This article is a collaborative effort by Dan Svoboda, Jakub Zivansky, Mladen Fruk, and Tomasz Marciniak, with Marton Bekes and Oleg Prokhorenko.
Central Europe’s economy is relatively carbon intensive, which means that building further momentum around the green transition will be critical to the success of the European Green Deal. Green businesses could also contribute significantly to the development of the region. For example, 30 years after the fall of communism, Central Europe has 30 percent of Europe’s population but accounts for only 10 percent of its GDP. As Dan Svoboda, managing partner of McKinsey’s Central Europe office, noted, “Building and scaling green businesses offers a real opportunity to close that GDP gap. With the right support and a commitment to innovation, companies in the region can lead the way in sustainable practices and create a lasting impact on the global stage.”
In recognition of this opportunity, McKinsey held a Central European–focused Green Business Building (GBB) Summit in Warsaw, Poland, in October. This event—which was the seventh McKinsey GBB Summit held so far this year and the first to focus on Central Europe—brought together key stakeholders in the Central European green-business-building ecosystem, including industry leaders, legacy companies, start-ups, entrepreneurs, and investors.
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Across seven breakout sessions and multiple panels, participants held in-depth discussions on key emission-reduction technologies, challenges, potential value pools, and winning operating models.
Participants were united in their belief that the future of green businesses in Central Europe is bright. The remainder of this blog lays out a high-level summary of the opportunities and challenges for companies looking to build green businesses in Central Europe.