EBRD investment level sharply up in Romania in 2024
The European Bank for Reconstruction and Development, or EBRD, invested EUR 707 million in 44 projects in Romania in 2024 to support the country’s green transition, a sharp increase compared to the previous year, when it invested EUR 658 million spread over 23 projects.
EBRD cooperates with private corporations, equity funds, banks, as well as local municipalities.
In 2024, private sector transactions included a EUR 40 million risk sharing with Banca Transilvania for Omnia Europe SA, the launch of a supply chain financing with the initial EUR 10 million program to finance Profi Rom Food SRL local suppliers, EUR 10 million equity investment in local brand La Cocos, equity investment into AROBS Transilvania Software SA, and a number other debt and equity transactions.
In the municipal sector, EBRD contributed EUR 75 million in regional projects. This included co-financing alongside the EU for water and wastewater investments in four counties (Bacau, Constanta, Iasi and Braila), as well as building energy efficiency projects in Craiova under the Bank's Green Cities Framework.
“We are delighted with these strong results, a sign that, through its steadfast presence in Romania, the Bank is set to remain a key investor in the Romanian economy. The EBRD is mandated to support the growth of the private sector. In Romania, the private sector share of investment was 83%, well above the average 76% of investments going to the private sector across all EBRD regions,” said EBRD Head of Romania Victoria Zinchuk.
According to the EBRD press release, the rise in the investment level occurred due to Romania’s growing ambition to implement EU green programs, such as Fit for 55 and REPowerEU, which aim for 38% of the country’s final energy consumption to come from renewable sources by 2030.
In 2024, the EBRD financed nearly 1 GW of renewable capacity in Romania. These investments, amounting to over EUR 180 million, have further mobilized almost EUR 1 billion of private and public finance.
To address energy price volatility, a problem affecting the Romanian economy, the EBRD supported the design and implementation of Contracts for Difference (CfD) renewables auctions scheme, with the first tender for up to 1.5 GW successfully awarded in 2024. A Memorandum of Understanding with the Ministry of Energy was also signed in December 2024 on implementing the second RES CfD tender and on designing storage support schemes and auctions as well as implementing reforms required to integrate storage capacities in energy markets.
As a result, green economy financing amounted to 74% of the Bank’s investment volume in Romania in 2024, higher than the 58% recorded across all EBRD regions. Projects signed in 2024 in Romania are expected to reduce carbon dioxide emissions by 750,000 tonnes a year.
(Photo source: Jerome CID | Dreamstime.com)
