Towards Carbon Neutrality Through Innovation: Empirical Insights in European Countries

Abstract

In the current era where innovation and sustainability are at the forefront, businesses need to become increasingly active in implementing environmentally sustainable projects. The aim of this paper is to set initiative-taking activities for small and medium sized enterprises (SMEs) which would increase their level of engagement in innovative and environmentally responsible projects. Achieving environmental goals has never been easy given the fact that SMEs are the biggest polluters of the environment. Therefore, there is an urgent need for the leaders of these businesses to start implementing eco-innovation solutions to respond to these challenges. Our research consists of examining the current situation of the European Union's member states and responding to the objectives which have been set for them, by proposing strategic solutions for SMEs. Research also compares data between Human Development Index and Innovation Index to identify areas where there is room for improvement. These objectives concern the green development of countries, and the achievement of carbon neutrality by 2055. The results of the work points to increased attention for countries with low levels of development capability and refers to the adoption of measures taken by SMEs to help achieve the goals set. Final recommendations will describe how SMEs could implement initiatives in their businesses and where to look for sustainable and green change in their environment. Marked changes need to be made immediately in order for SMEs to adapt to these changes in order to fulfil objectives set by the European Union in a widely discussed program, Fit For 55.