Green Transition Committee

In response to the EU's European Green Deal and Moldova's EU candidate status, as well as global climate and environmental-related challenges, a part of the Moldovan business community has reacted with a commitment to play an active role in decarbonization, embracing activities to foster a greener economy and, hence, diminishing the negative impact of business on the environment.

The Green Transition Committee within AmCham plays a role in promoting and fostering a sustainable green economy in Moldova. This committee was established in 2021 in response to the growing demand from AmCham Moldova members for information, advocacy, and capacity-building in various areas related to green economy development, including:

- Decarbonization & Energy transition to renewable energy sources;

- Energy efficiency;

- Recycling & Waste management;

- Waste Water Management;

- Sustainable technologies implementation;

- Sustainable agriculture;

- E-mobility;

- Circular Economy principles implementation;

- Green Financing;

- Other related topics, as identified by members.

From the perspective of the business community, what is needed & what is already on the AmCham agenda represents:
 

Advocacy and Policy Influence

The committee actively engages with government agencies and relevant stakeholders, such as the Economic Council to the Prime Minister, the Ministry of Environment, the Ministry of Economy, the Ministry of Energy, etc., to advocate for policies and regulations that support sustainable growth.

AmCham also actively engages with partners, such as USAID MESA and FTA; EU4Enviroment; EBRD, UNDP and World Bank that have made sustainability and environmental considerations a central part of its mission and investment strategy in Moldova.

The major interest to the AmCham community from the perspective of EU legislation represents:  

Law on promoting the use of renewable energy sources; 

Law on industrial emissions;

Law on waste management and Extended Producer Responsibility implementation;

Regulations on wastewater management;

Environmental impact assessment regulations,

Carbon Border Adjustments Mechanism (CBAM);

EU emission trading scheme (ETS);  

Corporate Sustainability Reporting and ESG reporting for export-oriented companies.

Raising Industry Awareness

Perhaps the most striking aspect of decarbonization and the green transition is that many people do not recognize their benefits, including their potential to save costs in the long run and open doors to Western markets.

Therefore, it is important to raise awareness about the business community's needs for a competitive green transition and sustainable economic development and, on the other hand, to coordinate better policy activity of government institutions and allocation of related financial partners' support.

AmCham is dedicated to making this known to its members and has already organized a series of events to educate both businesses and the general public on sustainable practices and their advantages.

Organized events:

• Public Talk: "Are you ready for the new international trends? The importance of integration and reporting for Moldovan companies" on June 29, 2022.
• Workshop: "The role of ESG in creating businesses for the future on September 20, 2022, in partnership with EBRD.
• ESG Conference on January 23, 2023.
• Public Talk: "Green Transition: Obligation or Opportunity for the Moldovan Business Community?" on June 9, 2024
• Public Talk: "Construction and demolition waste in the context of the circular economy" on October 6, 2023.
• Knowledge seminar: "Sustainable packaging regulations & consumer preferences" on October 20, 2023.
• Knowledge seminar: "ESG Reporting: Practical methods for competitive and sustainable business" on November 28, 2023.
• Knowledge seminar: "Adoption of Innovative Technological Solutions and Energy Efficiency on January 17, 2024.
• Green Future Conference on March 14, 2024.
• Webinar: "Decoding CBAM (Carbon Border Adjustment Mechanism): Impacts and opportunities for Moldova" on April 26, 2024.
• Public Talk: "Sustainable Horizons: Charting Moldova Green Building Investment Future" on June 3, 2024.

Business Capacity Building

For Moldovan companies to advance rapidly and benefit from the circular economy, it is imperative to raise the level of awareness, understanding, and knowledge of what re-technologization is and what cutting-edge technologies are available in the world that could be used to implement circular economy initiatives at multiple levels.
 

Facilitating Access to Financing

From a business perspective, this is the most important when we are speaking about the transition to a less carbon economy.

Access to Funding is a major challenge as only a few grant programs targeted at greening the business are available, and there is a shortage of long-term loans with high interest rates.

Without a financial support like direct subsidies, concessional loans, risk sharing guaranties, as well as non-reimbursable and partially reimbursable grants from international partners, the implementation of the green transition activities will be very slow.

In parallel will be needed also some fiscal incentives like VAT reduction for the import of green technologies and equipment. The EU Green taxonomy has not been adopted in Moldova which, in turn, limits the potential for fiscal incentives in the future. So, we have to support the elaboration of the policy package with tax benefits, incentives and other support mechanism to promote investments in green and sustainable technologies & businesses. 

The available financing programs are limited and are aimed at small and medium-sized enterprises (SMEs); only a few economic activities are eligible, particularly those related to agriculture. This means that it covers only a small portion of the economy. There is also a need to support large companies, as defined by Moldovan legislation, and to establish programs for certain industries that genuinely require support. Therefore, new sources of financing are required for businesses and projects in energy efficiency, renewable energy, resource enhancements, and technological development.