State of Play in Sustainable Public Procurement

This report by the International Institute for Sustainable Development (IISD) and The Energy and Resources Institute (TERI) examines the global state of Sustainable Public Procurement (SPP). It analyzes legal frameworks, national and international programs, and the specific challenges faced by emerging and developing economies in integrating environmental, social, and economic criteria into public purchasing.

• National SPP programs are predominantly implemented in OECD member states, including the EU, U.S., Canada, Australia, New Zealand, and Japan. In contrast, national programs in developing countries are rare, although Brazil, China, and India have developed legal frameworks.
• Local governments in both developed and developing states show high levels of SPP activity. This is attributed to the decentralization of procurement, which grants local authorities more decision-making power and provides immediate visible benefits to the local environment and economy.
• A primary obstacle to SPP is the traditional procurement mindset focused on "the best value for money" (upfront costs) rather than full-life costing. Overcoming this requires integrating sustainability objectives into every stage of the procurement cycle, from establishing needs to monitoring contracts.
• Climate change mitigation is a universal feature of SPP programs, with all identified programs including components on energy efficiency. Other common focuses include lower carbon vehicles, renewable energy, and sustainable urban planning.
• The WTO's Agreement on Government Procurement (AGP) does not explicitly address sustainability but allows for environmental specifications based on performance and international standards, provided they do not create unnecessary obstacles to trade.
• In many developing countries, SPP is driven by specific sectoral needs or international commitments rather than comprehensive national laws. For example, Brazil uses procurement to combat illegal Amazon wood trade, and Mexico focuses on energy efficiency through the National Commission for Energy Conservation (CONAE).
• In Africa, SPP efforts are frequently linked to broader governance reforms, specifically the mitigation of corruption and the increase of transparency. Countries like Tanzania, Ghana, and Malawi emphasize anti-corruption strategies as a means of achieving procurement sustainability.
• The European Union possesses one of the most comprehensive legal frameworks for green procurement, primarily through Directives 2004/18 and 2004/17. The EU approach focuses almost exclusively on environmental criteria, whereas developing nations often integrate social dimensions, such as supporting disadvantaged groups.
• The report identifies over 300 SPP tools globally, categorized into awareness-raising materials, information tools on product characteristics, certification labels/standards, and life-cycle assessment tools.

APA

Perera, O., Chowdhury, N., & Goswami, A. (2007). State of Play in Sustainable Public Procurement. International Institute for Sustainable Development. https://www.iisd.org/system/files/publications/state_procurement.pdf

Chicago

Perera, Oshani, Nupur Chowdhury, and Anandajit Goswami. State of Play in Sustainable Public Procurement. International Institute for Sustainable Development, 2007. https://www.iisd.org/system/files/publications/state_procurement.pdf.

Wikipedia

{{cite report |last1=Perera |first1=Oshani |last2=Chowdhury |first2=Nupur |last3=Goswami |first3=Anandajit |title=State of Play in Sustainable Public Procurement |publisher=International Institute for Sustainable Development |date=November 2007 |url=https://www.iisd.org/system/files/publications/state_procurement.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{perera2007state, author = {Perera, Oshani and Chowdhury, Nupur and Goswami, Anandajit}, title = {{State of Play in Sustainable Public Procurement}}, institution = {International Institute for Sustainable Development}, year = {2007}, month = nov, url = {https://www.iisd.org/system/files/publications/state_procurement.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }