Simpler and More Sustainable
Summary
This policy brief by the International Institute for Sustainable Development (IISD) examines the 2024 reform of the European Union's public procurement framework. It argues that while green public procurement (GPP) is a powerful lever for the green transition—given that public procurement accounts for approximately 14% of EU GDP—its implementation is hindered by legal uncertainties, administrative burdens, and capacity gaps. The document advocates for the use of robust, third-party verified tools such as ecolabels and life-cycle costing to simplify GPP and recommends specific legal and structural reforms to the EU directives to foster their uptake.
Key insights
- Public procurement is a significant driver of environmental impact in the EU, accounting for an estimated 14% of the EU's GDP and approximately 11% of its greenhouse gas emissions.
- Third-party verified tools, such as Type I ecolabels and certifications, are more robust than self-declarations because they reduce the verification burden on procurers, mitigate greenwashing risks, and provide companies with a standardized proof of compliance usable across multiple bids.
- The implementation of GPP tools in the EU is obstructed by four primary challenges: knowledge gaps and limited capacity among procurement professionals; perceived legal risks regarding the 'link to subject matter' requirement; administrative burdens caused by fragmented standards and equivalence obligations; and cost concerns that may deter SMEs.
- Contracting authorities often avoid ambitious green criteria due to the difficulty of demonstrating a direct link between sustainability requirements and the subject matter of the contract, particularly when using comprehensive labels like the Blue Angel.
- Case studies demonstrate the efficacy of GPP tools: the CO2 Performance Ladder has reduced emissions in the Netherlands, Belgium, and Ireland; the EU Ecolabel helped Ghent secure recyclable packaging; and Total Cost of Ownership (TCO) tools in Denmark saved the University of Copenhagen between DKK 14 million and DKK 28 million over 4 years.
- To improve GPP uptake, the authors recommend that revised EU directives broaden the interpretation of the 'link to subject matter' to include organizational-level criteria and update award terminology to emphasize 'most advantageous tender' over the narrow 'economic' focus of the MEAT principle.
- The brief suggests establishing an EU-level mechanism, such as a shared repository of recognized labels and model clauses, to reduce administrative duplication and provide clearer guidance on assessing equivalence.
Cite the original document
- APA
- Erizaputri, S., & Bechauf, R. (2025). Simpler and More Sustainable. International Institute for Sustainable Development. https://www.iisd.org/system/files/2025-11/simpler-more-sustainable-procurement.pdf
- Chicago
- Erizaputri, Sharmila, and Ronja Bechauf. Simpler and More Sustainable. International Institute for Sustainable Development, 2025. https://www.iisd.org/system/files/2025-11/simpler-more-sustainable-procurement.pdf.
- Wikipedia
- {{cite report |last1=Erizaputri |first1=Sharmila |last2=Bechauf |first2=Ronja |title=Simpler and More Sustainable |publisher=International Institute for Sustainable Development |date=November 2025 |url=https://www.iisd.org/system/files/2025-11/simpler-more-sustainable-procurement.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{erizaputri2025simpler, author = {Erizaputri, Sharmila and Bechauf, Ronja}, title = {{Simpler and More Sustainable}}, institution = {International Institute for Sustainable Development}, year = {2025}, month = nov, url = {https://www.iisd.org/system/files/2025-11/simpler-more-sustainable-procurement.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }
Full text
Collected · Record updated