Public Disclosure AuthorizedPublic Disclosure AuthorizedPublic Disclosure AuthorizedPublic Disclosure AuthorizedGreening the Economy of Europe and Central Asia WORLD BANK EUROPE AND CENTRAL ASIA IN FOCUSOffice of the Chief Economist© 2024 International Bank for Reconstruction and Development / The World Bank 1818 H Street NW, Washington, DC 20433 Telephone: 202-473-1000; Internet: www.worldbank.orgSome rights reserved1 2 3 4 27 26 25 24 This work is a product of the staff of The World Bank with external contributions. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of The World Bank, its Board of Executive Directors, or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries.Nothing herein shall constitute or be considered to be a limitation upon or waiver of the privileges and immunities of The World Bank, all of which are specifically reserved.Rights and PermissionsThe material in this work is subject to copyright. Because The World Bank encourages dissemination of its knowledge, this work may be reproduced, in whole or in part, for noncommercial purposes as long as full attribution to this work is given. Attribution—Please cite the work as follows: World Bank. 2024. “Greening the Economy of Europe and Central Asia.” Europe and Central Asia in Focus. Washington, DC: World Bank. Any queries on rights and licenses, including subsidiary rights, should be addressed to World Bank Publications, The World Bank Group, 1818 H Street NW, Washington, DC 20433, USA; fax: 202-522-2625; e-mail: pubrights@worldbank.org. Cover design: Lauren Kaley Johnson ContentsiiiAcknowledgments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . vAbbreviations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .viOverview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . viiGreening the Economy of Europe and Central Asia . . . . . . . . . . . . . . . 1Carbon emissions and their drivers in the region . . . . . . . . . . . . . . . . . . 1The 2022 energy price shock and its implications for energy security . 7Policies to green the ECA economy . . . . . . . . . . . . . . . . . . . . . . . . . . . 10Investments to green the economy . . . . . . . . . . . . . . . . . . . . . . . . .10Pricing policies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ....
