Declic and Bankwatch Romania v. Răstoliţa Hydropower Project

On December 11, 2024, two Romanian NGOs—Declic and Bankwatch Romania—filed an application before the Cluj Administrative Court seeking the suspension of Environmental Permit No. 2024/6, issued by the Mureș Environmental Protection Agency for the Răstolița Hydropower Project. The plaintiffs challenged the legality of the permit on multiple grounds, arguing that the project, which involves deforestation and the development of major hydro-technical infrastructure, was approved without sufficient consideration of updated environmental, climate, and public safety standards. The claim centered on several procedural and substantive issues, including: (i) the alleged failure of the Environmental Impact Assessment (EIA) to assess the entire project comprehensively, focusing only on deforestation while omitting the full environmental effects of hydro-technical works; (ii) reliance on outdated permits and technical documentation from 1990, despite advancements in safety and environmental standards; (iii) alleged violations of Article 6(3)-(4) of the EU Habitats Directive and Article 28 of Government Emergency Ordinance (GEO) No. 57/2007; (iv) concerns over the adequacy of the public consultation process, which plaintiffs argued did not comply with the procedural requirements in Annex 5 of Law No. 292/2018; (v) the lack of an adequate assessment of the deforestation’s impact on climate mitigation, flood risks, and biodiversity. The plaintiffs argued that the deforestation of 39.38 hectares of protected natural areas would negatively affect carbon storage, flood control, and the habitat of several protected species. They also questioned the project’s contribution to national energy objectives, noting that the hydropower plant’s estimated capacity of approximately 35 MW accounts for only 0.19% of Romania’s total installed generation capacity and would affect ten rivers. In February 2025, the Cluj Administrative Court rejected the request for suspension, allowing work on the project to continue. The court sided with Hidroelectrica, the state-owned energy company leading the project, ruling that the environmental agreement could remain in effect pending the resolution of the main case. Romanian Energy Minister Sebastian Burduja described the ruling as a major victory for the country’s energy sector, noting that over 90% of the works were already completed and the project was on track to become the first hydropower plant finalized in Romania in over three decades. He emphasized its strategic importance for balancing the grid and enhancing energy security. The plaintiffs appealed the decision. On June 4, 2025, the Cluj-Napoca Court of Appeal overturned the lower court’s ruling and ordered the suspension of the environmental permit. This decision is final with respect to the interim measure but does not resolve the underlying merits of the case, which are scheduled to be heard on June 24, 2025. The Court of Appeal’s decision effectively halts the Răstolița Hydropower Project, which is reportedly over 90% complete and had been scheduled for commissioning in November 2025. According to the Romanian government, the project is one of strategic national interest and would be the first hydropower plant completed in the country in three decades. Officials, including the Minister of Energy, have emphasized the project's role in contributing to national energy security and reducing reliance on energy imports. They have also expressed concern that prolonged litigation has already caused significant financial losses for the state-owned energy company Hidroelectrica and the national budget—estimated at over 443 million euros in unproduced energy and related costs between 2019 and 2024.