Bucharest, July 26 (IANS) The World Bank Group's Board of Executive Directors has approved a development loan totalling 599.1 million euros ($650.5 million) for Romania to support its economic and environmental sustainability.

The loan is aimed at helping Romania promote fiscal consolidation and sustainability and increase pension system equity, said the bank group in a statement on Thursday.

The loan will also introduce incentives to decarbonize Romania's transport sector and support its first green bond issuance to boost public investment, Xinhua news agency reported.

Additionally, the loan will promote private-sector involvement in renewable energy and boost energy efficiency by introducing new financing for green investments, among others.

These steps are vital for Romania to meet its commitments under the European Green Deal and achieve climate mitigation goals, given its vulnerability to climate risks, said the statement.

The World Bank Group remains a steadfast partner in Romania's journey toward a more equitable and sustainable economy, Anna Akhalkatsi, World Bank Regional Director for the European Union, was quoted as saying in the statement.