The Republic of Moldova will invest over 25 million euros in the next four years in the decarbonization of the energy sector. A Financing Agreement between the Government and the French Development Agency (AFD) was signed today by the Minister of Finance, Victoria Belous, during the fifth Ministerial Conference of the Partnership for Moldova, which is being held in Chisinau. The event brought together official delegations from over 65 countries. The signing ceremony was attended by President Maia Sandu, the Minister of Energy, Victor Parlicov, the French Minister for Europe and Foreign Affairs, Stéphane Séjourné, the executive director for countries at AFD, Philippe Orliange, and the French Ambassador to the Republic of Moldova, Dominique Waag.

The €25 million program loan offered by AFD will directly contribute to the decarbonisation of the country's energy sector over a period of six years (2023-2028). Supported by a €5 million technical assistance grant from the European Union and implemented by AFD's subsidiary Expertise France, the program promotes the efficient use of energy resources, improves energy generation from renewable sources and increases energy efficiency at national level. It also aims to strengthen Moldova's energy infrastructure, improve cross-border electricity interconnections and establish a robust policy and regulatory framework to attract additional investment in the energy sector.

"With the continued support of AFD and the French Government, Moldova is well positioned to achieve its EU accession goals and to build a greener and more inclusive future for all Moldovans," he said during the agreement signing ceremony Minister of Finance, Victoria Belous.

"The Ministry of Energy has set a clear and ambitious goal - to have a share of renewable energy of 30% by 2030. This agreement is a crucial milestone on our way to a sustainable and resilient energy sector", said the Minister of Energy, Victor Parlicov .

"AFD is proud to support Moldova in its ambitious energy transition. This program not only strengthens our cooperation, but also demonstrates our shared commitment to addressing the global climate crisis and promoting sustainable development. Together, we are paving the way to a low-carbon economy in Moldova", said Philippe Orliange, Executive Director for Countries at AFD.

"Today's agreement exemplifies France's unwavering commitment to Moldova's sustainable development and energy independence. As Moldova moves closer to its European integration goals, this partnership will play a vital role in ensuring that its energy sector is not only secure, but also aligned to the highest environmental standards. France stands firmly with Moldova in addressing the challenges of the 21st century, from climate change to energy resilience", remarked Stéphane Séjourné, the French Minister for Europe and Foreign Affairs, during the event.

The new financing agreement marks the second tranche of AFD's support for Moldova's energy reform agenda, after the successful implementation of the first tranche in 2023. The Green Energy Transition Program is essential in the process of aligning the Republic of Moldova with European Union standards, for improving energy security and promoting sustainable development in the face of global climate challenges.

The AFD Group finances, supports and accelerates the necessary transitions towards a fairer and more resilient world. Active in the Republic of Moldova since 2022, the AFD Group has the mandate to assist our country in aligning with EU standards and implementing the Paris Agreement on climate change, moving towards an inclusive growth trajectory with low carbon emissions. Since then, the AFD Group has invested 200 million euros in Moldova through several active projects in the energy, transport, environmental protection and forest management sectors.