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The Interplay of Climate Change and Public Financial Management: Greening

Public Procurement

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 RESEARCH PAPER SERIES

Improving public financial management. Supporting sustainable development.

The Interplay of Climate Change and Public Financial

Management: Greening Public Procurement

Authors: Alma Ramsden and Antonia Ida Grafl

(November 2021)

For more information visit Follow PEFA on social media

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PEFA Partners
Abstract
This paper investigates the interlinkages between public financial management (PFM) and climate
change by focusing on greening public procurement (PP). The research focuses on the role of the
PFM environment in mainstreaming green considerations into public procurement to ensure
government spending contributes to reductions in CO2 emissions. To this end, three features of
the PP function are examined – its form of organization (degree of centralization), operation mode
(e-procurement), and financial conduct (Life Cycle Costing methods). For this purpose, extensive
desk research and interviews with relevant stakeholders in three selected case study countries (The
Netherlands, Austria, and South Korea) were conducted.

The study first reveals that a certain degree of centralization is necessary to mainstream
environmental considerations into the PP function and institutionalize GPP. Second, e-
procurement is seen as an effective enabler for including horizontal policy goals, such as
environmental considerations, in the PP function. Third, although LCC can be helpful, it is not
considered crucial for greening.

The following key success factors for greening PP can be derived from this research: The GPP
endeavor should be planned along with the various steps of administrative reforms. Merely
applying tools without a proper implementation process will not lead to success. Any modification
to the PP system should be addressed through a comprehensive change process inclusive of all
relevant stakeholders and the whole supply chain. A shift in paradigm concerning greening PFM
practice as a whole, allowing for climate-informed decision making, is necessary. This requires
embracing a holistic approach and considering a greening of the whole PFM cycle by
implementing measures that help generate information on negative environmental externalities
caused by public sector activities as well as on the financial and other impacts of climate change
on public finances.

This paper is a product of the PEFA Research Competition 2020: The Interplay of Climate Change
and Public Financial Management. The PEFA Research Paper Series provides open access to
PEFA-sponsored research to disseminate quickly knowledge that contributes to ongoing
discussions about public financial management (PFM) around the world. The broader objectives
of the PEFA Research Competition are to contribute to addressing gaps in knowledge on fiscal
management, how to improve PFM systems, and the practical implementation of PFM reform. The
papers carry the names of the authors and should be cited accordingly. The findings,
interpretations, and conclusions expressed in the papers are entirely those of the authors. They do
not necessarily represent the views of the PEFA Program or those of the PEFA partners.
 The Interplay of Climate Change and Public
Financial Management: Greening Public
Procurement

Prepared for PEFA (a partnership program of the European Commission, International Monetary
Fund, World Bank, and the governments of France, Luxembourg, Norway,
Slovak Republic, Switzerland, and United Kingdom)

Prepared by

Alma Ramsden and Antonia Ida Grafl

Institute of Applied Management, School of Management and Law,

Zurich University of Applied Sciences, Zurich, Switzerland
Contents
Abstract 0
Acknowledgments 1
Abbreviations 1
Executive summary 2
1. Introduction 4
1.1. What is (green) public procurement? 4
1.2. Research questions and hypotheses 6
1.2.1. Research question 1: Can public procurement contribute to the reduction of
CO2 emissions? 6
1.2.2. Research question 2: Is there an implementation gap between the GPP
regulatory framework and GPP practice? 7
1.2.3. Research question 3: How can the PFM system contribute to closing the
implementation gap and greening PP? 7
1.3. Structure of this paper 7
2. Methodology 7
2.1. Desk research 8
2.2 Case studies 8
2.3.1. Case study 1: The Netherlands 9
2.3.2. Case study 2: Austria 10
2.3.3. Case study 3: Republic of Korea 12
3. Quantitative impact of GPP on CO2 emissions 14
3.1. Development of the hypothesis 14
3.2. Quantitative impact of GPP measures on CO2 emissions 15
3.2.1. Sectoral analysis of the quantitative impact 16
3.2.2. Other factors that determine quantitative impact 17
4. Gap between the GPP regulatory framework and actual GPP implementation 18
4.1. Development of the hypothesis 18
4.2. GPP implementation across countries 19
4.3. GPP implementation across service and product groups 21
4.4 Challenges and barriers in greening PP 22
4.4.1. Implementation challenges 22
1
 4.4.2. Complexity of public procurement 23
4.4.3. The nature of administrative reforms 23
4.4.4. The supply side 23
4.4.5. The (perceived) higher purchase price 24
4.4.6. Lack of political will 24
4.4.7. Unfavorable surrounding conditions 25
5. PFM enablers 25
5.1. Organizational structure of the PP function 25
5.1.1. Development of the hypothesis 26
5.1.2. Organizational structure and delivery of strategic objectives 27
5.1.3. Relevance of centralization for greening PP 29
5.2. Electronic public procurement 30
5.2.1. Development of the hypothesis 31
5.2.2. The public sector has entered the digital era 32
5.2.3. Relevance of e-procurement for greening PP 32
5.3. The role of life cycle costing in PP 33
5.3.1. Development of hypothesis 33
5.3.2. LCC methodology and practice in public procurement 34
5.3.3. Relevance of LCC for greening PP 36
6. Findings and recommendations 36
6.1. Governments can have an impact on CO2 emissions through GPP 37
6.2. In the majority of countries, there is an implementation gap 38
6.3. The PFM system can contribute toward closing the implementation gap and
greening PP 38
6.3.1. The organizational structure of the PP function is crucial with regard to
greening 39
6.3.2. E-procurement can facilitate greening the PP function 42
6.3.3. LCC can be helpful but is not crucial for greening 44
7. Conclusions 47
References 48
Appendix A: Interviews conducted 58
Appendix B: Studies quantifying the effect of GPP measures on CO2 emissions 61
Appendix C: GPP uptake by country 70

2
Acknowledgments
The co-authors Alma Ramsden, project manager, and Antonia Ida Grafl, senior PFM expert,
contributed equally to the study. They received valuable feedback from Sandro Fuchs (head,
Center for Public Financial Management, Zurich University of Applied Sciences [ZHAW]) and
Christoph Schuler (PFM expert, ZHAW). The following peer reviewers also provided valuable
inputs: Arun Arya (senior public sector management specialist, EEAG1); Bonnie Sirois (senior
financial management specialist, EEAG2); Hunt La Cascia (senior procurement specialist,
EPRPS); Leah April (senior public sector specialist, ELCG2); Neha Gupta (financial management
specialist, ESAG1); Raymond Muhula (senior public sector specialist, ESAG1); Sylke Von
Thadden (senior public sector economist, EAWG2); Timothy Williamson (senior public sector
specialist, EPSPF); Wei-Jen Leow (senior financial specialist, SCCAO); Rosmarie Schlup (head
macroeconomic support, SECO); and the ESA team, comprising Ahsan Ali (lead procurement
specialist, ESARU); Winston Cole (lead financial management specialist, ESAG2); Nazmus Sadat
Khan (economist, ESAMU); Robert Yungu (senior public sector specialist, ESAG2); Suraiya
Zannath (lead financial management specialist, ESAG2); and Syed Khaled Ahsan (senior public
sector specialist, ESAG2).

Abbreviations
AI Artificial Intelligence
BBG Bundesbeschaffung, Austrian Federal Procurement Agency
BMF Federal Ministry of Finance, Austria
BMK Federal Ministry for Climate Action, Environment, Energy, Mobility, Innovation,
and Technology, Austria
CF Carbon footprint
CO2 Carbon dioxide
EU European Union
GDP Gross Domestic Product
GPP Green Public Procurement
ICLEI Local Governments for Sustainability and Public Procurement Analysis
IFMIS Integrated Financial Management Information System
KEITI Korea Environmental Industry and Technology Institute
KGPN Korea Green Purchasing Network
KIP Korea Institute of Procurement
KONEPS Korea ON-line E-Procurement System
LCA Life Cycle Analysis
LCC Life Cycle Costing
NAP National Action Plan
ÖBS ÖkoBeschaffungsService, Austria
OECD Organisation for Economic Co-operation and Development
PEFA Public Expenditure and Financial Accountability
PFM Public Financial Management
1
PIANOo Professional and Innovative Tendering Network for Government Contracting
Authorities
PMIS procurement management information system
PP Public Procurement
PPS Public Procurement Service
RVO The Netherlands Enterprise Agency
RWS Rijkswaterstaat, the Netherlands
SKAO Foundation for Climate Friendly Procurement and Business, the Netherlands
SPP sustainable public procurement
TCO Total cost of ownership
UN United Nations
UNEP United Nations Environment Programme

Executive summary
This study investigates the links between the public financial management (PFM) system and
climate change by focusing on greening public procurement (PP). PP is an element of budget
execution and, as such, a subsystem of the PFM cycle. It also investigates the role of the PFM
environment in mainstreaming green considerations into public procurement so that government
spending can contribute to a reduction in carbon dioxide (CO2) emissions. The existence of
structural obstacles indicates the need for technical interventions to optimize the PFM environment
in order to absorb greening reforms in PP better and more effectively. Hence, the focus is on
identifying enablers for greening PP by looking through the PFM lens. To this end, the study
examines three features of the PP function: form of organization, operational mode, and financial
conduct. An extensive desk research and 19 interviews were conducted with stakeholders in three
case study countries: Austria, the Republic of Korea, and the Netherlands.

First, the study analyzes the potential of green public procurement (GPP) measures to reduce CO2
emissions, finding that the effects of GPP measures on CO2 emissions cannot be quantified and
compared easily due to differences in the methodologies applied and disparities between economic
sectors and the design of GPP policies. Nevertheless, there is ample evidence that GPP has
significant potential to reduce CO2 emissions. This potential results, among others, from the sheer
volume of public sector purchases and a government’s predisposition to lead the way in greening:
governments can display their willingness to go green by taking risks in the form of paying more
for eco-friendly products, applying innovative technology, providing subsidies or grants for
greening measures throughout the supply chain, and combining green targets with other
sustainability objectives to reap the benefits of mutual reinforcement. Despite a significant uptake
of general environmental considerations and green principles in PP, a gap is evident between the
GPP legal framework and actual implementation in many countries, even in economies that have
developed GPP through the enforcement of legislation.

Second, the study investigates the implementation gap and its causes, finding that most countries
have GPP policies and targets in place, but their corresponding actions at the national or
subnational levels lag behind and their policies and targets have not been met (GPP gap countries).
A second group of countries does not yet have a GPP legal framework in place and has no or very
2
few GPP targets (basic GPP countries). A third group—the minority of countries—has a high level
of GPP implementation, meaning that they meet the majority of their GPP targets and their actions
at the national and subnational levels correspond closely to their GPP legal framework (advanced
GPP countries). Various barriers and hurdles to successful GPP implementation are identified,
indicating the need for technical interventions to address perceived or actual higher purchase
prices, unfavorable surrounding conditions, and structural obstacles related to the nature of
administrative reforms.

The finding of an implementation gap between the GPP regulatory framework and GPP practice
leads to the central research question: Whether and how can elements of the PFM system address
the implementation challenges and contribute to closing the implementation gap? Preliminary
research suggests that three enablers within the PFM system can play a pivotal role in this regard:
centralized procurement arrangements, electronic procurement (e-procurement), and life cycle
costing (LCC). The in-depth exploration of these three enablers reveals the following:

• A certain degree of centralization is necessary to mainstream environmental considerations

into the PP function and to institutionalize GPP since such strategic public procurement
requires a structured, coordinated approach on the part of all institutions affected.
Furthermore, centralized PP structures enable a pooling of knowledge, a
professionalization of GPP, and an increase of market power to steer production toward
sustainability.

• E-procurement is an effective enabler for including horizontal policy goals, such as

environmental considerations, in the PP function. Automation makes public procurement
more efficient, especially in the formal, more administrative phases, such as tendering and
award. This efficiency frees resources to strengthen the more qualitative tasks of pre- and
post-tendering, the phases of PP that contribute significantly to buying green as opposed
to simply greening the process itself.

• Conventional LCC in the spirit of a total cost of ownership (TCO) approach only makes
sense in the context of GPP for product groups that have follow-up costs, which is where
financial gains over the life cycle of a sustainable purchase can be shown. However, the
purchase price for greener solutions might still be higher, requiring more budgetary means
in the short run. This higher price needs to be either accepted by procurers or priced into
the budget allocation decision. Thus, although LCC can be helpful, it is not crucial for
greening.

This study is intended not only to foster an academic debate on the interlinkages between PFM
and climate change but also to provide a basis for tangible, universally applicable policy
recommendations for governments to equip themselves better for the evolving environmental
challenges. The following factors are found to be key for greening PP.

The GPP endeavor should be planned along the various steps of administrative reform. Merely
applying tools without a proper process of implementation will not lead to success. Any
modification of the PP system should be addressed through a comprehensive change process that

3
includes all relevant stakeholders and the entire supply chain, as GPP must be introduced in tandem
with markets and be met with goodwill and conviction by buying institutions.

Moreover, GPP cannot be a singular measure if a government’s ultimate goal is to reduce its CO2
emissions. A shift in paradigm with respect to greening PFM practice as a whole and allowing for
climate-informed decision-making is necessary. This shift requires embracing a holistic approach
and considering greening the whole PFM cycle by implementing measures that help to generate
information on the negative environmental externalities caused by public sector activities as well
as the financial and other impacts of climate change on public finances.

1. Introduction
Under the 2015 United Nations (UN) Paris Agreement, 196 parties recognized the “need for an
effective and progressive response to the urgent threat of climate change” and acknowledged that
“climate change is a common threat to humankind” (UN 2015). The 2019 emissions gap report of
the United Nations Environment Programme (UNEP) assesses the levels of current and estimated
future greenhouse gas emissions, of which carbon dioxide (CO2) is the most abundant. It concludes
that by 2030, “Emissions would need to be 25 percent and 55 percent lower than in 2018 to put
the world on the least-cost pathway to limiting global warming to below 2˚C and 1.5°C,
respectively” (UNEP 2019a, 5). Decisive action to reduce greenhouse gas emissions globally is
urgently needed.

In order to achieve sustainability, a deep-rooted transformation of societies, economies,

infrastructures, and governance institutions is required. The Coalition of Finance Ministers for
Climate Action,1 a group of finance ministers committed to combating climate change, recognized
the unique potential of public financial management (PFM) to address and manage challenges
stemming from global warming by providing adaption as well as mitigation tools through the PFM
system. The Helsinki Principles, which serve as guidance for coordinated action of the coalition,
explore, among others, the integration of eco-friendly aspects into the guidance, procedures, and
methodologies for public procurement.

This study analyzes how climate change considerations can be mainstreamed into the public
procurement process so that government spending can serve as a lever for green growth and
ultimately contribute to a reduction in CO2 emissions. In doing so, the public procurement (PP)
function is viewed through the PFM lens to investigate which PFM tools enable the greening of
the public procurement system.

1.1. What is (green) public procurement?

Public procurement is “the area of public administration concerned with the acquisition by the
government of goods, works, and services from the marketplace” (Sanchez 2013). It is an
operational function of government and an element of budget execution; as such, it is a subsystem

1
See, for example, [Link]
4
in the PFM cycle. In the Public Expenditure and Financial Accountability (PEFA) framework for
public procurement, indicator PI-24 covers government spending on goods, services, civil works,
and major equipment investments. An efficient procurement system “ensures that money is used
effectively in acquiring inputs for, and achieving value for money in, the delivery of programs and
services by a government” (PEFA Secretariat 2019, 67).

The administration of PP varies between countries and can be a national, provincial, or district-
level responsibility or a combined responsibility. Public procurement is considered a critical link
between expenditure management and the attainment of a government’s broader economic and
social objectives (Sanchez 2013). In recent years, several horizontal policy goals have come into
play, including sustainability considerations such as environmental objectives (Handler 2015).

