Environmental Policy as a Tool for Sustainable Development

Over the past 50 years, environmental policy has undergone a profound transformation, evolving from a fragmented, reactive discipline into a cornerstone of global and regional governance. Initially driven by local pollution events and public health concerns, environmental policy now encompasses complex global challenges such as climate change, biodiversity loss, and resource scarcity. The international community, recognizing the transboundary nature of environmental problems, has developed multilateral agreements and institutional frameworks that promote cooperation, accountability, and shared responsibility.

At the global level, milestones such as the Stockholm Conference, the Rio Earth Summit, the Kyoto Protocol, and the Paris Agreement have steadily expanded the scope of environmental governance. These agreements have not only advanced specific goals—such as emission reductions and biodiversity protection—but have also helped institutionalize environmental sustainability as a fundamental principle of international relations and development planning.

The European Union (EU) has played a pioneering role in this evolution, often setting precedents for ambitious environmental legislation and integrated policy frameworks. Tools like the EU Emissions Trading System, the Water Framework Directive, and the European Green Deal, have helped the EU to demonstrate how environmental policy can be strategically aligned with concepts like innovation, economic competitiveness, and social cohesion. The EU’s approach on environmental policy reflects a long-term vision of sustainability that incorporates circular economy principles, green finance, digital transformation, and participatory governance.

It is common knowledge that environmental policy today is no longer viewed separately but as deeply interconnected with other policy domains—including health, transport, trade, agriculture, and energy. This shift toward policy integration and systemic thinking marks a critical advancement in how societies respond to environmental challenges. Additionally, emphasis has also shifted from damage control to prevention, resilience-building, and regenerative practices.

As the world faces an ongoing increase in environmental pressures coupled with the urgent need to meet the UN Sustainable Development Goals, the next phase of environmental policy must be characterized by bold action, inclusivity, and adaptability. Future progress will not only depend on the strength of regulatory frameworks but also on the meaningful engagement of stakeholders—governments, businesses, scientists, and citizens alike. Environmental policy must continue to evolve as a dynamic governance instrument, capable of navigating uncertainty while ensuring that ecological integrity and human well-being remain central to sustainable development.

Environmental policy can also be used strategically to achieve sustainable development, while maintaining a balance between economic activity and social welfare. As our world now faces a multitude of environmental challenges –climate change, resource exhaustion, air and water pollution, deforestation, and biodiversity loss, governments, corporations, and citizens need to work together in order to develop policies that ensure responsible resource management and build resilience. When properly designed, environmental policy is able not only to safeguard natural ecosystems, but also promote innovative solutions, unlock new economic potential, and improve public health. Therefore, it is no longer about whether environmental policy is essential, but how it can be developed to promote sustainability and prosperity for all.

Effective environmental policy is essential for aligning economic progress with ecological responsibility, because organizational decision-making often tends to disregard environmental values. That is mainly because industries’ effects on the environment do not become noticeable immediately, while preventing these effects is an economic externality [1,2]. Moreover, there is a tendency to depreciate natural resources by assuming that resources are inexhaustible, even though the risk of resource depletion is greater than ever [3,4]. A solution could be sustainable development, which can be used strategically to balance environmental protection with economic growth [5]. This balance is realizable because sustainable development promotes resource efficiency, waste reduction, and innovation, which, in turn, reduce production costs, create jobs, and attract investments [6].

In the realm of energy transition, environmental policy can play a key role in guiding societies away from fossil fuels and toward renewable energy systems. This can be achieved through the implementation of a variety of ambitious targets and strategic roadmaps, such as the EU Renewable Energy Directive, as well as economic tools like carbon pricing, feed-in tariffs, and clean energy tax credits. Energy efficiency regulations for appliances, buildings, and vehicles also contribute significantly. Additionally, public support for research and innovation—often stimulated through environmental policy—has advanced technologies in solar, wind, battery storage, and grid integration. By internalizing the external costs of fossil fuels, environmental policy reshapes market dynamics and creates enabling conditions for a decarbonized energy system.

Climate change mitigation is another domain where environmental policy has demonstrated significant impact. Countries are now bound by international agreements, such as the Paris Agreement, to establish legally binding emission reduction targets. These targets are supported by domestic policies regulating emissions from power generation to transportation and heavy industry. In addition to direct regulation, environmental policies encourage the adoption of nature-based solutions like afforestation and wetland restoration and support sustainable urbanization through public transport infrastructure and green building codes. Instruments such as the EU Emissions Trading System serve as market-based mechanisms that incentivize carbon reduction by putting a price on emissions.

Biodiversity conservation also relies heavily on environmental policy to establish legal protections and incentivize ecosystem stewardship. Governments deploy protected area designations, habitat conservation plans, and environmental impact assessments to combat ecological degradation. Policy mechanisms such as payments for ecosystem services, enforcement of anti-poaching laws, and restrictions on land-use change all contribute to conserving species and habitats. Yet conservation efforts are increasingly shifting toward system-wide resilience, focusing not only on preservation but also on ecological restoration and sustainable land-use planning.

In agriculture, environmental policy helps steer the sector toward sustainability by embedding environmental considerations into subsidy schemes and regulatory frameworks. Agri-environmental programs reward farmers for adopting practices that conserve biodiversity, reduce greenhouse gas emissions, and maintain soil health. These policies may include restrictions on harmful inputs like pesticides, support for organic agriculture, and guidelines for land-use that prevent deforestation and erosion. The European Union’s Common Agricultural Policy (CAP) for 2023–2027 exemplifies this integration by tying financial support to environmental performance, encouraging climate-smart and biodiversity-friendly farming techniques.

Across all these sectors, environmental policy serves not only as a control mechanism but as a framework for innovation, equity, and resilience. Good governance is essential for effective implementation, requiring coordination across levels of government and sectors. Social justice must also be a core consideration, as policies need to ensure that marginalized and vulnerable populations are not disproportionately affected. Moreover, data systems and monitoring tools are vital for tracking progress, evaluating policy outcomes, and enabling adaptive management.

Furthermore, environmental policy can be a tool for sustainable development because it seeks to create a favorable context where economic development will not only adhere to environmental protection measures, but also to the principles of sustainable development. Due to the constant efforts of policymakers, scientists, international organizations, governments, and environmental groups, there is now a wide array of regulatory, market, and voluntary instruments in place [7]. This should not mean, however, that there is no longer the need for environmental policy, as it is now more important than ever to ensure a robust environmental framework that acts with quick reflexes to the ongoing environmental problems and the new challenges to sustainable development [8]. At the same time, environmental policy is challenged more than ever as new global pressures and threats drive governments to rethink environmental policies and seek ways to reconcile environmental and economic objectives. More than ever, environmental policy making is now full of uncertainty, conflicting objectives, and numerous sources of decision and control authorities. In this context, policymakers need a constant flow of information that will allow them to establish priorities, design new strategies, and make policy decisions.

To facilitate the task of environmental policy making, the aim of this Special Issue was to collate original research papers, reviews, and essays that address the application of environmental policies as tools for sustainable development. We invited authors whose research utilizes both traditional and innovative approaches including surveys, databases, and modeling applications, as well as authors with an expertise in the design of policy measures, policy frameworks, evaluation of current environmental policies, and the underlying connections between policy measures, climate change mitigation, and sustainability.

The Special Issue includes the following works:

