Introduction. Methodology and OECD green growth indicators framework

General information

The starting point for preparing this document was the Report on Assessing the Performance of Green Economic Development in Moldova (2017) and The Green Economy Promotion Programme for 2018-2020. The Programme was a national mid-term policy document to promote green economy at national level in different areas: energy efficiency, renewable energy, green small and medium-sized enterprises, green agriculture, clean production and sustainable consumption.
This report was based on an analysis of indicator trends in the above-mentioned Programme, but it also examined evolving indicators. The report emphasised the time series analysis and international comparability of indicators included in the National Programme. However, it also calculated new indicators reflecting green growth. In addition, it proposed indicators for inclusion in the next evaluation report of green growth policies.
There are two categories of indicators in the report. The first one consists of indicators with time series generated by collection of data from national or international public sources. For this category, the report verified quality of data and ensured indicators corresponded with recommendations of the EaP GREEN Guide (EaP GREEN, 2016). The second category uses indicators calculated by the authors such as carbon or water productivity. These indicators were also estimated based on recommendations of the EaP GREEN Guide.
All indicators related to GDP or total population have been recalculated. First, the population was recalculated according to results of the 2014 Census. Second, the 2008 UN System of National Accounts dictated transition to a new method of calculating GDP.

In this report, each indicator has a dedicated section that briefly describes the indicator and analyses its evolution. Most indicators are also presented in international comparisons with other European countries. All methodologies related to the indicators appear in the final annexes of this report. The first annex presents a table with a list of green growth indicators for Moldova. The table shows the 33 environmental indicators in the 2017 report. It also lists national and international indicators (used for comparisons with other European countries) that have been estimated for this report. Finally, the table includes recommended indicators for future assessment of progress towards the green economy. The second annex has a table that explains the methodology used (sources of data and description of calculation method) for all the indicators.

Benefits of monitoring progress towards green economy

Green growth policies need to be supported with appropriate indicators to monitor progress. Green growth indicators can help:

track and communicate progress in greening economic growth
inform decisions
demonstrate accountability to national and international stakeholders
raise public awareness about the links between economic growth and the environment
compare progress between countries.

Sustainable development and green growth monitoring in Moldova

Moldova integrated environment and green growth objectives into its strategic policy planning framework, which is periodically evaluated. The government Activity Programme contains a dedicated chapter on promotion of green and circular economy. The National Development Strategy “Moldova 2030”, which is the country’s most important strategic plan, is under revision with adoption expected in 2022. It includes among its key priorities the development of a sustainable and green economy, as well as climate change adaptation in all economic sectors. This is reflected in the first objective (building a sustainable economy) and in the tenth objective (promoting a green agenda).
The vision outlined in Moldova 2030 is anchored in two strategic international commitments. The first one is the Association Agreement with the European Union, signed in 2014, which commits the Parties to co‑operate on environment matters. Moldova agrees to act on several fronts to support sustainable development and greening of the economy to generate benefits for citizens and businesses. Specifically, Moldova agrees to enhance public health, conserve natural resources, increase economic and environmental efficiency, integrate the environment into other policy areas and use modern, cleaner technologies that contribute to a more sustainable production model. Co‑operation is based on equality and mutual benefit, as well as interdependence in the field of environmental protection and multilateral agreements in this field (article 86).
The second major international commitment is outlined in Agenda 2030 for Sustainable Development. Namely, Sustainable Development Goal (SDG) 8.4, adopted by the Moldovan government in 2017, states that authorities commit to improve progressively, through 2030, resource efficiency in consumption and production to decouple economic growth from environmental degradation. In addition, SDG 12 is dedicated to responsible consumption and production. Thus, according to the commitments, Moldova will fully incorporate the principles of sustainable development and procurement, as well as efficient management of national resources, in national policymaking and regulations. Meanwhile, it will encourage industries and businesses to adopt resource-efficient production and to share responsibility for disposal of toxic waste and pollutants. SDG 12 also states that people should take responsibility in regard to consumption of economic goods and natural resources by reducing waste and increasing recycling. The synergy and participation of all actors in this production–consumption chain will save and preserve natural resources and reduce the ecological damage caused by economic growth.
Progress against Agenda 2030 was assessed in 2020 under the Voluntary National Review Progress Report 2020 (Government of Moldova, 2020). Despite some progress, the review found many shortcomings:
Environmental protection faces a shortage of institutional capacities and funding from the state budget, as the financial resources available every year for environmental protection are clearly lower than what is required to address the existing challenges; sectoral strategies and programmes estimate the cost to be hundreds of millions of euros. Therefore, it is quite important to re-evaluate funding in this field and streamline budgetary allocations so that financial resources will be used transparently and in accordance with the priorities set out in policy documents for environmental protection and promotion of the green economy.
Finally, the main sectoral policy planning document – the Environment Strategy for 2014-23 (Government of Moldova, 2014a) – lists as one of its priorities the integration of principles of sustainable and green economy into all economic sectors. The Ministry of Environment periodically monitors and evaluates this strategy.