There is no uniform definition of green public procurement (GPP); in particular, there is no clear
definition of what “green” constitutes. The majority of descriptions of GPP are rather broad and
highlight the importance of replacing “standard” products with “more environmentally friendly”
ones. For example, the European Commission states that GPP refers to “a process whereby public
authorities seek to procure goods, services, and works with a reduced environmental impact
throughout their life cycle when compared to goods, services, and works with the same primary
function that would otherwise be procured” (EC and ICLEI 2016). Some definitions highlight the
importance of public finance in greening the public procurement function; for example, according
to the Korea Institute of Procurement (KIP), GPP is “a series of purchasing systems for products,
services, and construction through public finance with the purpose of minimizing the possible
negative impact of its required resources and energy on people, environment, and earth” (RK04).2

Given the absence of a common definition and therefore the absence of common standards for
calculating GPP, indicators describing what targets and goals have already been achieved by
governments in terms of implementing green criteria play a crucial role in monitoring GPP. There
are many indicators, and they differ between countries, including, for example, the number of
items procured that include green criteria, the economic volume of items procured that include
environmental criteria, the uptake of total cost of ownership (TCO) analysis, expenditure on eco-
labeled products, and share of the government budget spent on green items (UNEP 2017b).

In addition, national states and supranational organizations have developed various tools and
criteria to measure and promote greening in public procurement. Under the 2014 Procurement
Directives of the European Union (EU), all procurement contracts must be awarded to the most
economically advantageous tender, an approach that makes it possible for the procurer to award
and compare factors beyond price, such as quality and sustainability (EC 2017). Furthermore, the
concept of circular procurement for achieving GPP has gained increased attention in recent years.
Circular procurement refers to “the purchase of works, goods, or services that seek to contribute
to the closed energy and material loops within supply chains, whilst minimizing, and in the best
case avoiding, negative environmental impacts and waste creation across the whole life cycle” (EC
2017). Furthermore, the EU has developed “clear, verifiable, justifiable, and ambitious

2
Green public procurement is not the same as sustainable public procurement, although these two concepts are often
used synonymously. Sustainable public procurement refers to “a process by which public authorities seek to achieve
the appropriate balance between the three pillars of sustainable development—economic, social, and environmental—
when procuring goods, services, or works at all stages of the project” (EC n.d.-c).
5
environmental criteria for products and services, based on a life cycle approach and scientific
evidence base” and, since 2008, has developed more than 20 common GPP criteria to facilitate the
inclusion of green requirements in public tender documents (EC n.d.-a). GPP criteria can be
formulated as selection criteria (criteria that refer to the selection of the tenderer), technical
specifications (minimum compliance requirements that all tenders must meet), award criteria
(criteria that refer to everything that is evaluated and scored for award purposes), or contract
performance clauses (clauses that are used to specify how a contract must be carried out).

Moreover, ISO Standard 20400 is directed toward public procurement and provides guidance on
how to integrate sustainability into the procurement process and into organizations’ procurement
policies and strategies (ISO n.d.). Several countries have developed their own eco-labels and
certification systems, such as the Republic of Korea (RK02).

In sum, awareness of GPP’s potential is growing, and efforts to implement it are increasing.
However, additional political stimulus will be needed if GPP is to become more accepted
internationally. Until then, GPP remains a largely underexposed subject, as outlined in the next
section.

1.2. Research questions and hypotheses

Although green public procurement has received increasing attention over the past decade, few
research papers have covered this topic (Testa et al. 2016), and sustainability considerations have
not yet been fully integrated into procurement processes (UNEP 2017b). In addition, the existence
of structural obstacles indicates the need for technical interventions.

This study investigates how the PFM environment can help to establish green considerations in
public procurement so that government spending can contribute to a reduction in CO2 emissions.
The focus lies on identifying prerequisites for greening PP by looking through the PFM lens. In
search of concrete enablers within the PFM system, three features of the PP function are examined:
form of organization, operational mode, and financial conduct. This broader systemic approach
has not been taken before, and the relevance of these aspects for GPP is underexplored. This study
is structured around three research questions, which are outlined next.

1.2.1. Research question 1: Can public procurement contribute to the

reduction of CO2 emissions?
Few areas of government influence the private sector as directly as public procurement or have the
potential to change patterns of production and consumption. For this reason, governments can
contribute to local, regional, national, and international sustainability goals by using their
purchasing power to choose goods, services, and works with a smaller environmental impact (EC
and ICLEI 2016). Examining the size of this potential in terms of its quantitative impact on CO2
emissions leads to the first hypothesis (H1): GPP has the potential to curb CO2 emissions.

6
 1.2.2. Research question 2: Is there an implementation gap between
the GPP regulatory framework and GPP practice?
The global uptake of environmental considerations and green principles in PP is significant.
Nevertheless, legally binding measures are rare, and the depth and rigor of criteria vary widely
(APEC 2013; EU 2012). Moreover, even economies that have developed GPP through the
enforcement of legislation are often faced with a gap between conceptual and actual
implementation (APEC 2013)—that is, a gap between GPP policies and actions performed at
national and subnational levels by procurement and other government officials (EC and ICLEI
2016). Investigating the presence of the implementation gap and its causes in the form of hurdles
and barriers to GPP leads to the second hypothesis (H2): There is an implementation gap between
the GPP regulatory framework and GPP practice.

1.2.3. Research question 3: How can the PFM system contribute to

closing the implementation gap and greening PP?
The PFM environment has a role to play in greening the public procurement function, as certain
systemic preconditions are crucial in order to mainstream eco-friendly considerations successfully
into PP. The PFM system may help to overcome implementation barriers in relation to the
organizational, operational, and financial conduct of public procurement. Examining three distinct
enablers within the PFM system that might facilitate an uptake of GPP practice leads to the third
hypothesis (H3): centralized procurement (H3a), e-procurement (H3b), and life cycle costing
(H3c) can facilitate the uptake of GPP practice.

1.3. Structure of this paper

This paper is structured as follows: Section 2 explains the methodologies chosen to explore the
three hypotheses. Section 3 investigates the potential of GPP to reduce CO2 emissions. Section 4
examines the implementation gap and identifies the main hurdles to implementing GPP. Section 5
describes the enablers of the PFM system and how they help to address these barriers. Section 6
presents the main findings and offers concrete policy recommendations. Section 7 concludes.
Appendix A provides information on the interviews conducted. Appendix B describes studies
quantifying the effect of GPP measures on CO2 emissions. Appendix C details GPP uptake by
country.

2. Methodology
GPP is an interdisciplinary area, and this study takes a collaborative approach to studying it by
complementing desk research with expert knowledge gained through interviews in three case study
countries: Austria, Korea, and the Netherlands.

7
 2.1. Desk research
In the desk research, existing literature was reviewed and data on all aspects related to the research
questions were gathered to develop the hypotheses, select countries for case studies, and lay the
groundwork for developing the questionnaire used to interview stakeholders. Papers from peer-
reviewed journals as well as publications from both government and nongovernment organizations
were reviewed. After the case study countries were selected, publications and internal documents
were reviewed to gain a deeper understanding of GPP in the case study countries.

2.2 Case studies

The three case studies were conducted to validate the hypotheses, identify good practices in GPP,
and ultimately derive policy recommendations on how the PP function can be greened in order to
reduce CO2 emissions.

The desk research focused on finding countries whose PFM environment and hence GPP measures
offer promising solutions to overcome the implementation gap. Austria, Korea, and the
Netherlands were selected because they are considered forerunners in green public procurement
(UNEP 2019b) and serve as models of good practice for other countries. Moreover, their
governments have been committed to GPP for a considerable time. This commitment is important
for obtaining conclusive information on the success factors and limitations of GPP functions and
for determining how they interrelate with the general PFM system. Given that the study takes a
functional perspective—that is, it focuses on elements of the PFM system that facilitate GPP—
focus was placed on the PFM environment rather than on factors such as level of economic
development. For the same reason, no attempt was made to achieve a balanced mix of developing
and developed countries. The intention was to identify what countries at a nascent stage of
implementing GPP can learn from the successes, failures, and challenges of economies at an
advanced stage of GPP implementation.

Following the selection of sample countries, semistructured interviews were conducted with
experts from government and nongovernment organizations involved in GPP. Each questionnaire
consisted of a standardized part to compare GPP practices across the three countries and a flexible
part to capture country-specific aspects as well as the institutional setting. The inductive approach
was complemented with a deductive approach: in addition to testing the hypotheses and identifying
good practices and challenges in GPP implementation, the aim was to identify relevant issues to
be explored in the context of GPP. Table 1 provides an overview of which country case study
serves to investigate which hypothesis.
Table 1: Validating the hypothesis through country case studies
Country H1 H2 H3a H3b H3c
Netherlands, the P P P X P
Austria (P) P P (P) (P)
Korea, Rep. (P) P (P) P X
Note: P = can be investigated. (P) = can be partly investigated. X = cannot be investigated.

8
 2.3.1. Case study 1: The Netherlands
The Netherlands is a leader in applying environmental criteria and is considered one of the seven
best-performing EU member states with respect to GPP (Hasanbeigi, Becqué, and Springer 2019;
PricewaterhouseCoopers, Significant, and Ecofys 2009). Furthermore, the country has designed
practical tools and structures to promote GPP (box 1). The CO2 performance ladder is a
management system that contracting authorities can use to analyze CO2 emissions and to identify
and implement reduction actions; it is also a procurement tool that stimulates suppliers and
contractors to do the same. DuboCalc is a tool for calculating the environmental impact of
infrastructure projects (TN01; TN03). Furthermore, in 2005 the Professional and Innovative
Tendering Network for Government Contracting Authorities (PIANOo) was established to
professionalize procurement and tendering in all government departments. PIANOo consists of a
network of around 3,500 public procurement and tendering professionals. It pools knowledge and
experience in the area of PP and GPP, provides advice to relevant stakeholders, and fosters
dialogue between government contracting authorities and private sector companies.

Box 1: Select tools and organizations used to facilitate the implementation of green public procurement in the
Netherlands

CO2 performance ladder

The CO2 performance ladder is a certification system based on life cycle analysis (LCA) that helps (public and
private) organizations to reduce their carbon emissions. It is used as both a management system and a
procurement tool, helping organizations to gain insight into, and cut down on, their CO2 emissions and receive
an award advantage, with higher scores leading to a greater advantage in the tendering process. Both
contracting authorities and organizations can use the CO2 performance ladder when drawing up tender notices.

DuboCalc
DuboCalc is used to calculate the environmental costs of procurement. It calculates the effects of material and
energy use from extraction to demolition and recycling, resulting in an environmental cost indicator that
considers all relevant environmental impacts throughout the entire life cycle. The method is based on LCA.
DuboCalc is intended to achieve significant environmental benefits in the design, performance, and tenders for
civil engineering works.

PIANOo (Professional and Innovative Tendering Network for Government Contracting Authorities)
PIANOo was established to professionalize public procurement; it works for and with a network of around
3,500 public procurement and tendering professionals. It is an expertise center that brings together experts,
pools knowledge and experience, and provides advice to and fosters dialog between government contracting
authorities and private sector companies (PIANOo 2019). It also houses working groups and conducts
procurement training (EC and ICLEI 2016).
Sources: EC and ICLEI 2016; Rietbergen, van Rheede, and Blok 2015; SKAO 2020; see also
[Link] [Link] and
[Link]

The Netherlands case study offers practical tools that help to promote GPP, which enables the
analysis of hypothesis H1 (GPP has the potential to curb CO2 emissions) and hypothesis 3c (LCC
is an enabler within the PFM system that facilitates the implementation of GPP). It also allows us
to investigate hypothesis H2 (there is an implementation gap between the GPP regulatory

9
framework and actual GPP practice). Given the legally decentralized procurement structure in the
Netherlands (TN03), it is also possible to gain insights into hypothesis 3a (centralized procurement
arrangements are enablers within the PFM system that facilitate the implementation of GPP).

Interviews were held with representatives from the following organizations:

• The Foundation for Climate Friendly Procurement and Business (SKAO), which develops,
owns, and manages the CO2 performance ladder

• The Netherlands Enterprise Agency (RVO), which is part of the Ministry of Economic
Affairs and Climate Policy and assists businesses in becoming more sustainable, among
other tasks

• The Professional and Innovative Tendering Network for Government Contracting

Authorities (PIANOo), described in box 1

• Rijkswaterstaat (RWS), which is part of the Dutch Ministry of Infrastructure and Water
Management and developed DuboCalc

• Copernicus Institute of Sustainable Development, Sustainable Development Expertise

Center, Utrecht University.

2.3.2. Case study 2: Austria

Austria has implemented GPP at the federal level and frequently serves as an international good-
practice example. In 2010 the government adopted a National Action Plan (NAP) for sustainable
public procurement (naBe-Aktionsplan), covering goals and measures for sustainable public
procurement (SPP)3 as well as environmental criteria for products from 16 product groups (OECD
2015; AU02). The NAP is mandatory for the federal level and serves as baseline for other levels
of government, although some regions have even more ambitious green criteria than the federal
state. The NAP is being updated in 2021 to put greater weight on GPP, and the scope of product
groups is being extended. The Organisation for Economic Co-operation and Development (OECD)
has recognized Austria as a leading example with respect to its legal and policy framework,
environmental standards in procurement, professionalization of GPP, awareness-raising activities,
and monitoring (OECD 2015).

The organizational structure of the procurement function has important implications for greening
public procurement. In particular, a distinction can be drawn between decentralized and centralized
purchasing. Decentralized public procurement describes a process whereby a procurement
organization, in the absence of a central or controlling authority, is authorized to adopt purchasing
decisions individually within the legal and regulatory framework. Centralized public procurement
combines the procurement activities of at least two contracting authorities, which can eventually
culminate in demand aggregation. Such joint procurement as well as decentralized arrangements

3
Sustainable public procurement, of which GPP is a subcategory, is an umbrella definition comprising social as well
as environmental aspects.
10
do not indicate administrative aspects and may occur at the federal, regional, and municipal levels
(Albano and Sparro 2010; EC 2008; Glas, Schaupp, and Essig 2017).

The Austrian approach explicitly takes into account the country’s federal structure and fosters
close collaboration between all levels of government. The Austrian Federal Procurement Agency
(BBG) is the centralized procurement body responsible for implementing the NAP and has the
mandate to support regions and municipalities through several channels, such as online platforms,
brochures, and help desks via the naBe platform (AU02).

Joint procurement initiatives also exist at the municipal and regional levels, comprising both ad
hoc and permanent arrangements (box 2). These initiatives yield convincing results regarding cost-
effectiveness and eco-friendliness. One example is the ÖkoBeschaffungsService (ÖBS), founded
for the specific purpose of conducting GPP for municipalities in the region of Vorarlberg (AU04).

Box 2: Information on two procurement agencies in Austria

BBG (Bundesbeschaffung)
BBG, the Austrian Federal Procurement Agency, is the central purchasing body for ministries, federal states,
cities, and municipalities as well as for outsourced organizations, universities, and health care facilities. BBG is
wholly owned by the federal government, represented by the Federal Ministry of Finance. BBG houses the naBe
platform, supporting the National Action Plan for Sustainable Public Purchasing, which is mandatory for public
entities at the federal level. The platform also serves as a competence center regarding GPP implementation.

ÖBS (ÖkoBeschaffungsService)
ÖBS is the regional purchasing body of the Vorarlberg Municipal Association. It supports municipalities and
public entities based in the Austrian region of Vorarlberg to procure sustainably. The ÖBS offers products and
services from more than 50 product groups and concludes framework contracts for its clients. The first set of
sustainable criteria was drafted as early as 1999, but municipalities had difficulty implementing it. The ÖBS
was established—almost simultaneously with the BBG at federal level—to address this problem and to conduct
green procurement for the regional public sector.
Sources: AU02; AU04.

The Austria case study is useful for examining the extent to which the structure and organizational
form of the procurement function affects GPP—that is, for validating hypothesis H3a (centralized
procurement arrangements are enablers within the PFM system that facilitate the implementation
of GPP) and, to a lesser extent, hypothesis H1 (GPP has the potential to curb CO2 emissions) and
hypothesis H2 (there is an implementation gap between the GPP regulatory framework and actual
GPP practice).

Interviews were held with representatives from the following organizations:

• The Federal Ministry for Climate Action, Environment, Energy, Mobility, Innovation and
Technology (BMK), which is responsible for coordinating the NAP and represents the
policy side

• The Federal Ministry of Finance (BBF), which is the sole shareholder of the BBG
11
 • The Austrian Federal Procurement Agency (BBG), described in box 2

• The regional purchasing body of the Vorarlberg Municipal Association (ÖBS), also
described in box 2.

