2.1. Impact in the European Union
The European Union was on course to further decarbonize the European economy by 2050 and mitigate climate change just before the pandemic started in 2019 [
27]. Although the pandemic halted efforts for a time, the war reminded us of a dire, unresolved problem: the EU's dependency on Russian energy. As the North Atlantic Treaty Organization (NATO) found renewal because of the war, the EU finds renewal and common ground for its energy policies in order to achieve its energy security. The EU has a leading role regarding the global climate change threat. After more than two decades of negotiations, the agreement regarding climate change, the Paris Agreement, was adopted in 2015. Its focus is to continue the struggle to keep the global mean temperature increase under 2°C and try to find ways to limit it to 1.5°C [
28]. This translates to the need to reduce greenhouse gas emissions into the Earth’s atmosphere without a negative impact on the economy.
Even before the Russo-Ukrainian conflict started, the EU had been actively pursuing combating climate change for a couple of decades, targeting:
reduce GHG emissions by 40% until 2030 compared with 1990 levels.;
increase the energy consumption from renewable energy sources up to 32% until 2030;
improve the energy efficiency of the EU’s final energy consumption by 32.5% until 2030.
In 2023, the EU pressed on again, changing the targets that were in place and increasing the established levels yet again. changes that the EU repeatedly confirms are made as a response to the energy threat created by the war. In 2023, the EU revised the Climate Law [
29] that is part of the European Green Deal (EGD) [
30] and all other connected legislation such as Fit for 55 [
31], REPowerEU [
32], and others. The targets set for 2030 as a response to the energy crisis provoked by the war are the following [
33]:
reduce GHG emissions by 55% until 2030 compared with 1990 levels;
increase the energy consumption from renewable energy sources up to 45% until 2030;
improve the energy efficiency of the EU’s final energy consumption by 42.5% until 2030.
The long-term EU thresholds for 2040 and 2050 changed over time as well. Earlier targets were to reduce GHG emissions by up to 60% until 2040 and up to 80–95% by 2050 [
29]. In 2023, the EU increased the percentages once again, in concordance with the new 2030 thresholds set in motion by the war. The new objective is to reduce GHG emissions by up to 95% until 2040 and reach zero net emissions by 2050 [
34].
Since the invasion of Ukraine by Russia on February 24, 2022, the EU has started to speed up its efforts towards a renewable energy transition. This rapid shift turned out to be the right path as Russia switched off the main gas pipeline to Europe due to economic sanctions in September 2022 [
35]. Facing a dire situation, the EU was heavily dependent on Russian fossil fuels, according to Ursula von der Leyen, the President of the European Commission [
36], the EU launched the REPowerEU strategy in response to Russia’s blackmail.
The REPowerEU strategy [
32] was finished earlier than originally planned. It targets to eliminating Russian energy imports by 2027. Its three major focuses are:
This plan introduced policies that succeeded in reducing Russian fossil fuel dependency, saving 20% of the energy consumption in the EU, introducing a gas price cap and a global oil price cap, and doubling renewables [
36]. The success can be seen in the sheer numbers, as Russian gas accounted for 8% of all pipeline gas imported into the EU in September 2022, compared to 41% of imports from Russia in August 2021 [
36]. This is an astonishing success for the EU climate and energy strategy going forward, as the EU managed to tackle this problem with resistance, thus advancing renewable energy development and energy independence faster than ever before. The European Union voted in 2022 in favour of classifying nuclear sources of energy and natural gas as “green” sources of energy [
37], with the target of helping the financial markets and finally bringing the gas price down [
38]. This will go into effect in the EU taxonomy rule book in 2023, unless 20 of the 27 member states rejects it [
39]. Although rejection is very unlikely to happen, the measure received a lot of backlashes, especially from climate change activists, as a fossil fuel will only truly be a fossil fuel. Policies can change how it is financially considered, but it has the same impact on GHG emissions as before it was considered "green." As for renewables in the EU, Solar Power Europe reported that in 2022, the EU's installed photovoltaics were up by 47% compared to 2021, from 28.1 GW to 41.4 GW [
40]. The chances that followed the Russo-Ukrainian conflict can clearly be seen in 2022, as from the total EU energy mix, wind and solar generated 22% of the electricity in 2022, overtaking gas with approximately 2.5% for the first time [
41]. Also, nine EU countries generated more than half of their electricity demand from renewable sources in 2022 [
41]. Although the data for 2023 is not yet available, it is estimated that fossil fuel usage in the EU will register a 20% drop in 2023 compared to 2022 [
42].
