This report assesses whether and to what extent energy and environmental policy instruments have been relevant forces behind the adoption of environmental innovations in the EU. The report takes a sectoral perspective that is theoretically based on neo Schumpeterian evolutionary theory to qualitatively investigate the factors that characterise the adoption of techno-organisational innovations aimed at enhancing energy efficiency and abating CO2 through interviews with industry representatives of key EU sectors. The interview-based analysis is complemented by econometric evidence on the policy drivers of eco-innovation at the sector level. The Industry’s views are integrated with a ‘stakeholder based’ analysis drawing upon on unions and policy makers’ views on the challenges faced by a greener economy. In total, the analysis provides bottom up and ex post based knowledge on both successful and undermining factors of the existent policy mix in EU countries, and provides consequent recommendations to ameliorate the (design of) the policy package. The full report can be found and downloaded here.