2.3.3. Case study 3: Republic of Korea

Korea has a long and deep-rooted tradition of green public procurement, being one of the first
countries to integrate GPP as a policy instrument (UNEP 2019b). The country offers “a convincing
case for a clear and well-aligned [GPP] framework” (OECD 2015, 9). Furthermore, Korea is a
frontrunner in using and linking electronic procurement systems and platforms for GPP
implementation and monitoring (UNEP 2019b.

GPP was first introduced together with the Korea Eco-label Certification System in 1992 and has
been booming since 2005, when the Act on Promotion of the Purchase of Green Products came
into force (Lee n.d.). The Eco-label system is fundamental to Korea’s GPP function, and it has
contributed greatly to its development (RK03), because the GPP focus is on purchasing green
products, which are certified through one of three certification systems (Korea Eco-label, Good
Recycled Mark, and Carbon Footprint of Products) (RK05).

Korea’s Public Procurement Service (PPS) is in charge of procurement for central governments
and several public institutions that are subject to the Act on Contracts to Which the State Is a Party
(RK02). Individual public institutions can only manage the purchase and tendering process through
their own procurement systems for purchases below certain thresholds. In addition, each local
government has its own procurement department and procurement officer (RK05). Korea has a
strong institutional framework for GPP implementation, as GPP is based on the collaboration of
four key agencies: the Ministry of Environment, the Korea Environmental Industry and
Technology Institute (KEITI), the Ministry of Economy and Finance, and the PPS (UNEP 2019).

Korea is one of the few countries with a well-established, well-functioning e-procurement system:
KONEPS, the Korea Online E-Procurement System. More than 70 percent of Korea’s total public
procurement and 80–90 percent of GPP are conducted through KONEPS (Kang 2018; RK02). The
system is highly recognized globally and is a benchmark for many developing countries (RK06).
Box 3 provides information on Korea’s public procurement institutions.

Including Korea as a case study is useful for investigating hypothesis H3a (centralized
procurement arrangements are enablers within the PFM system that facilitate the implementation
of GPP) and hypothesis H3b (e-procurement solutions are enablers within the PFM system that
facilitate the implementation of GPP). To a lesser extent, it is also relevant to hypothesis H1 (GPP
has the potential to curb CO2 emissions) and hypothesis H2 (there is an implementation gap
between the GPP regulatory framework and actual GPP practice).

12
Box 3: Public procurement institutions in the Republic of Korea

KEITI (Korea Environmental Industry and Technology Institute)

Affiliated with the Ministry of Environment, KEITI operates the overall green public procurement (GPP) system
and the Korea Eco-label. It is a quasi-governmental organization, contributing to the improvement of
environmental welfare services and sustainable national development by developing and supporting
environmental technology, fostering the environmental industry, and spreading eco-friendly life. KEITI was
designated as a dedicated management agency in the Act on Promotion of the Purchase of Green Products in
order to manage and implement GPP systemically. KEITI receives data on purchases submitted by the heads of
public institutions, provides information on green products, and trains procurers to promote GPP.

PPS (Public Procurement Service)

PPS is the central public procurement agency in Korea. It facilitates the entry of green products into the public
market, fosters public demand for green products, and expands green construction works for public buildings.
It also manages and operates KONEPS.

KONEPS (Korea ON-line E-Procurement System)

KONEPS went live in 1997 and has been an integrated service for the entire procurement process since 2002,
operated through a single portal. Developed from the perspective of the purchaser, KONEPS aggregates data,
produces statistics, and analyzes results; it is primarily a management system. In addition to KONEPS, the
electronic public procurement statistics system monitors the entire public procurement market in Korea and
supports the implementation of procurement policies.
Sources: Kang 2018; RK02; KR06.

Interviews conducted by the Korean Institute of Public Finance were held with representatives
from the following organizations:4

• Korea Green Purchasing Network (KGPN), a nonprofit private organization that promotes
sustainable production and consumption and generates demand for green production

• Korea Environmental Industry and Technology Institute (KEITI), described on box 3

• Korea Institute of Procurement (KIP), an academic institute that conducts research on green
procurement systems and policies

• Public Procurement Service (PPS), also described in box 3

• Local Governments for Sustainability and Public Procurement Analysis (ICLEI) Korea,
which is part of ICLEI, a global network that promotes sustainability policy and drives
local action for low-emission, nature-based, equitable, resilient, and circular development.

4
For information on these organizations, see [Link] [Link] OECD 2015;
and [Link].
13
 • Ministry of Environment, which is in charge of GPP and implemented the Act on
Development and Support of Environmental Technology of 1994, which introduced GPP
in the country.

3. Quantitative impact of GPP on CO2

emissions
Authorities who implement GPP will be better equipped to meet evolving
environmental challenges, for example, to reduce greenhouse gas emissions or
move towards a more circular economy (EC and ICLEI 2016).

3.1. Development of the hypothesis

Governments around the globe are major consumers: on average, 12 percent of global gross
domestic product (GDP) is spent on public procurement (Bosio and Djankov 2020). Through the
purchase of products and services with a lower carbon footprint, public authorities thus have the
power to reduce greenhouse gas emissions (EC 2020a). For example, PricewaterhouseCoopers,
Significant, and Ecofys (2009) estimate that greening public procurement would reduce CO2
emissions by 25 percent, on average, in seven European countries (Austria, Denmark, Finland,
Germany, the Netherlands, Sweden, and United Kingdom) for the 10 product groups analyzed.

This fact leads to hypothesis H1: GPP has the potential to curb CO2 emissions. In order to explore
this hypothesis, it is necessary to quantify the potential impact of GPP on emissions. CO2 is the
focus because it is the most common greenhouse gas emitted by human activities, in terms of both
the quantity released and the total impact on global warming (Brander 2012). Nevertheless, the
literature review also covers studies that address two other types of emissions: greenhouse gases
in general and CO2 equivalents.5 This clarification is necessary because the terms “CO2 emissions”
and “greenhouse gas emissions” are often (erroneously) used synonymously.6

The term “green” is specified broadly for this analysis because there is no clear definition of
“greening.” As a result, green public procurement can take many forms and be implemented in
many products and services. The range of topics covered in the literature review includes, for
example, measures taken within a certain product group or within a certain geographic area. For
example, Cerutti et al. (2016) analyze the effect on greenhouse gas emissions of three food policies
implemented in a school catering service in an Italian city. Their study analyzes a specific sector

5
Because CO2 is considered the most important greenhouse gas, some assessments do not consider other greenhouse
gases, which can understate the total impact on global warming. One way to circumvent this problem is to calculate
CO2 equivalents. CO2 equivalents convert greenhouse gas emissions into a common unit, meaning the amount of CO 2
that would have the equivalent impact on global warming. This approach makes it easy to compare the various
greenhouse gases to one another (Brander 2012).
6
Greenhouse gases trap heat in the atmosphere. They include carbon dioxide, methane, nitrous oxide, and fluorinated
gases. CO2 is the most abundant, constituting about 80 percent of all greenhouse gas emissions (EPA, United States
n.d.).
14
(catering services for schools) in a narrow geographic area (an Italian city). With regard to sectoral
analysis, many papers investigate measures in the food sector, the building and maintenance sector,
and the transportation sector (vehicles).

Methodologically, most of the studies analyzed are based on life cycle analysis (LCA) or carbon
footprint (CF), which is also a life cycle–based indicator. Both CF and LCA do more than measure
the impact of GPP; they also are tools for implementing GPP. At the same time, it is important to
distinguish between life cycle analysis and life cycle costing (LCC): LCA quantifies the
environmental impact of a product’s manufacture, use, and end of life (Samaras and Meisterling
2008), while LCC estimates the total monetary costs over the life cycle of works, supplies, or
services that are linked to a purchase (EU 2012; SIGMA Programme 2016, 2). CF addresses all
emissions caused by consumption rather than production activity (Larsen and Hertwich 2010).
Thus, CF focuses on just one category of environmental impact (greenhouse gas emissions), while
LCA takes into account more categories of impact, such as land use, water use, and acidification
(Agri Footprint 2020). The advantage of the CF tool is that it includes indirect emissions that occur
in the value chain of the reporting company—that is, “scope 3” emissions.7

This study only covers papers that address the quantitative effect on CO2 emissions of GPP
measures that have already been implemented. It does not analyze the effects of measures that
governments could adopt in public procurement or that have important implications for GPP
practices, but have not been implemented. This distinction is important because many studies
analyze measures that governments could implement to make public procurement greener, but that
have not yet been implemented.8

3.2. Quantitative impact of GPP measures on CO2 emissions

Few studies have quantified the impact of GPP measures on greenhouse gas emissions. According
to Cheng et al. (2018), “GPP is not a well-trodden area of research … and there is a lack of
academic literature [on GPP].” Participants in the interviews also criticized the lack of reliable
data (AU01; AU04; TN01 2021). Only 15 studies were found that measure the impact of GPP on
emissions.9

Overall, greening public procurement can reduce greenhouse gases and CO2 or CO2 equivalents
by between 3 percent and more than 90 percent. Given the differences in greening potential

7
The Greenhouse Gas Protocol Corporate Standard classifies a company’s emissions into three “scopes.” Scope 1
emissions are direct emissions from owned or controlled sources. Scope 2 emissions are indirect emissions from the
generation of purchased energy. Scope 3 emissions are indirect emissions (not included in scope 2) that occur in the
value chain of the reporting company, including both upstream and downstream emissions. See
[Link]
8
One example is the analysis by Cox and Bauer (2018), who study the environmental performance of different types
of modern passenger cars using life cycle analysis. However, their analysis does not (at least, not yet) constitute a GPP
measure in Switzerland.
9
The search was conducted with the following keywords: “green public procurement,” “public procurement,” “CO 2
emissions,” “greenhouse gas emissions,” “carbon footprint,” “life cycle analysis,” and any combination of these
keywords. Most studies were from peer-reviewed journals, but papers from intergovernmental and international
organizations were included in the search as well.
15
between economic sectors (TN04; TN05), a sectoral analysis of the quantitative impact of GPP on
emissions was also undertaken.

These differences exist for two reasons. First, some sectors are easier to green than others (AU01).
Based on monitoring results from Japan, sectoral differences are striking: savings range from 29
tons of CO2 equivalents for workwear (the amount of energy that 2.5 homes use for one year)10 to
34,260 tons of CO2 equivalents for LED lighting fixtures (the amount of energy that almost 4,000
homes use in one year) (UNEP 2019b). Second, the market power of the public sector varies by
sector (AU02; AU03; TN03), as does its use to steer the supply side in a certain direction (TN04).
It is difficult for governments to influence markets in sectors that are dominated by large or global
private companies (AU02). However, the potential influence can be increased by combining
different targets (TN04)—for example, social and green objectives (TN05)—or by putting in place
certain structures, such as effective asset management in the construction sector (TN04).

3.2.1. Sectoral analysis of the quantitative impact

In the food sector, which is one of the most analyzed sectors, GPP can reduce emissions from
around 8 percent overall (Cerutti et al. 2018) to more than 40 percent for food-cooling systems
(Gröger, Stratmann, and Brommer 2015). Shifting to a vegetarian, local, or organic diet is a
promising means of curbing emissions (see, for example, Cerutti et al. 2018; Jungbluth, Keller,
and König 2016; Pulkkinen et al. 2016). However, the effects depend on the specific requirements.
Organic or integrated production11 reduces the carbon footprint associated with food production
by 32 percent compared to conventional production, while requirements for regional provisioning
of products reduce greenhouse gas emissions by 33 percent compared to the previous year (Cerutti
et al. 2016); however, shifting from petrol motor vehicles to natural gas vehicles in urban food
distribution does not reduce greenhouse gas emissions.12

In the maintenance and buildings sector, the potential emissions savings range from around 3
percent (Rietbergen and Blok 2013) to more than 50 percent (Trovato, Nocera, and Giuffrida
2020). The range for emissions savings in the transport sector (analyzed in three studies for four
modes of transport) is even larger, from around 17 percent (Gröger, Stratmann, and Brommer
2015) to more than 90 percent (EC and ICLEI 2016). This wide range is due to the different modes
of transport analyzed (passenger cars, buses, ferries, and construction machines). The quantitative
impact of GPP on CO2 emissions for lighting and electricity, analyzed in two studies, is 36 percent
and 45 percent, respectively. The two studies that investigate GPP measures for cleaning materials
report an emissions reduction of between 36 percent (Gröger, Stratmann, and Brommer 2015) and
70 percent (Ministry of the Environment, Denmark 2013).

10
Calculations based on the greenhouse gas calculator provided by the US Environmental Protection Agency
([Link]
11
Integrated production is a knowledge-based approach to farming, based on maximizing natural control processes
for pest and soil management and growing a healthy crop. It is a dynamic approach to move toward sustainable farming
systems, introduced in steps up the integrated production “ladder.” See [Link]
[Link]/campaigns/agriculture/integrated-production.
12
This is due to the high traction efficiency of petrol motors and the high particulate removal performance of new-
generation filters (Cerutti et al. 2016).
16
Moreover, within a product or service group, the results can differ along the value chain. For
example, Cerutti et al. (2016) find that policies affecting production practices have the greatest
potential to reduce the carbon footprint of the catering sector, because 61 percent to 70 percent of
the greenhouse gases are emitted in the production phase.

3.2.2. Other factors that determine quantitative impact

A sectoral approach is helpful for examining the quantitative impact of GPP on emissions. In
addition, the scope of emissions analyzed is also relevant for determining the potential of GPP. In
this regard, the research highlights the relevance of whether direct or indirect emissions along the
value chain—that is, scope 3 emissions—are investigated (TN01). Alvarez and Rubio (2015), who
analyze conservation and maintenance services, find that scope 3 emissions make up the largest
source of emissions. Larsen and Hertwich (2010), who study emissions from municipal activities
in Norway, estimate that only 5 percent of these emissions are direct emissions; the remaining 95
percent are indirect emissions (scope 2 and 3).

Another important factor concerns methodological aspects: quantifying the impact of GPP on
emissions is challenging because of a lack of reliable data (AU01; AU05; RK02) and difficulty in
estimating the causal effect of GPP on emissions due to confounding variables (Rietbergen and
Blok 2013). Even where data are available, estimating how much a specific measure can reduce
CO2 emissions is complicated (TN01).

Another challenge when analyzing the potential for GPP to reduce CO2 emissions is that the
greenest way to procure is not to procure at all—that is, it is better to use procured products and
services as long as possible.13 Circular procurement and total cost of ownership models can help
to overcome this limitation because they take into account the entire life cycle of a product or
service. At the same time, there is growing recognition of the importance of this aspect for both
the demand and the supply sides (TN04).

Not least, the design of policies needs to be questioned, as is done by Rietbergen, van Rheede, and
Blok (2015) and Rietbergen and Blok (2013), who assess the potential impact of the CO2
performance ladder on the reduction of CO2 emissions in the Netherlands. They find that
companies do not set ambitious enough emissions reduction targets, implying that carbon counting
is a powerful tool for reducing emissions only if combined with ambitious targets and the full
commitment of relevant stakeholders.14 Jungbluth, Keller, and König (2016) confirm this finding,
stating that carbon counting as a GPP instrument has a lot of potential in the agricultural stage of
the food sector. Hence, if target levels for reducing corporate greenhouse gas emissions are not
very ambitious and if the target-setting practice is neither very rigorous nor applied uniformly
across companies, corporate emissions will not decline significantly.

13
Another common problem in the academic literature is that papers might be disregarded because they have not
found the desired effect (that is, no impact of GPP on emissions).
14
However, this finding is not surprising because the tool is also a management system for reducing CO2 emissions
(TN02; TN03).
17
4. Gap between the GPP regulatory
framework and actual GPP implementation
4.1. Development of the hypothesis
According to ICLEI, a global network of governments committed to sustainable development, a
gap exists between GPP policies and the actions of national procurement officials, with many
unaware of the full extent of national requirements (EC and ICLEI 2016). A UN report from 2017
also finds that sustainability considerations—including environmental (that is, green)
considerations—have not yet been fully integrated in procurement processes. Instead, SPP—and
hence GPP—is often the initiative of an individual department or government agency, resulting in
a fragmented GPP landscape. In addition, the enforcement of SPP or GPP policies and the extent
of effective monitoring vary between countries, influencing the implementation of environmental
concerns (UNEP 2017b, vi–viii.

Some countries have high uptake of GPP, including the group of countries known as the Green-
7,15 whose level of GPP uptake in 2006–07 was 45 percent of total procurement by value and 55
percent by volume (PricewaterhouseCoopers, Significant, and Ecofys 2009). By procurement
value, the United Kingdom was the best-performing country at the time, with a level of GPP of 75
percent. By procurement volume, Austria scored the highest, at 62 percent. But even these
countries have not fully greened their procurement functions, and countries at the other end of the
spectrum have not yet laid the legal grounds for effective GPP implementation.

These preliminary findings lead to the second hypothesis (H2): there is an implementation gap
between the GPP regulatory framework and GPP practice. The implementation gap is defined as
the gap between the GPP regulatory framework and the actions performed at the national and
subnational levels by relevant organizations and stakeholders (EC and ICLEI 2016). To test this
hypothesis, GPP implementation was analyzed across 58 countries and product or service groups.
For the 58 countries, GPP uptake as well as the policies addressing GPP and the targets set with
regard to GPP were analyzed. This holistic approach was crucial given that “the policy
environment is a primary factor that determines the extent of engagement in GPP” (Cheng et al.
2018), “mandatory policy frameworks for SPP are typically more effective in driving
implementation” (UNEP 2017a), and “it is arguably easier to measure quantitative or ‘process’
indicators” (UNEP 2017a).

Finally, specific hurdles or barriers to GPP implementation and uptake were investigated to gain
insight into the underlying mechanisms of the implementation gap and how they can be addressed
by taking a PFM perspective.

15
The Green-7 are Austria, Denmark, Finland, Germany, the Netherlands, Sweden, and the United Kingdom.
18
 4.2. GPP implementation across countries
Extensive desk research was conducted to gather evidence on GPP implementation across
countries. The majority of information is from five sources: the UN fact sheets on sustainable
public procurement in national governments (UNEP 2017a), the global efficiency intelligence
report on the role of green public procurement (Hasanbeigi, Becqué, and Springer 2019), the 2012
EU report on the uptake of GPP in the EU-27 (EU 2012), the 2006 EU report on green public
procurement in Europe (Bouwer et al. 2006), and the European Commission website, which
provides country-specific information on procurement (EC n.d.-a). These sources describe the
legal frameworks, GPP targets, and GPP implementation for various countries. Country-specific
websites on GPP were consulted to complement these sources. A challenge was that most
publications rely on self-reporting by countries. This issue was addressed by including a question
on GPP implementation in the interviews to obtain insight from professionals with a deep
understanding of implementation in their home country. Appendix C provides a detailed overview
of the legal frameworks and targets, GPP implementation, and potential implementation gap.

In total, evidence was gathered from 55 countries on six continents. European countries are
overrepresented in this analysis because their uptake of sustainable or green public procurement is
longer-standing than it is in most African, Asian, and Latin American countries (UNEP 2017a).
There is little evidence from African countries owing to a lack of political commitment to GPP
(Akenroye, Oyegoke, and Eyo 2013); greening is not yet on the governments’ agenda. In total,
information on GPP is available from 3 African, 9 Asian, 10 Latin American, and 30 European
countries as well as from Australia, Canada, and the United States. Table 2 describes the categories
of GPP implementation.

Table 2: Categories of countries regarding GPP implementation status

Category Description
Advanced GPP countries Countries with a minor implementation gap: GPP policies are in place,
quantitative targets are set, and uptake of corresponding actions at the
national or subnational level is high
GPP gap countries Countries with an implementation gap: GPP policies are in place,
quantitative targets are set, but corresponding actions at the national or
subnational level lag behind
Basic GPP countries Countries with no or with basic GPP frameworks: there are no or few GPP
policies, quantitative targets, or corresponding actions at the national or
subnational level
Mixed-evidence countries Suggestive evidence only

Almost half of the 55 jurisdictions analyzed fall under the category of GPP gap countries because
there is a gap between GPP regulatory frameworks and actions or their GPP targets have not been
met. Many of these countries have a high level of economic development. They have committed
to greening and have corresponding policies in place. However, either they have not reached their
own GPP targets or their GPP uptake is low by international comparison. In 2008 the European
Commission set a target for the EU that, by 2010, 50 percent of all public tendering procedures
should be green, where “green” means “compliant with endorsed common core EU GPP criteria

19
for 10 priority product/service groups.”16 Although the uptake of GPP in the EU has been
significant, the 50 percent target has not been met (EU 2012). Some countries have made progress
since 2012, but several countries still have not met this target. Considering that in 2018, 28
European countries had a GPP strategy or policy at the central level (OECD 2019a 136, the EU
implementation gap is rather large.

A minority of countries (including Austria, Korea, and the Netherlands) are advanced GPP
countries. These economies have GPP policies in place, and compliance with their polices is high.
They have reached or almost reached their own or international GPP targets, and GPP uptake is
high by comparison internationally. Austria, for example, has a small implementation gap and is
in the top one-third of European countries (AU02). This does not mean, however, that these
advanced GPP countries have completely greened their procurement function, nor does it mean
that they have achieved all of their goals related to the greening process. Greening the procurement
function does not automatically mean that the greener product has been purchased: there is still a
gap between tendering for the green product and buying it (AU02; TN03). Consequently, the focus
should be not only on “who implements” but also on “who buys” (RK02). Even in advanced GPP
countries, some stakeholders in the procurement function are resistant to greening (TN01) or do
not give greening a priority (AU01). Greening is often viewed as high-level (TN06) and as just
another task on top of existing tasks (TN03). In the Netherlands, sustainable or circular criteria are
often not included explicitly in mandates. Hence, advisers who are responsible for making the
procurement process sustainable lack a clear mandate that they can use to change the organization
internally: “Sustainability gets stuck on the ministerial level and does not reach the organizational
level” (TN04).

Roughly a third of the countries have no or only basic GPP frameworks in place. Since they have
not developed any, or only a few, GPP policies and have not set any GPP targets or followed
international targets, there is no implementation gap in these jurisdictions. The majority of these
countries have lower economic development than the implementation gap or advanced GPP
countries. However, some developed countries are also in this category, for example, Greece and
Luxembourg.

Finally, for a small number of countries, such as Italy and Slovakia, the evidence on GPP uptake
is mixed. These countries have mandatory policies in place and have set ambitious targets for GPP,
but it is not clear whether these policies are enforced in practice and whether targets are being met,
making them mixed-evidence countries. This lack of evidence may be the result of the complexity
of the procurement function or lack of transparency.

16
These groups of products and services are cleaning products and services, construction, electricity, catering
services and food products, gardening services and products, office information technology equipment, copying and
graphic paper, textiles, transport, and furniture (EU 2012).
20
 4.3. GPP implementation across service and product
groups
The potential for GPP differs between service and product groups because not all groups are
equally suitable for greening. Bouwer et al. (2006) give an overview of the percentage of tenders
that are green for different product and service groups in the Green-7 countries. They refer to
product or service groups with more than three environmental criteria (that is, criteria that would
lead to a greener product) as “solid green,” groups with one to three green criteria in their tender
documents as “light green,” and groups with unclear or no criteria that would lead to a greener
product as “not green” (table 3).17

Table 3: Green tenders for various product and service groups

% of tenders
Product and service group Solid green Light green Not green
Sewage and refuse disposal, sanitation, and environmental 30 52 18
services
Transport equipment 11 36 42
Office machinery 9 41 50
Computer and related services — 9 92
Education, health, and recreational services — 17 83
Professional services 3 11 86
Construction work 13 36 51
Furniture and other manufactured goods 15 30 56
Chemical products, rubber, plastic 16 28 56
Food products and beverages, restaurant services 5 38 57
Architectural, engineering, construction, installation and 9 27 64
related technical consultancy services
Cleaning services 0 35 65
Medical devices 3 30 68
Paper, printed matter, printing services 19 13 69
(Electrical) machinery and communication equipment 8 21 70
Transport and communication services 11 18 71
Source: Bouwer et al. 2006.
Note: — = not available.

Some products and services are more suitable for greening than others, which explains some of
the differences in greening between groups: not all product and service groups can be expected to
show the same progress in greening.

How green a sector is also depends on the market power of government within that sector and how
much leverage it has to steer the supply side toward becoming green (AU02; AU04; RK03; TN03;
TN04; TN05). In the construction sector in the Netherlands, for example, there has been little
change in supply because there has been little transition in demand (TN02), but the market reaction
is difficult to measure due to the lack of reliable figures (TN05). This is a “chicken and egg”
problem, because it is difficult to measure whether the supply side is providing green products

17
Such criteria include emissions of greenhouse gases or noise for buses and passenger cars, waste for packaging of
cleaning materials, and water and soil contamination through the use of pesticides and fertilizers for textiles (Bouwer
et al. 2006).
21
because the government is asking it to do so or whether the government is asking for greener
products because the market is providing them (TN03). In Korea, about 800 of the 17,000 products
that have obtained the Eco-label are in demand in the private market, and most of them are
procurement items (RK03). Furthermore, the consumption of green products is considerably lower
in the private sector than in the public sector, constituting around 13 percent of all green products
purchased (RK05). Thus the pull effect in the private market is rather limited, as confirmed in the
interviews (RK03).

4.4 Challenges and barriers in greening PP

This section outlines the main reasons for the implementation gaps observed in the GPP gap
countries and for the reluctance to take up GPP in the basic GPP countries. Implementation
challenges—difficulties in the process of greening the PP function—typically occur in the GPP
gap countries, while barriers to GPP uptake are usually associated with the basic GPP countries.
The distinction, though, is not always clear-cut, and some factors might be both a challenge for
implementation and a barrier to GPP uptake. Despite the difficulties, understanding these issues is
crucial to finding ways to address them and identifying enabling factors to support GPP reforms.

Basic GPP countries have not developed a legal framework or a national action plan. For this
reason, they do not exhibit an implementation gap. Three main drivers explain their general
reluctance to introduce GPP: implementation challenges, the perception that purchase prices are
higher for green products, and lack of political will.

4.4.1. Implementation challenges

Modifications to the PP system are not viewed as PFM reforms; they are treated predominantly as
legal matters (AU02), introduced by merely changing the provisions without accompanying
measures to support implementation (RK07). Moreover, legal security in the sourcing decisions of
public entities is as important as (AU01) or given more weight than economic considerations.
Public procurement reforms are more complex, encompassing legal, institutional, and procedural
amendments (Fritz, Verhoeven, and Avenia 2017). Greening the PP function requires taking all
three of these aspects into account.

When considering the steps of administrative reform as depicted in a classical policy

implementation cycle,18 the implementation phase is probably the most intricate, requiring concise
planning and project management. Underestimating the amount of support that the implementers
need in order to handle newly introduced systems is one of the typical failures in implementation
and is reflected in a lack of practical tools and information as well as a lack of training (Bouwer et
al. 2006; UNEP 2017b). Other challenges specific to GPP implementation relate to the complexity
of PP, structural issues, and the supply side

18
A policy implementation cycle consists of five stages: agenda setting, policy formulation, policy adoption, policy
implementation, and evaluation (Knill and Tosun 2008).
22
 4.4.2. Complexity of public procurement
Public procurement is a multidisciplinary area, and greening is just one of many aspects to be
considered in public tenders (TN03). Green criteria therefore compete with social criteria, among
others (RK07). Both lack of legal and technical expertise in integrating environmental standards
in the procurement process and lack of environmental criteria for products, services, and works
pose a challenge for GPP implementation (AU04; TN05). Moreover, public procurers perceive the
absence of effective management systems as an obstacle to ensuring the consistent application of
environmental and social initiatives (Bouwer et al. 2006; UNEP 2017b; TN01; TN04). In addition,
the procurement function itself as well as efforts to green the procurement function are often
fragmented; many countries do not have national GPP targets, policies, or frameworks, but they
may have targets at the local level (for example, Belgium, India, and South Africa). Also, in many
countries, measures for implementing GPP may be different between the state and local
governments or between local governments (Australia, Belgium, and South Africa).

4.4.3. The nature of administrative reforms

Any administrative reform requires a consideration of whether the systems in place can absorb the
planned transformation. With a view to greening PP, a fragmented PP function, characterized by
lack of cooperation between authorities and mainly decentralized procurement activity, poses a
major challenge for implementation. Moreover, nontechnical factors, such as the personal belief
of individuals involved in the procurement process (RK07) or the perception that green products
are lower quality (RK01), determine the outcome of GPP processes to a large degree. Take the
example of Korea: “Korea’s local governments have a personnel management system in which the
public officials in charge of GPP frequently change. It is very common that the degree of GPP
implementation of an institution varies greatly depending on the interests and capabilities of the
person in charge of the GPP operation” (RK07). This variation is amplified by lack of transparency
and failure to communicate the environmental and financial benefits of GPP (APEC 2013; Testa
2016; UNEP 2019b; RK01).

4.4.4. The supply side

An important factor to consider is how greening public procurement relates to the supply side. The
complexity of establishing GPP in the tendering process may complicate the interaction between
governments and suppliers. This complexity poses a risk to the participation of small and medium
enterprises in public procurement opportunities, given their comparatively limited financial,
technical, and administrative capacities (OECD 2019b; AU01).

In addition, scarcity of green options and lack of diversity hamper the effectiveness of GPP in
general (RK02; RK03; RK07). In Canada the federal government is a major buyer, but its
purchasing power alone is too small to enable the market to offer greener products at lower prices
(UNEP 2017a). Small countries are likely to be disproportionally affected by this issue because
their internal markets are small, as the example of Cyprus shows (EC n.d.-b). However,
implementing GPP in accordance with markets seems crucial because dictating the terms
unilaterally will fail—markets must be ready to respond to public sector demand (AU02).

23
From a global perspective, the absence of an international approach to GPP and the existence of
tariff barriers hinder the definition of suitable trade policies to promote green public procurement.
Although trade is highly internationalized, the divergence of environmental criteria for green
products and the limited use of eco-labels among economies limits the options for green cross-
border trade (APEC 2013). Korea has acknowledged the need for more support for international
cooperation and overseas expansion and has included such support explicitly in its fourth plan on
promoting the purchase of green products (Ministry of the Environment, Korea 2021).

4.4.5. The (perceived) higher purchase price

One of the largest barriers to GPP uptake is indeed the perception that green tenders are more
expensive than other tenders. Even if the purchase price is not actually higher for green products,
works, or services, there is often a perception that green products and services are more expensive
than conventional ones (Braulio-Gonzalo and Bovea 2020; Chegut, Eichholtz, and Kok 2019;
AU02; RK02; RK03). This hurdle applies to GPP gap and basic GPP countries alike, but it
disproportionately affects countries with lower purchasing power, which could explain the lack of
political commitment to GPP in many African countries (Akenroye, Oyegoke, and Eyo 2013).

4.4.6. Lack of political will

Lack of political support constitutes another key barrier to GPP (Bouwer et al. 2006), endangering
or making impossible any reform efforts and therefore constituting a key nontechnical barrier
(Fritz, Verhoeven, and Avenia 2017). Many countries report a lack of commitment to GPP (for
example, the Czech Republic, Denmark, and Latvia) related to the fact that GPP policies are not
binding (for example, Spain). In Korea, the lack of supporting policies leads to a gap in regulation
and implementation, even though GPP is mandatory (RK01). As a consequence, even though GPP
criteria are included in public tenders or overarching GPP policies exist, environmental award
criteria have little influence on final decisions in supplier selection (for example, Norway). Korea
has developed a comprehensive bidding system to address this issue. The system considers
environmental and other factors such as quality, performance, and efficiency along with price,
performance, and suitability (RK06).

In addition, monitoring mechanisms to evaluate green procurement activities and follow up on

green criteria are generally absent (OECD 2015, 5). Yet clearly defined GPP targets and
systematic, transparent monitoring are key to greening the public procurement function
successfully and increasing the number of green products procured (Hasanbeigi, Becqué, and
Springer 2019). In particular, given the absence of a common definition of green public
procurement, creating GPP indicators and setting suitably high GPP targets help to establish
specific implementation plans (UNEP 2017b; RK06).

Although the majority of countries have defined targets to help to green the PP function, they do
not clearly define their targets or set quantitative targets that allow for consistent monitoring
(China, Denmark, India, Malta, Singapore, and Switzerland), or they fail to monitor their results
systematically (Australia, Austria, Norway), or their monitoring reports are vague or not publicly
available (Cyprus, Italy, Malaysia). Indeed, in most countries that report having a monitoring
system in place, it is not systematic (Denmark), contains inconsistencies (Israel), or is fragmented
24
(United States). Even countries with a high level of GPP implementation struggle with effective
monitoring. Germany, for example, has a small implementation gap but is still developing a GPP
monitoring process to be able to provide annual reports on GPP. Austria does not implement
monitoring on a regular basis either (AU01; AU02; AU03). In Korea, in contrast, the Ministry of
Environment annually publishes data on the purchasing of green products by public institutions,
while KEITI monitors the purchasing performance of each institution on a quarterly basis and also
analyzes and manages performance data (although reports are not publicly disclosed) (RK02).

4.4.7. Unfavorable surrounding conditions

Unfavorable surrounding conditions are a major barrier to successful implementation. Conversely,
inadequate capacities could be a reason for low GPP uptake in many developing economies. The
literature also highlights unfavorable aspects such as lack of automation of key functions, lack of
system integration, and weak PFM institutions resulting in noncompliance and limited professional
capacity (Cheng et al. 2018; Hasanbeigi, Becqué, and Springer 2019).

5. PFM enablers
This section introduces the PFM system. However, as Allen, Hemming, and Potter (2013, 2) note,
“A compact and coherent definition of PFM is surprisingly hard to find in the literature.” While
the traditionalist view of PFM focuses on the technical functions of managing the public budget in
its established phases, a more modern perspective has evolved in which PFM is seen “as an
‘umbrella’ definition, covering a set of systems aimed at producing information, processes, and
rules that can help support fiscal policy making as well as provide instruments for its
implementation” (Cangiano et al. 2014, 1–2).

In this spirit, PFM is treated here as an integrated set of (sub)systems, institutions, procedures, and
processes organized around in the PFM cycle19 whose purpose is to implement fiscal policy using
public resources. Public procurement is an element of budget execution and, as such, a subsystem
in the PFM cycle. Building on the concepts of institutional economics,20 this broad view of PFM
makes it possible to examine three features of the public procurement function—form of
organization, operational mode, and financial conduct—that a more conventional view would
probably overlook or deem irrelevant.

5.1. Organizational structure of the PP function

How the procurement function is organized in the public sector has fundamental implications for
greening public procurement. An important organizational distinction can be drawn between
decentralized and centralized purchasing entities: decentralized public procurement describes a
process whereby a procurement organization adopts purchasing decisions individually, while

19
Sometimes referred to as the budget cycle, which typically centers around the following elements: budget
formulation, budget execution, accounting and reporting, and external audit.
20
A term introduced by the economist Douglas North in 1991 (North 1991).
25
centralized procurement combines the procurement activities of at least two contracting authorities
and can eventually culminate in demand aggregation (Albano and Sparro 2010; EC 2008; Glas,
Schaupp, and Essig 2017).

Academic discussions prior to the 2008 global financial turmoil hint at a drift toward decentralized
approaches and away from “the traditional model of centralized purchasing responsibility”
(McCue and Pitzer 2000). However, the emergence of strategic policy goals in public procurement
and increasing fiscal pressures as a result of the crisis seem to have reversed that trend. More recent
studies (for example, Glas, Schaupp, and Essig 2017; Kanepejs and Kirikova 2018) observe
growing efforts to centralize (at least partly) the PP function and claim that many governments all
over the world “have resorted to a certain degree of centralization and charged a governmental
agency with aggregating public demand and implementing centralized procurement strategies”
(Albano and Sparro 2010, 2).

With a view to greening the procurement function, this section analyses whether and how
centralized procurement structures and joint procurement arrangements could be an effective
instrument in achieving secondary policy goals through government spending, such as
mainstreaming environmental considerations into the procurement process (Albano and Sparro
2010; Glas, Schaupp, and Essig 2017; OECD 2000).

5.1.1. Development of the hypothesis

The current academic debate seems to favor centralized procurement systems: “Centralization can
play a key role in promoting green procurement policies and establishing appropriate common
standards (Dimitri, Dini, and Piga 2006, 64). Not only are joint procurement structures seen as the
means of choice for targeting broader policy objectives (Albano and Sparro 2010; OECD 2000),
but decentralized PP is also perceived as not suitable (Glas, Schaupp, and Essig 2017). Dimitri,
Dini, and Piga (2006) argue that decentralized units may perform better in day-to-day purchasing,
while centralized ones are superior in strategic purchasing.

An empirical study by Glas, Schaupp, and Essig (2017) demonstrates that centrally organized PP
systems are more effective in implementing green objectives than decentralized ones: centralized
arrangements deliver strategic goals, whereas decentralized forms of procurement carry out the
procurement function itself, even in an environment where GPP is embedded in regulation. That
study has several shortcomings, which it addresses: first, the paper has a narrow regional scope,
focusing on Germany only. Second, only secondary data are analyzed, stemming from a survey
that was conducted for a different purpose. And last, but not least, the hypothesis is slightly
different, as it tests whether centralized PP organizations exhibit a better strategic fit.

Testa et al. (2016) and Test (2016) emphasize the relevance of the size of a public organization in
determining its ability to include sustainability criteria in its public tenders due to lack of
appropriate skill. Moreover, Michelsen and de Boer (2009) find “a positive and statistically
significant correlation between the size of a public organization and its GPP performance” (Testa
et al. 2016, 199). Although organizational structure is not the research focus of these papers, they
offer lessons regarding the issue of centralization: in smaller units with a leaner organization, the
procurement function is likely neither very mature nor carried out by professional procurers. In
26
such cases, organizing purchasing activities at an aggregate level will improve the capacity to
implement GPP as a result of better access to appropriate human resources and skills.

This study therefore examines the hypothesis (H3a): centralizing the PP function facilitates the
implementation of GPP. This research question has not been examined to date, and there seems to
be no empirical proof for a hypothesis that is presented throughout the GPP literature as fact.

5.1.2. Organizational structure and delivery of strategic objectives

Empirical evidence suggests that organizational architecture plays a major role in the
implementation of strategic, horizontal objectives, such as those of a socioeconomic or
environmental nature (Glas, Schaupp, and Essig 2007). The literature implies that the degree of
centralization of a procurement system is linked to the implementation of strategic goals:
centralized and decentralized arrangements differ in their ability to promote horizontal aspects,
such as GPP (Albano and Sparro 2010; Glas Schaupp, and Essig 2007; Handler 2015; OECD
2000).

Table 4: Key arguments in support of centralized procurement systems

Argument Details
Economies of scale • Lower purchase prices of goods, services, and works through
bulk purchase
• Increased purchasing and bargaining power
• Lower administrative overhead, such as sharing of costs for
complex information technology and lower staff costs, as a
result of bundling of services
• Avoidance of duplication of transaction cost for
homogeneous contracts

Improved (social) value for money • Highest possible quality-price ratio for better services, goods,
and works at lower cost
• Acquisition of social value through internalization of positive
external effects

Higher integrity of the purchasing • Better transparency provisions through financial reporting
system and effective management controls and clearer audit trails
• Avoidance of local favoritism and corruption

Optimization of the procurement • Increased specialization in the provision of specific goods

process and services, like medical or military equipment
• Enhanced professionalization and easier management of staff
performance
• Improved contract management and monitoring of supplier’s
performance
• Effective provision of standardized products and technical
equipment, such as information technology systems and
software
• Knowledge and information sharing to find common
solutions to common problems
Sources: Albano and Sparro 2010; Dimitri, Dini, and Piga 2006; Glas, Schaupp, and Essig 2017; McCue and
Pitzer 2000; OECD 2000.

27
From the perspective of the primary objectives of PP,21 however, there are various arguments in
favor of each of the two main organizational types. Tables 4 and 5 present key arguments in support
of centralized or decentralized procurement, respectively. Each form has particular strengths and
weaknesses, which are discussed in the next section. Two questions are examined in this context:
(1) Which organizational architecture is helpful or is necessary with a view to greening PP and
addressing the challenges of implementing GPP? and (2) Does a certain degree of centralization
ensure consistency with the primary objectives of the procurement function, while preserving the
major benefits of either form of organization?

Table 5: Key arguments in support of decentralized procurement systems

Argument Details
Safeguarding of business competition • Greater possibilities for small and medium enterprises to
compete in the bidding process because large-scale contracts
may exclude smaller, local suppliers
• Demand aggregation, leading to increased market shares and
possibly to lock-in situations with overspecialized suppliers

Increased flexibility in service • Improved ability of service delivery managers to adapt more
provision quickly to changing conditions and the needs of service users,
for example, in case of emergency
• Improved effectiveness in dealing with demand heterogeneity
regarding differing needs or preferences for delivery
conditions and payment modalities
• Increased responsiveness to unexpected events such as
overconsumption or inadequate quality

Leaner procurement administration • Less bureaucracy because of shorter time frames, fewer forms
for both purchasers and suppliers, as well as fewer reporting
lines
• More scope for employees to take individual responsibility
and develop a “service” mentality
• Less scope for mistakes affecting large-volume purchases that
result in unnecessary overspending

Closer to the market •

Closer matching of goods, services, and works tailored to the
requirements of end users
• Quicker reactions to specific market dynamics, such as
innovative opportunities coming from decentralized markets
Sources: Albano and Sparro 2010; Dimitri, Dini, and Piga 2006; Glas, Schaupp, and Essig 2017; McCue and
Pitzer 2000; OECD 2000.

21
Referring to the delivery of goods and services in a timely, economical, and efficient manner (OECD n.d.-a).
28
 5.1.3. Relevance of centralization for greening PP
There are three key arguments in favor of centralization when envisaging the implementation of
green public procurement (Albano and Sparro 2010; OECD 2019b, 2000): (1) amplified
purchasing power through bulk purchases and large-scale contracts, (2) creation of social value
through internalization of positive external effects, and (3) increased specialization and deepened
professionalization as a result of pooling human resources.

[Link]. Increased purchasing power and market structure

One of the advantages of centralized systems is the increased purchasing power achieved through
bulk purchases and large-scale contracts, as “ ‘how’ the process is carried out not only determines
the efficiency and effectiveness of public spending but can also influence the behavior of the
private sector” (OECD 2019b, 12). A market “pull-effect” is exerted, creating a trend that gives
important signals to private market suppliers to meet the higher demand for environmentally
friendly products, services, and works. An assured market of relevant size and sales potential will
spur entrepreneurial spirits and motivate firms to offer new products and processes that meet green
criteria (Albano and Sparro 2010).

According to the theory of equilibrium, as the supply of sustainable solutions accelerates, their
prices will decline, and they will become more affordable for end consumers, further boosting
demand. Moreover, governments act as role models for private demand and citizens by
demonstrating their commitment to reducing CO2 emissions: “The public sector is in a position to
set forward (or even switch) the dominant standard for commonly used products and processes”
(Albano and Sparro 2010, 9f). The potential impact of governments buying green is therefore
threefold: (1) the initial effect of elevated public demand, (2) the supply-side spillover effect, and
(3) the increase in demand from private consumers.

[Link]. Social value and internalization of positive external effects

In general, eco-friendly solutions exhibit a more favorable carbon footprint than their non-green
substitutes. They consume fewer nonrenewable resources, conserve the ecosystem, and prevent
unnecessary waste and pollution throughout their life cycle. Green products, services, and works
thus create social value by generating positive or reducing negative externalities. Aggregating
demand assists in internalizing these environmental benefits, which can accrue to the whole society
(Albano and Sparro 2010).

Moreover, smaller purchasing entities in a decentralized environment often underestimate the

positive effect of buying green, and direct interests may be too close to keep at “arm’s length”
(RK07). This underestimation can be counterbalanced by centralized procurement strategies: “The
positive effects (externalities) produced by purchasing environmentally sustainable items through
local units can be magnified by large-scale centralized procurement. Since a small local
procurement unit may not give sufficient importance to the environmental impact of its tendering
competitions, the more procurements are centralized, the more this negative externality is reduced”
(Dimitri, Dini, and Piga 2006, 64).

29
 [Link]. Increased specialization and enhanced professionalization
Public sector procurement is already a very technical and interdisciplinary field, requiring a broad
set of competencies, such as specific market knowledge, business and negotiating skills, legal
expertise, and know-how in the area of costing and pricing. Greening the procurement function
adds complexity, as additional skills and knowledge are necessary in developing GPP practices,
drafting green guidelines, designing technical specification, determining award criteria, and
calculating the real cost of a purchase throughout its life cycle.

Appropriate environmental capacity must be built by training existing staff or hiring suitable
human resources. In a highly fragmented environment characterized by a decentralized PP
function, additional costs are imposed on single purchasing units. By pooling specialized resources
and sharing knowledge, which are perceived as some of the key positive externalities of joint
arrangements, these costs can be significantly reduced and economized. Moreover, centralized
procurement is seen to bring increased professionalism by employing specialist procurers, which
will further enhance economic benefits (Albano and Sparro 2010; OECD 2000).

5.2. Electronic public procurement

The term “e-procurement” refers not only to automation of the procurement process: according to
the OECD (2015, 140), e-procurement describes “the integration of digital technologies in the
replacement or redesign of paper-based procedures throughout the procurement process,” hinting
at its transformational capacity to reengineer the PP process as a whole or to modernize individual
stages of procurement. Although there is no one-size-fits-all solution in terms of functionality,
basic system architecture has two high-level components: the procurement portal and the
procurement management information system (PMIS) (ADB 2013).

A web-based PP portal serves as an interface between buyers and suppliers—either government-

to-business or government-to-government. It operationalizes the actual purchasing and provides
transactional as well as informational services to its users, including the general public. A PMIS
provides an umbrella function in soliciting, organizing, and analyzing information relevant for
managing the procurement function. While the “web portal is essentially the shop front and
postbox for government procurement,” the PMIS addresses critical PP management activities, like
monitoring and reporting (ADB 2013, 85). Both elements should be linked and ideally interface
with an integrated financial management information system (IFMIS) (AU02); however, they can
also be implemented and operated as stand-alone instruments (ADB 2013; EBRD 2015). Table 6
provides more detailed information on the options for a specific functionality.

30
Table 6: Basic model for e-procurement architecture and exemplified functionalities
System Purpose Steps and tasks
Procurement management Procurement management • Procurement planning and alignment with
information system financial planning and budgeting: transaction
and supplier analysis
• E-contract management: performance
assessment; contract settlements, variations,
and cancelations
• E-records: tracking, reporting, and auditing of
procurement activities
• Workflow management: integration and
interfacing with the integrated financial
management information system (IFMIS) and
inventory management tools

Web-based procurement Actual purchasing • E-information and e-notification: supplier and

protocol buyer registries; notification on procurement
opportunities; list of current bids; and laws
and regulations
• E-tendering and e-bidding: procurement of
specialized works, goods, and services of high
value and low volume; document and bid
uploads; bid matching and tracking; and
award decisions
• E-purchasing: procurement of standard
works, goods, and services of low value and
high volume; supplier-managed catalogs (e-
catalogs); and option for direct quotation (e-
marketplace)
• E-payment and e-invoicing: management of
all payments made and received in the
procurement process
Sources: ADB 2013; EBRD 2015.

5.2.1. Development of the hypothesis

The available literature widely acknowledges that e-government solutions, such as electronic
procurement, play an important role in mainstreaming environmental considerations into the PP
process (Adjei-Bamfo, Maloreh-Nyamekye, and Ahenkan 2019; Glas, Schaupp, and Essig 2017;
Walker and Brammer 2012); however, only one study was found that analyzes their link
empirically. Walker and Brammer (2012) focus on the relationships between sustainable
procurement, supplier communication, and e-procurement, examining whether the adoption of e-
procurement practices helps to operationalize GPP. For this purpose, they surveyed public
procurement professionals in 20 countries, finding a strong, positive, statistically significant
relationship between the use of information technology in procurement activities and
environmental, labor, health, and safety aspects of sustainable procurement. E-procurement,
however, is a rather broad term, and their paper does not provide information on which aspects of
the procurement cycle automation facilitate GPP the most.

E-procurement and how it relates to sustainable PP is an underexplored subject and needs to be

studied further. To contribute to closing this gap, how the automation of the PP function or stages
31
of the procurement cycle contribute to GPP implementation is explored next. In contrast to Walker
and Brammer (2012), focus is placed on the environmental aspect and the relevance of specific
functionality in e-procurement systems, examining hypothesis (H3b): e-procurement is essential
in enabling and facilitating GPP implementation.

5.2.2. The public sector has entered the digital era

Nowadays, public sector acquisitions of information and communication technology account for
approximately half of new capital investment globally. Such acquisitions are profoundly affecting
and transforming how governments interact with their constituents. Developing countries also
have “consistently advanced their e-government structures” (Adjei-Bamfo, Maloreh-Nyamekye,
and Ahenkan 2019, 189). Regarding the application of e-procurement, however, only a few
countries, such as Korea and Singapore, have successfully implemented straight-through and end-
to-end electronic PP solutions. In most jurisdictions, one or more stages and functionalities related
to the beginning of the PP cycle (the preparatory and tendering phases) are automated, such as e-
publication, e-tendering, and e-catalogs (ADB 2013; OECD 2015).

As conventional public contracting is “recognized as bureaucratic and rigid, requiring frequent

renegotiation and proactive conflict management,” its digitalization contributes to the evolution of
an efficient, transparent, and less bureaucratic society, with “positive impacts on buyer-supplier
relationships” (Costa, Arantes, and Tavares 2013, 238f). Governments report that using electronic
tools in public procurement offers a range of important benefits (ADB 2013; EBRD 2015; OECD
2016; RK07):

• Increased efficiency through standardization of documents, streamlining and integration of

processes, and quicker decision-making

• Enhanced transparency and accountability induced by the availability of comprehensive

PP information by suppliers, the general public, and government agencies, clear and
uniform allocation of roles and responsibilities, and improved tools to address fraud and
corruption

• Savings on procurement from increased bidder participation, lower bid prices as a result of
better and open competition, shorter processing time, and less red tape

• Balanced economic development through improved accessibility to PP information and

new business opportunities.

5.2.3. Relevance of e-procurement for greening PP

Greening PP, however, is a sophisticated undertaking. Governments may leverage the use of e-
procurement tools with a view to developing new metrics for enforcement and assessing the
impacts of GPP, which will help to reduce complexity and control the cost of implementation
(Adjei-Bamfo, Maloreh-Nyamekye, and Ahenkan 2019). Automation also reduces the amount of
paper and transport involved in tendering and hence contributes to a greening of the purchasing

32
and supply process by default (EC and ICLEI 2016). As such, e-procurement is highly relevant in
mainstreaming and operationalizing the greening of the PP function.

E-procurement systems add particular value by providing information and ratings on green
products, works, services, and suppliers in e-catalogs and facilitating the search for eco-friendly
items. They simplify defining and including mandatory eco-friendly clauses in public tenders and
contracts by using a contract management solution, monitoring (country-specific) GPP indicators,
and verifying compliance with green requirements. Automation can also support the calculation
of life cycle cost based on information provided by suppliers. Moreover, electronic procurement
is an option for harvesting the benefits of decentralization while operating in centralized systems
(Glas, Schaupp, and Essig 2017). It allows purchasers to be close to the market, while
compensating for lack in professional procurement capacity and thus combining the benefits of
both centrally organized and decentralized PP structures (Adjei-Bamfo, Maloreh-Nyamekye, and
Ahenkan 2019; Clement, Watt, and Semple 2016; EC and ICLEI 2016; Walker and Brammer
2012).

5.3. The role of life cycle costing in PP

Life cycle costing is a broad term that refers to combining cost accounting and conventional
methods of calculating investment costs with the goal of implementing more sustainable business
practices. From a user and procurement perspective, it is a “methodology to evaluate all of the
costs over the life cycle of works, supplies, or services” (SIGMA Programme 2016, 2). It
encompasses costs related to acquisition, use, consumption of resources, maintenance, and end of
life. The cost of externalities, such as greenhouse gas emissions, can be added, provided that their
monetary value can be determined and verified (EC and ICLEI 2016; Hunkeler and Rebitzer 2003;
Öko-Institut e.V. 2007); however, this is not requirement, and, as such, LCC differs from LCA
and CF calculations.

5.3.1. Development of hypothesis

The link between GPP and LCC has been analyzed before (de Giacomo et al. 2019; Iraldo, Nucci,
and de Giacomo 2016), although those papers differ from this study in that they examine whether
experience in GPP stimulates adoption of the life cycle approach in public procurement. Their
underlying hypotheses therefore assume a reverse dynamic and differing effect. Broadly speaking,
both studies find the causal links between the two concepts to be weak and emphasize the barriers
to LCC implementation, such as poor data availability, inadequate access to training and tools, and
methodological issues. The results should be interpreted with caution, though, as it is unclear
which definition of LCC they use to examine the links between GPP and LCC.22

However, the literature widely recognizes the relevance of LCC in greening the public
procurement function or at least considers a wider concept of costing beyond purchase price. Some

22
Bearing in mind the various approaches to LCC, it is possible that respondents to the questionnaires use a different
definition of LCC than the researchers, which can lead to distortions in the data set. Indeed, this distortion is
problematic throughout the literature, as it challenges the comparability of research results.
33
studies have found a positive statistical correlation between the inclusion of a life cycle perspective
in public tendering and the greenness of a tender (de Giacomo et al. 2019; Iraldo, Nucci, and de
Giacomo 2016; Morton and Perfrement 2009; Öko-Institut e.V. 2007; Testa 2016). This section
examines hypothesis H3c: the application of LCC and the integration of LCC in the procurement
process will foster the uptake and implementation of GPP.

5.3.2. LCC methodology and practice in public procurement

There is no uniform terminology for LCC, and various terms are used interchangeably, such as
total cost of ownership, whole life costing, and whole life value. Initially, the life cycle engineering
approach was deployed in the production phase of goods to increase their quality while reducing
costs, as the design of a product can be a major driver of cost. In the public sector, LCC was first
deployed by the US Department of Defense in the purchase of military equipment. The use of this
tool was “stimulated by findings that operation and support costs for typical weapon systems
accounted for as much as 75 percent of the total cost” (Asiedu and Gu 1998).

Buildings provide a good example of follow-up costs over the life cycle of an investment. Figure
1 demonstrates the distribution of life cycle costs of an office building during the 70 years after its
construction, showing that initial investment costs account for just 20 percent of total costs. A
study that calculates and compares life cycle costs for 11 product groups consisting of 27 product
types finds, “In most cases the operating costs have a significant share of the purchasing
authorities’ total costs” (Öko-Institut e.V. 2007, 2). It recommends taking them into account in
purchasing decisions.

Figure 1: Life cycle cost of an office building

Source: Estevan and Schaefer 2017, 29.

Costing systems and costing practices are constantly evolving and are determined to a large degree
by what the organization aims to achieve (Mohr 2019). Hence, the LCC practice is far from
uniform and standardized, and procurers around the globe have adopted a variety of approaches,
34
formats, and methods (Morton and Perfrement 2009). The various approaches to LCC assessments
differ in their degree of comprehensiveness regarding the costs taken into account. The
“conventional” LCC methodology—the most common one—deals with traditional financial
assessment and includes, broadly, four types of costs (figure 2). The conventional approach,
instead of trying to monetize external costs, views government taxes as they relate to
environmental aspects or resource use as some form of internalized externality. To this extent, it
resembles the classic TCO concept often used in the private sector. 23

The LCC methodology implies considering a certain time horizon; as such, it contains an element
of market forecast to estimate the future prices for operating media (such as electricity, fuel, and
gas). A discount rate can be included in the calculation, as present and future costs have to be
evaluated differently. For each product or service, the relevant cost elements are considered,
whereas their “relevance” is determined either by their share in the overall costs of the item
purchased or by whether they are specific to their green or non-green, properties. Not least, the
methodology requires the allocation of related indirect or overhead costs (Estevan and Schaefer
2017; Iraldo, Nucci, and de Giacomo 2016; Öko-Institut e.V. 2007).

LCC analysis is applicable not only in the awarding phase of PP but also in various stages of the
PP process, as presented in figure 3.

Figure 2: Conventional life cycle costing model in the public sector

Acquisition cost Operating and maintenance cost

• Purchase price • Consumption of energy and other

• Transportation consumables or resources
• Installation • Repair cost and service charges
• Commissioning • Training
• Taxes and government aid
• Insurance cost

Disposal cost
• Decommissioning Residual value
• Cost of waste treatment
• Revenue from sale
• Disposal
• Value of object after its useful life if still
• Recycling
in use

Sources: Estevan and Schaefer 2017; SIGMA Programme 2016; Testa et al. 2016.

Despite the numerous advantages for organizations, the application of LCC today is still very
limited, particularly in the public sector, and not common practice in GPP (de Giacomo et al. 2019;
Estevan and Schaefer 2017; Testa 2016). According to a 2013 UNEP report, the majority of
respondents said that they use LCC “sometimes for some product categories” or “rarely,” 17
percent don’t use it at all, while only 2 percent use it in all procurement cases (UNEP 2014).

23
TCO is used to calculate the total cost of purchasing and operating a technology product or service over its useful
life.
35
Figure 3: LCC analysis and stages of the public procurement process
Preparatory phase:
to assess the life cycle cost of currently used products, services, and works

Tendering phase:
to determine technical specifications and award criteria

Awarding phase:
to compare the costs and environmental impacts of different offers

Monitoring phase:
to evaluate improvements compared to currently used products, services, and works

Source: Estevan and Schaefer 2017.

5.3.3. Relevance of LCC for greening PP

Green procurement is concerned with the longer-term consequences of each purchase, focusing on
the environmental effects of products and services throughout their life span. Life cycle costing is
the appropriate instrument for integrating economic and sustainability considerations in public
procurement. Presumably, a price premium must be paid for the greener option, but it is often
“offset through efficiency gains, cost savings, and lowered risks during the product/project
lifetime” (Morton and Perfrement 2009, 1).

Financial and nonfinancial gains offered by green substitutes often accrue over the whole life
cycle; hence, the purchase price is not an optimal indicator of value-for-money. LCC helps to
direct public funds toward goods, services, and works that reduce the consumption of energy,
consumables, and natural resources, prevent waste, and improve livelihoods. Oftentimes, the use
phase is very cost-intensive; hence LCC has the capacity to detect the economically most
advantageous bid and demonstrate real value-for-money, while at the same time identifying the
most environmentally sustainable solution (Hunkeler and Rebitzer 2003; Morton and Perfrement
2009).

6. Findings and recommendations

Although green public procurement has received increasing attention over the past decade,
stimulating an academic debate on the potential of public procurement to address climate change,
few research papers cover this topic. This study has investigated how the PFM system can help to
establish green considerations in public procurement so that government spending can contribute
to a reduction in CO2 emissions. It has sought to shed light on how exactly the PFM system and
climate change considerations are interrelated via public procurement and what this interrelation
means for greening the PP function. The existence of structural obstacles indicates the need for
technical interventions to optimize the PFM environment in order to absorb greening reforms in

36
public procurement better and more effectively. The focus is on identifying enablers for greening
PP by looking through the PFM lens.

A purely functional approach was adopted to draw specific recommendations. Rather than
categorizing countries according to their level of economic development, the proposed menu of
options considers the functional maturity of aspects of their PFM system, while taking into account
capacity issues. PFM systems differ widely in their characteristics and performance among
countries at the same level of economic development. Moreover, the level of economic
development of a specific country does not necessarily correlate with the performance of its PFM
system. This broader systemic and functional approach is novel in the literature.

The research addressed three research questions:

1. Can public procurement contribute to a reduction of CO2 emissions?

2. Is there is an implementation gap between the GPP regulatory framework and GPP
practice?

3. How can the PFM system contribute toward closing the implementation gap and greening
PP?

6.1. Governments can have an impact on CO2 emissions

through GPP
Although the size of the effects of GPP measures on CO2 emissions is difficult to interpret, taken
together, these numbers provide evidence that GPP does have an effect on CO2 emissions. The
experts interviewed all agreed with this finding. The potential for GPP to reduce emissions results
from the sheer volume of public sector purchases, among others (RK03). The public sector is
predisposed to lead the way in greening because it is in a position to take risks in the form of
paying a higher purchase price or using innovative technology (TN03). Also, governments can
combine green targets with other targets to reap the benefits of mutual reinforcement. For example,
social targets that create a social impact may have a further impact on emissions. At the same time,
governments must consider other potential outcomes associated with greening, which implies
maintaining flexibility with regard to the impacts or outcomes of green measures (TN05). For
example, if government is considering shifting to solar energy to curb emissions, it should also
consider the additional waste that this shift may create (TN05). Not least, governments can lead
the market (a) by displaying a willingness to procure green products if they provide subsidies or
grants to suppliers who are willing to go green (TN03) or accept a higher purchase price in favor
or choosing a green product (TN03) (which in many cases will still have a lower cost over its life
cycle than a non-green product) or (b) by holding companies accountable not only for how they
spend their money, but also for their emissions (CO2 budgeting).

The sectoral analysis illustrates which economic sectors or product groups are more suited for
greening—that is, it identifies “hot spots” for greening. For example, the potential for greening
differs widely for different modes of transport, while this discrepancy seems to be much smaller
37
for different types of lighting. Thus, if governments want to reap the potential of GPP to reduce
emissions, they should focus on those sectors where the impact of GPP is expected to be highest
(TN05). They should consider how easy it is to green the sector as well as the size of the sector
and how much market power the government has in it.

The potential of GPP to reduce CO2 emissions has not been fully realized (TN05), and
governments have to continue closing the implementation gap.

6.2. In the majority of countries, there is an

implementation gap
The research has found that countries are at varying levels of GPP implementation, ranging from
no implementation at all to an advanced stage of implementation. However, even advanced GPP
countries have not completely greened their procurement function, and having implemented green
criteria does not mean that the greener products are being bought effectively. Thus, careful
consideration has to be given not only to “who implements,” but also to “who buys” (RK02).
Moreover, resistance to greening is evident even in advanced GPP countries. It is therefore
important to implement GPP as inclusively as possible (TN02) and to ensure that GPP does not
“get stuck on a ministerial level” (TN04). Given the absence of a clear definition of GPP, having
measurable GPP indicators for monitoring the uptake of green criteria plays a vital role in this
regard.

With a view to greening the public procurement function, the existing PFM environment is crucial,
as certain systemic preconditions have to be met in order to mainstream eco-friendly
considerations successfully into PP.

6.3. The PFM system can contribute toward closing the

implementation gap and greening PP
Several challenges to implementing GPP across countries and service or product groups can be
addressed from the PFM perspective. The PFM system offers solutions and tools for surmounting
these obstacles in the form of organizational, operational, and financial conduct: in addition to the
organizational form of PP (hypothesis H3a), e-procurement (hypothesis H3b) and LCC
(hypothesis H3c) can play important roles in closing the implementation gap and greening the PP
system.

The remainder of this subsection outlines concrete recommendations for how to modify PFM
enablers to support GPP implementation.

38
 6.3.1. The organizational structure of the PP function is crucial with
regard to greening
The academic discourse focuses on the two main structural archetypes of PP: centralized or
decentralized. Conceptualizing PP in this way can be misleading, as it does not differentiate
between legal and organizational aspects. Furthermore, many countries pursue a nuanced approach
by mixing elements of centralization and decentralization in organizing their procurement
operations: the Netherlands, for example, has a legally decentralized PP environment but exhibits
frequent institutionalized collaboration in its PP operations (TN03). Austria, by contrast, has
established a central purchasing body at the federal level, but only for buying consumer goods,
and separate purchasing decisions of individual entities are possible, but discouraged (AU02).
Finally, Korea operates both centralized and decentralized systems to ensure a certain level of
autonomy for individual local governments and public institutions (RK04). In practice, there is no
fully articulated centralized or decentralized public procurement function; rather, systems show a
“degree of centralization” (Glas, Schaupp, and Essig 2017), which is the preferred terminology in
this context.

The degree of centralization ranges from low, taking the form of ad hoc arrangements of a
collaborative nature, to high, ushering in the establishment of (centralized) permanent purchasing
bodies. Various types of organizational procurement practice can be found across all levels of
government: “central purchasing agency, national purchasing groups, regional procurement
groups, situation-specific local buying consortia, central framework contracts for decentral[ized]
use, international buying centers, specialized agencies for categories (e.g., medicine or defense),
shared service centers, outsourced purchasing offices to private sector, purchasing offices in the
form of public-private partnerships, and … many other organizational practices and supportive
instruments, such as e-procurement platforms” (Glas, Schaupp, and Essig 2017, 576).

During the field research, participants differentiated between legal and organizational
centralization. There is evidence that, in general, some degree of centralization is necessary to
mainstream environmental considerations into the PP function and institutionalize GPP. This
evidence supports hypothesis H3a: centralizing the PP function facilitates the implementation of
GPP. In Austria as well as in the Netherlands, institutionalized cooperation is a vital ingredient of
implementing GPP: the Austrian PP landscape is highly centralized, with a central purchasing
body and specialized buying centers at the federal level as well as regional purchasing bodies in
five of nine regions that aggregate demand from their municipalities. The Netherlands, although
decentralized from a legal perspective, uses procurement collaborations at the municipal level to
negotiate joint green criteria for purchase projects and one-stop-shop centers to support the demand
as well as the supply side of GPP. In Korea, the public sector is uniformly represented via an e-
procurement portal, facilitating GPP. Furthermore, participants highlighted the efficiency gains
for GPP resulting from centralized structures (AU01; AU02; AU03; AU04; RK01; RK02; RK03;
RK04; RK07; TN02; TN03).

Regarding the advantages of having a higher degree of centralization, participants focused on three
main aspects:

39
 1. Strategic public procurement,24 such as GPP, requires all institutions affected to adopt a
structured and coordinated approach. The more stakeholders are involved, as is the case in
decentralized, fragmented PP environments with a low degree of institutionalized
cooperation, the higher is the reconciliatory effort that has to be made and the more the
implementation process becomes essentially unmanageable (AU01; AU02; AU03; RK07;
RK02). This is especially the case if there is a low level of understanding or awareness of
GPP (RK01).

2. Pooled knowledge and a higher degree of professionalization are uncontested positive

factors of more centralized PP structures, especially with a view to the specific knowledge
required for GPP (AU03; AU02; RK01).

3. In principle, increased market power as a consequence of demand aggregation contributes

to successful GPP implementation. However, aggregating demand with the aim of
incentivizing sustainable production is only relevant in branches where the public sector
already has a high market share (AU02; TN03; TN04).

Although there is evidence for hypothesis H3a, this does not necessarily mean that (legal)
centralization of public procurement per se should be promoted altogether, unless, in addition to
considering GPP implementation, centralization can tackle other challenges within the PP
system.25 From the perspective of the primary objectives of public procurement,26 there are good
reasons for choosing either organizational structure (as described on tables 4 and 5). Although
“full” centralization for the sake of greening PP seems neither sensible nor necessary (TN05),
switching to a higher degree of centralization should be envisaged as supporting GPP
implementation. However, it is difficult, if not impossible, to define the “right” degree of
centralization, as this depends on the country context and status quo: following the advice of
Albano and Sparro (2010), employing a flexible approach by choosing from a menu of options
seems a pragmatic way forward.

The field research also identified another structural issue: fragmentation of the PP function
(TN05). While the responsibility for public procurement law typically lies within one ministry (the
Ministry of Justice in Austria and the Ministry of Economic and Climate Policy in the
Netherlands), PP policies concerning innovation, social, or environmental sustainability and
implementation responsibilities are often scattered across several ministries, departments, and
agencies. Moreover, PP is hardly perceived as part of the PFM process, reflected in the fact that
the central financing agencies, such as the ministry of finance or treasury, only play a minor role
in the process. Consequently, clear and sufficiently mandated reform drivers are missing at the
administrative level, a role often performed by central financing agencies. Hence, proper
implementation of GPP is lacking, and injecting tools “without making other changes may not to
be effective” (Fritz, Verhoeven, and Avenia 2017, 39).

24
Strategic public procurement “refers to the broadest concept of PP which, in the context of the ‘Europe 2020’
Strategy, comprises not only economic, social, and environmental goals, but also innovation and a number of other
possible objectives of public policy, such as education and public health” (Handler 2015).
25
Such as corruption, lack of professional capacity, and other inefficiencies leading to wasteful handling of public
funds.
26
Referring to the delivery of goods and services in a timely, economical, and efficient manner (OECD n.d.-a).
40
The following recommendations are intended to address these issues.

1. Buyer groups—a collaborative ad hoc arrangement of several buying entities—are the

minimum option in terms of strategic cooperation to buy green. In 2020 in the Netherlands,
which has a legally decentralized PP environment, more than 200 public sector entities
were organized in 16 buyer groups to coordinate on joint green purchasing criteria, and
there were 51 procurement collaborations at the municipal level, some of which resemble
a shared service center, while others do joint procurement and hence aggregate demand on
a structural basis (TN03). In the case of buyer groups, the market is confronted in a unified
way, which helps bidders to identify common preferences of the public sector and to adjust
their supply accordingly and sustainably. This minimum option should be complemented
by specialized supporting agencies, organized as one-stop shops, offering advice to both
the demand and the supply sides and providing technical support related to GPP aspects.
This approach has proven successful in the Netherlands, where buyer groups are not
formed at the initiative of the municipalities, but their establishment is coordinated and
funded by such a supporting agency (TN02; TN03; TN04).

2. Aggregating demand across several public sector entities to conduct joint purchases is
another possibility. In the case of homogeneous contracts for similar products and services,
demand aggregation can lead to economies of scale by lowering transaction costs (Albano
and Sparro 2010), especially when the green substitutes of those products and services have
significantly lower life cycle costs and lighter carbon footprints (for example, energy and
information technology hardware). This approach can be organized as noninstitutionalized
arrangements, as in the Netherlands, where at federal level, one ministry is responsible for
the procurement of all other ministries in certain categories (TN03).

3. Central purchasing bodies fall under the category of institutionalized joint procurement and
are generally seen as very effective in implementing GPP. However, demand aggregation
should be considered at the lowest possible level of government—for example, purchasing
bodies at the federal level should administer the procurement of central government
entities, and purchasing bodies at the regional level should oversee the purchases of
municipalities. In the interviews, experts frequently mentioned the combined benefits of
centralized procurement and markets as well as proximity to buyer needs (AU02; AU04;
RK03; TN06).

4. GPP implementation works best in PP environments that exhibit a higher degree of

centralization. However, electronic procurement can also harvest the benefits of
decentralization while operating in centralized systems (Glas, Schaupp, and Essig 2017;
RK01). When state-of-the-art e-procurement systems are employed, how the procurement
function is organized becomes of secondary importance: these systems simplify the search
for eco-friendly suppliers, defining and including mandatory eco-friendly clauses in public
tenders and contracts by using a contract management solution, monitoring the use of green
criteria, and verifying compliance with green requirements. In this manner, modern e-
procurement allows purchasers to be close to the market while also compensating for lack

41
 of professional procurement capacity; it thus combines the major benefits of both
organizational structures.

5. Irrespective of the degree of centralization and the chosen option to cooperate strategically,
the institutional setup of public procurement should be addressed. Complex and
fragmented environments can affect the potential for pursuing PFM reforms (such as GPP
implementation) and may “entail gaps, blockages, or friction if the roles of various
ministries, departments, and agencies are not sufficiently well defined or are partially
overlapping or competing” (Fritz, Verhoeven, and Avenia 2017, 40). Public procurement
is part of the PFM function and should be viewed as such; it is not just a legal or a business
matter. Consequently, it should be integrated organizationally under the roof of the central
financing agency, such as the ministry of finance or treasury, in order to be managed
holistically. Alternatively, but equally effectively, the central financing agency could be
mandated to conduct PP control and monitoring (including GPP activities), ideally across
all levels of government, to solicit data and improve comprehensibility, because only what
is known and visible becomes manageable. Similar efforts have been undertaken in Austria
based on recommendations of the country’s supreme audit institution, where to date there
have been only estimates as to how much the public sector, including all levels of
government, spends on procurement activities (AU02; AU03).

6.3.2. E-procurement can facilitate greening the PP function

The OECD, in its Recommendation of the Council on Public Procurement, stipulates that
employing recent information and communication technology to integrate e-procurement solutions
will contribute to improving primary PP objectives, such as the timely, effective, and efficient
delivery of public services to citizens in an economical manner (OECD n.d.-a). This
recommendation is echoed in academic studies, such as Costa, Arantes, and Tavares (2013) on the
impacts of e-procurement application and Adjei-Bamfo, Maloreh-Nyamekye, and Ahenkan (2019)
on the role of e-government in sustainable public procurement in developing countries. While the
former study mentions boosted collaboration, integration of business processes, and promotion of
GPP, the latter highlights the capacity of e-solutions in the public sector to address corruption
caused by information asymmetry.

The interviews largely support these statements, because digital transformation is seen as an
effective enabler for including horizontal policy goals, like greening, in the PP function (AU01;
AU02; AU03; AU04; RK02; RK04; TN01; TN04; TN06). The formal, more administrative
phases, such as tendering and award, are more static in nature and can be embedded as a sequence
of industrialized processes (AU02), requiring less human interaction. In turn, digital
transformation frees resources to strengthen the more qualitative tasks of the pre- and post-tender
phases, such as screening markets for suitable suppliers and monitoring contract implementation
to make sure that what is bought is delivered. Public value is created in these stages of public
procurement, which contributes significantly to buying green as opposed to simply greening the
process itself. In Korea automation makes public procurement more convenient, which enables
greening because it frees up time and resources (RK02; RK04; RK06; RK07). Moreover, the entire
public procurement market is monitored electronically, which supports the effective
implementation of procurement policies (RK06).
42
As electronic markets are about to become the norm globally, it seems reasonable to include the
transition to fully automated public procurement in any reform agenda. Reservations in this regard
refer to implementation issues only. Specifically, in low-capacity countries, hurdles include
insufficient infrastructure, unfavorable user-interface, and high internet user fees, weak data
security, lack of capacity to use available e-services, and absence of native language options
(Adjei-Bamfo, Maloreh-Nyamekye, and Ahenkan 2019). However, the degree and depth of
digitalization and the level of development in a given country do not necessarily correlate. Even
in advanced GPP countries, some sectors, such as handicrafts or farming, tend to have less affinity
for information technology than others (AU02). At the same time, even some basic GPP countries,
such as Romania, have well-functioning e-procurement systems. In these countries, e-procurement
is a valuable tool for implementing GPP.

The following recommendations address how e-procurement can support primary PP objectives
as well as a greening of the PP function.

1. Most important, in order to yield the benefits associated with digitalization of the PP
function, the implementation of electronic solutions should be accompanied by a
reengineering of the whole PP process and not simply mirror manually handled paper-
based processes. This reengineering makes it possible to redirect human resources to the
stages where they add the most value in terms of achieving societal goals, such as
environmental protection (EBRD 2015; OECD n.d.-a; AU02).

2. Certain e-procurement elements and tools are especially helpful in terms of greening: in
the preparatory stage, which can be optimized by being electronically supported, state-of-
the-art artificial intelligence solutions could be employed, allowing for large-scale online
research to identify markets and solutions, ultimately replacing time-consuming manual
scanning for green works and products (AU02). In this vein, the Korean government plans
to reorganize KONEPS using artificial intelligence and customized information per
industry and region based on big data (RK06).

3. The goal of GPP is to buy green, which can only be evaluated if post-award data are
available. Contract management and monitoring tools support the quality assurance
process and facilitate the evaluation of whether what is written in the legal frameworks is
actually implemented. This role not only is vital in developing the supply side but also
provides policy makers with the data necessary to refine guidelines and identify the need
for action. Experts are convinced that transparency creates trust, which is an important
ingredient, as greening PP requires a high degree of collaboration (AU02; AU03; TN01;
TN05).

4. In line with international standards,27 all stakeholders need to have one single point of web-
based access to PP information. A PP portal is considered one of the most important tools
for generating competition and lowering the barrier for suppliers wishing to participate in

27
Such as the World Trade Organization Agreement on Government Procurement, the 2011 UN Commission on
International Trade Law Model Law on Public Procurement, and the OECD Recommendation on Public
Procurement.
43
 public tenders. It should be intuitive and user-friendly so that suppliers with basic internet
literacy can handle the system easily. Furthermore, all public tenders and award decisions,
including associated contracts, should be published, as is done in Korea (RK06). The
formal criteria for participation should be harmonized for all suppliers, and registration
should follow the “Once Only” principle (Adjei-Bamfo, Maloreh-Nyamekye, and Ahenkan
2019; EBRD 2015; OECD n.d.-a; AU02; KR05).

5. E-procurement design should be “modular, flexible, scalable, and secure in order to assure
business continuity, privacy, and integrity, provide fair treatment, and protect sensitive
data, while supplying the core capabilities and functions that allow business innovation”
(OECD n.d.-a, 10). Any e-procurement tool should be designed such that it can be
interfaced easily with other tools and a PP portal as well as with PMIS and IFMIS platforms
(plug-and-play) (Adjei-Bamfo, Maloreh-Nyamekye, and Ahenkan 2019; EBRD 2015;
OECD n.d.-a; AU02).

6. Any e-procurement reform should address the challenges that hinder buying from local and
remote small and medium enterprises (Adjei-Bamfo, Maloreh-Nyamekye, and Ahenkan
2019; EBRD 2015; RK03; RK07). To improve the participation in PP of local, remote
small and medium enterprises that are not fully e-enabled, regional cooperation could help
to ensure proximity to suppliers. Moreover, to support local firms in developing countries
to compete in public tendering, setting a quota of public contracts for local firms and
centers with free wifi access could be considered (Adjei-Bamfo, Maloreh-Nyamekye, and
Ahenkan 2019; AU02; AU04). Korea has a government procurement call center that
supports small businesses in participating in the bidding through KONEPS. The call center
provides support for difficulties related to use of the program, explains regulations, and
responds to questions (RK06).

6.3.3. LCC can be helpful but is not crucial for greening

While some participants argued that (conventional) LCC plays a vital part in greening the PP
function (AU02; TN02; TN04), others viewed it as a “marketing tool” to make a business case for
GPP (TN01; TN06). Hence, the evidence regarding hypothesis H3c is mixed. In the following, it
is argued that the main issue with LCC in the context of GPP is a structural one.

In the spirit of a TCO (conventional LCC), LCC only makes sense for product groups that have
follow-up costs, as this is where a conventional LCC shows the financial advantages of green
products, services, and works (Öko-Institut e.V. 2007; AU02). However, when post-acquisition
costs are negligible, which is the case for food, paper products, electricity, and clothing, the greener
product, service, or work does not generate financial benefits that accrue directly to the public
buyer (Albano and Sparro 2010). In this case, the purchase price either correlates with the LCC or
is higher for the environmentally friendly option. As a result, LCC does not enable GPP
implementation. In addition, if buying green is more expensive, other necessary items cannot be
purchased, as is typically the case for public sector entities facing budget constraints. In the worst
case, buying green could compromise the entity’s ability to deliver public services of consistent
quality.

44
This research clearly shows that the higher price—whether actual or perceived—of ecofriendly
products, works, and services is by far the biggest obstacle for GPP implementation (AU01; AU02;
AU03; TN03; TN05). This hurdle cannot be overcome by applying LCC, nor can it be solved
solely at the level of procurement.

Moreover, even where conventional LCC serves its purpose and makes transparent the financial
gains over the life cycle of a sustainable purchase, LCC only provides a potential justification for
the buying decision. The purchase price might still be higher and more budgetary means might be
required in the short run, which relevant stakeholders need to be willing to accept (TN03). With
very few exceptions around the globe (for example, the United Kingdom), budget allocation
decisions are not taken on the basis of costs, but on the basis of expenditures, which are two
fundamentally different and nonaligned rationales. If cost accounting does not equally inform
budget planning and budget allocation processes, this structural break is not manageable at the
level of budget execution; in such an environment, procurers do not need to be convinced, but
those who allocate the budget do (TN05). Procurers need to be enabled to conduct GPP, which
requires financial means and a strong incentive or legal provision.

The structural issue touches on the core problem with GPP implementation and must be viewed
from a systemic PFM perspective, as indicated by the OECD’s recommendation to introduce
financial, budgeting, and accounting measures to ensure that public procurement policies and
practices consider the environmental costs of products and services. GPP is not a singular measure
(TN01; TN03); it has to be seen in the context of a specific PFM environment. A shift in paradigm
is required with respect to greening PFM practice as a whole toward a cost-sensitive system that
allows for climate-informed decision-making. In that vein, the following measures are
recommended.

