Innovation for the green transition: challenges and future perspectives

The Chinese government has played a crucial role in promoting the green development of enterprises and establishing a market-oriented green transition system. However, existing literature has largely overlooked the potential impact of government attention to green development (GAGD) on the green transition of micromarket entities. Using data from Chinese A-share listed companies from 2010 to 2023, this study examines the impact of the GAGD on enterprise green transition and explore. It also explores the underlying mechanisms from the perspectives of external formal systems and internal strategic responses. Findings indicate that GAGD significantly promotes enterprise green transition, and this conclusion remains robust after a series of endogeneity and robustness tests. Moreover, the positive effect of GAGD on enterprise green transition is more pronounced in the eastern region, heavy pollution industries, and state-owned enterprises. Mechanism analysis reveals that GAGD facilitates enterprise green transition through three key channels: strengthening regional environmental regulations, enhancing corporate social responsibility, and increasing corporate environmental investment. This study provides theoretical insights and policy implications for advancing enterprise green transition and high-quality economic development by leveraging the role of an effective government.

The accelerating impacts of climate change, the need to adapt to changing economic and political realities, and the recent energy crisis have made the green transition something that most Nordic citizens acknowledge. However, especially rural areas and their communities are at risk of being reduced to passive instruments of national green transition measures featuring heavy land-use. These conditions make it very difficult to create a sense of justness in green transitions, leading to growing sense of alienation and resentment and putting the national climate goals in danger. From this starting point, the case studies of the research project “Just Green Transition on Rural Areas: Local Benefits from Value Creation” set out to examine what kind of benefits would generate value from green transition measures in the direct impact zone of new energy projects. The case studies took place in three Nordic countries and six locations: in Northern Ostrobothnia and Northern Central Finland of Finland, involving wind power and land use planning; in Nord-Fron and Nord-Odal in Norway, involving both wind power and strategic sustainability work; and in Skive and Bornholm of Denmark, involving a hybrid mix of renewable energy sources in the context of industrial park development. The results highlight the importance of local involvement and trust in green energy transitions in Nordic rural areas. Neglecting local needs can cause resistance to renewable projects. Early engagement, transparent communication, and ensuring local benefits are vital. While monetary benefits attract attention, relying solely on them can create community divisions. A blend of community engagement, environmental benefits, and local ownership of projects fosters trust and a deeper sense of justice in these transitions.

On our way of living and doing business digital technologies have a profound impact. The research and innovation strategy is crucial to a more productive, sustainable and green economy. Digital solutions that put people first will open up new opportunities for businesses, encourage the development of trustworthy technology, foster an open and democratic society, enable a vibrant and sustainable economy, help fight climate change and achieve the green transition. The aim of this paper is to research the literature about digital and green transition, hers financial and social impacts on Croatian economy across of the approved projects (for the period 2019 – 2023) to the Croatian micro, small and medium entrepreneurs. Based on these results, the author(s) will contribute to the new knowledge about the green and digital transition and offer recommendations for a sustainable green and digital transition in Croatian and potential finance benefits on Croatian economy. For the purposes of this work, the author(s) used secondary data, analyzing them using the following methods: descriptive research methods, deductive research methods, analysis methods and compilation methods. Obtained results are visible in the number of approved projects proposal and the total value of the projects. The impacts of project proposals on strengthening the sustainability and competitiveness of project holders and their partners is manifested through the number of newly introduced technological solutions related to green and/or digital goals in the year m+2, the projection of the newly employed persons as a result of the implementation of project activities in the year m+2, projected increase in sales revenue in year m+2, predicted increase in exports revenues in the year m+2. On the basis of research of literature and previously conducted secondary data research, the author(s) provide recommendations for the further sustainability of the digital and green transition in micro, small and medium-sized enterprises in Croatia.

The global economy is in an age of astonishing change driven by a polycrisis, full of conflicting signals and contradictions. The post-COVID recovery in Serbia in the period 2022-2024 was characterized by slow-tomoderate growth. However, the country's future growth faces significant challenges from deeply rooted external and internal disruptors. One of them certainly is the 30% energy output gap. The structure of energy output is the related challenge. Defining a solution for energy security, in terms of the volume and structure of energy production, as a key limitation to sustainable growth, has been influenced by the green energy transition. Persistent issues, such as a widening energy output gap, a high carbon footprint, the dominance of energy-intensive and hard-toabate industries in economic structure (mining, steel, copper, cement, construction, transportation, ICT, etc.), as well as the low efficiency of end-use sectors, pose serious macroeconomic risks. The policy mix implemented in 2024 successfully curbed inflation, bringing it within the target tolerance band of 3% ± 1.5%, and reduced simultaneously the share of the fiscal deficit and public debt relative to GDP. Consequently, Standard & Poor's has classified Serbia as an economy with an investmentgrade credit rating (BBB-). In parallel, the dangerous nexus of key disruptors continues to fuel inflationary pressures and challenge the country's macroeconomic fundamentals. To make matters worse, (geo) political malaise erupted in Q4 2024. The escalating costs of concerted mediation efforts to counteract these negative consequences have further squeezed the fiscal space available for investment. In this deteriorating context, the current energy output gap could soar to an uncontrollable level, exacerbating the energy security issue. In the meantime, a new external asymmetric shock has emerged, the US sanctions to NIS (Naftna industrija Srbije), a Russian-Serbian joint venture and a leader from the energy sector. The sanctions on NIS could exacerbate an already severe energy output crunch. An additional factor of concern is the structure of Serbia's energy production, which is heavily reliant on lignite, accounting for 68% of electricity generation. There is a growing urgency to address this issue, not only to ensure energy security in Serbia but also to align with global climate change mitigation goals. To achieve and sustain energy security in Serbia, three critical goals provide the solution: energy output expansion, supply diversification, and the shift from fossil fuels to renewable energy sources. The Green Energy Transition Action Plan serves as the framework for achieving these goals. In the energy sector, the EU tends to be more explicit, elevated, and sophisticated in its requirements regarding compatibility with candidate countries. By meeting a net-zero future, Serbia will increase its chances of joining the EU. We want Serbia to be integrated into the EU as sustainably and inclusively as possible. A responsible roadmap should be not only feasible and effective but also based on local renewable energy sources, fiscal space, and the credit potential of relevant stakeholders, making it affordable for the capital blending needed for green finance. Our view is that biomass will be a key renewable energy source in the medium term. Other elements of the plan include the regulatory framework for the carbon marks, the issuance of thematic securities (green bonds, green credits, etc.), and green fiscal subsidies, along with measures to prevent non-complying behavior. Following the previous line of reasoning, the paper is organized around four fundamental issues. Part 1 is dedicated to explaining the polycrisis as the context that demands a polytransition, colloquially referred to as the green transition. In Part 2, we focus on a strategic audit of Serbia's macroeconomic fundamentals as a zero step in defining feasible solutions. Part 3 discusses two growth scenarios: the "as-is" scenario and the "to-be" scenario. Part 4, the most important section, provides the key explanatory details regarding the deployment of biomass technology as the center of Serbia's green energy transition in the medium term, along with aggregate financial projections. The paper concludes with a Nota Bene.

Green transition is one of the priority areas in the European Union (EU), and thus also the focus of EU cohesion policy implementation during the 2021–2027 programming period, through “green growth”. To establish adequate guidelines and achieve better outcomes, it is necessary to observe and evaluate current results connected with these aspects. In terms of the complexity of the green transition domains, measuring green transition is still developing. The aim of this paper is to give an overview of the approaches that can be used in tracking the green transition as a result of EU cohesion policy implementation and to analyse achievements associated with the green transition. This will be done using desk research, previous studies, documents, evaluation reports and secondary data on the financing under the European Structural and Investment Funds (ESIFs) in EU member states, with a special emphasis on themes such as the low-carbon economy, climate change adaptation and risk prevention, environment protection and resource efficiency, and network infrastructure in transport and energy. The paper discusses these results in the context of the current challenges faced by the EU in becoming a leader in the green transition and contributes to the evaluation of the EU cohesion policy.

The green transformation of oil and gas companies is necessary to tackle climate change. Most of the green transformation related activities have been launched since the Paris Agreement was ratified. The main purpose of this article is to highlight how oil and gas companies handle the pressure of shifting their fossil fuel-based portfolio by analyzing their divestment trends. In our sample, six large, medium, and small oil and gas companies – Shell Royal Dutch (UK-based), British Petroleum (UK-based), OMV (Austrian), PKN Orlen (Polish), Neste (Finnish) and Orsted (Danish) – are assessed regarding the maturity of their green transition via the lens of their divestment figures between 2017 and 2022. The biggest leaps in green transition have been taken by small companies with the support of their governments. The majority of the divested portfolios were purchased by companies outside of the European Union (EU). This research offers a significant contribution to the literature on green energy transition, focusing on the divestments trends of oil and gas companies.

Toward green transition in the post Paris Agreement era: The case of Taiwan

Cities, public authorities, and private organizations respond to climate change with various green policies and strategies to enhance community resilience. However, these community-level transition processes are complex and require deliberate and collective planning. Under this context, the purpose of this study is to understand the energy actions taken at the local level, as well as to analyze the differences between the neighborhoods’ green energy transitions in terms of their socio-economic aspects, using a big data perspective. The paper is addressing the following question: what was the role that the pandemic played in accelerating or slowing Boston’s green investments, and to what extent do different racial and socioeconomic groups invest in green technologies during this period? The study aims to answer these research questions using the City of Boston as a case study to reveal different neighborhoods’ paths in achieving the transformation of city ecosystems towards green neutrality. Next, the theoretical framework builds the linkages among the city’s measures, climate actions proposed by the City of Boston, and their associated contexts and outcomes in shaping new policy and planning models for higher ‘green’ performance. Following the understanding of the actions, the neighborhoods’ socio-economic and building permit data were assessed to understand whether economic disparities exacerbated during the pandemic have affected neighborhoods’ performance in green transition. This method is applied in a comparative study of its 23 neighborhoods, using a dataset provided by Boston Area Research Initiative (BARI). Intriguingly, the paper’s findings show that racial differences within the city have no significant impact on tech-related expenditures. There is a clear negative correlation between poverty rate and investment, which indicates the reverse relationship between these socio-economic factors. The study concludes that city authorities will need to address the challenges of each community achieving green transition with more targeted programs based on its needs.

This article assesses the alignment of the green and digital transitions in the global economy, particularly focusing on EU’s strategies for integrating digital technologies to achieve climate neutrality. It discusses how sustainable digitalization principles can boost the green transition and promote climate neutrality. The study reviews digital solutions that reduce business carbon footprints and mitigate climate change impacts, emphasizing digitalization as essential for driving climate neutrality under current geopolitical conditions. The analysis includes a review of digital tools necessary for analytics, blockchain, energy management, and decisionsupport networks. It proposes creating digital twins of industrial and urban areas to enhance the digital-green transition. Additionally, it explores how the principles of sustainable digitalization act as a booster for both the digital and green transitions, reinforcing each other when aligned correctly. The EU’s policy efforts to promote green transitions in technology sectors and the potential rebound effects disrupting these transitions are also examined. The article underscores the importance of a flexible digital approach, global collaboration, and comprehensive educational initiatives as crucial components for effectively synchronizing the transition towards a digitally-enhanced via climate-neutral economy.

Climate change and broader Anthropogenic environmental risks pose existential threats to humanity. Human-driven environmental change has come to be understood through the concept of the ‘Anthropocene’. Anthropocene risks demonstrate that existing fossil-fuel intensive and growth-oriented capitalist development are unsustainable. The urgent need to transition towards greener forms of development is widely recognised. Comparative Political Economy (CPE) should be well placed to guide and evaluate green transition, yet it typifies a wider disconnect between political economy and environment. This article seeks to understand and transcend that disconnect. Developing a critical genealogy of CPE's post-war emergence, the article examines CPE's paradigmatic evolution and fitness for grappling with the Anthropocene. It argues that dominant theoretical paradigms (Varieties of Capitalism and Growth Models approaches) are grounded in a ‘nature/society’ dualism that treats national economic models as environmentally disembedded and causally independent from the Earth System. Economic growth is uncritically elevated as a dominant comparative metric, normative aspiration, and policy objective for capitalist development. These characteristics limit the capacity to engage with green transition. Embedding CPE within ecological considerations, the article selectively repurposes the field's existing conceptual insights to develop hypotheses concerning comparative capitalisms and green transition in the Anthropocene.

Climate action (SDG 13) and reducing inequalities (SDG 10) are central goals of sustainable development. However, the distribution of climate risks and carbon emissions across regions is uneven, and this disparity poses significant challenges in global climate change governance. To address this issue, this study defines the concept of climate risk and introduces the "Mismatch Responsibility Index" to quantify the imbalance between carbon emissions (carbon footprint) and climate risk burdens. The study further examines the socio-economic and technological factors that drive this imbalance. The key findings include: (1) Climate risks and carbon footprints exhibit significant spatial and temporal variability, with the gap between cities expanding over time; (2) In China, more than half of the prefecture-level cities experience a significant mismatch in climate responsibility, with underdeveloped regions facing disproportionately high climate risks; (3) The main factors contributing to this mismatch are energy consumption patterns, population size, and the level of technological innovation. Further policy analysis indicates that local government policies, the promotion of regional green energy transitions, and technological innovation are essential to narrowing the gap in responsibility distribution. (4) Using simulations of different policy scenarios, the study proposes several recommendations, including strengthening local government climate policies, supporting green energy transitions, promoting technological innovation, and reallocating international climate finance. These measures are expected to reduce regional disparities in climate responsibility and contribute to more equitable climate governance.

The paper analyses the multinational companies’ policies in the green transition and its consequences for the environment, society, and economy. Multinational corporations (MNCs) in green transition operate across numerous nations and sectors and have the resources, and experience in sustainable development. MNCs became increasingly involved in large-scale renewable energy project development, such as wind and solar power, serving as project developers, investors, and technology suppliers. It is already well recognized that MNCs may play a key role in disseminating essential climate change mitigation technologies, particularly the transfer of knowledge and capacities from lead markets to the rest of the globe. The green transition faces many challenges: high costs, regulatory barriers, technological advancements, and costeffectiveness. These approaches explain the global reach of environmental problems and enhance significant changes in green policy. MNCs’ policies contribute to sustainability but face the multiple challenges caused by local regulations in environment protection policy, investment risks and financing constraints, and climate changes. MNCs provide policies in the green transition by integrating sustainability into their business strategies and operations. The legislation, incentives, and supportive frameworks of the subsidiaries’ country destination create the basis for the involvement of MNCs in the green transition.

The importance of the renewable energy sector in mitigating climate change has received plenty of attention over the years, but climate risks to the renewable energy sector, and the need for adaptation within energy companies, have been largely overlooked. Subsequently, not much is known about the current state of climate risk assessments and adaptation measures within the renewable energy sector. This study addresses this gap by categorising different types of climate risks faced by renewable energy companies and the measures that are used to prepare and adapt to them. We summarise the existing literature on climate risks and adaptation within the renewable energy sector and carry out an interview‐based qualitative case study regarding energy companies' perception and assessment of climate risks in Finland. The results show that while companies are aware of climate risks, particularly concerning the green transition, climate risks are not comprehensively assessed, and adaptation measures mainly account for direct physical risks with little regard for more systemic and complex risks, such as cross‐border impacts or cascading risks.

Greenflation or inflation for green energy transition in Europe becomes a structural problem of new scarcity and poverty, under Austrian Economics analysis. The current European public agenda on the Green Deal and its fiscal and monetary policies are closer to coercive central planning, against the markets, economic calculus, and Mises’ theorem. In this paper, attention is paid to the green financial bubble and the European greenflation paradox: in order to achieve greater future social welfare, due to a looming climate risk, present wellbeing and wealth is being reduced, causing a real and ongoing risk of social impoverishment (to promote the SGD 13 on climate action, it is violated by SGD 1–3 on poverty and hunger and 7–12 on affordable energy, economic growth, sustainable communities, and production). According to the European Union data, the relations are explained between green transition and public policies (emissions, tax, debt, credit boom, etc.), GDP variations (real–nominal), and the increase of inflation and poverty. As many emissions are reduced, there is a decrease of GDP (once deflated) and GDP per capita, evidencing social deflation, which in turn means more widespread poverty and a reduction of the middle-class. Also, there is a risk of a green-bubble, as in the Great Recession of 2008 (but this time supported by the European Union) and possible stagflation (close to the 1970s). To analyze this problem generated by mainstream economics (econometric and normative interventionism), this research offers theoretical and methodological frameworks of mainline economics (positive explanations based on principles and empirical illustrations for complex social phenomena), especially the Austrian Economics and the New-Institutional Schools (Law and Economics, Public Choice, and Comparative Constitutional Economics).

The Green Transition is the European growth strategy—supported by the European Green Deal (EGD, 2019)—that aims to overcome climate change and environmental degradation, foster climate neutrality by 2050, boost the economy through green technology, create sustainable industry and transport, and cut pollution. EU Member States are requested to implement actions that support the Green Transition, contributing to achieving the goals of the European Green Deal. At the same time, the Just Transition Mechanism (JTM) is the EU’s instrument to guarantee that the shift to a climate-neutral economy proceeds fairly and leaves no one behind. Turning climate and environmental challenges into opportunities implies that the transition must be just and inclusive for all. Even though within the EU policy framework, Green Transition commonly comes together with the justice dimension, the spatial interdependence between these concepts requires more clarification. Therefore, this contribution questions the EU's Just Transition Strategy and addresses its important limitations: Overemphasising the distributive dimension of justice while undermining the procedural one, paying inadequate attention to the spatial dimension of justice, and considering justice as a secondary element of Green Transition. By analysing these constraints, the chapter provides a critical standpoint of the EU's Just Transition Strategy, highlighting significant gaps in its approach to justice. In addition, practical recommendations for policymakers are made to integrate spatial justice into the Green Transition. Some of these recommendations include assessing how environmental policies related to the Green Transition impact different geographies on a local scale; ensuring equitable geographical access to new infrastructures, such as urban green spaces, renewable energy sources, and green jobs across neighbourhood; promoting green job creation in disadvantaged areas; providing fair access to training programmes; empowering the least advantaged groups in decision-making; and, finally, promoting bottom-up decision-making processes that are inclusive, transparent, and focused on addressing structural inequities, rather than solely on immediate economic and environmental impacts.