 onwards, switch to a blend of 50% natural gas / 50% hydrogen. A brief description of the two power plant configurations relying on gas turbines reveals the fact that Open Cycle Gas Turbines (OCGT) are generally better suited than Combined Cycle Gas Turbines (CCGT) for ensuring power grid balancing. While CCGT power plants are more efficient, they are adequate for baseload energy production, as their startup time is much longer. The degree to which a gas turbine can be considered hydrogen ready can be measured by the proportion of hydrogen to be blended with natural gas and the cost of system upgrade, as a function of the overall power plant cost. Such gas power plants can be partly financed from the Modernisation Fund, provided they are in line with the provisions of the EU taxonomy for sustainable finance. There are two criteria that can be used for demonstrating sustainability. The CCGT units to be developed in Romania seem to target a criterion relying on an upper GHG emissions limit over a period of 20 years plus additional conditions. The evaluation of the LCOE for a generic CCGT/OCGT system developed for meeting the EU taxonomy requirements, similar to the capacities to be developed in Romania, point to more than 100 €/MWh for CCGT and more than 200 €/MWh for OCGT. This baseline LCOE value can be negatively impacted by the price of hydrogen and by the cost of hydrogen storage. For the Romanian CCGT projects, the LCOE is around 115-122 €/MWh should natural gas be used for the entire life of the power plant and 135-140 €/MWh should the switch to hydrogen occur in 2036. The maximum LCOE can be as high as approx. 186 €/MWh for a pessimistic scenario in which the price of hydrogen is high. The main recommendations of this report focus on better explaining theneed and opportunity to develop 3.5 GW worth of CCGT in Romania. Indeed, such projects can serve as a short- and medium-term solution, especially as RES and storage capacities continue to grow, there is a need for clarity regarding their longer-term prospects. This is especially important for projects of national interest, like the Mintia CCGT, which present some differences from the data in the NECP. Notably, the estimated load factor, significantly higher than the one from the NECP, may envisage a higher than anticipated gas share in the energy mix, potentially preventing Romania from meeting the decarbonisation targets set in the plan. More clarity is required regarding the hydrogen to be used for powering these plants starting with 2036: the source of hydrogen, the associated transport and storage infrastructure, its production path, the LCOH. The relatively high cost of energy produced by the expected CCGT capacities poses a financial risk on the long run. As this cost is significantly higher than the current cost of renewable energy and as RES continue to become cheaper, investment in new CCGTs may not be fully recovered. Radu Cîrligeanu, EPG Senior Researcher Radu works as a Senior Researcher in the Energy Systems Programme of EPG, focusing on the role of hydrogen in the energy mix.  Radu is an aerospace engineer, specialized in propulsion. He holds an MSc. degree from Cranfield University (UK) in Thermal Power, with a focus on aircraft propulsion. He has more than ten years of experience in the field of aerospace engineering. He worked as gas turbine performance engineer at Rolls-Royce, in the UK, both for civil and military applications. He also acquired experience in the development of novel thermal and hybrid propulsive cycles at Safran Tech, the R&D department of Safran, in Paris. Radu is convinced that the solution to developing a more sustainable society is not novel technology, but its development and implementation greatly speeds up the process.  Contact: radu.cirligeanu@epg-thinktank.org