Policy brief. Towards Green Transformation of the Republic of Moldova. The Republic of Moldova (hereinafter “Moldova”) is vulnerable to shocks stemming from a model of economic growth that is poorly adapted to modern challenges and opportunities. By taking the path of climate neutrality and green economy, Moldova can make its economy and society more resilient. This path is in line with Moldova’s European aspirations and the European Green Deal.

With the approval in 2018 of the National Programme on the Promotion of Green Economy, Moldova committed to make its economic development compatible with the preservation of natural resources, protection of human health, biodiversity and climate. It committed to act on green growth priorities, such as energy efficiency and renewable energy, waste recycling, sustainable forest management, greening of enterprises, organic farming, rational use of natural resources and conservation of biodiversity. These priorities are well anchored in Moldova’s international commitments. A series of monitoring reports have been produced to assess the country’s green transformation based on a set of internationally-agreed “green growth indicators” (GGIs). The current policy brief summarises the key findings and recommendations of the Third National Report on GGIs, which covers the evolution of GGIs since 2010 and how it compares to other European countries. This work is contributing to the preparation of the new Programme on green economy for 2022-24 and its action plan and of Environmental Strategy 2030.

The analysis finds positive but modest results in adopting an environmentally friendly economy and calls to speed up action for closing the gap between Moldova and other European countries. 

The National Report on Green Growth Indicators highlights several areas that require immediate intervention, namely:

Energy and carbon productivity: Although economic benefits per unit of used energy have increased, accompanied by a decrease in greenhouse gas (GHG) emissions, the energy and carbon productivity of Moldova’s economy remains low compared to other European countries. Low efficiency is a feature of both the production and final consumption of energy. This is largely due to outdated technologies and infrastructure. Modernising housing and transport is key for boosting energy and carbon productivity. District heating is another critical area for action where one can go beyond mere renovation. Also the water and agricultural sectors should be developed in line with the “energy efficiency first” principle. The share of renewable energy sources needs to be increased. Going beyond the use of biomass, especially wood, will make the expansion of renewables coherent with other environmental goals. 

Resource productivity: The inefficient use of raw materials is a significant problem in Moldova and waste reduction and recycling remain limited. While generation of industrial wasteis declining and industrial output has decoupled from waste generation, the volume of household waste is increasing. In order to further increase resource productivity, Moldova needs to invest into waste collection infrastructure and promote waste recycling through regulatory and fiscal instruments. The alignment with the EU waste hierarchy is particularly important. More efficient use of fertilizers is needed , including to prevent groundwater pollution. Water productivity can be further improved by reducing both intake and water losses. With a changing climate, water scarcity is likely to become a limiting factor across the economy but especially in agriculture.

Soil, forest and biological resources: Soil resources have not changed significantly in the last decade. Moldova remains a territory with predominantly agricultural areas, with soil as the main natural resource. Despite the slight increase in afforestation, Moldova still has limited forest resources. Biological diversity needs more protection. 

People’s access to safely managed drinking water services has increased. However, connection to sewerage systems lags behind significantly, creating additional pressure on the quality of water returned to the natural cycle.

Quality of air is worsening, calling for immediate intervention.

The limited number of companies applying eco-innovation in the production process slows down adaptation to climate change and the transition to a green economy.

Public investments in environment protection are modest. This is due to limited capacity in the budget and the lack of institutional capacity to implement environmental spending programmes. In addition, government policy prioritises other areas.

Moving towards green economy requires clear long-term policies and investments. The government should deliver on its commitment to the climate and environmental action, including through close dialogue and co‑operation with stakeholders and external partners. Across all areas, specific measures should be implemented:

• (i)  enhance the capacity of relevant institutions;
• (ii)  adjust the legal and regulatory framework;
• (iii) improve policy coherence and co‑ordination of sectoral policies and
• (iv) provide sufficient finance to support projects on green and sustainable growth.

Download the policy brief 

Acknowledgements

This policy brief and the underlying report were prepared by the expert team from “Expert-Grup” within the “European Union for Environment” (EU4Environment) Programme funded by the European Union and implemented by the OECD, UNECE, UNEP, UNIDO and the World Bank, and under supervision of Krzysztof Michalak, Senior Programme Manager, OECD. The valuable comments, provided by Angela Bularga (European Commission) and Andrei Isac (EU4Environment National Coordinator), are particularly acknowledged. The policy brief was edited by Mark Foss.

About EU4Environment

The “European Union for Environment” (EU4Environment) Programme helps the partner countries preserve their natural capital and increase people's environmental well-being by supporting environment-related action, demonstrating and unlocking opportunities for greener growth, and setting mechanisms to better manage environmental risks and impacts. Read more here about EU4Environment.

Disclaimers

Data presented in this policy brief come from the report “Towards Green Transformation of the Republic of Moldova: State of Play in 2021”. All sources are available and properly acknowledged in the report. The views expressed herein are those of the authors only and can in no way be taken to reflect the official opinion of the European Union, its members, the governments of the Eastern Partner countries or the implementing partners. This policy brief and any map included herein are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries, and to the name of any territory, city or area.

This policy brief was produced with the financial assistance of the European Union.