Climate Change and SMEs: Green Transition, European Institutional Framework & Necessary Adaptations to Increase the Competitiveness of SMEs in the Region of Western Greece

Abstract

Over the last decade, the climate crisis has been recognized as a great threat to humanity on a global and institutional scale. In this context, every country, with the European Union (EU) paving the way, is planning the ways and means of transitioning to a more sustainable future. Inevitably, the transition will affect citizens’ daily life and countries’ economic activity. In this framework, small and medium enterprises (SMEs) have a central role; especially in countries such as Greece, where most of the enterprises are SMEs. Thus, both the EU and the UN are promoting policies and incentives for SMEs so that they will be actively involved in promoting sustainable development goals. With the Multiannual Financial Framework 2021-2027, the EU decided to use € 401 billion to assist innovations in the fields of green transition and renewables, including SMEs to these actions. At the same time, the National Plan for Recovery and Sustainability “Greece 2.0” is moving in the same direction. Thus, the present study is an attempt to record the actions, reforms, and financial tools that “Greece 2.0” offers to SMEs, focusing on the region of Western Greece. At the same time, we will try to capture the impacts of natural gas introduction in the region. The study aims to outline the future of SMEs in Western Greece based on the current situation and the possibilities that the green transition will bring.