Romania’s Parliament has adopted amendments to the country’s decarbonisation legislation, approving changes backed by the Social Democratic Party (PSD) that prevent the closure of coal-fired power plants until replacement low-carbon generating capacities are fully operational.
The legislation has sparked strong criticism from both the government and President Nicușor Dan, who warned that the amendments could jeopardize billions of euros in funding under Romania’s National Recovery and Resilience Plan (PNRR).
Earlier this week, President Dan announced that, should Parliament approve the law in its current form, he would use all constitutional powers available, including requesting that Parliament re-examine the legislation, in order to prevent Romania from losing access to remaining PNRR funds.
The newly adopted amendment states that the gradual phase-out of lignite- and hard coal-fired electricity generation may only take place after one or more low-carbon energy facilities have been installed, connected to the grid, and become commercially operational, ensuring they can safely replace the electricity and, where applicable, heat production of the retiring plants.
The issue has become particularly sensitive because Romania has already received billions of euros in EU funding to support the replacement of coal-fired generation with natural gas plants and other lower-emission energy sources. However, many of those replacement projects have yet to be completed.
Interim Prime Minister Ilie Bolojan previously argued that the PSD amendments do not solve the challenge of maintaining energy security but instead modify a milestone under the PNRR that has already been fulfilled, validated, and financed by the European Commission.
Interim Minister of Investments and European Projects Dragoș Pîslaru also warned that the amendments could have severe financial consequences for Romania. According to him, the changes effectively suspend the decarbonisation timetable agreed by the Romanian government in 2022 as part of the country’s recovery plan.
Pîslaru explained that the adoption of Emergency Ordinance 108/2022 allowed Romania to complete Milestone 114, enabling the country to receive funding under the second PNRR payment request. By reversing those commitments through the new amendments, Romania risks violating the principle of reform irreversibility established in the EU Recovery and Resilience Facility.
Government officials have cautioned that such a reversal could trigger significant financial penalties, delay or block future payment requests under the PNRR, and undermine Romania’s credibility with the European Commission.
The legislation now heads to President Nicușor Dan, who is expected to examine the final text before deciding whether to promulgate it or return it to Parliament for reconsideration.