Clean technology exports from Central and Eastern Europe are set for substantial growth, with potential to at least triple, according to the latest EU Regular Economic Report by the World Bank. This increase is framed against the backdrop of the EU's recovery from economic challenges exacerbated by geopolitical tensions and trade disruptions. The report anticipates GDP growth of 1.4 percent by 2025, highlighting the importance of clean energy technologies.
The report states, “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-collar workers struggling.” Anna Akhalkatsi, Country Director for the EU at the World Bank, emphasized the need for targeted social policies to support those affected and to capitalize on the opportunities presented by the green transition.
The Net Zero Industry Act (NZIA) aims for 40 percent of the EU’s clean tech demand to be supplied through domestic production by 2030. The report indicates strong export potential for Central and Eastern European countries like Bulgaria, Croatia, Poland, and Romania, driven by demand for products such as electric vehicle batteries and solar panels.
“World Bank simulations indicate 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,” the report explains. Developing industrial hubs linked to existing value chains is identified as key to enhancing regional development and reducing energy import dependence.
The report warns, “Without a unified approach, member states risk competing with one another to develop the same industries,” stressing the need for coordinated EU strategies and significant private-sector investments to attract capital.
Meanwhile, Swift Energy Technology Bhd (SET) from Malaysia is aiming to escalate its export growth from 60 to 80 percent following its listing on Bursa Malaysia Securities scheduled for January 8, 2025. CEO Tan Bin Chee noted, “My vision here is to build more export markets...So we can have more geographical diversity and we can split the risk.”
With proceeds from its initial public offering (IPO), SET plans to strengthen its foothold internationally, including targeting the UAE and Qatar. Tan highlighted the special requirements for products destined for the Middle East due to higher ambient temperatures, stating, “Testing products...will provide valuable data for this significant market.”
SET has been operating in Indonesia since 2000 and plans to deepen its presence there, as Indonesia is projected to become the sixth-largest global economy. “We hope for expansion beyond Malaysia and Thailand,” Tan said, citing opportunities driven by the country’s Go Green initiatives and demand for sustainable products.
Back on home soil, the DakLak September 2nd Import-Export Company Limited (Simexco DakLak) is making its mark by exporting specialty coffee to the UK, which it identifies as a strategic market. Sales Director Lê Đức Toàn stated they export around 100,000 tonnes of coffee annually, with around 20-30 containers sent to the UK each year.
The UK-Vietnam Free Trade Agreement has proven beneficial for Simexco, eliminating tariffs on coffee, enabling the company to gain market ground. “Processed products like coffee, cashew and pepper are already widely available in major UK supermarkets,” he said, indicating strong competitive positioning.
Under the government’s initiative to promote specialty coffees, Việt Nam aims to reinforce its supply chain and boost global recognition of its coffee. The Việt Nam Coffee Association noted the need for more focus on specialty coffees, currently underlining the nation’s ambition to develop unique products.
The UP government in India is working on a new export policy to increase the state’s share in India’s total exports from 4.71% to 7.5% by 2025-2030. Minister Nand Gopal Gupta highlighted key sectors such as agriculture, noting, “We are formulating a comprehensive export policy to achieve this ambitious goal.”
The policy aims to bolster the state’s economic growth and address logistical challenges, as UP possesses the largest rail network and is investing heavily in airport infrastructure, including the Jewar international airport. Gupta emphasized, “The rapid growth in exports will help the state reach the milestone of a $1 trillion economy.”
Finally, smaller UK businesses are lamenting the impacts of Brexit on their export capabilities, struggling with lost markets and rising costs. Research shows UK exporters faced a £27 billion drop in goods exports to the EU, with smaller firms particularly hard-hit. Critics, like Rana Harvey from Monster Group, spoke of the “friction” and bureaucratic hurdles now inherent to trading with Europe.
Byron Dixon of Micro-Fresh highlighted the increased costs due to customs issues, stating, “It’s still a disaster,” illustrating the steep challenges businesses face as they look to navigate these new landscapes.
Despite these challenges, some businesses see potential growth avenues, with Amber Hunt from Marshall Wolfe responding to downward shifts by planning expansions abroad, particularly targeting markets like Poland, which she calls “a longstanding tech hub.”
The picture painted by these various initiatives reflects strong aspirations for global export growth across multiple sectors and continents, though these ambitions must contend with pressing geopolitical, logistical, and economic hurdles.
