🚀We are very proud to announce a sweeping victory on behalf of one of the main infrastructure contractors in Romania in a complex multi-million EUR dispute against CNAIR stemming from a construction public procurement contract. Our team successfully represented the client in an intricate international arbitration case concerning the adjustment mechanism related to major road infrastructure works, bringing together complex commercial, technical and legal issues in the context of our client’s fundamental right to fair compensation. Following an intense 2 years process, the Arbitral Tribunal issued its final award ruling in favor of our client on all counts and all claims. The Tribunal decisively validated our client's position and awarded not only the outstanding principal amount but also material delay penalties and further damages to cover monetary devaluation. Full recovery of arbitration costs and legal fees was also secured. This landmark win reinforces the critical imp...
As the European Union and Romania advance into the second half of 2026, the shift toward
environmental enforcement, accelerated energy transitions, and targeted strategic compliance is clearer. While the EU is doubling down on its net-zero commitments through sweeping
electrification mandates and strict infringement procedures, Romania is actively aligning its
national frameworks to secure critical green funding, modernizing its environmental criminal
code, and fully digitizing its foreign labor flows.
This evolving landscape creates a dual imperative for corporate leaders, investors, and
industrial operators:
➡️ Anticipating the EU’s “Electro-Powered” Transition, where the new Electrification Action
Plan and stringent ecodesign regulations are forcing a rapid shift in industrial energy
consumption, while simultaneous crackdowns on Member States highlight the zero-tolerance
approach to delayed sustainability compliance.
➡️ Navigating Romania’s Strengthened Accountability Model, where comprehensive new
environmental criminal laws, ambitious biodiversity strategies tied to major EU funding, and a
fully digitized labor immigration platform require immediate, structural adaptation from corporate
actors..
Understanding this dynamic where EU-level climate enforcement intersects with Romania's
push for rigorous, digitized, and sustainable national frameworks is essential for managing
cross-border operations, recalibrating compliance strategies, and mitigating legal risk.
This August 2026 edition of Counsel’s Corner provides a consolidated overview of the most
relevant EU and Romanian developments, placing recent legislative and policy shifts within their broader economic and strategic context.
To remain competitive in this evolving environment—and to convert regulatory change into a
structural advantage—we invite you to stay informed.
🔗More details: www.suciupartners.ro
📩For tailored guidance, reach out to us:
I. European Union:
1. The Electrification Action Plan & ETS Review
On July 17, 2026, the European Commission launched its Electrification Action Plan, setting an
ambitious target to make Europe the "first electro-powered continent" by achieving a 46%
electrification share by 2040.
● Targeted Incentives: The plan introduces legislative proposals to incentivize
electrification through favorable network charges and taxation measures designed to
make electricity more competitive against natural gas.
● ETS Recalibration: This coincides with a proposed review of the EU Emissions
Trading System (ETS). The review aims to integrate permanent carbon removals and
manage carbon price volatility, maintaining a market-based price signal for energy-
intensive industries while supporting the transition.
2. Strict Enforcement of the Zero Emission Building Law (EPBD)
Demonstrating a zero-tolerance approach to climate compliance delays, the European
Commission initiated legal infringement procedures on July 15, 2026, against all 27 Member
States.
● The Violation: The Member States failed to fully transpose the updated Energy
Performance of Buildings Directive (EPBD) by the mandatory May 2026 deadline.
● Core Mandates: The directive requires all new residential and non-residential
buildings to have zero on-site emissions from fossil fuels by 2030, alongside a strict
national trajectory to phase out fossil fuel boilers by 2040.
3. Enhanced Ecodesign Rules for Industrial Fans
Effective July 24, 2026, new harmonized EU rules significantly tightened energy consumption,
durability, and repairability standards for industrial fans.
● Energy Impact: The measure aims to reduce overall EU electricity consumption by
roughly 31 TWh annually by 2030.
● Action Item: Manufacturers and operators of tertiary or industrial cooling and
ventilation equipment must immediately align their procurement and operational
standards with the new ecodesign baselines to avoid compliance penalties.
II. Romania
1. The Sweeping New Environmental Crimes Bill
Romania's Ministry of Environment introduced comprehensive legislation in late July to
transpose EU Directive 2024/1203 concerning the protection of the environment through
criminal law, representing a substantial regulatory evolution.
● Expanded Scope: The bill introduces strict definitions and severe penalties for illegal
water capture and the unauthorized use of chemical fertilizers on commercial crops.
● Increased Penalties: Sanctions scale aggressively based on the severity of the
ecological damage, with maximum sentences reaching up to ten years for
widespread, irreversible environmental harm.
● Action Item: Companies operating in agriculture, energy, and heavy industry face
heightened prosecutorial scrutiny. Internal audits of water extraction procedures,
waste management, and chemical usage should be prioritized to mitigate exposure to
criminal liability.
2. National Strategy for Biodiversity Conservation (2026-2030)
On July 23, 2026, the Romanian Government officially approved the highly anticipated
National Strategy for Biodiversity Conservation.
● Unlocking Capital: This regulatory milestone fulfills a critical structural reform,
unblocking over EUR 972.4 million in National Recovery and Resilience Plan (PNRR)
funds dedicated to ecosystem restoration.
● Operational Impact: The strategy outlines 11 national objectives that mandate
stricter environmental impact assessments, which will directly influence the permitting
and development of future infrastructure, energy, and real estate projects.
3. Labour Law: The Final Transition to WorkinRomania
Following the comprehensive reform introduced by GEO no. 32/2026 earlier in the year,
employers face the final transition phase regarding the access of non-EU citizens to the
Romanian labor market.
● Impending Deadline: The transitional period for processing work permits under the
old framework officially ends on August 7, 2026.
● Mandatory Digitalization: Starting August 8, 2026, the entire process for placing and
employing foreign workers must be routed exclusively through the
WorkinRomania.gov.ro platform. Recruitment agencies must also demonstrate a
financial guarantee of EUR 75,000 to maintain their operating authorizations.
The developments of July 2026 reinforce a regulatory environment where strict environmental
accountability, accelerated electrification, and digital compliance are non-negotiable. Navigating this shift requires a calibrated approach to governance, where regulatory awareness is not treated as a reactive exercise, but proactively integrated into investment planning, operational structuring, and long-term value creation.
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