• Marek Zieliński, Wojciech Józwiak, Agata Zak and Tomasz Rokicki: “Development of Eco-Schemes as an Important Environmental Measure in Areas Facing Natural or Other Specific Constraints Under the Common Agriculture Policy 2023–2027: Evidence from Poland”.
• Teodor Kalpakchiev, Brent Jacobs, Markus Fraundorfer, Julia Martin-Ortega and Dana Cordell: “Creating an Alternative Governance for Phosphorus Circularity Through Framings That Strengthen Intersectoral Policy Coherence in the EU: Constraints and Implementation Possibilities”.
• Andrey Afanasiev, Olga Kandinskaia, Snezana Eminidou, Andreas Sousanis: “Hydrogen Valley in Cyprus: Insights and Strategies for Citizen Engagement”.
• Minglong Xian: “Impact of Inclusive Growth, Environmental Policy Incentives, Fintech and Globalization on Environmental Sustainability in G20 Countries”.
• Georgios Kolkos, Apostolos Kantartzis, Anastasia Stergiadou, Garyfallos Arabatzis: “Development of Semi-Mountainous and Mountainous Areas: Design of Trail Paths, Optimal Spatial Distribution of Trail Facilities, and Trail Ranking via MCDM-VIKOR Method”.
• Xiao Liu, Yue Zhu. “Research on the Impact Mechanism of ETS on Green Innovation in China’s High-Carbon Industries: A Perspective of Enterprise Heterogeneity”.
• Xiaomin Lyu, Qiongwen Zhang: “Navigating Environmental Tax Challenges: Business Strategies for Chinese Firms Sustainable Growth”.
• Aggeliki Ketelni, Christos Karelakis, Eleni Zafeiriou, Maria Pappas, Kalliope Papadopoulou: “Two-Way Perspectives and Attitudes about Environmentally Friendly Agro-Food Production and Consumption: An Empirical Survey for Greece”.
• Sang-hyeon Jin: “Are South Korea’s Environmental Policies Rational? An Analysis Focusing on Fine Dust Programs in the Seoul Metropolitan Area”.
• Luisa Irazú López Campos, Fernanda Prestileo, Eleonora Maria Stella, Alessandra Mascitelli, Eleonora Aruffo, Piero Chiacchiaretta, Piero Di Carlo, Stefano Dietrich: “Heritage Resilience and Identity: Lesson from Trabocchi Coast about Climate Change Adaptation Strategies”.
• Ismail Bulent Gurbuz: “Analysis in Terms of Environmental Awareness of Farmers’ Decisions and Attitudes: Reducing Pesticide Use and Risks”.
• Shizhong Peng, Shan Liang, Tianyu Dai, Haoran Peng: “Exploring the Mechanisms of Regional Environmental Collaborative Legislation in China: Policy Effectiveness, Practical Challenges, and Policy Suggestions”.
• Damián Rodríguez Estévez, Rosa María Arce Ruíz: “Assessing Multilateral Development Bank ESG Safeguard Integration with International Sustainability Ratings”.
• Naiming He, Ying Shi, Rijia Ding: “Does the Water Rights Trading Policy Improve Water-Use Efficiency? An Environmental Policy Evaluation from China”.
• Wanyan Li, Jincan Liu: “Investigating Public Support for the Carbon Generalized System of Preference through the Lens of Protection Motivation Theory and Information Deficit Model”.
• Vasiliki Aitsidou, Evangelia Michailidou, Efstratios Loizou, Georgios Tsantopoulos, Anastasios Michailidis: “Focus Group Discussions on Food Waste: An Empirical Application Providing Insights into Rural and Urban Households in Greece”.
• Yutian Dou, Shuai Guan: “The Regionally Heterogeneous Impact of China’s Environmental Regulation on the Transformation and Upgrading of Its Industrial Structure”.
• Alexandra Alonso Soto, Žaneta Stasiškienė: “Exploring the Interplay Between Energy Policies and Sustainable Development Goals Within Lithuania’s Energy Sector: A Critical Review”.
• Myunghee Kim: “Rethinking the Smart Green City Project in South Korea: A Critical Juncture Approach”.
• Kyriaki Psistaki, Georgios Tsantopoulos, Anastasia K. Paschalidou: “An Overview of the Role of Forests in Climate Change Mitigation”.
• Arnold J. Bomans, Peter Roessingh: “Decision Change: The First Step to System Change”.

Finally, we would like to express our most sincere gratitude to the people that helped us complete this Special Issue successfully; it would be an understatement to say that without their help this Special Issue would have been impossible. First and foremost, we are deeply grateful to all authors who responded to our invitation and trusted us with their works. We would also like to express our deepest appreciation to Ailsa Sun, our Special Issue’s Managing Editor, for her constant support, attentiveness, and guidance. We would also like to acknowledge the efforts and support of the journal’s Editorial Board members as well as the academic editors and reviewers responsible for every submission. The success of the Special Issue was to a great extent due to their meticulousness and competence. Having served as Guest Editors for this journal, we can, with certainty, state that the Sustainability journal will continue publishing high-quality research that provides state-of-the-art knowledge in the field of environmental policy and sustainable development. We would also like to express the hope that this Special Issue will lead to new research directions that will, in turn, improve the design and implementation of environmental policy.