Exploring Romania's journey toward sustainability through renewable energy growth, circular economy initiatives, and environmental innovation.
Nestled at the intersection of Central, Eastern, and Southeastern Europe, Romania stands as a compelling case study in the global transition toward a green economy. This shift represents far more than just compliance with European Union policies—it's a fundamental reimagining of the country's economic identity in response to climate change, energy security concerns, and sustainable development imperatives.
As a member of the EU, Romania has committed to the ambitious goals of the European Green Deal, which aims to make Europe the first climate-neutral continent by 2050. But what does this transition look like on the ground? How does a nation balance economic growth with environmental responsibility while addressing unique local challenges?
Renewable Energy in Romania's Mix
Materials Ending Up as Waste
Startups in Romania
Romania's energy system is undergoing a remarkable transformation, characterized by a diversified energy mix that leverages significant internal resources. As of early 2025, nearly 42% of Romania's generated energy comes from renewable sources, primarily hydropower, solar, and wind 1 .
The most dramatic growth has occurred in the solar energy sector, which has experienced what industry observers describe as "stunning growth" with 900 megawatts (MW) of new capacity added in 2025 alone 2 .
The government has approved the construction of multiple solar farms, including what will become the country's largest solar park with a capacity of over 150 MW, located in the sun-rich southern region and expected to be operational by late 2026 2 .
For 2025, 20,836 funding requests were approved for prosumer energy projects, predominantly for solar installations 1 . This grassroots energy movement represents a significant shift in how Romanians interact with their energy system.
Grid infrastructure represents a critical bottleneck, with many solar projects experiencing delays due to insufficient capacity to integrate new renewable energy sources 2 .
The transition to a green economy extends far beyond energy production to encompass how societies use resources—and here, Romania faces steeper challenges. The concept of a circular economy represents a fundamental departure from the traditional linear "take-make-dispose" model.
Almost 99% of materials in the Romanian economy eventually end up as waste 7 .
Romania now has a National Strategy and National Action Plan for the Circular Economy, currently in full implementation with 52 actions scheduled across short, medium, and long-term timeframes 7 .
The Romanian government has mandated a non-profit company to implement and manage the country's largest circular economy project—a deposit return system for packaging materials 1 .
To support this transition, 23 sustainable bonds have been financed to support banks in circular investments 7 .
The transition to a green economy requires not just policy and infrastructure changes, but rigorous scientific monitoring to identify problems and measure progress. A recent investigation into methane emissions from Romania's oil and gas infrastructure provides a compelling case study.
Between 8-16 July 2025, three environmental organizations conducted a comprehensive methane emissions documentation campaign across Romania 8 .
The investigation revealed methane emissions at 66 of the 75 sites visited, confirming the systemic nature of the issue 8 .
Methane is a powerful climate super-pollutant, with 80 times the warming power of carbon dioxide over a 20-year period 8 .
Beyond policy and regulation, Romania's transition to a green economy is being driven by a growing ecosystem of green startups that are developing innovative technologies and business models to address environmental challenges.
"Despite the large number of tech startups in Romania, green ones still represent a marginal segment. In comparison, Poland has 3 times more renewable energy startups, and Hungary surpasses Romania in terms of CleanTech investment volumes."
Romania's journey toward a green economy presents a complex tapestry of achievements and ongoing struggles. As the country works to balance economic development with environmental sustainability, several critical challenges and opportunities emerge.
Nearly half of Romania's population still used wood for heating in 2023, with the percentage reaching 80% in rural areas 1 .
The poorest segments of the population are concentrated in the North-East Region, creating uneven capacity to participate in the green transition 1 .
The country's long-term strategy for climate neutrality by 2050 estimates investment needs at approximately €2 trillion for major energy-consuming areas 1 .
The European Bank for Reconstruction and Development (EBRD) has approved a new country strategy for Romania focusing on private-sector competitiveness and the green economy transition 4 .
There is growing interest among Romanian citizens in environmental issues and sustainable consumption, creating a potential market for green products and services 1 .
Since joining the European Union in 2007, Romania has rapidly reduced historical income gaps compared to states in the region, providing a foundation for meeting EU environmental standards 4 .
Romania's journey toward a green economy represents one of the most significant societal transformations in the country's modern history. It is a complex process that touches upon energy production, consumption patterns, business models, and fundamental aspects of economic organization.
What emerges clearly is that Romania's green transition is neither straightforward nor guaranteed. It requires navigating technical challenges, mobilizing substantial financial resources, addressing social equity concerns, and building institutional capacity. Yet the direction of travel is unmistakable.
"Our new country strategy is an active response to Romania's most pressing economic issues. It provides a framework for targeted investments and policy engagement that can help the country overcome its immediate fiscal crisis and build a more sustainable and prosperous future."
For Romania, the green economy represents not just an environmental imperative but an economic opportunity—a chance to build a more resilient, innovative, and equitable society for future generations.