Private Sector Decarbonization, Competitiveness, and Adaptation to Climate Change in Romania : Policy Effectiveness Review of the Programs Supporting the Private Sector’s Green Transformation

Overview & Synopsis

The European Union (EU)-wide green transition provides new opportunities to increase the competitiveness of the Romanian private sector while placing it on an environmentally sustainable growth path. The Romanian government is committed to turning decarbonization goals into green growth opportunities and has requested World Bank assistance in providing inputs to the preparation of a Green Industrial Plan. The GRI RA utilizes an innovative analytical framework that posits that greening companies and making them more resilient to climate change is crucial to long-term private sector competitiveness and sustainable economic growth. Climate change generates different types of risks for businesses but can also create economic opportunities. As various barriers can limit firms’ ability to manage climate-related risks and opportunities, public sector action is needed to ensure that mitigation and adaptation strategies are not only adopted but also designed and implemented in ways that enhance economic opportunities. The activities to be carried out by the World Bank under the GRI RA are organized in two pillars. The first pillar focuses on supporting the development and implementation of the Green Industrial Plan, covering industry decarbonization, private sector climate adaptation, and green competitiveness. The second pillar strengthens institutional coordination, monitoring, and reporting of climate change priorities. The objective of this report is to provide policymakers with a systemic evaluation of public policies and provide an analytical foundation for improving the efficiency and effectiveness of public investments.