Research on sustainability transitions and regional diversification remains one of the main green issues in the Digital Era, with a large variety in terms of topics, geographical applications, related theories and methods. Thus, ad hoc policy measures need in order to enhance the regional abilities in supporting the acceleration of ongoing green transition. This paper provides evidence that, in a specific region, green activities could be positively attracted and correlated with each other only if green culture and capabilities exist, since previous studies showed a U-shaped relationship among entry regions for sustainable technologies and ‘relatedness’ to green knowledge. Moreover, the diversification of sustainable activities depends on the introduction and applications of green environmental technologies. In this perspective, smart meters well represent the potential of digital infrastructure capturing the environmental capacity of a region to apply green technologies for a better future. We investigate the policy effects for smart meter rollout in European countries starting from the idea that this green policy tool helps to satisfy different economic literature strands. A theoretical model is introduced showing that a sustainable and efficient policy instrument will reinforce and develop local green culture. The spatial unit of investigation is the EU-28, and it offers the opportunity to verify the effectiveness of smart meters as a valid tool of analysis for sustainable policies.