Environmental capability of SMEs: Capability building towards a low carbon economy.

The transition to a low carbon economy demands new strategies for maintaining competitiveness and benefiting from the ‘green’ growth. A study of the regional SMEs confirms that the main focus of the SMEs, when considering the sustainability and the carbon-reduction initiatives, is limited to a cost cutting. This paper argues for a broader remit of the sustainability initiatives at SMEs, including the environmental capability development in the areas of environmental management, access to green supply chains and eco-innovation. Such a growth-enabling and strategic approach at a firm and regional levels is vital for SMEs to take advantages presented by the green growth and the transition to a low carbon economy.N/