New national assessment report highlights Moldova's progress made in green transition

Moldova is undergoing a significant phase in its process of joining the European Union. Negotiations with the EU are becoming more intense in such fields as environment, climate, agriculture, rural development, transport and energy. In the context, the Stockholm Environment Institute (SEI), with the support of the Swedish International Development Cooperation Agency (Sida), launched the National Green Transition Assessment Report in Chisinau on June 10, as part of the Green Agenda project.

A national assessment for a European future

The national comprehensive green transition analysis report evaluates Moldova's progress towards promoting a green economy and aligning with European Union standards. The document analyses the country’s achievements and challenges in key areas, such as combating and adapting to climate change, developing energy, construction and industry sectors, as well as efficient resource use, pollution prevention, agriculture, mobility and transport and biodiversity conservation. Each sectorial chapter examines the strategic goals assumed by the country, the baseline situation and developments in environmental performance, as well as the main factors facilitating or hindering progress. Moldova's level of preparedness is assessed on a scale from "minimal progress" to "significant progress".

The report also highlights how sustainable financing, research and innovation, digitization and fair transition policies can accelerate sustainable, competitive and resilient economic growth in Moldova.

"The Green Transition Assessment Report clearly shows that Moldova is making steady progress on the Green Agenda. This is a fundamental aspect in Moldova's endeavor to join the European Union. The green transition is a complex process involving numerous segments of society. Sweden’s experience demonstrates that implementing effective environmental policies has a direct impact on improving the living standards of the population, stimulating innovation in cleaner technologies and enhancing the competitiveness of the private sector. Sweden reiterates its commitment to support Moldova's green transition agenda and its aspirations to become an EU member," estimates Thomas Alveteg, a representative of the Swedish Embassy in Moldova.

Ambitious goals for Moldova and urgent efforts needed

Moldova is committed to reducing greenhouse gas emissions by over 70 per cent till 2030 – one of the most ambitious goals globally. However, with climate disasters already causing annual losses estimated at 1.3 per cent of the gross Domestic Product (GDP), adaptation must keep pace with ambition, if Moldova wants the green transition to become a reality.

"Moldova's Economic Growth Plan, recently launched, places the green and digital transition at the center of structural transformation of the national economy. A strategic pillar of this vision is to attract foreign investment and capitalize on available domestic financial resources by developing alternative financial instruments and expanding green credit mechanisms for local enterprises, in a predictable, transparent and harmonized EU standards framework. The Ministry of Economic Development and Digitization (MDED) will stay a key actor in this process, promoting public policies that support a sustainable, inclusive and resilient future for Moldova," notes Natalia Selevestru, State Secretary at MDED.

"More than climate action": Moldova’s European aspirations

Against the backdrop of regional instability, Moldova's commitment to sustainability means much more than combating climate change. This commitment underpins the energy security, technological modernization and the resilience needed for both economic growth and joining the European Union. As highlighted by the national leader of the Green Agenda project, Lauri Tammiste, "Moldova's green transition means much more than climate action – it is a geopolitical choice and a reaffirmation of European aspiration, at a decisive moment".

Main gaps identified in SEI's Green Agenda report:

Accelerating digital and green transformation: expanding digital services, developing sectoral decarbonization strategies and green technology development are essential for fostering innovation, exports and "green" jobs, while also improving living standards and facilitating EU market access.

Preparing for adaptation: urgent adaptation measures are needed in all sectors, both public and private, in order to reduce their adverse impact, particularly on vulnerable groups.

Unlocking green capital: according to several studies, significant capital investments of over 30 billion euros are needed, in order to achieve the net-zero emissions target. There is a substantial funding gap, which will require Moldova to access additional financing sources aligned with climate goals and mobilize broader private sector engagement.

Local leadership and green financing: local public authorities need tools, enhanced capacities and internal financing solutions to support effective climate actions beyond reliance on international assistance.

Attracting investment in the energy sector: regulatory improvements and market trust are needed to facilitate investments in renewable energy sources, energy storage systems and energy efficiency, and to address the infrastructure and personnel gaps.

Sustainable agriculture for the EU market: export-oriented reforms in the agricultural sector will increase the competitiveness of agri-food products, ensuring a balance between environmental protection, food quality and faster integration into the EU market.

Protecting nature: urgent implementation of reforestation measures and prompt updating of relevant policies are needed for sustainable land management and alignment with EU biodiversity requirements.

Water and waste solutions: modernizing wastewater treatment systems and applying circular economy principles are essential for protecting public health, safeguarding the environment and reducing pollution and waste generation indices.

Modernizing the transport sector: a clear transition is needed from a car-centric system to modern public transportation by renewing the fleet, improving infrastructure and utilizing smart technologies.

These measures are essential for significantly reducing emissions, enhancing access to transport services and aligning with European Union’s standards.