Executive summary 

This report examines the state of Green Public Procurement (GPP) across the European Union, highlighting its significance in promoting sustainable development and reducing environmental impacts through public purchasing practices.  

In the EU, public procurement represents 14% of the region’s GDP, totalling €1.9 trillion, with approximately 1.4% of total GDP allocated to the construction sector. 

With cement and steel production contributing to approximately 10% of the EU’s emissions, transitioning towards low-carbon materials is essential. The report highlights that the size of the potential lead market for low-carbon cement through public procurement is estimated at 31% of the total EU cement market, equating to around €5.15 billion, while the lead market for low-carbon steel is estimated at approximately 11%, representing about €8.3 billion.  

Despite the EU’s efforts to harmonise procurement processes and encourage low-carbon options, several barriers impede the effective implementation of GPP at various governance levels. 

The report is structured into four main chapters. The first chapter establishes the context of GPP within the broader EU policy framework, noting the challenges and opportunities arising from the voluntary nature of GPP. The second chapter delves into the barriers encountered by contracting authorities at different governance levels—Member State, regional, and municipal—using case studies from Germany, Bavaria, and Berlin to illustrate these challenges. Key barriers identified include a lack of training and capacity, insufficient data availability, fear of litigation, and legal complexities stemming from EU directives. 

The third chapter showcases successful case studies of GPP from across Europe, at different levels of governance. These examples reveal how different regions have implemented effective strategies to integrate sustainability into their procurement processes, emphasising the importance of collaboration, capacity building, and clear criteria for evaluating environmental impacts. 

Lastly, the report culminates in a set of comprehensive policy recommendations aimed at enhancing GPP implementation. These include revising the Public Procurement Directive to make environmental criteria mandatory, simplifying processes to reduce litigation risks, and harmonising procurement procedures across the EU. It calls for capacity-building initiatives, including training programs and the establishment of one-stop shops in each Member State to support local governments. Enhancing data availability, improving monitoring and reporting systems, and scaling up platforms like the Public Buyers Community are essential for strengthening market dialogue. Finally, clear compliance mechanisms must be established to ensure that companies awarded contracts adhere to their sustainability commitments.  

In conclusion, while GPP holds significant potential for driving sustainable public procurement in the EU, overcoming existing barriers requires concerted efforts from all levels of government, and the EU must lead the way. By adopting the recommended policies and learning from successful case studies, Member States can foster a more sustainable procurement environment that aligns with the EU’s climate goals and contributes to a greener future. 

Check out our GPP Fact sheet here.