European clean energy technology exports are on the verge of a major leap, with the potential to triple in the coming years, according to the latest World Bank EU economic report. The report highlights that nations like Poland, Bulgaria, Croatia, and Romania could play a pivotal role in advancing the EU’s global standing in clean tech while helping to meet its net-zero 2050 target.
The clean tech products under focus include heat pumps, solar panels, electric vehicle batteries, and wind turbines. If these countries maintain or grow their current market share, they could significantly contribute to both regional economic stability and the EU's broader sustainability goals.
To achieve this potential, meeting the objectives of the EU's Net Zero Industry Act (NZIA) will be essential. The NZIA aims to ensure that by 2030, 40% of the EU’s clean tech needs are met through domestic production, with the EU capturing 15% of global clean energy demand by 2040.
This initiative aligns with the bloc's strategy to reduce dependence on external energy sources, such as Russia, especially amid the ongoing Russia-Ukraine war.
The growth in clean tech exports could drive domestic development and economic resilience for countries like Poland, Bulgaria, Croatia, and Romania. These nations, currently grappling with high consumer prices and food insecurity, could benefit from increased employment opportunities and industrial growth linked to the green transition.
Anna Akhalkatsi, the World Bank's country director for the EU, emphasized the importance of inclusive policies:
“Historically high prices are hitting Europe’s vulnerable populations hardest, with many families spending half their income on food. The green transition offers opportunities to create jobs and boost industries in ways that are fair and far-reaching.”
The World Bank report also highlights broader economic trends. Despite aggressive interest rate hikes in 2023, the EU appears to be heading toward a soft economic landing, with inflation declining to 2.5% in November 2024, closer to the European Central Bank’s target of 2%.
While growth lagged in 2023 due to high energy prices and reduced competitiveness, 2024 is seeing signs of recovery. Employment rates are rising, nominal wages are resilient, and consumer purchasing power is improving.
However, challenges remain, including trade tensions with the US and China, unequal recovery rates across member states, and the lingering impact of monetary tightening. These issues could potentially slow the EU's progress toward a stable and sustainable economic recovery.
With the right investments and policy coordination, the EU stands on the cusp of a clean tech export boom that could reinforce its global leadership in green technologies. For Central and Eastern European countries, this opportunity offers a pathway to economic stability and prosperity while contributing to the EU’s climate goals. However, the road ahead requires strategic action and collaboration to unlock this potential fully.
