The Constitutional Court of Romania (CCR) on Wednesday upheld a legal provision adopted by Parliament that allows authorities, for an additional two-year period, to grant public financial incentives for installing boilers powered by fossil fuels - an exception to an EU directive.

The CCR had been notified by President Nicusor Dan, but the judges rejected, by majority vote, the constitutional challenge and found that the Law approving Government Ordinance (OUG) No. 16/2025, which transposes Article 17(15) of Directive (EU) 2024/1275 on the energy performance of buildings and amends OUG 18/2009, is constitutional in relation to the criticisms raised.

The law transposes Directive (EU) 2024/1275, but Parliament added an exception: 'By way of derogation from Article I, local public authorities (from own funds) or central authorities and public institutions (from EU funds) may grant financial incentives for installing stand-alone boilers powered by fossil fuels or other individual heating systems in buildings or building complexes connected to thermal points serving fewer than 50 end-users, for a maximum period of two years from the entry into force of the law approving this ordinance.'

President Nicusor Dan challenged this amendment, arguing that Romania committed to implementing the directive's measures by January 1, 2025, and that the only national measure adopted so far is OUG 16/2025, aimed at reducing CO2 emissions.

Article 17(15) of the EU directive states: 'From 1 January 2025, Member States shall not provide any financial incentives for the installation of stand-alone boilers powered by fossil fuels, with the exception of those selected for investment before 2025, in accordance with Regulation (EU) 2021/241, Article 7(1)(h)(i), third indent of Regulation (EU) 2021/1058, and with Article 73 of Regulation (EU) 2021/2115 of the European Parliament and of the Council.'

Delays in transposing Article 17(15), caused by government changes and interministerial approval difficulties, led the European Commission to open Case COM 2025/0168 against Romania for failure to transpose the directive - exposing the country to legal procedures and financial sanctions until full alignment is achieved.

In his referral, the President argued that the parliamentary amendment violates the directive, extends financial support by two years, and was adopted in breach of constitutional norms under Articles 1(5), 147(4), 148(2) and (4), in relation to Articles 35 and 135(2)(e) of the Constitution, which concern environmental protection and EU law supremacy.

He maintained that the amendment directly contradicts Article 17(15) of the directive it purports to transpose, thereby infringing constitutional provisions on the primacy of binding EU law.

CCR, however, stated in its press release that Parliament enjoys a margin of discretion in choosing the form and means of transposing directives, and that the legislative solution adopted does not violate constitutional provisions. AGERPRES (RO - writing by: Eusebi Manolache; EN - writing by: Simona Klodnischi)