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GRAPH 68: Allocations for climate change objectives in the Operational Programmes in Romania (Per cent) A B C D E F G H 26.6 100 100 100 100 100 100 100 100 26.6 1.1 1.2 A B C D E F G H Source: CRESC Strategy and OPs 180 The most important Operational Programmes relevant to climate change mitigation are the Large Infrastructure Operational Programme and the Regional Operational Programme. SUMMARY OF EX-ANTE EVALUATIONS REGARDING CLIMATE ACTION total OP allocation % climate of total OP allocation Large Infrastructure OP (POIM) Regional OP (POR) Competitiveness OP (POC) Human Capital OP (POCU) Administrative Capacity OP (POCA) National Rural Development Programme (PNDR) Fisheries and Maritime Affairs OP (POPAM) Total allocation for Romania The summary of the evaluation included in the Partnership Agreement offers very little substantial information about the findings that concern climate change targets. In fact, there is indication that the evaluation resulted in a decreased allocation for climate objectives. The assessment of the overall contribution of programmes to the Europe 2020 targets indicated that the allocations for TO1, TO2 and TO10 needed to be increased. As a result, EUR 50 million from the ERDF was reallocated from ‘Shift Towards the Low-Carbon Economy’ to TO1, thus decreasing the overall allocation for climate objectives. It is likely that the optimistic view that Romania is already on track to meeting its 2020 0.2 50 17 27.5 climate mitigation targets has led to TO4 allocations being deprioritised. SELECTED THEMATIC OBJECTIVES AND MAIN EXPECTED RESULT The integration of climate mitigation objectives and other Thematic Objectives is very scarcely described in the Partnership Agreement. The PA does not correlate the objectives under the ‘competitiveness and local development’ challenge with ‘Shift Towards the Low-Carbon Economy’ or TO5. TO3, ’Enhancing the competitiveness of small and medium-sized enterprises, the agricultural sector and the fisheries and aquaculture sector’ is correlated with TO4 through actions concerning agriculture, fishery, forestry and the blue economy. TO5 is synchronized through specific measures concerning irrigation systems. There is some correlation between the actions foreseen under TO9 - promoting social inclusion, combating poverty and any discrimination and those planned under TO4 in rehabilitation of health infrastructure will also aim to improve the energy efficiency of the refurbished infrastructure. 181 The document also states that there will be correlation between the interventions prioritised under TO10 - investing in education, training and vocational training for skills and lifelong learning and TO4, TO5 and TO6, but it is not specified how this correlation will be achieved. 182 The proposed interventions under TO7 - promoting sustainable transport, are directly linked to the Europe 2020 climate mitigation target of reducing GHG emissions. The investment priorities (development of all modes of transport – road, rail, inter-modal, maritime, air, as well as safety improvements and customs modernisations) are expected to result in reduced travel time, a more sustainable transport mix with more passengers transported on rail and water, and improved governance of the sector. The expectation that passengers will migrate from roads to rail and water transport is, however, in disconnect with the financial allocations that favour road development and modernisation over investments in the rail and water sectors. Under the TO 4 ‘Supporting the shift towards a low-carbon economy in all sectors’, there are 14 proposed priorities for funding. They are based on the main development needs described above and they aim at energy efficiency actions (improved distribution, high efficiency low power 180 181 182 National Strategy Concerning Climate Change and Low-Carbon Economic Growth, Ministry for the Environment, Water and Forestry, September 2015 (draft under consultation) Partnership Agreement, Romania, 2014RO16M8PA001.1.2, p. 168. Partnership Agreement, Romania, 2014RO16M8PA001.1.2, p. 172. 130 ‘Climate’s enfants terribles: how new Member States’ misguided use of EU funds is holding back Europe’s clean energy transition’
cogeneration systems, monitoring systems, building insulations, etc.), transport efficiency and sustainable mobility, increased usage of RES (in general and more specific in agriculture), reducing GHGs in agriculture. 183 The PA states that energy efficiency objectives will be encouraged through the horizontal criteria as well. In terms of expected results, they are a little more specific than the priorities. The main results are split by fund in the PA, namely ERDF will contribute majorly to: urban public transport, reduced GHG emissions, increased energy efficiency in buildings and industry, increased access to smart grid services, increased share of energy from renewable sources in total energy consumption (due to investments aimed at increasing installed power in RES producers), increased energy efficiency in the district heating system in selected cities (except Bucharest) 184 . The heating system in Bucharest will be covered by CF 185 . A B C D E F GRAPH 69: Different types of energy infrastructure investments. Source: our own calculations based on approved Operational Programmes according to categories of intervention 1.251.170.213 A B C D E F euro 94.787.234 21.276.595 45.095.745 57.446.808 46.750.000 Enegry Efficiency Renewable Energy Sources Electricity transmission, storage Smart Grid Co-generation, district heating Gas TO7, ‘promoting sustainable transport and removing bottlenecks in key network infrastructures’, addresses the energy transportation infrastructure and aims at the development of smart electricity transmissions systems that can use RES; the development of a smart gas transmission system and urban transportation in the Bucharest-Ilfov region 186 . OVERVIEW OF THE LARGE INFRASTRUCTURE OP AND THE REGIONAL DEVELOPMENT OP The Large Infrastructure Operational Programme (POIM) The Infrastructure OP addresses four development needs: transport infrastructure, environmental protection, climate change mitigation and adaptation, and energy efficiency. The approximately EUR 9.5 billion in funding is divided between four Thematic Objectives and can be traced by the intervention field codes in five categories of intervention: Energy Infrastructure, Transport, Sustainable Transport, Environment and Environment Infrastructure. Almost half of the money goes to Transport Infrastructure (48.2%), almost one third to Environmental Infrastructure (30.7 %) and the rest is divided between Environment (9.9%), Sustainable Transport (5.8%) and Energy Infrastructure (5.5%). The argument put forward in the OP for such a high allocation to transport infrastructure is that the ‘HEROM’ modelling concerning different development scenarios for the period 2014-2020, applied at the level of the Partnership Agreement, suggested that a larger allocation for transport infrastructure would lead to a more significant increase in the GDP. The model estimated the impact on GDP, employment and labour productivity of four different allocation scenarios, and concluded that the scenario with the best impact on these indicators is the scenario that favours allocations towards infrastructure, while maintaining ESF funding at a lower level. However, the model is not oriented towards climate and environmental indicators such as GHG emissions, nor does it estimate impacts for the horizons 2030 and 2050. The fact that this model was used as one of the prevalent arguments in allocating EU funds is a clear indication that climate objectives were only a secondary concern and not thoroughly mainstreamed in the EU funds‘ planning process. 