Climate Change Trends Highlighted by Romania

Climate change is evident, and its effects cause damage year after year. Neglecting its potential impact on our operations (our business) would be a significant failure in risk management. Identifying and assessing climate risks and opportunities should be a significant project for many organizations.

The State of the Climate Report – Romania 2024 provides an in-depth analysis of climate change trends in Romania. The document highlights a significant rise in the global average temperature in 2023, which reached a new record of 1.48°C above pre-industrial levels. Key phenomena discussed include heatwaves, drought, climate policies, urbanization, and the urban heat island effect.

  • In Romania, the frequency and duration of heatwaves have significantly increased from 1950 to 2023. The southwest and eastern regions are the most affected, with projections indicating this trend will continue.
  • Periods of drought have become more frequent and intense, severely impacting agriculture and food security. Areas affected by severe and extreme drought peaked between 2018–2020 and 2021–2023.
  • The report highlights how major cities like Bucharest and Craiova will increasingly feel the effects of high temperatures, making adaptation policies essential.
  • Romania is committed to European initiatives, such as the European Green Deal, but faces challenges in implementing measures at the national level.

Major Risks for Romania

The State of the Climate Report – Romania 2024 highlights several significant risks for the country associated with climate change, including impacts on health, the economy, agriculture, and biodiversity. Key risks discussed are:

  • Extreme weather events (severe storms): The report shows an increase in severe storms, particularly in the east and north of the country, including hail and strong winds. Projections indicate these phenomena will intensify by 2050 and the end of the century, negatively impacting agriculture and infrastructure.
  • Aridification and ecosystem degradation: Rising temperatures and decreased precipitation are expanding arid zones and degrading ecosystems.
  • Risk of economic and social stagnation due to low climate awareness: This weak perception can slow the implementation of adaptation and mitigation policies, negatively affecting the capacity to respond to the climate crisis.

Benefits of Studying the Report in Detail

By reading the report, one can gain nuanced information and data-rich insights into Romania’s climate trajectory, including:

  1. Emission projection scenarios and climate impact: Detailed scenarios (RCP4.5 and RCP8.5) illustrate possible climate outcomes based on emission trajectories, showing potential increases in the number of heatwave days and intensified droughts by 2100.
  2. Gaps in sectoral policies: The report addresses gaps in Romania’s climate policies, such as the lack of a national climate law, and highlights areas where policy implementation is deficient. It also provides specific recommendations for improving policy efficiency—an aspect often overlooked.
  3. Lack of public awareness: Surprisingly, the report shows that although Romanians recognize the impact of climate change on agriculture, health, and food security, only 4% consider climate change a national priority. This gap underscores an urgent need to increase public engagement and education about climate risks to foster greater support for sustainable policies.

“We are the first generation to feel the effect of climate change and the last generation who can do something about it.”
– Barack Obama​

Considerations for Businesses

What should companies consider based on this analysis of Romania’s Climate State Report?

  • Understand physical risks to their operations and how climate risks and opportunities might financially affect the business.
  • In addition to physical risks, focus on identifying transition risks (carbon taxes, rising energy costs, etc.) and evaluating their potential future impact. These transition risks could bring significant future costs and strongly impact the profit and loss account if multiple risks materialize.

Adopting a climate risk assessment approach aligned with TCFD criteria would be beneficial. Companies can establish governance and strategic approaches best suited to mitigating risks. Moreover, they can create internal risk management processes to better address critical risks or seize significant opportunities.

Finally, the primary goal of such climate risk assessments is to understand scenarios and projections of future financial impacts on the organization and to develop a clear roadmap to mitigate them over time without imposing undue pressure on the organization.

CONTACT US if you need support in conducting a climate risk analysis for your operations.