Clean technology exports from Central and Eastern Europe have the potential to significantly increase, enhancing the EU economy and its global standing, according to the latest EU Regular Economic Report by the World Bank.
The report highlights that the EU has emerged from a challenging economic period without entering a deep recession or experiencing widespread job losses. GDP growth is projected at 1.4 percent in 2025, though this will vary among member states. While inflation eases and nominal wages rise, real wages are beginning to recover after a period of decline. However, challenges such as geopolitical tensions, trade disruptions, uneven economic recoveries, and high living costs persist across the bloc.
"Historically high prices are hitting Europe’s vulnerable people the hardest, with some families spending half their income on food, and low-skilled and blue-collared workers struggling in an uneven job market," said Anna Akhalkatsi, Country Director for the EU at the World Bank. "Targeted social policies are crucial to support those most in need and ensure broader economic inclusion. The green transition offers opportunities to create jobs and boost industries in ways that are fair and far-reaching."
Clean energy technologies are crucial for achieving net-zero emissions by 2050 and could help position the EU as a significant player in the expanding global market while meeting growing European demand. The Net Zero Industry Act (NZIA) aims for domestic production to meet 40 percent of the EU's clean-tech demand by 2030 and fulfill 15 percent of global demand by 2040.
The clean-tech sector presents considerable growth potential in Bulgaria, Croatia, Poland, and Romania—four strategically located emerging EU economies known as the four Central and Eastern European countries (4CEEs). World Bank simulations suggest these countries could triple their exports of electric vehicle batteries, heat pumps, wind turbines, and solar panels if they maintain current market shares and meet NZIA goals. Developing industrial hubs linked to existing value chains could accelerate regional development, reduce energy import dependence, and bolster the overall EU economy.
Achieving these benefits requires a coordinated EU strategy along with substantial private-sector investment. Without a unified approach, member states risk competing against each other to develop similar industries. To attract private capital effectively, member states should consider factors beyond subsidies; robust supply chains, strong R&D ecosystems, and a skilled workforce are key drivers of foreign direct investment in these regions according to World Bank analysis.
For further insights and past editions of the EU Regular Economic Report visit: www.worldbank.org/eurer