How Reforming the European Union’s Public Procurement Directive Can Help Drive a Green Transition

The document assesses the failures of the 2014 EU Public Procurement Directives, noting that their voluntary nature and legal fragmentation have hindered the mainstreaming of green public procurement (GPP). It highlights that public procurement represents approximately 15% of EU GDP and 10% of its greenhouse gas emissions, presenting a significant opportunity for climate impact. The authors propose three primary reform opportunities: making GPP mandatory to simplify procedures and reduce legal uncertainty, linking 'buy European' initiatives to environmental requirements to boost green competitiveness, and implementing systemic data collection to improve monitoring and accountability.

• The 2014 EU Public Procurement Directives have failed to provide a strong enough legal foundation to mainstream green public procurement (GPP), leaving the EU without a systemic use of GPP to drive innovation for a climate-neutral economy.
• Public procurement in the EU is a significant driver of emissions, accounting for roughly 10% of the EU's greenhouse gas (GHG) emissions, while the overall procurement market represents about 15% of the EU's GDP.
• The voluntary nature of GPP under current directives has led to low adoption rates; in 2023–2024, 60% of procurement contracts were awarded based on the lowest price, and only 15% of contracts above EU thresholds integrated environmental criteria.
• Legal fragmentation and uncertainty discourage procurement authorities from implementing GPP at scale due to fears of legal challenges and a lack of clear definitions or binding targets.
• Shifting to mandatory GPP—through targets, minimum performance levels, or 'by default' requirements—would reduce legal uncertainty, harmonize practices across member states, and simplify procedures for both procurers and companies.
• Because EU public procurement is already predominantly local—with 40% of winning bidders in 2021 registered in the same region as the authority—reform efforts to 'buy European' should be tied to environmental requirements to actually improve carbon emissions and competitiveness.
• The EU lacks comprehensive monitoring and systemic data collection for GPP, which hinders the ability to track progress, prevent greenwashing, and demonstrate the benefits of sustainable spending to taxpayers.

APA

Bechauf, R., Casier, L., & Erizaputri, S. (2025). How Reforming the European Union’s Public Procurement Directive Can Help Drive a Green Transition. International Institute for Sustainable Development. https://www.iisd.org/system/files/2025-04/european-union-green-public-procurement.pdf

Chicago

Bechauf, Ronja, Liesbeth Casier, and Sharmila Erizaputri. How Reforming the European Union’s Public Procurement Directive Can Help Drive a Green Transition. International Institute for Sustainable Development, 2025. https://www.iisd.org/system/files/2025-04/european-union-green-public-procurement.pdf.

Wikipedia

{{cite report |last1=Bechauf |first1=Ronja |last2=Casier |first2=Liesbeth |last3=Erizaputri |first3=Sharmila |title=How Reforming the European Union’s Public Procurement Directive Can Help Drive a Green Transition |publisher=International Institute for Sustainable Development |date=April 2025 |url=https://www.iisd.org/system/files/2025-04/european-union-green-public-procurement.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{bechauf2025how, author = {Bechauf, Ronja and Casier, Liesbeth and Erizaputri, Sharmila}, title = {{How Reforming the European Union’s Public Procurement Directive Can Help Drive a Green Transition}}, institution = {International Institute for Sustainable Development}, year = {2025}, month = apr, url = {https://www.iisd.org/system/files/2025-04/european-union-green-public-procurement.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }