Focus area

Public Procurement

Focus area

Sustainable Economy

Public Procurement

Public procurement can play a critical role in accelerating the transition towards a low-carbon economy.

By promoting the procurement of low-carbon and renewable products and services, public authorities can create lead markets for innovative and sustainable solutions.

However, this approach is currently underutilised in the European Union (EU) and needs to be incentivised through different levels of public policy.

In short:

Public procurement has a significant impact on greenhouse gas emissions, as it makes up on average 14% of the EU’s GDP (source).

Green public procurement can create lead markets for innovative low-carbon products, but needs to be strengthened through sectoral-specific legislation and better coordination between authorities on different levels.

The EU and its Member States have a significant role to play in promoting green public procurement practices that include environmental considerations in public tenders, which can accelerate decarbonisation significantly.

Public procurement has a significant impact on greenhouse gas emissions and the construction sector in particular is responsible for a large share of these emissions. By promoting the procurement of low-carbon and renewable products and services, public authorities can create lead markets for innovative and sustainable solutions. This approach has the potential to accelerate the transition towards a low-carbon economy significantly while sending strong signals to the industry.

However, green public procurement is still underutilised in the EU, and a series of adjustments need to be made to ensure its effectiveness. This includes the development of comprehensive approaches to ensure climatic and environmental considerations, better information management on progress and impact, and stronger signalling from the EU and its members.

Strengthening green public procurement in sectoral-specific legislation will help realise the significant potential for decarbonisation that lies in the hands of public authorities.

Publications related to focus area

All publications

Green Public Procurement of cement and steel in the EU: An overview of the state of play

Executive summary This report examines the state of Green Public Procurement (GPP) across the European Union, highlighting its significance ...

23/10/2024

CBAM – Future Platform for Climate Finance

The importance of implementable, coordinated and well-functioning networks of carbon pricing mechanisms and CBAMs to boost and protect low-carbon eco...

06/12/2023

Addressing classification mechanisms for sustainable economic activities around the world

The case for an International COP Forum: Encouraging new initiatives & reducing fragmentation Classification mechanisms for sustainable econo...

30/11/2023

Policy Brief: The EU Sustainable Finance Taxonomy’s spillover effects on International classification mechanisms for sustainable economic activities

This brief examines the impact of the European Union’s Sustainable Finance Taxonomy Regulation and its Complementary Delegated Act (CDA) on global su...

24/10/2023

The Case for Updating EU Procurement Policy

Procurement is a powerful market force. Big buyers, be they public or private, can stimulate more sustainable practices by driving demand and developing lead markets for greener products and services. There is both significant potential and responsibility to strengthen procurement as a tool in Europe’s the green transition.

03/07/2023

Benefits of a Long Term Floor Price for the UKETS

An enhanced auction reserve price in the UKETS could create a range of benefits for stakeholders. There are now an increasing number of examples around the world from which to draw lessons. This briefing reviews the issues.

31/10/2022

Sustainable Products Initative Position Paper

The SPI acknowledges and attempts to tackle existing market failures by including externalities and establishing sustainability principles for products. We welcome the frameworks established in the SPI, and the potential they hold for key sectors such as heavy industry. Read more on our take on the SPI in this consultation response.

13/07/2022

Making a Difference in European Carbon: fitting in a CBAM to support heavy industry transformation

This report models four scenarios for how a CBAM could be made part of the Fit for 2030 package to be launched in July 2021 as part of the EU Green Deal agenda and concludes that at least 75% coverage for the selected sectors should be pursued. This option has the benefit of generating more income for innovation and deployment earlier on in Phase IV (already in 2026) therefore having the possibility of turning the next decade into one of action and success for the transformation of heavy industry in the EU.

07/07/2021

Undefined ‘decarbonised’ gas has no role on path to net-zero by 2050

As efforts to decarbonise our economy and energy systems pick up, we are seeing an increased reliance on decarbonized fuels, gas in particular - often times referred to as “renewable” and “low-carbon” gases. While low carbon intensity gases and fuels can contribute on the path to net-zero by 2050 – the terminology is confusing, with no common definition to determine when in fact a gas or fuel is renewable or low-carbon.

