Romania stands at a crossroads, with the opportunity to position itself as a leader in energy transition and a model for sustainable economic development in Eastern Europe. Leveraging its rich natural resources, strategic location, and potential for renewable energy growth, Romania can address pressing challenges while laying the foundation for long-term prosperity. Drawing on best practices and insights from global frameworks, here are ten actionable recommendations for Romania.

1. Promote Regional Development Through Renewable Energy

Investing in renewable energy can serve as a powerful tool for addressing regional inequalities in Romania. Underdeveloped areas such as the Jiu Valley and parts of Moldova could benefit from targeted wind, solar, and biomass energy projects. By focusing on these regions, Romania could create local employment opportunities, attract much-needed investment and stimulate economic growth. A Community Energy Fund could support grassroots renewable projects in these areas, while partnerships between public and private sectors would ensure the sustainability of such initiatives. Vocational training programmes tailored to these regions would equip the local workforce with the skills needed for emerging green industries, fostering long-term economic mobility.

2. Strengthen Energy Security Through Diversification

Romania’s energy future depends on reducing its reliance on imports and harnessing its own diverse natural resources. Expanding hybrid energy systems that integrate renewable sources like wind and solar with transitional fuels such as natural gas could provide a reliable and resilient energy mix. Additionally, investing in advanced storage solutions like batteries and hydrogen infrastructure would allow surplus energy to be stored and utilised during peak demand. Promoting energy efficiency across industrial and residential sectors would further reduce dependency on imports while ensuring greater energy resilience.

3. Enhance Infrastructure for Renewable Energy Integration

Romania’s aging grid infrastructure, particularly in rural areas, poses significant challenges to renewable energy deployment. Modernising and expanding the grid would enable efficient integration of renewable energy sources, reduce energy waste, and attract international investors who seek robust infrastructure. Utilising EU funds and fostering partnerships with private firms could accelerate these improvements, focusing particularly on regions with high renewable energy potential. Cross-border energy connections would further integrate Romania into the European energy market, enhancing its role as a reliable energy supplier in the region.

4. Support Green Finance Initiatives

The growth of Romania’s renewable energy sector requires innovative financing mechanisms to attract both domestic and international investments. Establishing a Green Bond Framework could channel institutional investments into sustainable energy projects, while partnerships with the European Investment Bank would help develop financing models that lower the risks associated with large-scale projects. Additionally, Romania could incentivise smaller investors through tax benefits, encouraging wider participation in its green transformation. These efforts would create a thriving ecosystem for green finance, supporting the transition to a low-carbon economy.

5. Implement Regulatory Stability and Policy Predictability

Romania’s renewable energy sector has suffered from frequent policy changes, undermining investor confidence and slowing progress. Establishing a long-term National Energy Strategy with clear milestones and enforcement mechanisms would provide the consistency needed to attract investments. An independent Energy Regulation Task Force could oversee policy implementation, ensuring transparency and reducing the influence of political shifts. Engaging stakeholders, including the private sector and civil society, in crafting energy policies would foster trust and collaboration, making Romania a more reliable partner in the global energy transition.

6. Develop Romania as a Regional Energy Hub

Romania’s strategic location positions it as a natural energy trading hub for Eastern Europe. By enhancing its domestic energy market and strengthening ties with neighbouring countries, Romania could play a pivotal role in regional energy security. Establishing a Regional Energy Exchange in Bucharest would facilitate energy trade, stabilise prices, and attract cross-border investments. Participation in European initiatives such as the Trans-European Energy Networks (TEN-E) would further enhance connectivity and position Romania as a key player in the regional energy landscape.

7. Facilitate a Just Transition for Carbon-Intensive Regions

The shift from fossil fuels to renewable energy must account for the social and economic challenges faced by Romania’s coal-dependent regions, such as the Jiu Valley. A dedicated Just Transition Task Force could oversee the economic revitalisation of these areas, ensuring that no community is left behind. This would involve retraining programmes for workers transitioning from coal to renewables, and targeted incentives to attract green businesses to these regions. By focusing on equitable development, Romania could transform potential economic disruptions into opportunities for growth and renewal.

8. Invest in Education and Workforce Development

A skilled workforce is the backbone of Romania’s energy transition. Collaborations between universities, vocational schools, and the private sector could create tailored training programmes for renewable energy technologies, from wind turbines to solar arrays and hydrogen systems. Scholarships and apprenticeships would encourage young talent to pursue careers in green technology, ensuring a pipeline of qualified professionals. By prioritising education and workforce development, Romania would not only address current labour market needs but also future-proof its economy against emerging challenges.

9. Engage the Public and Build Awareness

Public support is crucial for the success of Romania’s energy transition. Launching a National Sustainability Awareness Campaign could educate citizens about the benefits of renewable energy and sustainable practices, fostering a culture of energy-conscious behaviour. Collaborating with local governments and community leaders would ensure that these campaigns resonate across diverse demographics. Transparent updates on the progress of energy projects would further build trust and encourage public participation in Romania’s green transformation.

10. Leverage EU Support and Funding Opportunities

Romania’s membership of the European Union provides access to substantial financial and technical resources to support its energy and economic transition. Aligning national strategies with EU initiatives, such as the Green Deal and the Modernisation Fund, would maximise these benefits. Active participation in EU funding programmes and collaborations with European institutions would enable Romania to adopt best practices and attract international expertise. This alignment would ensure Romania remains an integral part of the EU’s collective efforts to achieve a sustainable and resilient future.

Conclusion

By embracing these strategies, Romania can redefine its future—not only as a key player in Europe’s energy transition but as a beacon of resilience and innovation. Through thoughtful investments, a commitment to long-term policies and the empowerment of its people, Romania can transform challenges into opportunities, building a greener, more inclusive, and prosperous nation. The choices made today will not only secure energy independence but also inspire a legacy of leadership, where economic growth and environmental stewardship go hand in hand. Romania stands at the threshold of a brighter, sustainable tomorrow, ready to lead by example at the heart of Europe’s transformation.

Ștefan Baciu, Associate CMS Cameron McKenna Nabarro Olswang LLP SCP