Katja Schmidt
Gilles Thirion
OECD Economic Surveys: Romania 2026
Abstract
Romania is highly vulnerable to global warming and extreme weather events, particularly river flooding and droughts. Although a National Climate Adaptation Strategy is in place, further efforts are required to advance its implementation. Mitigation efforts should also be scaled up to meet agreed emissions reduction targets. Flood management has improved in line with the EU Flood Directive, but sustained investment in modernising flood infrastructure is essential. Construction in flood-prone areas continues, and land use planning should adequately account for flood risks. Given limited awareness of flood risks, property transactions should include legally required disclosure. The mandatory risk insurance should be better enforced to increase low coverage. Water resources face growing pressure from poor water management and ageing infrastructure. Accelerated action is needed to improve water use efficiency, including upgrading water infrastructure, and promoting sustainable irrigation and wastewater treatment practices. In agriculture, promoting climate-resilient practices can help reduce vulnerability to droughts. Other key adaptation priorities include speeding up building renovation programmes and better protecting critical infrastructure.
3.1.1. Climate change increases the frequency of climate-related disasters
Romania is strongly exposed to climate change in comparison with OECD countries. The annual increase in surface air temperature exceeds 2°C (compared to the baseline period of 1981-2010), significantly above the OECD average of 1.4°C (Figure 3.1). This accelerated warming trend intensifies climate-related hazards (IPCC, 2023[1]; IPCC, 2023[2]), placing considerable strain on Romania’s agricultural sector, water resources, and energy systems. The economic consequences are far-reaching: agricultural yields are more volatile, industrial operations face increasing risks from water scarcity and heat stress, and infrastructure resilience is being tested. These impacts not only threaten long-term output but also demand substantial investment to safeguard economic growth and social well-being.
Climate change also intensifies the frequency and severity of extreme weather events, including floods, droughts and storms, with heatwaves showing a particularly marked increase (IPCC, 2023[1]; European Environment Agency, 2024[3]). These natural hazards can incur significant human losses and economic costs. According to data from CATDAT, economic losses of assets caused by weather and climate-related events in Romania amounted to EUR 19.6 billion (in 2023 prices) between 1980 and 2023 (6% of 2023 GDP) (European Environment Agency, 2025[4]; European Environment Agency, 2024[5]), a comparatively high share in EU comparison. In Romania, approximately 60% of total losses are attributed to hydrological events (floods), which often entail substantial physical damage. However, losses from climatological events, particularly heatwaves, are rising and already account for the remaining 40% of total economic losses.
Change in the annual mean surface air temperature over land in 2024 compared to the baseline period 1981-2010
Source: OECD-IEA Historical exposure to extreme temperature dataset.
Rising temperatures and natural hazards not only cause substantial physical asset losses but also lead to a permanent decline in output levels (see, for example, Bilal and Känzig (2024[6])). However, growth effects generally tend to be short-lived. Estimates of the magnitude of these output effects vary, but evidence suggests that the negative effect tends to accumulate over long time horizons (Bilal and Känzig, 2024[6]). The extent of output loss to natural hazards also depends on the government's capacity to respond effectively. Countries with greater pre-disaster fiscal space typically experience smaller output losses due to more important policy responses (Nguyen, 2025[7]). Economic diversification and enhanced labour mobility can further strengthen resilience to natural hazards (Costa and Hooley, 2025[8]). Moreover, beyond direct output effects, climate-related events also generate indirect economic effects, such as adverse health outcomes or disruptions to transport links, generally not captured in these estimates.
3.1.2. Romania is particularly exposed to droughts, heatwaves and river flooding
Among climate-related hazards, Romania is particularly exposed to river floods, droughts, heatwaves, and landslides. Over the past five years (2020-2024), the country experienced, on average, more than 18 additional days of heat stress exposure compared to the reference period of 1981-2010 (for the methodology, see Maes et al. (2022[9]), updated data until 2024), see Figure 3.2, Panel A. This brings the total to 48 heat stress days annually, placing Romania among the countries most affected by heatwaves. The average number of tropical nights (temperatures exceeding 20°C) nearly doubled over the same period, reaching on average 13 nights per year compared to the historical baseline. Heatwaves have a substantial negative impact on economic activity by reducing productivity, while also increasing heat-related illnesses and work absenteeism, and causing disruptions to critical infrastructure such as transport and water supply systems (see, for example, Grantham Institute (2025[10]) and Costa et al. (2024[11])).
Rising temperatures have also contributed to an increasing frequency and intensity of droughts and desertification processes. On average over the last five years (2019-2023), about 6% of cropland area was impacted by drought in Romania (European Environment Agency, 2024[12]). Romania also recorded an important decline in cropland soil moisture of 7% on average over the past five years (2020-2024) compared to the historical baseline, marking the highest value in comparison with OECD countries (Figure 3.2, Panel B). Soil moisture is a key determinant of vegetation productivity, and anomalies in moisture levels – whether due to drought or other climate-related factors – can have substantial impacts on agricultural output and ecosystem health (He and Rosa, 2023[13]; OECD, 2025[14]). A global temperature increase of 2°C could reduce yields of grain maize and wheat in Romania by over 10%, even under irrigated conditions, with significantly greater losses expected in rainfed scenarios (Hristov et al., 2020[15]). This is highly relevant for Romania, where agriculture continues to play a large role in the economy, accounting for 3.6% of gross value added (EU average: 1.8%), and employing a substantial share (more than 20%) of the workforce.
Note: Panel A shows the number of additional days per year of at least strong heat stress exposure (UTI > 32°C) over the period 2020-24 compared to the reference period 1981-2010. Panel B shows the percentage change of soil moisture anomaly in cropland over 2020-24 compared to the reference period 1981-2010.
Source: OECD-IEA Historical exposure to extreme temperature and historical exposure to drought d atasets.
Droughts can also affect energy production, particularly given Romania’s reliance on hydropower and nuclear energy, which account for approximately 32% and 20% of electricity generation respectively, both of which depend on stable water resources. In recent years, Romania has experienced several droughts, with particularly damaging events in 2020, 2022, and 2024. These droughts have had significant adverse effects on agricultural output and agrifood prices, as well as hydroelectric power generation (World Bank, 2024[16]).
Situated within the Danube River Basin, Romania also faces significant flood exposure, with approximately 25% of the population and 8% of the national territory – 12% of built-up areas and 10% of cropland – at risk (Figure 3.3, Panel A). The Danube, along with several of its tributaries such as the Siret River, is especially susceptible to seasonal and flash floods, notably in spring and early summer. At the same time, the Danube’s lower basin, including parts of Romania and Bulgaria, is increasingly exposed to prolonged dry spells. This dual vulnerability reflects the region’s continental climate and complex hydrological dynamics, with climate change intensifying both extremes and complicating water resource management. River flooding can cause substantial economic losses, by damaging infrastructure, settlements, and agricultural lands.
Forest fires also represent a climate risk for Romania, with population and forest exposure falling within the medium range in comparison with OECD countries (Maes et al., 2022[9]). Forest fires and droughts strongly reinforce each other: prolonged drought dries vegetation and soils, creating highly flammable conditions that increase both the likelihood and intensity of fires. Other climate hazards are less prominent, though not absent. Wind-related risks remain limited, and exposure to coastal flooding is relatively low (Maes et al., 2022[9]), primarily due to Romania’s short and sparsely populated Black Sea coastline, as well as the lower frequency of extreme sea-level events for the Black Sea.