183 184 185 186 187 Partnership Agreement, Romania, 2014RO16M8PA001.1.2, pp. 178-179; Partnership Agreement, Romania, 2014RO16M8PA001.1.2, p. 180 ibid. Partnership Agreement, Romania, 2014RO16M8PA001.1.2, p. 185 POR, p. 29-30 ‘Climate’s enfants terribles: how new Member States’ misguided use of EU funds is holding back Europe’s clean energy transition’ 131
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CLIMATE’S ENFANTS TERRIBLES HOW N
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TABLE OF CONTENTS EXECUTIVE SUMMARY
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safeguard mechanism, the Strategic
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SLOVAKIA HUNGARY ROMANIA CROATIA Sl
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INTRODUCTION PURPOSE OF THIS STUDY
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EU FUNDS IN CENTRAL AND EASTERN EUR
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LT RO SK HU CZ LV CEE EE PL HR 20.0
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GRAPH 7: Comparison of energy effic
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GRAPH 10: Different types of energy
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GRAPH 12: Member States’ GHG emis
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TABLE 2: Criteria for renewable ene
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What EU money can’t buy: the gree
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25% of production respectively 30 .
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are implemented through six Nationa
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track to carbon-neutral development
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It is also worth noting, that all O
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very specific - although mostly sil
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110 billion in the optimal renovati
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whose ROP clearly prioritises commu
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aimed at modernising and building n
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The long and rocky path away from s
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GRAPH 21: Production of electricity
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CLIMATE ACTION: THE CASE FOR EU FUN
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GRAPH 23: Investment areas of Cohes
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could play a major role in replacin
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The missing pathway to long-term de
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intensity has decreased over the la
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achieving policy objectives. Such i
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change. Nevertheless, no specific c
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Considering the fact that renewable
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equires a more comprehensive assess
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A ‘green’ veneer, but at what c
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NATIONAL GHG EMISSIONS The transiti
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monopoly (which imports Russia`s ga
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GRAPH 36: Cargo traffic by mode of
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than that of deforestation, some ex
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GRAPH 41: Energy efficiency allocat
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Bring on the money, don’t ask for
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GRAPH 43: Energy mix of the Czech R
Page 79 and 80: Regarding the Europe 2020 emissions
Page 81 and 82: the renewables share to 35%, the Cz
Page 83 and 84: of commitment of public authorities
Page 85 and 86: GRAPH 53: Share of transport modes
Page 87 and 88: TABLE 12: Renewable energy output i
Page 89 and 90: 2007-2013 2014-2020 In the Enterpri
Page 91 and 92: GRAPH 55: The different types of en
Page 93 and 94: Finance for the energy transition -
Page 95 and 96: ENERGY SECTOR OF SLOVAKIA: STEADY W
Page 97 and 98: strategy until 2030, in 2012, but t
Page 99 and 100: This support is very welcome as it
Page 101 and 102: environmentally-friendly production
Page 103 and 104: participation in assessment procedu
Page 105 and 106: The Integrated Infrastructure OP se
Page 107 and 108: THE DARK SIDE IS IN THE DETAILS Cli
Page 109 and 110: GRAPH 60: Climate targets, scenario
Page 111 and 112: GRAPH 64: Total climate allocations
Page 113 and 114: EXPECTED COMPLEMENTARY FINANCING MO
Page 115 and 116: Recommendations for the mid-term re
Page 117 and 118: Notwithstanding a few exceptions, t
Page 119 and 120: c) Renewable energy sources Eligibl
Page 121 and 122: enewables in transport, as this tas
Page 123 and 124: Annex II - Complementary financing
Page 125 and 126: Going ‘super-green’, but not ri
Page 127 and 128: GRAPH 67: Energy mix 2013 - Gross i
Page 129: OVERVIEW OF EUROPEAN STRUCTURAL AND
Page 133 and 134: pollution levels and poor air quali
Page 135 and 136: line with the Europe 2020 targets a
Page 137 and 138: esidential sector and the usage of
Page 139 and 140: In the preparation phase, the mains
Page 141 and 142: of the Thematic Objective or progra
Page 143 and 144: Land of unfulfilled clean energy po
Page 145 and 146: hydropower plants (94%), and the ot
Page 147 and 148: points to a need for the developmen
Page 149 and 150: and adaptation, disaster resilience
Page 151 and 152: significant biomass growing fields.
Page 153 and 154: ports (EUR 140 million), new and im
Page 155 and 156: RECOMMENDATIONS FOR PLANNING, MONIT
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ENFANTS TERRIBLES

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