Environmental Tax Policy Review of Romania

This report reviews Romania's environmentally related tax framework in the residential buildings and road transport sectors, focusing on greenhouse gas emissions and air pollution. It identifies opportunities for tax reform to better align existing taxes with key tax policy principles. The report draws on relevant international experience and good practices to inform reform options. Using simulation-based analysis, it assesses the potential fiscal, environmental and distributional outcomes of selected reforms and presents strategic recommendations for a more effective, efficient, and equitable environmental tax framework in Romania.