SMEs are of special interest for policy. Experience shows that a number of ambitious environmental approaches from the private sector stem from SMEs. Furthermore the employment intensity of SMEs is generally higher, while large companies tend to be more capital-intensive. Economic instruments support SMEs, because they provide greater flexibility in meeting environmental requirements than regulatory instruments. Neither ecological nor economic concepts will work without taking into account social consequences.
Unemployment creates poverty and social exclusion.
The established solutions, be them neo-classical or keynesian, alone have not been able to solve the problem. Economic instruments provide an alternative option. This effect has been demonstrated by experience and economic studies. Green jobs can be created in different sectors. The scale of the effect, though, is not enough to overcome current unemployment rates.