The plan submitted by the Romanian Government to the European Commission for the restructuring of coal and power group CEO has no chance of being approved in its current form, according to Greenpeace.

The only solution for the CEO - until recently, the second-biggest energy producer in Romania after Hidroelectrica - is giving up coal production after 2025, under a thoroughly revised restructuring plan.

Otherwise, the company will be burdened every year with the payment of emissions certificates, especially given that, according to a Greenpeace analysis, CO2 emissions will increase in 2030 compared to 2020 by 28% following the application of the so-called decarbonization measures included in the restructuring plan.

The total costs generated by the company's emissions could exceed EUR 3.68 bln in the next ten years, without taking into account possible penalties. CEO does not have these funds and will no longer be able to access them in the form of state aid, Greenpeace explains.

In a much shorter term, CEO risks having to pay penalties as soon as this year as the Government will not be able to help it purchase the necessary emission certificates by the deadline at the end of April.

"We expect the Energy Ministry together with the CEO to propose a restructuring plan to consistently reduce emissions, ensure the company's economic viability, invest heavily in renewable energy, and create jobs for communities in Gorj. They should come with a plan to support the energy transition in Gorj, not to prevent it," said the Greenpeace representative, quoted by Agerpres.

(Photo courtesy of Greenpeace Romania)

andrei@romania-insider.com