The fight against climate change always faces the same issue: the choice between effectiveness and popularity [
43]. It is difficult to implement effective taxes to reduce GHG emissions due to public resistance, political trust and efficacy, and fossil fuel dependence [
44]. In 1990, Finland was the world’s first country to implement a carbon tax. Since then, 19 European countries have followed their model [
45]. Moreover, since 2005, the EU has successfully implemented “the largest trading system of emission allowances worldwide” [
46].
There are two different ways in which the carbon emitted in the Earth’s atmosphere is taxed. Both are in place and function together at the moment in the EU and are the following:
Compared to the ETS, the carbon tax sets a price directly on carbon by having a tax rate on GHG emissions or the carbon content of fossil fuels. It is also different because the emission reduction from the carbon tax is not pre-defined, but the price of carbon is [
47]. The EU ETS carbon market sets a cap on the total GHG emitted annually and allows trade between emitters for the emissions allowances, meaning that it directly sets a price on GHG emissions [
47]. The EU ETS is specific to companies, and it stimulates emissions reduction in two ways: either by reducing emissions through renewable energy use or by buying emissions allowances. The EU ETS does not tax GHG emissions from individual owners in any form or from any transport fuels [
48].
At the moment, only a couple of countries in Europe have a tax on carbon, compared with the countries under the EU ETS, as seen in
Figure 1. The EU has started the procedure to implement a carbon tax for all EU members. In accordance with this, Romania will also comply with EU regulations and implement the carbon tax until 2027, as the EU plans to do.
Historically, EU energy policies shifted back and forth from national to supranational authorities or were shared competences, as mentioned in the Treaty on the Functioning of the European Union (TFEU) [
50]. The war reopened this problem: should energy policy be regulated by each member state or solely by the EU? Although in the past the power returned to national governments [
51], Today, EU leaders are not willing to take decisive actions for their countries and rely on EU policies [
19]. Today, the EU struggles to find the best course of action to achieve its energy security. As the war continues and post-pandemic recovery is ongoing, the future of EU energy security remains unknown. What is really an accepted fact for all EU members is the need to secure an energy future without relying on Russia.
2.2. Impact in Romania as a European Union Member
"Beyond the destruction caused by the war, Europe is also in an energy crisis. All European states are looking for solutions to reduce their dependence on gas and crude oil imports from Russia. "In this context, Romania will have to take concrete, rational steps towards ensuring energy independence," claimed the Romanian environment secretary [
52].
In accordance with EU policies, Romania also targets energy independence in response to the Russo-Ukrainian war. In 2021, 45% of the primary energy consumption in Romania was provided by imports, according to the National Institute of Statistics [
53] and it relies only on Russian imports for 29% of its gas consumption. In 2022, 47% of the primary energy consumption was provided by imports, but the amount of money Romania paid for Russian imports dropped by 51% compared to 2021. Considering that in 2022 the gas prices were a lot higher than in 2022, it is estimated that in 2022 Romania relied on Russian imports for only 8–14% of its gas consumption.
