["Business Strategy and the Environment, Volume 35, Issue 3, Page 3711-3739, March 2026. ", "\nABSTRACT\nThe capacity of ports to act as energy hubs is increasingly relevant in light of sustainability challenges and global crises like the Ukraine conflict, the COVID‐19 pandemic and energy scarcity. Numerous international and national initiatives are shaping the future of port development to address environmental and economic concerns. This study investigates 37 European countries to assess the efficacy of the ongoing investment in fostering local growth, focusing on transforming ports into sustainable ‘green’ facilities. Particular attention is given to hydrogen as an innovative energy vector and to the role of small‐ and medium‐sized enterprises (SMEs). The empirical research employs partial least squares structural equation modelling (PLS‐SEM) to develop a multidimensional sustainability index that integrates policy regulation, production, financial and environmental indicators, also involving mediator and moderator analysis. The findings provide an analytical tool to support targeted policymaking and structural reforms in the port sector, enhancing the strategic governance of sustainability transitions.\n"]