Procuring Green in the Public Sector: A checklist for getting started

This guide provides a comprehensive checklist and business case for public-sector procurers and policy-makers to implement sustainable public procurement (SPP). It emphasizes shifting the procurement mindset from 'best value for money' at the point of purchase to 'best value across the project/product life cycle,' utilizing life-cycle costing (LCC) to justify the higher upfront costs of green assets through long-term efficiency gains and reduced environmental externalities.

• Public procurement represents a significant portion of national economies, spending between 45% and 65% of budgets on procurement. This equates to 13% to 17% of GDP in high-income countries, and significantly higher percentages in Brazil (47%), India (43%), and South Africa (35%).
• Sustainable public procurement (SPP) aims to achieve value for money across the entire life cycle of a product or service. This involves considering the economic, social, and environmental consequences of design, material use, production, distribution, operation, and disposal.
• Life-cycle costing (LCC) is essential for green procurement because sustainable assets often have higher initial purchase prices. LCC allows procurers to demonstrate that these costs are offset by lower operating costs, increased longevity, and reduced end-of-life costs.
• A major barrier to SPP is the split responsibility between capital and revenue budgets, which are often managed by different government departments. Those paying the initial capital cost may not be the ones who realize the long-term operational savings of a sustainable alternative.
• The document suggests several strategies to mitigate high upfront costs of green procurement, including negotiating bulk discounts, using central purchasing platforms, or leasing equipment (particularly ICT and electronic equipment) as an integrated service to incentivize suppliers to innovate for longer user life.
• Public procurement can act as a catalyst for green markets and industrial transformation. Examples include the U.S. federal government's role in creating the market for green electronics in the 1990s via the Energy Star label, and the use of public procurement in Europe to launch markets for organic food, sustainable timber, and fuel-efficient vehicles.
• To successfully implement SPP, the guide recommends expanding supplier qualification criteria beyond financial performance to include compliance with environmental and labour laws, corporate governance, and the use of eco-labels.

APA

Perera, O. (2011). Procuring Green in the Public Sector: A checklist for getting started. International Institute for Sustainable Development. https://www.iisd.org/system/files/publications/procuring_green_public_sector.pdf

Chicago

Perera, Oshani. Procuring Green in the Public Sector: A checklist for getting started. International Institute for Sustainable Development, 2011. https://www.iisd.org/system/files/publications/procuring_green_public_sector.pdf.

Wikipedia

{{cite report |last1=Perera |first1=Oshani |title=Procuring Green in the Public Sector: A checklist for getting started |publisher=International Institute for Sustainable Development |date=2011 |url=https://www.iisd.org/system/files/publications/procuring_green_public_sector.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{perera2011procuring, author = {Perera, Oshani}, title = {{Procuring Green in the Public Sector: A checklist for getting started}}, institution = {International Institute for Sustainable Development}, year = {2011}, url = {https://www.iisd.org/system/files/publications/procuring_green_public_sector.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }