Small and medium-sized enterprises (SMEs) play a decisive role in Europe's green transition. According to a https://finance.ec.europa.eu/document/download/0d8e5199-44c2-4a17-affc-0f398443e603_en prepared for the European Commission by the Platform on Sustainable Finance, SMEs generate more than 50% of the European Union's GDP. They are also responsible for more than 63% of the CO₂ and other greenhouse gas emissions produced by businesses.
The 2025 report states that “the transition to a net-zero, resilient and environmentally sustainable economy will not be possible without the transition of small and medium-sized enterprises”. Despite their growing importance, small and medium-sized enterprises operating on a net-zero basis often face considerable obstacles. These can include limited access to finance and difficulties in establishing research and development partnerships.
Eight European regions, including Sweden, Belgium, Hungary, Bulgaria, Ukraine, Denmark and two regions from Greece, have joined forces in the “Net Zero SMEs” project to tackle these obstacles. The project aims to enable the participating regions to “strengthen policies that increase the manufacturing capacity of net-zero SMEs”.
The project is led by the Region of Epirus in Greece
“Europe's path to the future certainly leads through the development of greener technologies and clean energy solutions,” stressed Kalliopi Tesia from the Region of Epirus in Greece, “not only in terms of protecting the environment, but also in terms of boosting Europe's economy and growth.”
In the Region of Epirus, the project's lead partner, the primary sectors – chiefly agriculture – play the most significant role in the local economy. “We have not yet integrated the new green and digital technologies into these sectors,” K. Tesia explained. Another important sector is tourism – the mountainous area is home to beautiful villages, and in recent years the region has seen a steady rise in visitor numbers. The region also hosts a large educational institution, the University of Ioannina. The Region of Epirus hopes to build a link between local small and medium-sized enterprises and researchers.
Studies point to “excellent performance and innovation potential in this field”, K. Tesia noted, adding that local SMEs do not always make use of the findings of academics and researchers – a problem the project hopes to address.
Fostering cooperation between regions
The Region of Epirus wanted partners from a “diverse consortium” that could provide inspiration and useful good practices and ideas.
The aim in launching the project was not only to improve the performance of small and medium-sized enterprises. The Region of Epirus also hoped to “strengthen cooperation with other European member states and European partners. We must keep this in mind in all our European initiatives,” Kalliopi Tesia stressed. As a result, the seven other partners bring very different experience. The partners from Bulgaria, for example, are characterised by more traditional economic development.
Engineering, textiles and clothing manufacturing are the main pillars of the economy in the municipality of Gabrovo in Bulgaria. There are other regions, such as the Region of Epirus in Greece, that focus heavily on agriculture or the tourism sector. Other partners, however, have varied economies – ranging from retail and logistics to engineering and culture.
Identifying good practices for small and medium-sized enterprises
The project was launched in 2025 and is therefore still in its early stages. So far, three good practices – implemented in Hungary, Bulgaria and Sweden – have been identified to address the challenges facing net-zero businesses.
Hungary has introduced a national funding programme for energy research and development. It is available to both small and medium-sized enterprises and large companies, which can also work together with universities and research institutes. The programme supports significant and effective innovation, such as hydrogen technologies, renewable energy and solutions for improving the energy efficiency of buildings.
The good practice in Bulgaria is an online self-assessment tool developed under the Erasmus+ programme. The ARIES4 self-assessment tool supports the transition of SMEs to net-zero emissions by helping them to review their sustainability, identify strengths and gaps, and monitor progress over time.
Net Zero SMEs has also identified a good practice in Helsingborg, Sweden, called CoBuild Change Makers and forming part of the European Union-funded CoBuild NetZero city initiative. CoBuild Change Makers aims to reduce the climate impact of the building and civil engineering sector through a one-year training programme. Participants include those who lead or take part in large-scale projects devoted to climate issues.
Kalliopi Tesia said that Net Zero SMEs hopes to find “more effective policies and tools for our regional funds”.