Romania is 39th in the top 61 most attractive countries for green infrastructure investments, according to the ranking Index created by PwC recently in the Green Infrastructure Finance Propensity Index. The study indicates significant differences in how different nations prioritize and finance the various components of green infrastructure.
In the worldwide ranking, Romania is placed after Uzbekistan and before Bangladesh. Unfortunately, Romania ranks at the bottom of the list among all European countries.
Why is Romania in this situation? In the post-pandemic years, the country experienced impressive development and investment in green and energy areas. The European Commission created an investment budget of around 1.39 billion euros to support the Romanian energy system. Moreover, many influential companies in the field, such as Prime Batteries Technology, are expanding and investing in the development of the energy and green infrastructure of the country.
So, why is Romania still at the bottom of the European countries list?
The issue comes from the internal bodies that have the authority to handle these investments and the logistical delegation of the funds accordingly. It is clear that the country lacks the necessary individuals, policymakers and environment, climate and ecology institutions that are reliable and certified and have the power and the genuine interest in sustaining the green-orientated future of Romania.
Green Infrastructure Finance Propensity Index 2022
The study included 61 countries and territories representing 83% of the world’s population, 88% of the global GDP, and 83% of global CO2 emissions. As seen in the image below, it is based on ratings derived from seven criteria.
“The study looked at how attractive conditions are in different countries for private finance in green infrastructure, focusing in particular on elements such as renewable energy, transport electrification, waste management and support for the circular economy. Private capital continues to be largely interested in high-income countries, supported by membership of climate-conscious international organisations such as the OECD and the EU”.Dinu Bumbăcea, Country Managing Partner, PwC Romania
The macroeconomic environment is where Romania performs the best, coming in at number 25, based on the S&P sovereign rating, the Gini coefficient (income inequality), and GDP growth. It is placed in the bottom half of the list in the following categories: regulatory and business climate (32nd), financial market strength (34th), availability of green financing alternatives (55th), dedication to green goals (44th), and green growth (61st).
According to the report, it is clear that public funding will not be sufficient to support a transition requirement now estimated at USD 93.2 trillion at the scale and speed needed to meet the Paris Agreement targetsPwC Representative