Competitiveness in the Western Balkans and the Second Imperative of the EU Competitiveness Compass – Energy and Decarbonisation

Head of project: Lazar Živković

Commissioned by: Joint Research Centre - European Commission

Duration: July 2025 – March 2026

Project Description:

The project aims to explore how the energy transition and decarbonisation agenda impacts the competitiveness of Western Balkan economies and to provide evidence-based recommendations that support sustainable development aligned with EU objectives. The Western Balkans face growing pressure to transform their carbon-intensive energy systems while advancing economic convergence and preparing for EU accession. Although the EU Competitiveness Compass (https://commission.europa.eu/topics/eu-competitiveness/competitiveness-compass_en) was designed for Member States, its second pillar, Energy and Decarbonisation, offers a relevant framework for enlargement countries to assess their preparedness and strategic direction.

This project will analyse the state of energy systems, emissions, and key industrial sectors in the region; conduct interviews and surveys with policymakers, businesses, researchers, and civil society; and review relevant policy frameworks to identify barriers, opportunities, and priority actions for aligning green transition goals with economic resilience and competitiveness.