Legal Considerations When Using the CO2 Performance Ladder in Public Procurement

The CO2 Performance Ladder (CO2PL) is a carbon management system and procurement tool used by over 200 public contracting authorities in the Netherlands and Belgium to reward companies that reduce carbon emissions. It operates as a voluntary award criterion under the EU Procurement Directive, providing bidders with a 'fictitious discount' or bonus points based on their performance level (1 to 5). Compliance is verified by accredited third parties through either organization-wide CO2 Awareness Certificates or project-level statements. To ensure legal compliance with EU law, contracting authorities must accept equivalent means of proof and link the criteria to the subject matter of the contract. Non-compliance after winning a tender typically results in financial penalties exceeding the initial award advantage.

• The CO2 Performance Ladder (CO2PL) functions as both a carbon management system and a procurement tool, rewarding companies that invest in CO2 reduction with an award advantage, such as a fictitious discount on registration costs or additional points in a scoring system.
• The CO2PL is compliant with the 2014 EU Procurement Directive and has been utilized by more than 200 public contracting authorities in Belgium and the Netherlands since 2009 without legal complaints.
• To satisfy EU Procurement Directive requirements, the CO2PL is linked to the subject matter of contracts through project-level requirements across four areas: emissions insights, emissions reduction, transparent communication, and participation in reduction initiatives.
• Bidders can demonstrate compliance through three methods: a company-wide CO2 Awareness Certificate, a project-level statement, or alternative equivalent proof, provided these are verified by an accredited third party.
• Contracting authorities use varying fictitious discount scales based on the ambition level (1-5). For example, Rijkswaterstaat offers discounts from 1% at Level 1 to 5% at Level 5, while ProRail offers up to 10% for Level 5.
• Financial penalties are imposed on companies that win a tender based on a specific ambition level but fail to achieve it; it is recommended that these penalties be 1.5 times the award advantage given.

APA

Bechauf, R., Turley, L., & Thurley, G. (2023). Legal Considerations When Using the CO2 Performance Ladder in Public Procurement. International Institute for Sustainable Development. https://www.iisd.org/system/files/2023-03/co2-ladder-public-procurement-faq.pdf

Chicago

Bechauf, Ronja, Laura Turley, and George Thurley. Legal Considerations When Using the CO2 Performance Ladder in Public Procurement. International Institute for Sustainable Development, 2023. https://www.iisd.org/system/files/2023-03/co2-ladder-public-procurement-faq.pdf.

Wikipedia

{{cite report |last1=Bechauf |first1=Ronja |last2=Turley |first2=Laura |last3=Thurley |first3=George |title=Legal Considerations When Using the CO2 Performance Ladder in Public Procurement |publisher=International Institute for Sustainable Development |date=March 2023 |url=https://www.iisd.org/system/files/2023-03/co2-ladder-public-procurement-faq.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{bechauf2023legal, author = {Bechauf, Ronja and Turley, Laura and Thurley, George}, title = {{Legal Considerations When Using the CO2 Performance Ladder in Public Procurement}}, institution = {International Institute for Sustainable Development}, year = {2023}, month = mar, url = {https://www.iisd.org/system/files/2023-03/co2-ladder-public-procurement-faq.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }