PHOTO // European integration can accelerate mobilization of green investments in Moldova; study presented in Montenegro

Moldova can diversify its sources of financing for the green transition by developing the capital market, expanding its portfolio of investment-ready projects, and using such instruments as green bonds and sustainable investment funds. This is the conclusion of a study presented at an international conference held in Podgorica, Montenegro, on September 18–19 in Podgorica.

More than 50 representatives of public authorities, financial and development institutions, academia, civil society organizations, the business sector and the media from six countries participated in the event dedicated to mobilizing green investments in Moldova and Montenegro, in the context of the two countries’ accession process to the European Union.

The conference marked the completion of the regional project, Mobilizing Green Investments: Visegrad Group – Montenegro – Moldova, and was based on the findings of a study developed by 20 researchers from the Czech Republic, Hungary, Poland, Slovakia, Montenegro and Moldova.

According to the analysis, Moldova has strengthened its policy framework in the areas of climate, energy and sustainable finance. The measures examined include the Climate Action Law, the National Integrated Energy and Climate Plan, the Sustainable Finance Roadmap for 2024–2028 and the alignment of the financial system with European Union requirements.

At the same time, the study finds that investment needs for infrastructure modernization, energy efficiency, renewable energy development, climate change adaptation and water and waste management exceed the current financing possibilities available from domestic sources.

In the context, researchers identify capital market development and the strengthening of bank lending as some of the ways in which Moldova can diversify green financing. Green bonds, sustainable investment funds and other financial instruments focused on environmental objectives could help attract additional resources for the green transition.

The study also identifies a number of conditions necessary for mobilizing financing. They include expanding the portfolio of investment-ready projects, strengthening institutional capacities, developing comparable environmental data, improving ESG reporting and boosting cooperation between environmental authorities, financial institutions and the private sector.

“For Moldova and Montenegro, the European Union accession process offers an important opportunity to accelerate the green transition and attract investment. However, adopting the legislative framework is not enough: it must be supported by capable institutions, bankable projects and financial instruments that can mobilize public and private capital,” said Natalia Guranda, environmental expert at  EcoContact public association.

The research also recommends creating a functional framework for green bonds, gradually introducing standardized ESG reporting requirements, and preparing a portfolio of projects capable of attracting financing. According to the study, the resources mobilized in this way can support investments in energy, climate adaptation, the circular economy, waste and water management, pollution reduction, sustainable transport and biodiversity protection.

Other proposed measures include training for authorities, banks and businesses; creating a joint data system on climate finance and expanding mechanisms that combine public funds, support from development partners and private capital.

The experience of the Visegrad Group countries analyzed within the project shows that attracting investment depends on stable rules, accessible procedures, well-prepared projects, applicable financial instruments and mechanisms for measuring results. The study recommends that these practices be adapted to the institutional and financial capacities of Moldova and Montenegro.

The EcoContact public association contributed to the research dedicated to Moldova through the work of experts Iordanca-Rodica Iordanov, Natalia Guranda, and Irina Punga. Representatives of the organization also participated in the conference in Podgorica, alongside the project partners and regional experts.

The project was coordinated by the Montenegrin Pan-European Union, in partnership with the Institute for Politics and Society from the Czech Republic, the Robert Schuman Institute from Hungary, the Institute for Sustainable Development Foundation from Poland, MESA10 from Slovakia and EcoContact public association of Moldova.

The project, Mobilizing Green Investments: The Experience of the Visegrad Group Countries for Montenegro and the Republic of Moldova, was co-financed by the governments of the Czech Republic, Hungary, Poland and Slovakia through grants from the International Visegrad Fund.