Time for Environmental Regulation to pave the way for Eco-Innovation

The reconciliation of the three pillars of the European Union Sustainable Development Strategy is one of the most daunting tasks policymakers have to face. However, the environmental urgency calls for courageous and unprecedented measures that go beyond political convictions. One point on which all stakeholders seem to agree upon is that eco-innovation appears to be the solution to this pressing issue. Indeed, by supporting greener technologies, the EU would be able to ensure a high level of environmental protection while securing jobs in these new green sectors and enabling economic growth at the same time. By focusing on the special case of policies aimed at reducing emissions from passenger cars, the policy background is analysed in order to identify the policy alternatives. Some policy recommendations to induce eco-innovation at the business level are drawn in order to allow the achievement of a win-win situation