THE EUROPEAN UNION CLIMATE POLICIES AND THEIR INDIRECT EFFECTS ON THE ECONOMY OF THE REPUBLIC OF MOLDOVA

Abstract

The growing importance of the European Union’s climate agenda, reflected in strategic frameworks such as the European Green Deal and the Fit for 55 legislative package, makes the analysis of their external effects increasingly significant for neighboring countries. In this context, the present study examines the ways in which the EU’s environmental and climate policies influence the economic development of the Republic of Moldova. The subject of the study is the Moldovan economy and the structural transformations it undergoes as a result of its deepening integration into the European economic space. As Moldova becomes more closely linked to the EU market through trade, energy cooperation, and regulatory approximation, understanding the indirect transmission of climate policy measures becomes essential for evaluating national economic resilience and adaptation capacity. The purpose of the study is to identify the main economic consequences that EU climate policies generate for Moldova and to highlight both the risks and opportunities associated with this regulatory shift. Specifically, the research seeks to assess how new climate-related standards affect Moldova’s export sectors, how the decarbonization of the European economy reshapes investment flows, and in what ways the energy transition influences national energy security and long-term competitiveness. The methodology is based on a mixed approach that combines qualitative policy analysis with quantitative examination of recent trade, energy, and investment data. Comparative, analytical, and interpretative methods are used to evaluate the extent to which stricter carbon regulations, sustainability requirements, and green transition instruments introduced at the EU level influence Moldova’s economic performance. The study also draws on secondary data, reports, and EU legislative documents to contextualize the implications for Moldova’s policy environment. The findings indicate that Moldova’s strong economic interdependence with the EU amplifies the effects of climate-related regulations on key export-oriented sectors such as agriculture, agro-food processing, industry, and energy. While the adaptation to climate standards may generate higher compliance costs and require substantial technological upgrades, the research shows that these same policies open new development perspectives. Opportunities include increased access to green financing, expansion of renewable energy projects, modernization of infrastructure, and stimulation of innovation in low-carbon production. The study concludes that Moldova can enhance its economic resilience and strengthen its competitive position by aligning national strategies with European climate goals, accelerating regulatory harmonization, and supporting sustainable investment and technological modernization.