08/06/2021

Briefing: Defining Low Carbon and Renewable Gas

As efforts to decarbonise our economy and energy systems pick up, we are seeing an increased reliance on decarbonized fuels, gas in particular – often times referred to as “renewable” and “low-carbon” gases. While low carbon intensity gases and fuels can contribute on the path to net-zero by 2050 – the terminology is confusing, with no common definition to determine when in fact a gas or fuel is renewable or low-carbon.

20/05/2021

Feedback Response – Competition Policy supporting the Green Deal

The goal of EU competition rules is to promote and protect effective competition in markets, delivering efficient outcomes to the benefit of consumers. Bellona Europa has responded to the call for contributions to gather ideas on how EU competition policy can best support the Green Deal. As Executive Vice President Vestager has underlined: “To succeed, everyone in Europe will have to play their part – every individual, every public authority. And that includes competition enforcers.”. Our overarching point is that it is necessary to amend the state aid rulebook and the interpretation of legislation to safeguard the climate impact credibility of the funds under state aid.

20/11/2020

Consultation Response – Carbon Border Adjustment Mechanism

The Carbon Border Adjustment Mechanism (CBAM) as part of the EU Green Deal policy portfolio. This new mechanism is aiming at counteract this risk of limited ambitions by international partners by putting a carbon price on imports of certain goods from outside the EU. As an environmental policy tool, with a trade and competitiveness dimension, the CBAM will enable the EU to take fuller responsibility for the carbon footprint of its imports.

06/11/2020

Consultation Response – Sustainable Taxonomy – April 2020

On the 27th April, Bellona Europa submitted the Consultation Response on the Commission Delegated Regulation on a climate change mitigation and adaptation taxonomy.

28/04/2020

Consultation Response 01/04 – Carbon Border Adjustment Mechanism

Bellona Europa commends the European Commission’s ongoing efforts to ensure that climate neutrality is met by 2050 and efforts to price Greenhouse Gas (GHG) emissions.

01/04/2020

Understanding our Future

Climate change is happening. Human activity has caused and continues to contribute to towards it; the current and projected severity of its impacts ha...

28/11/2018

BellonaBrief: Brexit Implications on Climate, Energy and Environment

On 24 June 2016 the United Kingdom voted 52% to 48% in a referendum to leave the European Union. Many resources are now likely to be diverted from running the EU and progressing important policies toward instead managing and negotiating the referendum implications. While many uncertainties and questions remain to be addressed, one thing remains certain: Bellona has championed environmental and climate protection in Europe from outside EU membership for over 20 years and will continue to do so. While domestic implications for the UK remain unclear, NGOs’ voices in Europe will continue to be heard.

27/06/2016

Bellona Europa response to the consultation on a sustainable bioenergy policy for the period after 2020

On the back of the EU’s need and stated goal of improving its bioenergy policy and sustainability, Bellona has submitted a response to the European Commission’s consultation on the matter.

09/05/2016

Bellona Response to the Consultation on Revision of the EU Emission Trading System Directive

In October 2014 the European Council reached an agreement on a 2030 Climate and Energy Framework, featuring a binding domestic target for reducing greenhouse gas emissions of at least 40% in 2030 as compared to 1990. To meet this target, the European Council agreed that the emissions in the EU Emission Trading System (ETS) should be reduced, compared to 2005, by 43%. The purpose of this EC-conducted consultation was to gather stakeholders' views on key elements, including free allocation to industry, the establishment of a modernisation and an innovation fund, and optional free allocation of allowances to modernise electricity generation in some Member States. Here are Bellona's recommendations, with a particular focus on the modalities governing the envisaged innovation fund.

16/03/2015

Comprehensive ETS Reform

During the first two trading periods of the European Union Emission Trading Scheme (EU ETS) we have observed a low and volatile Emission Unit Allowance (EUA) price, which has failed to incentivise sufficient abatement efforts and investments in clean technologies. Bellona's views on the European Commission-proposed Market Stability Reserve and on the way forward are outlined in the brief on 'Comprehensive ETS Reform'.

30/07/2014