Environmental problems have become one of the central global challenges. Not only do they influence the environment itself but also the overall economic conditions. In an effort to make a significant turn in this field, the institutions of the European Union defined the 2019 Green Agenda as an initiatives package that seeks to implement a green transition towards a fair and prosperous society with a modern and competitive economy, with the primary goal of achieving climate neutrality by 2050. With additional measures, the EU wants to ensure equal conditions for its economic entities and those from countries outside the EU. These measures can be a challenge for Western Balkans companies and countries. Inadequate adaptation to EU standards could seriously threaten the competitive positions of countries like Bosnia and Herzegovina and other CEFTA members, who lag in the environmental standards area. A panel survey was conducted to determine how relevant environmental indicators are for the level of competitiveness, exports, and economic activity of the CEFTA countries. The results of six models that combine the influence of several environmental variables on each of the six distinct economic indicators suggest that effective public policies in the field of ecology are necessary because by improving environmental performance, the competitiveness of these countries economies can be significantly improved.