New gas exploration projects run counter to climate change goals, the Organization for Economic Co-operation and Development (OECD) said in a study on Romania’s economy published on Tuesday. Through this study, the OECD suggests that Romania take climate change into account when making decisions on granting new licenses for gas and crude oil exploration. In addition, the OECD is following the example of other European countries that have announced a ban on new exploration.

OECD: Gas production in Romania will significantly exceed domestic needs

The OECD states that after the development of the Black Sea fields, “gas production in Romania will significantly exceed domestic needs.” “Therefore, Romania will position itself as an alternative to Russia for supplying gas to the region,” the OECD study also shows.

Global demand for gas, oil and coal must begin to decline by 2030 to meet climate goals, he said. Declining demand for fossil fuels may increase commercial risks for new projects.

Given that Romania has not auctioned new gas concessions for more than a decade, the government should consider environmental factors in decisions to grant new licenses, the OECD said.

“Some countries – such as Denmark, France and Ireland – have announced a ban on new oil and gas exploration,” the study says.

The capacity of renewable resources must be doubled

According to the study, renewable capacity must be more than doubled by 2030 for Romania to meet its climate goals.

According to him, the private sector is interested in renewable energy in Romania, but there are various obstacles that slow down investment.

To ensure the completion of projects, Romania should remove these barriers by modernizing the distribution network and improving authorization procedures, which are too long and complicated, the OECD also believes.