Some socio-economic groups are more vulnerable to the physical impacts of climate change than others (Zahnow et al., 2025[17]). Rural and agricultural communities are particularly vulnerable to floods, droughts, and extreme temperatures, given their dependence on natural resources. In urban areas, low-income populations are more exposed to heatwaves and flash floods due to inadequate infrastructure and housing. Elderly populations and young children are especially sensitive to extreme heat (Masselot et al., 2023[18]), with Romania’s aging population facing heightened health risks during prolonged heat events. High air surface temperatures in urban areas are also linked to increased morbidity and mortality among individuals with circulatory system diseases. Evidence indicates that the social groups most vulnerable to climate change also face the greatest barriers to accessing and participating in adaptation efforts (low “coping capacity”) (Zahnow et al., 2025[17]). Socioeconomic vulnerability and geographic location are key drivers of climate risk exposure (Figure 3.3, Panel B), raising concerns that climate impacts could exacerbate existing inequalities between urban and rural populations and across socio-economic groups in Romania.
Note: In Panel A, a return period is the average or estimated time that a specific hazard is likely to recur. Panel B shows the population exposure to specific risks, except for extreme precipitation and for river flooding, which shows the cropland exposure. Values normalised relative to the Romanian average (set to zero).
Source: OECD River flooding exposure dataset.
3.1.3. Mitigation challenges remain significant
Climate mitigation was covered in detail in the 2024 Economic Survey of Romania (OECD, 2024[19]), and this section provides a brief update on subsequent progress before examining adaptation policies. Romania has significantly reduced greenhouse gas (GHG) emissions since the 1990s (Figure 3.4), and both its absolute and per capita emissions remain relatively low compared to OECD countries. By 2023, emissions were 59% below 1990 levels, and net emissions 74% lower, allowing Romania to meet its 2020 EU effort-sharing target (European Commission, 2024[20]). However, most of this progress was achieved during the 1990s. Since 2010, the pace of emissions reductions has been slower.
Total GHG emissions excluding LULUCF
Source: OECD Environment Statistics Database
Source: OECD Environment Statistics database; and IEA Greenhouse Gas Emissions from Energy database.
Low overall emission levels also reflect Romania’s still modest per capita GDP. When measured per unit of GDP, Romania’s economy remains relatively energy and emission intensive (Figure 3.5, Panel A). Romania’s overall energy mix still relies to 70% on fossil fuels, despite the large potential from renewable energy sources, leading to high CO2 emissions from energy supply (Figure 3.5, Panel B). Coal use has fallen but remains the largest source of emissions from electricity and heat production.
Romania must intensify mitigation efforts to meet its 2030 non-ETS targets and the 2050 net-zero goal. Non-ETS sectors (buildings, road transport, agriculture, waste and small industry) account for about 70% of emissions (OECD, 2024[21]). The Long-Term Strategy adopted in December 2023 reaffirms Romania’s commitment to climate neutrality by 2050. Interim goals under the updated National Energy and Climate Plan (NECP) target an 85% cut in net non-ETS emissions by 2030, and 96% by 2040 relative to 1990 levels (Government of Romania, 2024[22]). Yet, projections show that Romania will fall short of its 2030 requirement under EU law by a wide margin, even with full implementation of the NECP, Recovery and Resilience Plan (RRP), and EU cohesion policy programmes (European Environment Agency, 2025[23]). Contrary to many OECD countries, Romania has not legislated its economy-wide targets. A draft climate law tabled in June 2024 included legally binding targets and the establishment of a scientific advisory body. However, only the Advisory Council on Climate was retained in the final law, which has yet to be formally established and become operational (European Commission, 2024[20]).
The previous Survey emphasised that meeting Romania’s emission targets will require stronger and more consistent use of carbon pricing. Outside the EU ETS, Romania’s low energy taxation results in a relatively low implicit carbon price, which leads to a weak price signal and contributes to inefficient fuel use (OECD, 2024[19]). Excise duties on petrol and, to a lower extent on diesel, remain relatively low despite recent increases. Price caps introduced during the 2021-2022 energy crisis on electricity (lifted only in July 2025) and on gas (extended until March 2026) have weakened incentives to save energy or switch fuels, disrupted recent gas and electricity markets liberalisation, and increased investor uncertainty. Natural gas, coal and firewood used for heating are also subject to relatively low taxation, further weakening incentives for energy efficiency.
Strengthening carbon pricing would provide clearer market signals for households and businesses while supporting investment in low-carbon energy and technologies. Carbon pricing and fossil fuel subsidy reforms can generate revenues, at least until higher prices lower emissions, that can be recycled through social transfers, energy efficiency programmes and green infrastructure (see Chapter 1). Recycling these revenues would make reforms more equitable and politically sustainable (OECD, 2024[19]). Consequently, as highlighted in the previous Survey, Romania should not wait for the EU reform of the Energy Taxation Directive to introduce excise duties based on the carbon content of fuels (OECD, 2024[19]). Similarly, the expansion of the EU-wide emission trading system to transport and heating fuels in 2027 should not prevent Romania from already introducing a national carbon tax.
Coal generates around 15% of electricity but accounts for 66% of CO2 emissions in energy supply (IEA, 2025[24]). Under the 2022 Decarbonisation Law, coal mining and coal-fired generation are scheduled to end by 2032. Full implementation would cut emissions and accelerate decarbonisation. Romania’s recent decision to delay the closure of five coal-fired power plants may complicate its path toward meeting the targets set out in the 2022 Decarbonisation Law. The country will need to carefully balance short-term energy needs with its longer-term climate objectives, while ensuring timely investment in clean energy alternatives. Expanding low-carbon generation is essential to support electrification of buildings, transport, industry, and green hydrogen production. Renewables accounted for about 50% of electricity generation in 2024 (IEA, 2025[24]) – mainly from hydropower (32%), followed by wind (13%) and solar (4%) – but capacity would need to more than double by 2030 to stay on track for net zero (OECD, 2024[19]). Progress in scaling up renewables is constrained by grid bottlenecks, permitting delays for approving new renewable power plants, skills shortages and regulatory uncertainty. Offshore gas projects in the Black Sea have the potential to strengthen Romania’s energy security, but should be accompanied by robust emission reduction measures to avoid undermining progress toward decarbonisation.
Road transport is highly fossil fuel-dependent and expanding rapidly (see Chapter 4). Between 2005 and 2023, emissions rose 65% in Romania compared with a 5% fall in the EU (European Commission, 2025[25]). Mobility is increasingly dominated by private cars, with car ownership expected to rise further as incomes grow, driving up future emissions from transport under current policies (European Environment Agency, 2025[23]). The car fleet is old and emission-intensive, and electric vehicles make up less than 1% of the fleet, well below the 2030 target of 31%. Fuel and vehicle taxes remain weakly linked to emissions. Vehicle taxation and road pricing should be restructured to more accurately reflect CO₂ and air pollutant emissions. Public transport use declined over the last decade while car travel rose faster than in regional peers (OECD, 2024[19]).
Large gaps in urban mobility persist, with unequal access across regions. Recent and planned investments in metropolitan rail, buses, and cycling infrastructure are welcome, but need to be scaled up, become better integrated, and paired with stronger incentives to shift behaviour, such as higher taxes on thermal vehicles, parking fees, congestion charges and low-emission zones. The rail network is extensive but underinvestment and poor maintenance make train travel much slower and less competitive than road (see Chapter 4). Stronger fiscal signals and targeted support for cleaner vehicles, alongside modern, electrified public transport, would reduce car dependence and improve air quality.
Romania’s ageing buildings sector is also highly emission intensive. Improving the energy efficiency of existing residential buildings and switching to low-carbon heating and cooling systems would generate large energy savings and GHG emission reductions, while simultaneously addressing adaptation challenges (see discussion further below). Romania’s Long-Term Strategy aims for a 75.8% share of renewable energy in heating and cooling by 2050, primarily through the deployment of heat pumps, solar thermal systems, and green gases. Achieving this target will require improved strategic planning and greater access to EU funding for renewable energy investments.
While mitigation focuses on long-term climate objectives, adaptation is the immediate response to safeguarding people and the economy from climate-related damage. Adaptation can help limit disaster-related losses, protect critical infrastructure, and sustain agricultural productivity in the face of climate variability. Nonetheless, while the two pursue different objectives, there are important synergies and interconnections between adaptation and mitigation policies. For example, expanding green spaces can help adapt to heat stress while also absorbing carbon. Similarly, improved housing insulation can lower carbon emission related to heating or cooling while enhancing resilience to extreme temperature. Romania’s adaptation efforts are positive, but significant implementation gaps remain, and the key challenge lies in translating existing strategies into effective and measurable policy action.
Many climate-related hazards have cross-sectoral and reinforcing impacts (for example, flooding can be more severe when soil is dry and less able to absorb water), underscoring the need for an integrated approach. Strengthening coherence and synergies across sectors and governance frameworks is also essential.
3.2.1. Adaptation starts to be embedded in policy objectives, but important implementation challenges persist
Romania’s adaptation efforts are guided by the National Strategy for Adaptation to Climate Change (SNACS) 2024-2030, with a long-term vision extending to 2050 (Government of Romania, 2024[26]). The strategy is closely aligned with the EU Adaptation Strategy and the European Green Deal and adopts both sectoral and cross-sectoral approaches. It targets thirteen priority sectors, such as agriculture, water resources, energy, health and air quality, and transport, to reduce vulnerabilities to climate impacts. It is supported by a National Action Plan, which outlines more specific implementation measures and timelines. Additionally, the strategy is complemented by a digital platform (RO-ADAPT) that provides access to some adaptation-related data and documentation. The strategy is still in its early implementation phase, making it premature to assess substantial progress. A key limitation is the absence of a robust mechanism for monitoring progress and evaluating outcomes, which undermines accountability of delivering adaptation measures. It will be essential to strengthen reporting and monitoring on SNACS, ensure better tracking of spending, and enhance human capacity to implement measures effectively.
Romania’s National Plan for Disaster Risk Management (2021-2027) provides the overarching framework for addressing a wider range of disasters, including those exacerbated by climate change – such as floods, droughts, and wildfires – but also earthquakes, epidemics, and industrial accidents. The recently adopted National Strategy for Disaster Risk Reduction (NSDRR) 2024-2035 outlines a multi-hazard and multi-sectoral approach aimed at strengthening Disaster Risk Management. It emphasises stronger risk awareness, institutional capacity building, targeted investments in risk reduction, and enhanced preparedness and response systems. Romania’s disaster governance has evolved significantly since the early 2000s, transitioning from a reactive disaster management to a more proactive disaster risk management approach focused on planning, prevention, preparedness, and response (Alfonso et al., 2023[27]). However, especially risk prevention remains underutilised and could be further strengthened (Alfonso et al., 2023[27]).
Romania’s governance framework for climate adaptation and disaster risk management is supported by inter-ministerial coordination mechanisms (for a detailed analysis of coordination mechanism of green policies in Romania, see OECD (2024[28])). The Ministry of Environment, Water and Forests leads the formulation and implementation of climate adaptation policies, while the Ministry of Internal Affairs, through the Department for Emergency Situations, oversees disaster risk management and emergency response. To strengthen cross-ministerial integration, Romania established an Inter-ministerial Committee on Climate Change in 2022, chaired by the Prime Minister. This body is expected to set national climate priorities and promote more policy coherence across agencies.
Despite Romania’s progress in establishing a more coherent framework for climate adaptation and disaster risk management, implementation challenges persist. Sectoral coordination remains uneven (OECD, 2024[28]), and the translation of national strategies into effective local action is constrained by gaps in technical capacity, financial resources, and institutional support at the municipal level (Alfonso et al., 2023[27]). Effective national adaptation strategies hinge on the ability to translate plans into efficient local action (OECD, 2024[29]). Furthermore, policy alignment between climate adaptation, disaster risk reduction, and the Sustainable Development Goals (SDGs) can still be improved, requiring ongoing efforts to harmonise these agendas.
Romania’s climate adaptation and disaster risk reduction efforts are primarily financed through EU funds with some national co-financing. The Recovery and Resilience Facility (RRF) allocates approximately EUR 13.9 billion to the green transition, while the EU Structural Funds 2021-2027 provide around EUR 6.7 billion for environmental initiatives. International financial institutions such as the World Bank and the European Investment Bank (EIB) also support Romania’s adaptation and disaster risk reduction agenda through grants and loans. Nationally financed adaptation-related investments remain relatively modest, but targeted allocations do exist. For instance, the 2025 state budget allocated EUR 0.9 billion to the National Administration of Romanian Waters, a 50% increase compared to 2024, targeting flood protection infrastructure, river embankment upgrades, cross-border hydraulic works, and early warning systems (Bluefield Research, 2025[30]). Given Romania’s constrained fiscal space, it is essential to maximise the absorption of available EU and international funds to strengthen investment in climate adaptation measures. Romania would also benefit from adopting multiannual budget planning for adaptation, thereby strengthening the long-term orientation and implementation of adaptation measures.
Romania successfully began tapping international capital markets by issuing its first “green bonds” in 2024, raising EUR 2.2 billion. The proceeds were allocated to green investments, with over 40% directed toward sustainable water and wastewater management – an area of critical importance (see discussion below) (Government of Romania, 2025[31]). This is a positive step toward scaling up adaptation finance.
3.2.2. Reducing exposure to flooding and sea-level rise
River flooding is among the most economically damaging disasters in both Romania and Europe. Each year, flooding affects around 40 000 residential properties, 3 500 road segments, and 48 000 hectares of agricultural land. Estimates indicate that the average annual expected damage from floods in Romania amounts to EUR 1.7 billion (World Bank, 2024[32]). Climate change and continued development in flood-prone areas are expected to substantially heighten flood risk. However, well-designed and effectively implemented flood strategies can substantially mitigate these risks (Feyen et al., 2020[33]).
Speeding up the implementation of flood protection measures
Romania has developed Flood Risk Management Plans (FRMP) and new flood hazard and risk maps (FHRM), in accordance with the requirements of the EU Floods Directive (2007/60/EC) and with the help of the World Bank (World Bank, 2024[32]). The flood maps are publicly accessible via Romania’s flood risk management platform (https://inundatii.ro/en/maps-portal/). Hazard maps show the depth and extension of the water surface in the case of different flood scenarios, while risk maps indicate the likely damages caused by different flood scenarios. These plans are crucial in guiding flood risk management strategies, including urban and land-use planning, infrastructure protection, and disaster preparedness and are an important step forward in better managing flood risks. In addition, Flood Risk Management Plans (FRMP) were established for each of Romania’s 11 River Basin Administrations. These plans integrate both structural and non-structural measures, combining traditional flood defence infrastructure with nature-based solutions.
