Clean technology exports from Central and Eastern Europe have the potential to at least triple, strengthening the EU economy and its global competitiveness, according to the latest EU Regular Economic Report by the World Bank.  

The annual report highlights the EU’s emergence from an unprecedented tightening cycle, avoiding a deep recession and widespread job losses. GDP growth is forecast at 1.4 percent in 2025, although with variation among member states. With easing inflation and sustained nominal wage increases, real wages—after a sustained decline—are showing signs of improvement. However, risks remain, including geopolitical tensions, trade disruptions, and uneven economic recoveries coupled with elevated costs of living 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, essential for achieving net-zero emissions by 2050, could help position the EU as a key player in the rapidly expanding global market alongside meeting growing demand in Europe. The Net Zero Industry Act (NZIA) aims to supply 40 percent of the EU’s clean-tech demand through domestic production by 2030 and fulfill 15 percent of the global market by 2040.

The clean-tech sector offers considerable growth potential in the four Central and Eastern European countries (4CEEs) of Bulgaria, Croatia, Poland, and Romania, which are strategically located emerging EU economies. World Bank simulations indicate that these countries could at least triple their exports of electric vehicle batteries, heat pumps, wind turbines, and solar panels if current market shares are maintained and NZIA goals are met. Developing industrial hubs for these technologies linked to existing value chains could accelerate regional development, reduce energy import dependence, and boost the EU economy overall.

Realizing these gains requires a coordinated EU strategy and significant private-sector investment. Without a unified approach, member states risk competing with one another to develop the same industries, the report cautions. To attract private capital, member states should look beyond subsidies, as robust supply chains, strong R&D ecosystems, and a skilled workforce are among the key drivers of foreign direct investment in the 4CEEs, World Bank analysis shows.