Energy has long been a strategic sector of Romania’s economy. It was the fifth largest oil exporter in the world before the Second World War. Today it is still one of the few countries in Europe that can meet the majority of its energy needs from domestic sources.
According to Bloomberg, it is also one of the countries which would benefit most if the EU adopts a target to reduce CO2 emissions by 30% by 2020. There could be a positive effect on GDP growth of 0.5%, thanks to Romania’s possibilities to trade surplus carbon allowances.
Romania is particularly well-placed to succeed in a low-carbon future. It has a diverse energy mix, with a good share of renewables (mainly hydro) and nuclear.
The Cernavoda Nuclear Plant is one of the most efficient using the CANDU reactors, and – like the UK – Romania plans further investments in nuclear power in the future.
The UK is also investing £1 billion in an Advanced Propulsion Centre to develop the low carbon technology for the cars of the future. This is a partnership between the British Government and all the main players in the automotive industry, including Ford (whose award-winning B-Max engine was designed in the UK and built in Craiova).
These are some of the themes which the UK’s Energy Minister, Ed Davey will be discussing during a visit to Romania today.
There are big questions to debate on future energy policy – how to explore and exploit shale gas safely, how to develop new nuclear, what is the future of the Southern Corridor after the decision on TAP and Nabucco, how do we agree a target for reduced carbon emissions and deliver it to make a meaningful difference to global warming?
These are key challenges for all EU Member States and I hope Romania and the UK can join forces to address them.