Effective climate action can help Moldova revitalize its economy, create jobs, and protect its population from the impact of extreme weather events, the World Bank Group's Climate and Development Country Report for Moldova (CDCR) says, IPN reports.
According to a World Bank press release, Moldova's national development strategies already include many of the policy measures needed to achieve a prosperous, low-carbon economy. However, the country can go further to address persistent structural challenges, including weak economic growth and rising poverty, and to accelerate integration with European Union (EU) markets.
Inguna Dobraja, World Bank Group Country Manager for Moldova, believes that as a small, landlocked country on the threshold of Europe, adopting an ambitious climate action agenda represents a significant opportunity for Moldova to achieve its development goals, and the Climate and Development Country Report for Moldova provides a comprehensive roadmap for the country to address its climate challenges while promoting inclusive and resilient economic growth.
According to the World Bank, the cost of inaction is high. Moldova is one of the most vulnerable countries in Europe from an energy perspective, importing almost all of its coal, gas and oil products. Equally, Moldova is a country with greenhouse gas emissions six times higher than the EU average, which exposes the country to the risks of EU carbon-related trade tariffs that come into force in 2026.
Heavy reliance on drought-prone agriculture and exposure to natural shocks contribute to weak and volatile economic growth and increasing rural poverty. Severe floods are already frequent, droughts have become more frequent and severe, and air pollution causes up to 3 000 deaths per year. Annual economic losses due to multiple hazards are estimated at around 164 million dollars, equivalent to 1.3% of GDP in 2021.
According to the report, considerable benefits can be gained from a green transition. It would revitalize and modernize Moldova's economy, create better jobs, improve health outcomes and minimize premature deaths from air pollution, and enhance energy security. Over the next 30 years, Moldova will need about $31 billion to meet the goals of the government's action plan and an additional $8 billion to reach net zero emissions. About two thirds of the investment needs will have to come from the private sector, especially in the energy, industry and agriculture sectors.
With the support of multilateral development banks and the government, Moldovan banks can create credit lines, bonds and green loans. A roadmap for sustainable finance and an EU-aligned green taxonomy would stimulate climate lending and investment.
The World Bank offers a number of recommendations in the areas of energy security and efficiency, adaptation investments, policy priorities and private sector participation.