Romanian energy legislation is based on and closely adapted from EU regulatory legislation. For this reason, the EU approach to energy legislation is important in order to understand Romanian energy legislation. The Romanian Energy Strategy [
54] (RES) was developed in concordance with the EU Clean Energy for All Europeans package, representing the fourth energy package that implements the Paris Agreement of 2015 [
28]. Moreover, RES is corelated with the REPowerEU plan, the Fit for 55 packages, the European Green Deal, the EU Energy Performance of Buildings Directive (EPBD), the Effort Sharing Regulation (ESR), the Energy Efficiency Directive (EED), Directive 2003/87/EC, also known as the Emissions Trading System Directive (ETSD), and the Renewable Energy Directive (RED), all of which are energy-related policies. RES's purpose is the sustainable growth of the energetic sector in Romania between 2020 and 2030, with a 2050 perspective. It establishes targets for the reduction of GHG emissions, the increase of renewable energy sources, the increase of energy efficiency in all sectors, and the implementation of the European Green Deal. The RES considers the implementation of national objectives in order to:
reduce the emissions from ETS sectors up to 43.9% compared with 2005 levels and 2% from non-ETS sectors compared with 2005 levels;
increase to 30.7% the energy from renewable sources from the final energy consumption;
reduce the final energy consumption by 40.4% compared with the 2007 projection.
The RES establishes eight objectives, designed to complement each other, that need to be simultaneously implemented and accomplished in relation to the technological, economic, and geopolitical contexts and are presented in
Table 1. RES targets infrastructure, policy, and education. While energy education represents the base for all the objectives, the infrastructure objectives rely on the policy objectives for implementation, and the final target of increasing Romania's regional power relies on all of them working together.
Figure 2 provides a block diagram to easily understand the connection between all objectives, each of which has a table number and a clear description of its target. Observing the diagram, the RES structure provides a clear view of what the Romanian government plans to do: increase education, develop infrastructure, reform policy, and have an impact on a regional level.
The first objective targets finishing the Romanian electrification. At the moment, only 90% of residential consumers are connected to the national electrical system. Although electrical energy is used the most in Romania, the consumption per capita is 2.4 times lower than the EU average. As for natural gas, only 44% of Romanian households are connected to the national gas system. This objective also targets rapidly increasing the development of the national electrical and gas systems in order to reach all consumers and also increase their transport capacities. Following the start of the war, with the intent of becoming a regional energy provider, Romania intensified the effort to strengthen its electrical and gas systems, especially the high-capacity transport, with the target of being able to export as soon as possible higher energy quantities.
The second objective states that renewable energy will play a vital role in Romania’s decarbonization. At the end of 2022, the Romanian government will have already started a program titled “The National Recovery and Resilience Plan” (NRRP), which targets renewable energy, replacing coal as fuel, nuclear energy, cogeneration, bio-fuels, and energetic infrastructure modernization. To approach this, Romania intends to use so-called “transitional energy sources," such as natural gas, hydrogen, and nuclear energy, to be able to move towards 100 percent renewable energy in the future. It targets developing a national strategy for hydrogen production and the infrastructure to use it as another source of energy, as multiple countries in Europe and North America are researching [
55]. The NRRP also targets the building sector, with the goal of lowering their energy consumption. This process started a long time ago in Romania, but now it’s even more intensified with the emphasis on using renewable energy sources for every building, either new or already built.
The third objective acknowledges the need for transparent, fair, and stable policies from the government. Thus, it targets improving the implementation and regulation of all energy measures and creating a stable environment for all parties involved in energy extraction, production, transport, and final use.
The fourth objective targets protecting the final consumer. As the government understands that the final consumer is affected by the end price, it seeks to eliminate the possibilities for high fluctuations in price. It also supports the first objective target of providing accessibility to all consumers of energy.
The fifth objective targets guaranteeing safe and stable energy markets. For a prosperous energy economy, the government wants to assure competitive and fair markets for all energy sub-sectors.
The sixth objective targets increasing the number of qualified workers on all the energy jobs, as the Romanian government knows that the actual qualified workforce is getting old and the current education system needs to be improved. In the long run, the success of all the objectives in the RES will be directly influenced by the qualified workforce that will implement, maintain, and improve the energy sector.
