Moldova Supporting Growth and Resilience DPO

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The development objective of Supporting Growth and Resilience Development Policy Operation Project for Moldova is to: (i) strengthen resilience of refugees and households; (ii) foster sustainable growth through enhanced competition and private sector-led growth; and (iii) support climate resilience. The standalone Development Policy Operation (DPO) supports the Government of Moldova (GoM)’s efforts to assist refugees and households in the face of the fallout from Russia’s invasion of Ukraine while keeping momentum on the long-term agenda of economic convergence to the European Union (EU) and climate resilience. This operation supports the government’s reform agenda and contributes to both short-term and long-term objectives. Measures in Pillar 1 – corresponding to European Moldova 2030 objectives for long-term human and social capital – aim to strengthen the social assistance programs and remove constraints on refugees and women’s participation in the labor market. Pillar 2 reforms promote private sector-led growth by leveling the playing field between SOEs and private enterprises, and by strengthening financial sector stability. Pillar 3 prioritizes climate resilience, in line with the objectives of European Moldova 2030 for a healthy environment. It focuses on enhancing energy efficiency, promoting renewable energy, and introducing the Law on Climate Actions for binding climate commitments, the establishment of a carbon pricing mechanism, and the National Adaptation Plan. Additionally, it promotes sustainable forest management for carbon sequestration and agricultural land resilience, contributing to climate change mitigation and adaptation efforts.