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Estonia tops Emerging Europe Sustainability Index for the second year running

Estonia leads the way in sustainability for the second year running, according to a new Emerging Europe index, which ranks 23 countries in the region.

Estonia has retained its position at the top of the Emerging Europe Sustainability Index for 2024-25, according to the latest report published by Emerging Europe.

The country secured 75.47 points on the index, maintaining a clear lead over neighbouring Latvia (70.86) and Lithuania (70.67), which placed second and third respectively. Czechia followed closely in fourth place with 70.66 points, while Slovenia rounded out the top five with 69.94 points.

The index evaluates 23 countries across emerging Europe based on nearly 100 distinct indicators organised around five key pillars: People, Planet, Prosperity, Peace, and Partnership. The countries assessed span Central Europe, Eastern Europe, Northeast Europe, and Southeast Europe.

 

Pillars of success

Estonia’s continued leadership rests on its exceptional performance in several areas. The country earned 87.76 points in the Prosperity pillar, making it the regional leader in infrastructure development. Even more remarkably, Estonia scored over 90 points in the Peace pillar—the only country to achieve this threshold in any category. This marker is designed to show strengths in governance, rule of law, and civil rights.

All in all, despite recent economic challenges, the country’s resilience and strong institutional foundations have allowed it to maintain its sustainability leadership. “Collaboration among governments, businesses, and civil society is essential for reinvention at the policy level,” says Craig Turp-Balazs, editor of Emerging Europe.

Andrew Wrobel, Chief Reinvention Officer at Emerging Europe, noted in the report’s foreword that the region faces a pivotal moment: “The region now finds itself at a pivotal moment, moving beyond traditional perceptions centred around low-cost production, towards new horizons of innovation, technology, and sustainable growth.”

Overall scores declined slightly compared to the previous edition, with the average falling to 55.15 points. To keep progressing, the countries are advised to follow these recommendations:

  • Harnessing technology for social inclusion, particularly using digital technologies and AI to bridge gaps in education, healthcare, and public services
  • Developing workforce skills for green economy transitions in renewable energy, waste management, and environmental technologies
  • Prioritising circular economy solutions through tax incentives, subsidies, and public-private partnerships
  • Empowering consumers as sustainability advocates through increased awareness of environmental impacts
  • Fostering inclusive public engagement in policymaking to ensure policies reflect public aspirations

Estonian excellence

Estonia has been steadily improving in each of those areas. The country is now 100% digital, is opening massive green energy projects that create hundreds of permanent high-paying jobs, and ranks high in energy transition effectiveness. Following the EU Recovery and Resilience Plan, the country also pushes renewable energy reforms, including streamlining wind energy permitting and upgrading electricity distribution networks, notes the report.

“Estonia’s top ranking confirms what we’ve seen on the ground: our digital infrastructure and transparent governance create a foundation for sustainable growth. At Invest Estonia, we are leveraging those benefits to continue bringing world-class international companies to the country, as well as encourage local leaders to increase investments. It works: according to the latest available data, total R&D spending rose to €702M, representing 1.84% of GDP. While we’re proud of leading the Sustainability index again, we recognise our environmental challenges and are actively investing in renewable energy solutions, as well as energy security. I’m sure that this balanced approach is exactly what attracts forward-thinking investors to Estonia,” says Joonas Vänto, Director of Invest Estonia.

This approach could be a good blueprint for other economies in the region, stresses Emerging Europe. “By learning from each other’s successes, leveraging technology, and maintaining a shared commitment to equitable growth, the nations have an opportunity to forge a more socially resilient future,” says the report.

Wish to invest or do business in Estonia? Send us a request for e-Consulting to find out more from one of our advisors.

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