Industry re-configurations and multi-level policy implications of the transition towards the green economy in Asia and Europe within a changing geopolitical context

The global economy faces interconnected challenges involving economic recovery, climate change, and rising geopolitical tensions, as post-pandemic conditions have intensified financial instability and disrupted global value chains. Central to these dynamics is the transition toward a green economy, shaped by diverse national contexts; however, rising costs, technological barriers, and intensified competition—particularly in electric vehicles—have slowed progress and exposed tensions between sustainability and profitability. While firms struggle to balance green investments with financial viability, policymakers increasingly adopt strategic interventions to protect industrial competitiveness, though the uneven distribution of transition costs and benefits is further complicated by geopolitical fragmentation. Consequently, this special issue seeks to advance understanding of these dynamics, with particular attention to how developments in Asia and Europe are interconnected and mutually shaping pathways toward sustainable economic transformation.