Project Summary:

This project aims to accelerate inclusive and green transition, responsive governance, and social cohesion in the Eastern Neighbourhood region, with a country-level focus on Moldova and Georgia. It also aims to provide a platform for enhanced regional cooperation, fostering knowledge sharing, access to regional expertise, and solutions, with the potential for scaling up activities and facilitating broader regional cooperation, learning, and advocacy. 

The project serves as a framework for potentially expanding relevant activities into new countries within and beyond the Eastern Neighbourhood sub-region, based on emerging needs and opportunities.   

Acknowledging the complexity of development challenges in the Eastern Neighbourhood countries, the project adopts an adaptive management approach. It views project interventions through a systems lens, responding to emerging needs and fostering synergies among activities supporting green transformation, energy transition, catalytic green investment, social inclusion, digital transformation, responsive institutions, social cohesion and stability, and local governance, among others. 

Objectives:

• Enhanced governance in the Republic of Moldova through multi-stakeholder engagement to accelerate the green and inclusive transition;
• Enhance policy and regulatory environments and strengthen stakeholder capacities at national and local level to incentivize investments in renewables and energy efficiency (in priority sub-sectors – energy and transport);
• Intensify demand creation and access to funding for energy efficiency and renewable energy in residential buildings;
• Enhance micro, small and medium enterprises' (MSMEs) access to investment opportunities in energy efficiency and green technologies.
   

Expected results:

• Homeowners’ associations are capacitated to apply to financial programs in energy efficiency and renewable areas for residential sector;
• National energy related campaigns are complemented by nudging strategies and behavioral change initiatives to encourage energy efficiency practices;
• Raised awareness about the cost-effectiveness and efficiency of various energy-saving measures for citizens;
• At least 25 energy audits of residential buildings are conducted;
• Broadened access for private companies to green and low-carbon technologies available in the national market;
• A targeted energy audit program for MSMEs and large companies to engage in energy-saving and greenhouse gas emission reduction practices is launched;
• At least 25 companies engaged in an energy audit program, out of which at least 7 are owned or lead by women;
• At least 5 companies supported to adopt an energy management system;
• The market potential for innovative mechanisms such as energy insurance mechanism, etc. is assessed;
• At least 25 regulatory acts in transportation and energy sectors are developed or/and updated;
• 1 pilot project on sustainable energy developed and implemented in a Sandbox environment;
• 1 pilot project on low-carbon transportation developed and implemented;
• 5 Sustainable Energy and Climate Action Plans for local public authorities are developed;
• At least 15 institutions received training or capacity building support to plan and incentives the green energy transition;
• Support for operationalization of a monitoring, reporting and verification mechanism for the National Integrated Energy and Climate Plan (NECP) implementation are offered;
• At least 7 cyber security audits performed for critical infrastructure in the energy sector. 

Accomplishments:

• The Law on the development of innovative solutions in the energy sector and secondary legislation on Sandbox mechanism developed and approved;
• The Sandbox Commission responsible for reviewing and approving pilot projects was established. All relevant legal and operational documents, including the Sandbox Operational Manual, enabling the mechanism to move toward implementation in coordination with the Ministry of Energy and the Sandbox Secretariat developed and approved;
• Three pilot projects selected to be tested within Sandbox environment with support the project support;
• A study visit to Denmark and Portugal to assess the Sandbox implementation organized for representatives of Ministry of Energy and National Agency for Energy Regulation;
• Study visit to Riga, Latvia to assess the good practices in organizing and managing public within the city and interurban public transportation;
• The Regulation on sustainability criteria and greenhouse gas emission reduction for biofuels, bioliquids and biomass fuels, as well as the Methodology for calculating their impact on greenhouse gas emissions developed;
• The National Strategy on Long-term Building Stock Renovation for 2025-2050 and its Roadmap was approved;
• The National Integrated Energy and Climate Plan was approved;
• Capacity development support for employees of Ministry of Energy and National Agency for Energy Regulation; 
• Cyber security audits completed for 7 critical state entities from energy sector;
• Analytical study on electric mobility infrastructure launched, with a focus on regulatory adjustments, incentive mechanisms and investment models. Foundational evidence base established to support future public and private investment in electric mobility and accelerate the transition to low-carbon transport solutions;
• Institutional and conceptual foundation for introducing a new professional qualification in support of Moldova’s green transition established. Accreditation process for the new professional qualification initiated;
• 14 training workshops for homeowners’ associations were organized in 2025, covering the North, Centre, and South of the Republic of Moldova. A total of 502 representatives from more than 100 homeowners’ associations participated, including 276 women and 226 men;
• First national Homeowners’ Associations Forum organized to strengthen stakeholder dialogue, promote energy efficiency financing opportunities and support the scaling up of residential building renovation;
• 25 residential buildings were selected to receive energy audits;
• Groundwork established for the design of innovative, market-oriented financial instruments to accelerate MSME investments in energy efficiency and renewable energy;
• National energy auditing capacity expanded through the certification and recertification of qualified specialists: 29 new industrial energy auditors were certified, including 10 women; 15 industrial auditors, including 4 women, renewed their certification; and 29 auditors, including 7 women, were trained to perform energy audits in the transport sector;
• A comprehensive inventory of 1,485 public buildings in Chișinău and Bălți was completed, establishing an evidence base for connection and reconnection to efficient centralized heating systems and identifying 78 currently unconnected buildings, including 60 located near existing infrastructure and suitable for connection with limited investment;
• Public awareness and engagement on energy efficiency and renewable energy solutions strengthened through large-scale outreach, including promotion at Sun Da-i Fest 2025, which reached over 7,000 participants;
• Transposition of seven EU Regulations on Eco design and Energy Labelling;
• Three regional training sessions for representatives of local public authorities in partnership with the Government of Moldova and the NGO Primăria Mea. The trainings engaged 39 participants (27 women and 12 men) from 29 public institutions across the north, centre, and south of the country, including mayors, local council secretaries, public servants, and representatives of the State Chancellery.