Despite this comprehensive framework, Romania has faced significant delays in implementation of these plans, particularly regarding protection measures. Of the 2 627 actions outlined in the second-cycle FRMP (2016-2021), 67% have not yet started (European Commission, 2025[34]). Furthermore, only 56% of the measures from the first-cycle FRMP have been completed or are currently underway. A key constraint is the lack of assured financing for these measures. The National Administration of Romanian Waters remains chronically underfunded, facing limitations in its capacity to support and coordinate implementation at scale. In parallel, local authorities, which are responsible for executing many of the planned measures, often struggle to access adequate financial resources and technical expertise, undermining the pace and effectiveness of flood risk adaptation efforts. Romania is currently developing a multiannual financing framework for flood risk management, with support from the World Bank, which could help support medium‑term planning.
A major challenge in Romania remains the poor maintenance of existing flood defences. Romania possesses an extensive network of dams, reservoirs, dikes, and riverbank protections. Yet, much of this infrastructure is aging and in need of repair. For example, more than half of the preparedness measures outlined in the FRMP focus on ongoing maintenance (European Commission, 2025[34]), underscoring the urgency of addressing flood infrastructure degradation. According to some sources, around 75% of Romania’s reservoirs, most built before 1990, operate under user restrictions (Pange, 2025[35]). Romania currently lacks a comprehensive, standalone national maintenance plan specifically dedicated to the maintenance of flood protection infrastructure. Developing such a plan, building on the FRMP framework, could help prioritise interventions, define costs and clear funding mechanisms, establish implementation timelines, and assign accountability across institutions.
Romania has also begun a welcome shift in its flood management approach from reliance on “grey infrastructure” – such as dikes and drainage systems – towards more nature-based solutions, including water retention areas and wetlands (European Commission, 2025[34]). These nature-based approaches are generally more flexible to adapt to changing flood patterns, promote biodiversity, reduce soil erosion, and entail lower maintenance and operational costs (World Bank, 2024[32]). Investments in natural retention areas are particularly cost-effective measures, with an estimated EUR 2.90 to 3.50 saved for every euro spent, compared to EUR 2.00 to 2.90 for traditional dike construction (Feyen et al., 2020[33]). Cost-effective nature-based solutions should be further scaled up. Measures such as revitalising rivers, floodplains, wetlands, moors, and forests enhance water retention, increasing resilience not only to floods but also to droughts and dry spells (European Environmental Agency, 2021[36]). In the Netherlands, this principle has been implemented on a large scale as part of the ‘Room for the River’ programme, offering a useful model for Romania (see Box 3.1).
The Room for the River programme (2006-2018) marked a shift in Dutch flood management, moving away from reinforcing dikes toward allowing rivers more space to overflow safely. The initiative aimed to reduce flood risks while simultaneously improving spatial planning and ecological quality in the river delta. Key interventions involved lowering floodplains, relocating dikes, creating side channels and retention areas, and restoring natural landscapes. Implementation was underpinned by strong coordination between national ministries, regional water boards, provinces, and municipalities, and benefited from effective cross-border cooperation with Germany and Belgium.
With a total budget of approximately EUR 2.3 billion, financed by the Dutch government and EU co-funding, the programme significantly improved flood safety, increased water retention capacity, and enhanced biodiversity across restored floodplain areas. Building on its success, the Netherlands launched ‘Room for the River 2.0’ in 2025. This new phase incorporates translating IPCC climate change projections into river discharge scenarios and addressing challenges such as riverbed erosion, freshwater availability, and navigability. The programme has inspired similar initiatives across Europe, including Germany’s Living Rivers approach, France’s Seine floodplain restoration, and Poland’s Vistula River adaptation projects.
Source: The box is principally based on Dutch Water Sector (2025[37]) and Dutch Water Sector (2019[38]).
Better managing land-use planning and urban development in flood-prone areas
Romania’s regulatory framework aligns with the EU Floods Directive, which requires the integration of flood risk into land-use planning. Flood hazard and risk maps are intended to inform zoning and permitting decisions. However, there is currently no binding national regulation that explicitly prohibits development in flood-prone areas, nor a legal instrument that enforces flood-resilient urban planning across jurisdictions. While local authorities are expected to incorporate available flood maps into planning processes, enforcement is inconsistent and technical capacity varies widely. As a result, urban expansion has continued in some flood-prone areas. For example, in Constanța County, urban expansion in coastal towns has intensified without sufficient elevation or drainage upgrades despite known pluvial and coastal flood risks.
More effective multilevel governance in land use planning and development is necessary to prevent construction in flood-prone areas. This should involve stricter enforcement of flood-related regulations within land-use planning, including clear prohibitions on construction in high-risk zones. Mandatory flood risk assessments should be required for all new developments within Romania’s 526 Areas of Potential Significant Flood Risk (as defined in the FRMPs). Developments that disregard flood risks could be subject to financial disincentives such as higher insurance premiums or additional taxation. Furthermore, local governments should be equipped with adequate resources to identify and prevent development in high-risk environments.
For existing properties, Romania should introduce mandatory disclosure of natural hazard risks, including flood risk, for all residential and commercial property transactions. Currently, such disclosure is not required in Romania. This would align with international best practices, such as in France. Making it mandatory would enhance market transparency, enable more accurate risk pricing, and encourage property-level investments in disaster risk reduction (Aiba, Hasegawa and Shirai, 2025[39]). Damage reduction measures (e.g., waterproofing) for existing buildings can also help to substantially reduce flood-related damages, often requiring relatively modest investment (Feyen et al., 2020[33]).
To promote wider adoption of such measures, Romania could consider offering tax incentives or targeted subsidies – when fiscal space allows – to support flood-resilient upgrades for existing homes located in flood-prone areas. Additionally, insurance-linked mechanisms that reward risk-reducing improvements could further stimulate private investment in flood protection. In exceptional cases, relocation may be necessary as a last-resort solution for areas facing extreme flood risk. For example, in Austria’s Eferdinger Becken region, the federal and regional governments provided compensation to residents in unprotected flood zones who agreed to relocate (European Commission, 2023[40]).
Building and design codes are increasingly expected to address climate-related risks. In the United States, the International Code Council has introduced enhanced roofing and insulation to withstand extreme heat, alongside updated stormwater management requirements for heavy rainfall. Australia mandates elevated floor levels in flood-prone areas. Romania could adopt similar measures by incorporating flood-specific parameters into the National Annexes of relevant Eurocodes, such as requirements for elevated structures and water-resistant materials in Areas of Potential Significant Flood Risk (APSFR), such as Germany and the Netherlands (European Commission, 2023[40]). High flood-resilient standards in APSFRs should also apply to critical infrastructure, including transport, energy, and telecommunications (OECD, 2024[41]).
Expanding insurance coverage
In Romania, homeowners are legally required to purchase basic insurance since 2010 that covers damages caused by disasters from floods, landslides, and earthquakes. This mandatory insurance for residential property is issued through the Natural Disaster Insurance Pool (PAID), a joint private initiative of 12 insurance companies to provide coverage for these risks (PAID is fully privately owned and managed, including its reinsurance arrangements). The policy provides basic coverage up to EUR 20 000 for homes constructed from concrete or other durable materials, and up to EUR 10 000 for homes built using less resilient structures. Additional private insurance can be purchased to extend coverage.
Despite the legal obligation, many homeowners remain uninsured due to limited enforcement. While local authorities are authorised to fine homeowners that fail to comply with the insurance requirement, such penalties are rarely applied. Moreover, uninsured homeowners are generally not eligible for government compensation following a disaster, but applying this rule might also prove difficult in practice. As a result, only around 25% of homeowners currently hold insurance coverage for these natural hazards (PAID, 2026[42]).
While Romania’s disaster insurance system is more developed than in many EU and OECD countries, the low uptake of catastrophe insurance remains a key challenge. Insured losses represent only a small proportion of the total losses caused by disasters (Figure 3.6). This low take-up has multiple reasons, including high expectations of government support (moral hazard), limited clarity in insurance contracts, past negative experiences with claims, and low public awareness of disaster risks (European Central Bank and European Insurance and Occupational Pensions Authority, 2024[43]). Remaining gaps in property registration, particularly in rural areas and among older housing stock, as well as generally low levels of financial literacy in Romania (insurance penetration is generally low), also contributes to the low uptake of disaster insurance.
Such a low level of coverage calls into question the sustainability of the mandatory framework, both in terms of its ability to promote risk diversification and to prevent adverse selection in insurance uptake. Romania should take more decisive action to boost the uptake of mandatory disaster insurance by addressing several key challenges simultaneously: improving financial literacy, raising risk awareness, clarifying the availability and compulsory nature of the insurance, and strengthening enforcement mechanisms, including the application of fines. Better integration with voluntary insurance could also enhance the value and relevance of the basic policy, for instance, by automatically including PAD in voluntary home insurance products, thereby eliminating the need for households to purchase two separate policies. Romania can also learn from solutions developed elsewhere to encourage take‑up of disaster insurance. In France, the CatNat system automatically embeds natural‑hazard coverage into all property insurance policies, ensuring broad participation, while automatic compensation once the government declares a disaster helps build trust through timely and consistent payouts. Likewise, the UK’s Flood Re programme demonstrates how a public-private reinsurance scheme funded through an industry levy can keep premiums affordable for high‑risk households and substantially increase coverage.
There is also a certain regional mismatch between risk exposure and insurance coverage. While insurance uptake is relatively high in the urban Bucharest-Ilfov area – a region that faces significant earthquake risks – many rural and low-income regions exposed to high flood risks have much lower coverage. This undermines the effectiveness of PAID as a risk transfer mechanism between regions. Strengthening disaster insurance coverage in vulnerable and underserved areas is important.
Source: Swiss Re, sigma database, all rights reserved; PAID (2026[42]).
Better adapting to coastal risks
Romania’s coastal flood risks are moderate due to its relatively short shoreline and the semi-enclosed Black Sea, which experiences low tidal variation (Maes et al., 2022[9]). However, climate change is increasingly affecting coastal zones through sea-level rise, seawater intrusion into freshwater systems, and coastal erosion (Bisaro et al., 2024[44]; OECD, 2019[45]). Under a pessimistic scenario, the Black Sea could rise by 12-25 mm annually, reaching up to 0.5 meters by 2050. These developments, combined with more frequent storms and heavy rainfall, are intensifying the risks to infrastructure, biodiversity, and settlements, particularly in the Danube Delta and southern coast, which has a high commercial and tourism exposure.
Adaptation efforts to date have mostly focused on coastal protection measures. Avoidance measures, i.e. the planned retreat of assets and populations, have not been pursued to date. On the governance side, Romania is advancing its Integrated Coastal Zone Management (ICZM) strategy, in line with EU requirements. However, its full legal incorporation and the implementation of related action plans are still pending. While the National Strategy for Adaptation to Climate Change acknowledges the vulnerability of coastal zones to climate impacts, it does not formally embed ICZM as a as a distinct component. Romania should accelerate the legal adoption and operationalisation of its ICZM strategy, embed it more explicitly within the national climate adaptation framework, and strengthen institutional coordination and participatory mechanisms, particularly at the local level. Enhancing coastal data systems and ensuring better integration with land-use planning processes are also essential to improve costal protection against climate change
3.2.3. Coping with higher temperatures and more frequent droughts
Romania faces significant exposure to slowly rising temperatures and increasing risks of drought, which pose substantial challenges to key sectors of the economy, including housing, energy systems, water management, transportation, and agriculture (OECD, 2024[41]). Romania appears relatively little prepared to manage these climate-related heat pressures, given the already high strain on its water systems, an ageing critical infrastructure, and a very energy-inefficient building stock. Addressing these risks will require significant investment, but Romania’s limited fiscal space constrains the policy response. Policy responses will therefore need to prioritise and focus on: (i) strengthening water management, (ii) enhancing the energy efficiency of buildings, and (iii) promoting climate-resilient agricultural practices. Improving institutional coordination and effectively leveraging EU funding instruments, alongside private sector contribution, will be essential to support these efforts in the light of domestic fiscal constraints.
Improving water management and resilience
Climate change is expected to exacerbate seasonal fluctuations in freshwater availability (Tikoudis, Gabriel and Oueslati, 2025[46]; European Environment Agency, 2024[3]). Romania is already experiencing stress on its water systems, with recurring seasonal water scarcity (European Environment Agency, 2025[47]). Water consumption, measured as a percentage of renewable freshwater resources – known as the water exploitation index – stood at over 45% on annual average, a level typically associated with severe water stress (Figure 3.7, Panel A), and this figure has shown an upward trend in recent years. Significant water losses due to aging water infrastructure and inefficient irrigation systems, combined with low levels of wastewater treatment and limited water reuse policies, are placing increasing pressure on Romania’s freshwater resources.
Effective water policy is essential for adapting to heat and drought stress (OECD, 2025[14]). OECD analysis indicates that Romania has the lowest per capita spending on water and sanitation systems among EU member states. To comply with EU water directives and enhance system efficiency, annual investment would need to more than double by 2030 (OECD, 2020[48]). Although water tariffs are sufficient to cover operational expenditures, they are unlikely to generate the resources for major investments, particularly given that affordability is already a concern for vulnerable segments of the population (OECD, 2020[48]). Nonetheless, continued efforts to enhance the efficiency of water tariff structures, while taking affordability into account, would help strengthen the overall system.
Water losses due to leakage are widespread, with leakage rates approaching 40% (OECD, 2020[48]). To ensure sustainable water management, Romania should scale up public investment in water systems, while continuing to effectively mobilise EU and international financing. More effective and strategic planning of public funds, supported by benchmarking and better monitoring of investment in water infrastructure, should accompany higher allocations. Addressing water losses from illegal connections and under-metering should also be prioritised, as such measures are generally less time- and cost-intensive than addressing leakages in the distribution network (OECD, 2020[48]).
Water reuse should also be expanded. The European Commission has initiated legal action against Romania for failing to adequately collect and treat wastewater in larger agglomerations (European Commission, 2024[49]). In Romania, only around 60% of the population is connected to the sewage network, a figure that is notably low by OECD and EU standards (Figure 3.7, Panel B). There exists a significant urban-rural divide, with over 99% of urban residents connected to sewage systems, compared to only around 19% of rural inhabitants, according to INS. Additionally, a significant share of treatment plants operates with outdated technologies (Ecostratos, 2025[50]). Overall, only about 15% of the urban wastewater in Romania is treated according to the requirements of the Urban Wastewater Treatment Directive (WISE, 2025[51]).
Note: The water exploitation index (WEI+) provides a measure of total water consumption as a percentage of the available renewable freshwater resources. In the absence of agreed formal targets, values above 20 % are considered to be a sign of water scarcity, while values equal or greater than 40 % indicate situations of severe water scarcity. WEI+ at national level do not reflect uneven spatial and seasonal distribution of resources.
Source: European Environment Agency; and OECD Environment Statistics database.
Treated wastewater can be reused for agriculture, industrial processes, or even drinking water in advanced systems (OECD, 2025[14]). This reduces reliance on freshwater sources, a vital strategy in drought-prone or water-scarce regions. In Romania, however, the reuse of treated wastewater remains virtually absent. In contrast, several OECD countries have developed advanced reuse systems. For example, Israel reuses over 85% of its treated wastewater for agricultural irrigation, while Spain achieves nearly 71% (OECD, 2025[14]). An additional benefit of increased treatment levels is the reduction of nutrient and pollutant discharges into rivers, lakes, and coastal zones, which helps preserve ecosystem health – a key pillar of climate resilience. Despite high upfront costs, advanced treatment plants are a strategic investment. Romania should pursue them over the medium and long term, tapping international financial support.
Advanced wastewater systems could also be more effectively integrated with stormwater systems, enhancing urban resilience to heavy rainfall and reducing the risk of urban flooding (OECD, 2024[41]). Capturing and reusing rainwater (“rainwater harvesting”) is increasingly recognised as a crucial pillar to improve water availability for irrigation, green space maintenance, and other non-potable uses (OECD, 2025[14]). For example, in Flanders (Belgium), Barcelona (Spain), and several urban areas in New Zealand, rainwater collection is mandated for new buildings and renovations exceeding a certain size threshold (OECD, 2025[14]). In addition, subsidies for retrofitting existing properties are available in several countries to encourage broader uptake. Romania should consider incentivising rainwater harvesting in building retrofits and integrating such measures into new construction regulations, particularly in drought-prone southern and eastern regions.
In addition to addressing water supply challenges, enhancing water efficiency – through improved metering systems and support for water-saving technologies – should also be actively pursued. For instance, Israel has implemented a comprehensive metering framework for both domestic and agricultural use, combining regulatory measures, financial incentives, and public awareness campaigns (OECD, 2025[14]).
Strengthening building renovation and urban green planning
Slowly rising temperatures and the increasing intensity of heatwaves are reshaping the requirements placed on the housing stock. The overall quality of Romania’s housing stock remains relatively low, with a predominance of older buildings that often lack adequate insulation. Around 70% of Romania’s residential buildings were constructed before 1990, when thermal standards were much lower, and only about 0.4% of total residential floor space is equipped with cooling systems (BPIE, 2025[52]). Poor thermal insulation exacerbates indoor overheating during warmer months and leads to rapid heat loss during colder periods. While Romania adheres to EU energy performance standards for new buildings, the legacy building stock continues to face significant challenges in terms of energy efficiency and climate resilience. Since 2023, energy performance certificates have been mandatory for the sale, rental, or major renovation of all residential buildings, in line with EU directives; however, regulatory measures alone are unlikely to deliver rapid resilience gains for the existing housing stock, given the scale of the challenge.
Romania’s Long-Term Renovation National Strategy (LTRS), adopted in 2020 and updated in 2023, serves as the central policy tool for improving energy efficiency in the built environment. While the strategy focuses on energy efficiency in the building sector, such renovations also enhance resilience to shifting climate patterns, including increased heat intensity. The strategy targets the renovation of 77% of the building stock (including both residential and public buildings) by 2050 (Government of Romania, 2020[53]). However, progress to date has been very slow: the annual renovation rate has averaged 0.5% over the past decade, far below the 3.4% target needed for this decade. Achieving these objectives will demand significant investment, estimated at EUR 12.8 billion between 2020 and 2030 (Government of Romania, 2020[53]). The strategy relies on a mixed financing model, primarily drawing on EU funds, complemented by some national budget allocations and private co-financing. However, there is no unified management or financing framework.
Romania will need better and more targeted incentives to accelerate renovation rates. While EU funds are available, they must be more effectively channelled through national and regional programmes. A more unified management framework for existing financial instruments would also facilitate more effective progress monitoring. Mobilising private financing will also be essential to meet the required investment volumes. One of Romania’s long-standing renovation initiatives is the ‘Casa Verde’ programme, which provides non-reimbursable grants to support renewable energy adoption and energy efficiency improvements in residential buildings. The programme’s budget envelope has gradually increased, reflecting growing demand. However, some of the projects still lack meaningful private co-financing, leading to rapid exhaustion of available funds. As highlighted in the 2024 Survey, Romania should establish consistent and meaningful private co-financing requirements across Casa Verde projects to ensure efficient use of public funds (OECD, 2024[19]). It should also guarantee to channel existing funding and tailored support to single-family home renovations, particularly in rural areas where energy poverty is more pronounced.
This should be complemented by better promoting loan programmes for housing renovation. While some Romanian banks offer small-scale 'green mortgage' loans – preferential loans for purchasing or upgrading energy-efficient homes –, market uptake remains low. Promoting these products more effectively and expanding their development in partnership with the banking sector, even without direct public involvement in the loan scheme, could help scale up housing renovations among middle-income households. Poland’s Thermomodernisation and Renovation Fund provides a strong example of how specialised financial instruments can support building upgrades. Under the scheme, households receive a loan repayment bonus – a thermomodernisation bonus for energy‑efficiency or a renovation bonus for structural upgrades in older buildings – for loan-financed work. This design leverages private capital, while ensuring that public support – when possible supplemented by EU funds – is granted only once the improvements have been verified.
As a positive development, Romania implemented one-stop shops for energy efficiency in June 2024. These shops aim to provide households with essential information on energy efficiency and renewable energy, in line with the objectives of RePowerEU. However, as of mid-2025, only a limited number of pilot shops seem to have been operational, and the full network does not appear to be functional (Energynomics, 2025[54]). This slows the intended impact of one-stop shops in accelerating energy-efficient building upgrades. Romania should also continue strengthening its data collection and monitoring systems regarding for the building stock, such as completed, ongoing, and urgent renovations, as envisaged in the LTRS.
Efforts to improve building resilience should be complemented by a stronger integration of climate resilience into urban planning. Expanding green spaces, such as parks and green roofs, can help reduce the urban heat island effect, while permeable pavements can improve rainwater absorption (OECD, 2025[14]). While some Romanian cities have begun integrating climate adaptation into their urban development strategies in line with international best practices, these efforts remain at an early stage. Following public consultation, Bucharest adopted its first Green City Action Plan (GCAP) in August 2024, outlining a EUR 6.5 billion investment programme over five years to support more climate-resilient urban infrastructure (Municipality of Bucharest, 2025[55]). The challenges for the city are substantial, including outdated urban planning documents, a very low share of green spaces, rising energy consumption for heating and cooling, and persistent inefficiencies in urban transport systems (Municipality of Bucharest, 2025[55]).
Improving adaptation of the agriculture sector
Agriculture is the sector most directly affected by the economic costs of drought and rising temperatures linked to climate change (OECD, 2025[14]; European Environment Agency, 2024[12]). Agricultural policy in Romania is governed by the EU’s Common Agricultural Policy (CAP). The 2023-2027 CAP introduced eco-schemes to strengthen support for greening and climate adaptation measures. Agriculture also features prominently in the National Adaptation Strategy, outlining 53 measures dedicated to the agricultural sector. Key initiatives include the rehabilitation of existing irrigation systems, promotion of crop and farm insurance, development of climate-resilient crops, improved land use planning and crop management, and enhanced awareness, risk management, and data tools (Government of Romania, 2024[26]). Ongoing afforestation efforts (i.e. establishing a forest in places where forests have been absent for at least a very long time) are also a positive step toward revitalising agricultural land degraded by drought or at risk of desertification.
