Carbon Pricing Implementation Support in Moldova

The overarching aim of this report is to help Moldova meet its climate commitments, advance EU integration, and foster inclusive economic growth, while safeguarding vulnerable households and businesses throughout the transition. Achieving these objectives requires careful policy design that balances climate ambition with social and economic resilience. This report provides policymakers with a roadmap for introducing carbon pricing, focusing on carbon taxes as the most suitable instrument given Moldova’s current administrative capacity. Its main goals are to analyze the existing carbon pricing landscape (Section 2), evaluate policy mixes and complementary measures (Section 3), model the economic and social impacts of different illustrative carbon tax scenarios (Section 4), assess the country’s readiness for robust MRV systems (Section 5), and present a phased strategy for implementation (Section 6). By doing so, the report supports Moldova’s objectives of meeting climate commitments and advancing EU integration, while ensuring that vulnerable households are protected and inclusive growth is promoted