The seventh objective represents the boldest objective for Romania yet, as it wants to develop all the energy sectors with the purpose of becoming a regional energy provider. This objective represents an extended vision of the first objective, over the country’s borders, towards its neighbours, and especially towards the EU. In the past years, with all the pandemic and war disorder, the government acknowledged the strategic geolocation of Romania and committed to becoming the EU's south-east anchor in the energy sector.
The eight objectives represent all the development visions of all the other objectives, as Romania participates in an ongoing process of integration in the EU energy markets. Romania has the primary energy sources required, but they need to be sustainable, taking into account the impact on the environment and following the EU regulation on climate change.
The European energy crisis basically had its roots in the fact that the main transit route for natural gas, through Ukraine, was lost. Europe found itself in a new reality, which in turn caused prices to skyrocket. Romania was one of the first countries in the EU to adopt measures intended to lower the effects of the energy crisis, with the target of stabilizing electricity, gas, and fuel prices from production, transport, and the final consumer. While the EU searched elsewhere for gas supplies, like increasing the import of gas from Azerbaijan from 8 bcm in 2021 to 11.4 bcm in 2022 [
56], Romania intends to strengthen its regional energy security foothold. For this, Romania plans in its Energy Strategy to renew, expand, and consolidate both its national electrical and gas systems. Romania understands that energy source and route diversification is an important step towards national and European energy independence and towards reducing its dependency on Russian energy.
The actual steps Romania is taking towards energy independence have already started. From the electrical point of view, it plans to finish more than ten projects for the electrical systems by 2030 [
54]. Most of them are projects to increase the electrical power lines' capacities inside Romania. At the end of 2022, Romania successfully finished Romanian-Bulgarian interconnections from Stupina (RO) to Varna (BG) and from Rahman (RO) to Dobrudja (BG). Another important interstate project is the power line connection between Suceava (RO) and Bălți (MD). It is a project on the REPowerEU plan, and the Romanian part of the power line will be funded by the EU [
57].
For the natural gas system, Romania plans to consolidate all its national transport pipelines. As for the plans with its neighbors, the main objective is to implement the second phase of the BRUA project. BRUA stands for Bulgaria-Romania-Hungary-Austria, which is needed in order to create another pipeline for gas imports from Azerbaijan and the Middle East for Europe. Moreover, Romania has another important objective for developing the Southern Gas Transmission Corridor for transporting gas from the Black Sea shore [
58]. Romania’s projects for new interstate connections for electrical energy (ENTSO-E) and gas (ENTSO-G) are represented in
Figure 3 alongside the national electrical and gas system distribution in Romania as of 2023.
As Ukraine and Moldova were successfully connected to the European Network of Transmission System Operators for Electricity (ENTSO-E) recently, Romania’s efforts to become a regional provider continue. Romania has ongoing projects to build two new nuclear reactors at Cernavodă Nuclear Power Plant to increase the export of electrical energy from 2800 MW to 7050 MW until 2030 [
60] and also to interconnect the electrical energy system with Moldova and Ukraine via back-to-back stations [
54].
Moreover, with the new offshore exploration law (Romanian Law No. 157/2022 [
61]), Romania will start to tap into important quantities of oil reserves in the Black Sea. Originally, in 2018, the law only covered the offshore oil reserves, but in May 2022, the law was changed to also include the onshore oil reserves. In 2023, new reserves of oil and natural gas were discovered in the south of Romania, estimated to be approximately 30 boe (barrels of oil equivalent) [
62]. By the end of 2026, Romania will also extract natural gases from the Black Sea, which are estimated to be more than its annual consumption [
63].
In the near future, Romania will have more oil resources than it consumes. It will export to neighbouring countries, with Moldova having a high priority according to Romanian policy if the present trend continues. Plans set in motion by the REPowerEU and RES prove to have been successful since the start of the war, not because of the actual planning itself but because of the speed with which measures are set in motion. Several plans that were especially foreseen in RES were there for some time, and progress was slow, but the Russo-Ukrainian war reminded the Romanian people of something that plagued its society in the last century: the fear of Russian oppression and the desire for independence from all points of view.