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A Regional Approach to Future-proofing CEE Industry

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...

Pot guvernanța climatică și competitivitatea industrială să fie priorități complementare ale noului guvern? 

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...

Preparing Romania’s District Heating Systems for the Future

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...

Accelerating Energy Efficiency and Decarbonisation in the Building Sector: Scenario for Achieving EU and National Targets

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...

Combined Cycle Gas Turbine (CCGT). A Romanian Perspective.

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...

Successful CfD Auction Brings Optimism, But Industry Challenges Persist 

Context  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.   The first CfD auction has concluded and successfully procured the target c. 1.5 GW of installed capacity (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...

Romania’s Offshore Wind Potential: Policy Pathways for Sustainable Development

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 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...

Leveraging the EU Cohesion Policy for a Clean Industrial Revival

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 products. 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...

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