Poland, Bulgaria, Croatia, and Romania are emerging as key players in the European Union’s push to scale up clean energy exports, potentially tripling their share of the market in the coming years, according to a new report from the World Bank. This surge in clean tech exports could significantly contribute to the EU’s goal of achieving net zero emissions by 2050, while also boosting the bloc’s global competitiveness.
The Central and Eastern European (CEE) countries involved are already on track to expand their clean technology exports, which include products such as heat pumps, solar panels, wind turbines, and electric vehicle batteries. These technologies are crucial for the EU to reduce its carbon footprint and meet its ambitious climate targets.
The World Bank’s regular economic report highlights that CEE countries’ market share in clean energy technologies could potentially triple, provided they maintain their current pace of growth. This could not only enhance the EU’s position on the global stage but also strengthen the region’s economy, aligning with the EU’s broader net zero 2050 efforts.
However, achieving this growth will depend on the EU’s successful implementation of its Net Zero Industry Act (NZIA). One of the NZIA’s primary objectives is for EU domestic production to meet 40% of the bloc’s clean tech needs by 2030, and 15% of global clean energy demand by 2040. This would reduce the EU’s reliance on external energy sources, such as Russia, especially in light of the ongoing Russia-Ukraine war.
The green transition also promises significant domestic benefits for CEE countries. A surge in clean tech exports could create jobs, foster industry development, and provide much-needed economic stability in the region, which is currently grappling with high consumer prices, food insecurity, and poverty. These economic pressures have left many in the region struggling, particularly low-income families who are spending a large portion of their income on essentials.
Anna Akhalkatsi, the World Bank’s country director for the EU, noted that the green transition offers an opportunity to create equitable, far-reaching economic growth. “Targeted social policies are crucial to support those most in need and ensure broader economic inclusion,” she said.
Despite the promising outlook for clean tech exports, challenges remain. The EU must coordinate strategies across member states to avoid internal competition and attract greater private sector investment. Increased investment in research, development, and supply chain improvements will also be necessary.
As the EU faces economic challenges, including trade tensions with the US and China, there are concerns about the long-term impact of recent interest rate hikes. While inflation has decreased and employment is improving, the full effects of monetary tightening are yet to be seen. The EU’s ability to navigate these economic pressures, along with regional disparities, will be key to achieving a smooth economic recovery in 2024.
