The World Bank Group has approved a Development Policy Loan of €599.1 million for Romania, emphasizing economic and environmental sustainability. The loan, known as the Romania Fiscal Management and Green Growth DPL, is designed to facilitate reforms that strengthen Romania's fiscal framework, promote green and inclusive growth, and encourage private-sector investment. This initiative supports fiscal consolidation, enhances fiscal sustainability, and aims to improve equity in the pensions system. Additionally, the loan introduces measures to support the decarbonization of the transport sector, including incentives and the issuance of the first green bond in Romania. Furthermore, the funding aims to boost public investment by laying the groundwork for increased private-sector involvement in renewable energy and energy efficiency. This includes novel financing mechanisms for green investments, initiatives to enhance offshore wind capacity, and support for green hydrogen and other renewable energy sources. The loan also focuses on strengthening public-private partnership legislation to encourage sustainable development practices. The World Bank's support aligns with Romania's objectives under the European Green Deal and its climate mitigation targets. Given Romania's high vulnerability to the impacts of climate change, these efforts are crucial for the country to transition towards a more sustainable future. Anna Akhalkatsi, the World Bank Country Director for the European Union, expressed confidence in Romania's ability to balance inclusive growth with environmental stewardship, highlighting the importance of creating lasting impacts through the supported reforms.