The European Union (EU) has taken proactive steps in encouraging innovation policies focused on the green economy. Through various initiatives and programs, the EU is committed to reducing carbon emissions, increasing sustainability and promoting clean technologies. One important milestone is the European Green Deal, which aims to achieve environmental and social sustainability across the region. This plan includes massive investment in research and innovation so that the transition to a green economy can be carried out quickly and efficiently. Innovation in renewable energy technology is the main focus, including the development of wind, solar and bioenergy power. The European Union seeks to realize 320 GW of wind power capacity by 2030 and improve overall energy efficiency. The transportation sector is also a concern. Innovation policies encourage the development of electric vehicles and sustainable mobility solutions. By supporting research into more efficient batteries and charging infrastructure, the EU seeks to reduce dependence on fossil fuels. The Horizon Europe program provides funding to innovative projects that support this transition. The development of environmentally friendly smart cities is also part of innovation policy. Technical guidance and collaboration between local governments and the private sector encourage the development of smart solutions for waste management, energy savings and sustainable mobility. This project not only makes the city greener but also improves the quality of life for its residents. The agricultural sector is also receiving attention with an emphasis on sustainable agricultural practices. The European Union is encouraging the use of precision farming technologies to reduce waste and increase yields. Support for research in the field of agriculture and sustainable food systems will reduce the carbon footprint resulting from these sectors. Innovation in water management is also no less important. Policies that strengthen research and development in water infrastructure, including initiatives to reduce pollution and efficient management of water resources, help maintain water ecosystems. Leveraging digital technologies, the EU supports more effective management of these resources. Apart from technological aspects, the European Union’s innovation policy also focuses on international collaboration. Through programs such as the European Green Deal, the EU is trying to collaborate with other countries to share knowledge, technology and solutions in facing the challenge of climate change. This collaboration is expected to produce a wider global impact in creating a green economy. Supporting small and medium enterprises (SMEs) that innovate in the green sector is one of the priorities. Through funding and training programs, the EU provides opportunities for SMEs to contribute to the creation of green jobs and environmentally friendly products. This leads to inclusive and sustainable economic growth. Finally, public awareness of the importance of a green economy is also increasing. Education and information campaigns from the European Union help create a culture that cares about the environment. With the younger generation increasingly focused on sustainability, it is hoped that support for innovation policies will continue to grow. Active community involvement can accelerate global adjustments towards a greener economy.