Public Procurement
Governments devote significant portions of their budgets to procuring goods, services, and infrastructure. This enormous purchasing power needs to be reformed to ensure that the state is buying the most sustainable solutions to address today’s challenges. With public procurement representing on average 15 per cent of a country’s GDP, it also holds enormous potential for driving innovation and sustainable development.
Despite progress in recent years, the vast majority of public procurement decisions are driven by the lowest price rather than best value. This is a missed opportunity for creating society-wide benefits and fostering the transition to sustainable and circular economies. When it comes to infrastructure assets, this is especially notable, given the long lifespan of projects and the potential for wide-ranging social, economic, and environmental impacts.
Our work on sustainable public procurement is built around three core objectives:
- Raise the ambition level of governments in using the public procurement function strategically to promote fairer, cleaner economies, and enhance the accountability of governments towards their sustainable public procurement commitments.
- Become a global leader on public procurement of nature-based solutions (NbS) and nature-based infrastructure (NBI).
- Redefine the role of public procurement in global value chains and circular economies, recognizing it as a potential demand-side driver of biodiversity protection, climate change mitigation and adaptation, human rights protections, small and medium-sized enterprise development, and job creation.
The public procurement team works toward these objectives through thought leadership, research, technical assistance, and capacity building activities.
We conduct research about green public procurement tools, the state-of-play of sustainable procurement and approaches for monitoring progress in the field. We also use IISD’s Sustainable Asset Valuation (SAVi) methodology to provide quantitative evidence on the multiple financial, economic, social, and environmental gains that can be realized through sustainable public procurement.
Based on international best practice, the team provides technical assistance to governments and contracting authorities, including advice on making the business case for GPP, creating a supportive legal and institutional framework, fostering market engagement and professionalization, and providing tools for effective GPP implementation and monitoring.
In addition, we train public procurers, infrastructure planners and policy-makers in implementing sustainable public procurement and making informed investment decisions that maximize value for money.
Key partners and donors in our procurement work include the Open Contracting Partnership, ICLEI, UNEP’s One Planet on Sustainable Public Procurement Program, the World Bank Group, the IKEA Foundation, and the Foundation for Climate Friendly Procurement and Business (SKAO).
Our Projects
Strengthening Green Public Procurement in European Union Policy Reforms
The International Institute for Sustainable Development is working with stakeholders across Europe to develop reform recommendations for the European Union’s Public Procurement Directive, focusing on making procurement more strategic and environmentally sustainable. Backed by legal research and consultation, the project seeks to align public spending with climate goals. It is funded by the European Climate Foundation.
Building Global Capacity for Sustainable and Circular Public Procurement in High-Impact Sectors
The International Institute for Sustainable Development (IISD) is working with the United Nations Environment Programme (UNEP) to strengthen global capacity to align public procurement with climate and circular economy goals in the built environment sector.
Accelerating Decarbonization Through the Power of Procurement
This project focuses on the CO2 Performance Ladder, a tool for low-carbon procurement and carbon management. Widespread green public procurement (GPP) with the CO2 Performance Ladder can speed up the decarbonization of companies, projects, and supply chains and help governments meet their climate commitments.
The Sustainable Asset Valuation (SAVi)
IISD developed the Sustainable Asset Valuation (SAVi) to demonstrate to governments, investors and citizens why sustainable assets can deliver better value for money and more attractive internal rates of return.
The Nature-Based Infrastructure Global Resource Centre
The leading global hub for nature-based infrastructure (NBI). Together, we can help build a better, fairer, and more sustainable future through NBI projects.
Public Procurement and Innovation for Low-Carbon Infrastructure
Sustainable Recovery 2020
The myriad economic stimulus packages that have been launched in 2020 offer an important opportunity to fast track sustainable development. The Sustainable Recovery 2020 campaign advocates that this unprecedented global wave of public spending is allocated exclusively to economic actors and infrastructure projects that minimize impacts on nature, account for climate risks, stimulate green innovation, and improve social cohesion.
Implementing Sustainable Public Procurement in Latin America and the Caribbean
This project was designed to enable the use of public procurement as a catalyst for green economic growth. Sustainable public procurement is a key factor in enabling the region to move towards an inclusive green economy.
Mainstreaming Sustainable Public Procurement through the Introduction of Product Service Systems in the Western Cape
This project will introduce product service systems in the Western Cape, South Africa, as a specific tool to implement sustainable public procurement.
Green Public Procurement in China: Making the case for implementation through the quantification of the potential economic, social and environmental multiplier benefits
IISD and green public procurement stakeholders in China are of the view that the awareness of Chinese policy-makers needs to be raised about the positive externalities and the positive environmental, social and economic multipliers that could be realized through GPP.
Green Public Procurement in Bhutan: A cross sectoral strategy for sustainable industrial competitiveness
Establishing a strategic approach to scaling up public demand for environmentally and socially preferable goods, services and infrastructure in Bhutan.
Supporting the Implementation of Green Public Procurement in Poland
To support Poland with the implementation of its State Purchasing Policy, the International Institute for Sustainable Development (IISD) and the Open Contracting Partnership (OCP), with funding from the World Bank, developed an implementation strategy for green public procurement (GPP).
Related Publications
Strengthening Public Procurement for Climate Action and Competitiveness
A roadmap to strengthen green public procurement across the European Union through mandatory green criteria, clearer rules, and better monitoring to support climate and competitiveness goals.
Simpler and More Sustainable
This brief outlines challenges and case studies of green public procurement tools and highlights how legal reforms can strengthen their use to make procurement simpler and more sustainable.
The European Union’s Public Procurement Directive review explained
This article explains how mandatory sustainability criteria in the EU’s procurement directive could cut emissions and deliver better value for taxpayers in Europe.
How Reforming the European Union's Public Procurement Directive Can Help Drive a Green Transition
This policy brief explains how reforming European Union (EU) public procurement rules can drive climate action and strengthen Europe's competitiveness.
FfD4 Countdown: How Public Procurement Can Help Drive Sustainable Development
As discussions on financing for development intensify ahead of the Fourth International Conference on Financing for Development (FfD4), an important policy tool often gets overlooked: public procurement.
Advancing Green Public Procurement in South Africa
This report analyzes practices and challenges of green public procurement in South Africa and provides recommendations for leveraging public spending to advance sustainability.
IISD's Best of 2024: Publications
As 2024 draws to a close, we revisit our most downloaded IISD publications of the year.
Green Public Procurement in India
This report analyzes the status of green public procurement (GPP) in India and suggests key strategies for advancing sustainable procurement practices.
The Role of Multilateral Development Banks for Low-Carbon Procurement in the Infrastructure Sector
This report examines the critical role of multilateral development banks (MDBs) in advancing low-carbon procurement within the infrastructure sector.
Green Public Procurement in Indonesia
This report explores the state of green public procurement (GPP) in Indonesia and offers key strategies for advancing sustainable procurement practices.
Experts
Sofia Strömgård
Communications Officer
Nathalie Bernasconi-Osterwalder
Vice-President, Global Strategies and Managing Director, Europe
Liesbeth Casier
Lead, Public Procurement and Sustainable Infrastructure Policy & Coordinator, NBI Global Resource Centre
Benjamin Simmons
Senior Director, Economic Law and Policy
David Uzsoki
Lead, Sustainable Finance
Andrea Bassi
Senior Associate
Ronja Bechauf
Policy Advisor
Latest
You might also be interested in
Infrastructure
Infrastructure is the backbone of sustainable development and a powerful driver of economic activity.
Investment Law & Policy
How can we ensure developing economies attract international investment that promotes sustainable development?
Governance and Multilateral Agreements
The frameworks that govern economies and our ecosystems touch every aspect of our lives—and have implications for sustainable, inclusive development.
Sustainable Development Goals
This global agenda aims to end poverty, protect the planet, and ensure all people enjoy peace and prosperity by 2030.
Energy
We work to identify wasteful practices, encourage new thinking, engage civil society, and support policy reform.
Climate Change Adaptation
As climate risks escalate, we help governments and communities anticipate, cope, and adapt.