Irrigation represents a critical adaptation strategy for the agricultural sector, with the potential to significantly reduce the economic losses from climate change (Tikoudis, Gabriel and Oueslati, 2025[46]; Hristov et al., 2020[15]). However, given the increased demand for water associated with expanded irrigation, its implementation must be accompanied by measures to enhance water efficiency (OECD, 2025[14]). One of Romania’s key challenges is the deteriorated state of its irrigation infrastructure. Despite having an extensive irrigation network, much of it is non-functional, inefficient with high water losses, or reliant on outdated, energy- and water-intensive technologies. Of Romania’s approximately 8.6 million hectares of arable land, only around 15% currently can benefit from irrigation. Under its updated Irrigation Strategy, Romania aims to double the irrigated area to 2.87 million hectares by 2027, primarily by rehabilitating existing systems (World Bank, 2023[56]). The National Strategic Plan for the 2023-2027 CAP has allocated EUR 400 million to modernise existing irrigation infrastructure and further EUR 85 million to develop new, small-scale irrigation systems (World Bank, 2023[56]). These useful investments to increase irrigation efficiency should be supported by effective water governance, including robust allocation frameworks and efficient water pricing, and the adoption of moisture-conserving agricultural practices to ensure long-term sustainability of water use.
The Romanian government is also planning to expand insurance coverage through the establishment of a national drought insurance scheme (Reuters, 2024[57]). At present, agricultural insurance is provided by private companies, with premium subsidies of up to 70% co-financed by CAP funds (European Commission and European Investment Bank, 2025[58]). Insurance is available for standard perils such as floods, storms, frost, hail, but also drought. Some insurance coverage is provided for approximately 30% of arable land, mostly purchased by larger agricultural producers (European Commission and European Investment Bank, 2025[58]). Agricultural producers insured against standard risks are also eligible for government compensation in the event of natural disasters (under law 381/2002). Compensation is financed on an ad hoc basis from the state budget and there is no dedicated public disaster fund. This exposes the budget to significant risks in the event of large-scale shocks or may constrain compensation due to fiscal limitations. For example, during the severe drought in 2022, the protection gap was substantial, with over 95% of agricultural losses uninsured and likely absorbed by farmers (European Commission and European Investment Bank, 2025[58]).
While the design of Romania’s national drought insurance scheme is still under development, it will be important to anchor it in some key principles. These include leveraging as much as possible the private insurance market for insurable drought risks, with public intervention reserved for cases where private insurance might not be feasible. Insurance providers should be encouraged to include drought and drought-related conditions in their standard risk policies. This should be complemented by targeted risk awareness campaigns and efforts to expand private insurance coverage, particularly among small-scale farmers. Furthermore, public subsidies for insurance premiums could be more closely linked to affordability and climate adaptation efforts. Linking eligibility or premium rates to drought-resilient practices – e.g. the use of drought-resistant crops or efficient irrigation systems – can encourage investments in risk reduction, ultimately reducing vulnerability (OECD, 2025[14]).
References
[39] Aiba, I., D. Hasegawa and H. Shirai (2025), The Effects of Flood Risk Mandatory Disclosure on Housing Markets, Elsevier BV, https://doi.org/10.2139/ssrn.5228507.
[27] Alfonso, L. et al. (2023), UCPM Peer review report: Romania 2023, https://civil-protection-humanitarian-aid.ec.europa.eu/document/download/3e1ee1c6-5744-45ed-8e9d-88cc535cee7e_en?filename=Peer%20Review%20RO_Report.pdf.
[6] Bilal, A. and D. Känzig (2024), The Macroeconomic Impact of Climate Change: Global vs. Local Temperature, National Bureau of Economic Research, Cambridge, MA, https://doi.org/10.3386/w32450.
[44] Bisaro, A. et al. (2024), “Sea Level Rise in Europe: Governance context and challenges”, State of the Planet, Vol. 3-slre1, pp. 1-48, https://doi.org/10.5194/sp-3-slre1-7-2024.
[30] Bluefield Research (2025), Romania’s Record Water Budget Meets Governance Gridlock, https://www.bluefieldresearch.com/research/romanias-record-water-budget-meets-governance-gridlock/.
[52] BPIE (2025), HotMaps Building Stock Analysis, https://gitlab.com/hotmaps/building-stock/-/tree/master/data.
[11] Costa, H. et al. (2024), “The heat is on: Heat stress, productivity and adaptation among firms”, OECD Economics Department Working Papers, No. 1828, OECD Publishing, Paris, https://doi.org/10.1787/19d94638-en.
[8] Costa, H. and J. Hooley (2025), “The macroeconomic implications of extreme weather events”, OECD Economics Department Working Papers, No. 1837, OECD Publishing, Paris, https://doi.org/10.1787/5e24a2d8-en.
[37] Dutch Water Sector (2025), Room for the river 2.0: preparing the Netherlands for future high and low water, https://www.dutchwatersector.com/news/room-for-the-river-20-preparing-the-netherlands-for-future-high-and-low-water.
[38] Dutch Water Sector (2019), Room for the River Programme, https://www.dutchwatersector.com/news/room-for-the-river-programme.
[50] Ecostratos (2025), Romania’s water resources: current state of water reserves and sustainable future directions, https://ecostratos.com/news/romanias-water-resources-current-state-of-water-reserves-and-sustainable-future-directions/.
[54] Energynomics (2025), One year after setting up the One Stop Shops for Energy Efficiency, https://www.energynomics.ro/en/one-year-after-setting-up-the-one-stop-shops-for-energy-efficiency-a-first-test-of-how-well-they-work/.
[43] European Central Bank and European Insurance and Occupational Pensions Authority (2024), Towards a European system for natural catastrophe risk management, https://www.eiopa.europa.eu/document/download/d8c87070-f602-4bf7-b8d8-726ec0b5c173_en.
[34] European Commission (2025), 7th Implementation Report on the Water Framework Directive (2000/60/EC) and the Floods Directive (2007/60/EC): Romania, https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=SWD%3A2025%3A20%3AFIN&qid=1738746144581.
[25] European Commission (2025), Country Report: Romania, https://economy-finance.ec.europa.eu/document/download/7cb47fb4-4517-431a-95c8-17cb161d5078_en?filename=RO_CR_SWD_2025_223_1_EN_autre_document_travail_service_part1_v4.pdf.
[20] European Commission (2024), Climate Action Progress Report, Romania, https://climate.ec.europa.eu/document/download/0c0db494-aed3-49b0-b418-881c40cf3df2_en?filename=ro_2024_factsheet_en.pdf.
[49] European Commission (2024), The Commission decides to refer BULGARIA and ROMANIA to the Court of Justice of the European Union for failure to adequately collect and treat urban waste water, https://ec.europa.eu/commission/presscorner/detail/en/ip_24_5427.
[40] European Commission (2023), EU-level technical guidance on adapting buildings to climate change - Best practice guidance, https://data.europa.eu/doi/10.2834/585141.
[58] European Commission and European Investment Bank (2025), Fi-compass, Insurance and risk management tools for agriculture in the EU, https://www.fi-compass.eu/sites/default/files/publications/EAFRD_AGRI_Insurance_Risk_MA.pdf.
[4] European Environment Agency (2025), Climate Adapt, Dashboard: economic losses and fatalities, https://climate-adapt.eea.europa.eu/en/knowledge/economic-losses/economic-losses-and-fatalities?activeTab=31d4b1fa-94dc-47ee-81bd-5b80fb3909f9.
[23] European Environment Agency (2025), Greenhouse gas projections: data viewer, https://www.eea.europa.eu/data-and-maps/data/data-viewers/eea-greenhouse-gas-projections-data-viewer/.
[47] European Environment Agency (2025), Water scarcity conditions in Europe, https://www.eea.europa.eu/en/analysis/indicators/use-of-freshwater-resources-in-europe-1.
[12] European Environment Agency (2024), Drought impact on ecosystems in Europe, https://www.eea.europa.eu/en/analysis/indicators/drought-impact-on-ecosystems-in-europe.
[5] European Environment Agency (2024), Economic losses from weather- and climate-related extremes in Europe, https://www.eea.europa.eu/en/analysis/indicators/economic-losses-from-climate-related.
[3] European Environment Agency (2024), European Climate Risk Assessment, https://www.eea.europa.eu/en/analysis/publications/european-climate-risk-assessment.
[36] European Environmental Agency (2021), Nature-based solutions in Europe: Policy, knowledge and practice for climate change adaptation and disaster risk reduction, https://www.eea.europa.eu/en/analysis/publications/nature-based-solutions-in-europe.
[33] Feyen, L. et al. (2020), Climate change impacts and adaptation in Europe, JRC PESETA IV final report, https://data.europa.eu/doi/10.2760/171121.
[31] Government of Romania (2025), Romania sovereign green bond allocation report, https://www.mfinante.gov.ro/static/10/Mfp/trezorerie/SovereignGreenBondAllocationReport.pdf.
[22] Government of Romania (2024), National Energy and Climate Plan of Romania 2025-2030 Update 2024.
[26] Government of Romania (2024), Strategiei naționale privind adaptarea la schimbările climatice pentru perioada 2024-2030.
[53] Government of Romania (2020), National Long-Term Renovation Strategy, https://energy.ec.europa.eu/topics/energy-efficiency/energy-performance-buildings/national-building-renovation-plans_en.
[10] Grantham Institute (2025), Climate change tripled heat-related deaths in early summer European heatwave, https://www.imperial.ac.uk/media/imperial-college/grantham-institute/public/publications/institute-reports-and-analytical-notes/Climate-change-tripled-heat-related-deaths-in-early-summer-European-heatwave.pdf.
[15] Hristov, J. et al. (2020), Analysis of climate change impacts on EU agriculture by 2050, JRC PESETA IV project – Task 3, https://publications.jrc.ec.europa.eu/repository/bitstream/JRC119632/pesetaiv_task_3_final_report_published.pdf.
[24] IEA (2025), “World Energy Statistics and Balances”, https://www.iea.org/data-and-statistics/data-product/world-energy-statistics-and-balances.
[1] IPCC (2023), Climate Change 2023: Synthesis Report. Contribution of Working Groups I, II and III to the Sixth Assessment Report of the Intergovernmental Panel on Climate Change [Core Writing Team, H. Lee and J. Romero (eds.)]. IPCC, Geneva, Switzerland., https://doi.org/10.59327/ipcc/ar6-9789291691647.
[2] IPCC (2023), “Weather and Climate Extreme Events in a Changing Climate”, in Climate Change 2021: The Physical Science Basis. Contribution of Working Group I to the Sixth Assessment Report of the Intergovernmental Panel on Climate Change, Cambridge University Press, https://doi.org/10.1017/9781009157896.013.
[9] Maes, M. et al. (2022), “Monitoring exposure to climate-related hazards: Indicator methodology and key results”, OECD Environment Working Papers, No. 201, OECD Publishing, Paris, https://doi.org/10.1787/da074cb6-en.
[18] Masselot, P. et al. (2023), “Excess mortality attributed to heat and cold: a health impact assessment study in 854 cities in Europe”, The Lancet Planetary Health, Vol. 7/4, pp. e271-e281, https://doi.org/10.1016/s2542-5196(23)00023-2.
[55] Municipality of Bucharest (2025), Bucharest: Green City Action Plan, https://paov.pmb.ro/docs/DLV7_-_Bucharest_GCAP_v5_en.pdf.
[7] Nguyen, H. (2025), “Understanding the Macroeconomic Effects of Natural Disasters”, IMF Working Papers, Vol. 2025/046, p. 1, https://doi.org/10.5089/9798229001939.001.
[14] OECD (2025), Global Drought Outlook: Trends, Impacts and Policies to Adapt to a Drier World, OECD Publishing, Paris, https://doi.org/10.1787/d492583a-en.
[29] OECD (2024), “Accelerating climate adaptation: A framework for assessing and addressing adaptation needs and priorities”, OECD Economic Policy Papers, No. 35, OECD Publishing, Paris, https://doi.org/10.1787/8afaaeb8-en.
[28] OECD (2024), “Co-ordination of green policies at the centre of government in Romania”, OECD Public Governance Policy Papers, No. 45, OECD Publishing, Paris, https://doi.org/10.1787/86439554-en.
[41] OECD (2024), Infrastructure for a Climate-Resilient Future, OECD Publishing, Paris, https://doi.org/10.1787/a74a45b0-en.
[19] OECD (2024), OECD Economic Surveys: Romania 2024, OECD Publishing, Paris, https://doi.org/10.1787/106b32c4-en.
[21] OECD (2024), Pricing Greenhouse Gas Emissions 2024: Gearing Up to Bring Emissions Down, OECD Series on Carbon Pricing and Energy Taxation, OECD Publishing, Paris, https://doi.org/10.1787/b44c74e6-en.
[48] OECD (2020), Financing Water Supply, Sanitation and Flood Protection: Challenges in EU Member States and Policy Options, OECD Studies on Water, OECD Publishing, Paris, https://doi.org/10.1787/6893cdac-en.
[45] OECD (2019), Responding to Rising Seas: OECD Country Approaches to Tackling Coastal Risks, OECD Publishing, Paris, https://doi.org/10.1787/9789264312487-en.
[42] PAID (2026), Annual Statistics, https://www.paidromania.ro/pad-map/.
[35] Pange, G. (2025), Romania’s defense against floods: a broken website and old paperwork, https://sinfo-project.eu/romanias-defense-against-floods-a-broken-website-and-old-paperwork/.
[57] Reuters (2024), Romanian government plans drought insurance scheme for farmers, https://www.reuters.com/world/europe/romanian-government-plans-drought-insurance-scheme-farmers-2024-08-28/.
[46] Tikoudis, I., M. Gabriel and W. Oueslati (2025), “The toll of droughts: Environmental impacts, economic costs, and international consequences”, OECD Environment Working Papers, No. 260, OECD Publishing, Paris, https://doi.org/10.1787/2f7891b9-en.
[13] Whalen, J. (ed.) (2023), “Solutions to agricultural green water scarcity under climate change”, PNAS Nexus, Vol. 2/4, https://doi.org/10.1093/pnasnexus/pgad117.
[51] WISE (2025), Country profiles on urban waste water treatment, Romania, https://water.europa.eu/freshwater/countries/uwwt/romania.
[32] World Bank (2024), Planning for flood resilience in Romania: Results and lessons learned from the RO-FLOODS project, https://openknowledge.worldbank.org/entities/publication/ddc42cb2-f3c9-46ed-aa81-f27e5b5543a3.
[16] World Bank (2024), Romania Drought Risk Assessment, https://openknowledge.worldbank.org/server/api/core/bitstreams/b3a958db-dbf7-4809-be59-7b6d893c7c5f/content.
[56] World Bank (2023), Romania Country Climate and Development Report, https://openknowledge.worldbank.org/handle/10986/40500.
[17] Zahnow, R. et al. (2025), “Climate change inequalities: A systematic review of disparities in access to mitigation and adaptation measures”, Environmental Science & Policy, Vol. 165, p. 104021, https://doi.org/10.1016/j.envsci.2025.104021.