1. Cost accounting is still rather underdeveloped in the public sector, although the concept of
“cost” is of high relevance in managing public funds: not only does it increase the visibility
of the cost of public service delivery, but it ultimately informs public financial sustainably
strategies (Mohr 2019, 149). From a PFM perspective, the application of cost management
principles in PP, such as LCC, seems advisable with a view to enhancing sustainability, as
it helps to push down “sustainable financial decision-making into the organization” (Mohr
2019, 149). However, bearing in mind the numerous challenges in applying a fairly
complex accounting technique such as LCC (de Giacomo et al. 2019; Iraldo, Nucci, and de
Giacomo 2016), a certain pragmatism is indicated (AU02). One option is to focus on
relevant direct life cycle costs and to forgo the monetization of external effects (AU02), as
indicated by the conventional LCC method. Most important, for LCC to support GPP
implementation, the data and evidence generated in the costing process provide vital
information (Albano and Sparro 2010) and should be integrated with (multiannual) budget
planning and forecasting.

2. For those product, service, or work groups with significant post-acquisition costs (which
are among the drivers of CO2 emissions), the application of conventional LCC not only
could be institutionalized in the policy framework but also made a legal requirement on
which to base purchasing decisions. In these cases, life cycle costing can be an important
means to demonstrate the best use of taxpayer’s money. Empirical evidence, based on

45
 studies carried out in 2009 and 2011 in EU countries, points to savings in total costs that
can be generated when life cycle–related or operating costs are considered in public
tenders: an average 1.2 percent reduction in life cycle costs and 25 percent reduction in
CO2 emissions could be achieved, while half of the respondents reported that costs
remained constant or fell when green solutions were chosen in the PP process (EC and
ICLEI 2016). This could be one path for reducing PP decisions based on the lowest
purchase price and for minimizing the dilemma for procurers. However, to ensure a level
playing field and create legal certainty, LCC calculators, methodological tools, and
guidelines should be made available.

3. Small public agencies often underestimate the positive externalities of buying green, which
adversely affects their sustainable purchasing decisions: “A buyer caring about her own
utility only will not be willing to pay a higher price in order to bring a positive externality
(or avoid a negative one) to society” (Albano and Sparro 2010, 14), which is where
centralized procurement arrangements come into play. By aggregating demand for
environmentally friendly solutions, a bigger fraction of the overall reduction in negative
externalities can be reaped, revealing clearly the societal advantages of green sourcing
decisions. In addition, lack of expertise is typically regarded as a barrier to the application
of life cycle costing, a challenge that is exacerbated in decentralized settings characterized
by smaller purchasing entities and low-capacity environments. The pooling of resources,
sharing of knowledge, and high degree of professionalization are distinctive features of
centralized procurement agencies, which can provide a way forward in addressing the
challenges (Albano and Sparro 2010; Öko-Institut e.V. 2007).

4. Third-party eco-labeling is a voluntary method used to certify environmental performance

of a product, service, work, or supplier. It can be included in public tendering as part of the
technical specification or award criteria and is an efficient alternative for incorporating the
principles of life cycle thinking into public procurement (AU04; RK02; RK05; RK06). In
Korea, the Eco-label certification system is fundamental for GPP, as it has made a large
contribution to greening the procurement function (RK03; RK04). Moreover, according to
the Act on Contracts to Which the State Is a Party, a “limited competition system” only
allows those products certified by the Eco-label to join the public bidding (RK06). “By
providing means of third-party verification, labels can help to save time while ensuring that
high environmental standards are applied in public procurement” (EC and ICLEI 2016,
37).28 This assurance seems particularly relevant for less mature PFM systems with low
capacity as well as a fragmented and decentralized procurement function.

5. From a systematic point of view, GPP as a singular measure will not succeed if there is no
minimum integration with the budgetary phase. One option is to integrate budget planning
and execution structurally by shifting the financial paradigm to a cost-sensitive system.
Another is to include in the GPP reform budget not only expenditure in direct relation to
GPP implementation but also a higher budget allocation for PP to cover higher expenditure
in the short run.

28
In this regard, the scope of green products available should not be too narrow (RK07), and receiving a label should
not be too easy (RL01).
46
7. Conclusions
The public financial management environment is crucial for greening the public procurement
function. Certain systemic hurdles have to be overcome in order to mainstream eco-friendly
considerations into public procurement.

First, reforms to the PP system need to be addressed through a comprehensive change process.
Public procurement is part of the PFM function—consequently, it should be viewed as such and
not just as a legal or business matter. The GPP endeavor should be planned along the various steps
of administrative reform, as depicted in a classic policy implementation cycle. Merely changing
the provisions without a proper implementation process will lead to failure. Moreover, the process
has to include all relevant stakeholders—buyers and suppliers alike—as well as the whole supply
chain, as GPP should be introduced in tandem with markets and met with goodwill and conviction
from buying institutions.

Second, effective implementation of GPP requires central coordination efforts, even in highly
decentralized PP environments. GPP implementation will most likely be very difficult in fully
decentralized environments unless a high e-procurement system is available and equipped to tackle
this challenge. A minimum “degree of centralization” is necessary to green the PP function—that
is, the public sector needs to face the market in a coordinated manner in order to unravel its full
potential market power, drive markets in a more sustainable direction, incentivize greener
production, and pool the necessary expertise.

Third, budget planning needs to be aligned with budget execution. Substantial consideration
should be given to integrating budget planning processes and budget execution in the case of GPP.
The (perceived or actual) higher purchase price for eco-friendly products, works, and services is
the biggest obstacle for GPP implementation. This challenge cannot be solved at the level of
procurement because it affects budget allocation decisions. One option is to integrate budget
planning and execution structurally by shifting the financial paradigm to a cost-sensitive system:
with very few exceptions around the globe (for example, the United Kingdom), budget allocation
decisions are not taken on the basis of costs, but on the basis of expenditure, which are two
fundamentally different and nonaligned rationales. Ideally, cost accounting equally informs budget
planning and budget execution. At the very least, the GPP reform budget should include not only
expenditure in direct relation to GPP implementation but also higher allocations for PP to cover
higher expenditure in the short run.

From a systemic PFM point of view, GPP as a singular measure will struggle to succeed in the
absence of a minimum integration with the budgetary phase. If a government ultimately wants
(and is required) to reduce its CO2 emissions, it should embrace a more holistic approach and
consider greening the broader PFM cycle. The necessary tools are being developed by the
international (research) community, including, in addition to GPP indicators, measures such as
CO2 budgeting (accompanied by life cycle analysis or carbon footprint methodology in the budget
implementation phase), budget tagging, environmental financial accounting and reporting, and
green public auditing, some of which are already being implemented. These instruments help to
generate information on negative environmental externalities caused by public sector activities as

47
well as on the financial and other impacts of climate change, enabling governments to make
climate-informed decisions.

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UNFSS (United Nations Forum on Sustainability Standards). 2020. Scaling up Voluntary

Sustainability Standards through Sustainable Public Procurement and Trade Policy: 4th
Flagship Report. Geneva: UNFSS.

van der Zwan, J. 2018. “A Qualitative Study on the Status and Prospects of Green Public
Procurement in Slovakia.” Research Paper, Agenda for International Development.

Walker, H., and S. Brammer. 2012. “The Relationship between Sustainable Procurement and E-
procurement in the Public Sector.” International Journal of Production Economics 140 (1): 256–
68.

Xpress. 2020. “Green Companies for Green Regions and Green Cities: The Role of Green Public
Procurement to Foster Innovations in Renewables.” Xpress (webinar), July 15, 2020.

Zhu, Q., Y. Geng, and J. Sarkis. 2013. “Motivating Green Public Procurement in China: An
Individual Level Perspective.” Journal of Environmental Management 126 (September 15): 85–
95. [Link]

57
Appendix A: Interviews conducted
Table A.1: Interviews conducted in Austria
ID Organization interviewed Name and function of interviewee Date of interview
AU01 Bundesministerium für Klimaschutz, Umwelt, Karin Hiller, naBe coordinator, Stellvertreterin des January 11, 2021
Energie, Mobilität, Innovation und Technologie der Abteilungsleiters
Republik Österreich (BMK)
AU02 Bundesbeschaffung GmbH (BBG) Jürgen Jonke, Bereichsleiter strategische Beschaffung January 14, 2021
Stefan Wurm, head, communications January 19, 2021
Markus Hof, head, Kompetenzzentrum, gesellschaftspolitische
Beschaffungsziele
Gerhard Weiner, head, Plattform Nachhaltige Beschaffung
Uwe Flach, head, consulting and international affairs January 21, 2021
AU03 Bundesministerium für Finanzen der Republik Jakob Köhler, coordinator, Abteilung Beschaffung und January 22, 2021
Österreich (BMF) Infrastruktur BBG
AU04 Vorarlberger Gemeindeverband, Dietmar Lenz, head, ÖBS January 22, 2021
ÖkoBeschaffungsService (ÖBS)

58
Table A.2: Interviews conducted in the Republic of Korea
ID Organization interviewed Name and position of interviewee Date of interview
RK01 Busan Metropolitan City Young-shin Ahn, deputy director, Environmental Policy Division March 3, 2021

RK02 Korea Environmental Industry and Hong-seok Kim, senior research fellow, Sustainable Lifestyle January 28, 2021
Technology Institute (KEITI) Office
Sang-hoon Park, researcher, Sustainable Lifestyle Office
Hyun-Hee Lee, senior researcher, Green Transition Support
Division
RK03 Korea Green Purchasing Network (KGPN) Jee-An Yang, chief of KGPN January 28, 2021

RK04 Korea Institute of Procurement (KIP) Sanghoon Lee, senior research fellow January 27, 2021
RK05 Ministry of Environment Yu-Kyung, Lee, assistant deputy director, Environmental March 10, 2021
Education Team
RK06 Public Procurement Service (PPS) Byung-Chul Lee, deputy director, Procurement Management January 29, 2021
Division
Hae-Young Lim, deputy director, e-Procurement Planning
Division
RK07 Local Governments for Sustainability and Yeon-Hee Park, executive director, ICLEI, Korea Office February 1, 2021
Public Procurement Analysis (ICLEI) Korea

59
Table A.3: Interviews conducted in the Netherlands
ID Organization interviewsed Name and position of interviewee Date of interview
TN01 Foundation for Climate Friendly Procurement and Maud Vastbinder, project manager, research and January 20, 2021
Business (SKAO) innovation
TN02 Netherlands Enterprise Agency (RVO) Selina Roskam, knowledge broker for sustainable February 9, 2021
construction

TN03 Professional and Innovative Tendering Network for Floris den Boer, coordinating adviser January 14, 2021
Government Contracting Authorities (PIANOo)

TN04 Rijkswaterstaat (RWS) Jasper Flapper, senior adviser for sustainable February 18, 2021
procurement
TN05 Rijkswaterstaat (RWS) Cuno van Geet, strategic policy adviser for circular February 4, 2021
procurement
TN06 Utrecht University, Copernicus Institute of Anne Rainville, assistant professor January 27, 2021
Sustainable Development

60
Appendix B: Studies quantifying the effect of GPP measures on
CO2 emissions
Results (impact on CO2 and
Source GPP measure analyzed Methodology used greenhouse gas emissions) Implications of the results
Alvarez and Analysis of a green Carbon footprint (CF) The CF is about 41% higher for It is possible to conduct a CF
Rubio 2015 conservation and analysis: compound method 2012 than for 2011 due to analysis for conservation and
maintenance service of an using financial accounts to higher consumption and maintenance services without too
urban waterfront and calculate both product and higher consumption intensity. much effort and on a regular
riverside over two years corporate CF in a basis. Therefore, governments
The increase in total intensity
(2011–12) comprehensive assessment should require reports and
is due mainly to the increase in
verification of CF assessment in
scope 3 intensity: scope 3
public procurement (PP). Energy
emissions, mainly from
intensity requirements should be
materials, are the largest
included, such as the allowance
source of emissions in this
for greenhouse gas emissions per
study (59%).
euro. This information would
allow government authorities to
evaluate carbon intensity
regularly and to draw up specific
recommendations. The study also
highlights the importance of
recognizing scope 3 emissions
within the context of climate
change policy.
Anthonissen et Analysis of the Carbon Free Development of a “Carbon It is possible to reduce The application of green public
al. 2015 Ways pilot project, which Counter” and a “Traffic Tool” emissions significantly in a procurement (GPP) for road
sought to stimulate carbon to estimate emissions from public road construction works proved difficult because
dioxide (CO2)–efficient the production and transport tender when environmental the inclusion of environmental
working methods for road of raw materials and asphalt. award criteria are included award criteria in a public tender
construction in Flanders. This The Carbon Counter (the effect is not exactly was new for Flanders.
pilot project included basic estimates emissions from the quantified, however). Nevertheless, the pilot project
environmental parameters in production of raw materials constituted a good first attempt at
the award criteria for public by multiplying the mass by a detecting significant and
tenders on road works. The default emission conversion insignificant parameters and

61
 Results (impact on CO2 and
Source GPP measure analyzed Methodology used greenhouse gas emissions) Implications of the results
winning tender was the one factor in ton of CO2 per ton of collecting data for implementing
with the best scores for price material, derived from the GPP in this sector.
and CO2 emissions. Inventory of Carbon and
Energy (a database of energy
and carbon in building
materials).a The Traffic Tool
calculates the additional
amount of CO2 emitted by
users of a particular road
section and traffic diversions
during road works.
Bortolini et al. Design of a distribution A linear programming model The planner can decrease CO2 Applying a multiple-objective
2016 planner for fresh food that that takes into account three emissions by 9.6%, although perspective to a distribution
considers three objectives: typical food distribution this leads to a 2.7% cost planner for fresh food in Italy can
operating costs, carbon constraints (“objectives”): increase. Optimizing one decrease CO2 emissions with a
footprint, and delivery time. food quality dependent on objective leads to a significant small increase in cost and an
This planner is applied to a delivery time, geographically worsening of the other two. adequate increase in delivery
case study: the distribution of distributed market demand, time.
fresh fruits and vegetables and farmer production
from Italian producers to capacities
several European retailers.
Cerutti et al. Analysis of the impact on CF analysis of the three Most greenhouse gases are Policies that affect the production
2016 greenhouse gas emissions of phases of the supply chain in emitted in the production phase have the greatest potential
three food policies the catering service: phase. The requirement of to reduce the carbon footprint of
implemented in a school production, provisioning, and organic or integrated the catering service.
catering service in an Italian distribution production reduced the CF
Providing organic and regional
city associated with production by
food has a higher impact on
32% compared to
greenhouse gas reduction than
conventional production.b
shifting to greener vehicles.
Requirements for regional
provisioning of five products
considered in the analysis led
to a 33% reduction of
greenhouse gas emissions
compared to the previous

62
 Results (impact on CO2 and
Source GPP measure analyzed Methodology used greenhouse gas emissions) Implications of the results
year’s emissions for the same
phase of the supply chain.
The shift from petrol motor
vehicles to natural gas vehicles
in urban food distribution does
not reduce greenhouse gas
emissions due to the high
traction efficiency of petrol
motors and the high
performance of particulate
removal of new-generation
filters.
Cerutti et al. Analysis of the impact of 11 CF analysis comparing 11 A vegetarian diet reduces CF The most effective GPP measure is
2018 GPP measures using a school GPP measures to a baseline by 32%. Shifting to the the change to a vegetarian diet in
catering service as a case scenario of “no measure” to exclusive use of organic food this specific catering service.
study quantify the impact of the can potentially reduce CF by
The impact on emissions depends
measures on greenhouse gas 11%. The adoption of energy-
on the specific GPP measure
emissions efficient appliances, coupled
implemented in the catering
with the shift to a different
service sector.
power grid mix for electricity,
can lead to a potential overall
reduction of CF of around
7.8%.
EC and ICLEI A summary of GPP measures Does not go into (1) Norway: annual reduction Same conclusion as that of
2016c in different European Union methodological details of CO2 emissions of 89%. (2) Ministry of the Environment,
(EU) countries that have Sweden: 95% emissions Denmark (2013): These case
helped to curb emissions: (1) reduction. (3) Finland: a cut in studies on green tenders illustrate
Norway: procurement of an emissions of 7,500 tons of CO2 the potential for GPP to reduce
electric ferry in Norway. (2) annually. (4) Romania: emissions. However, it seems
Sweden: joint procurement of “considerably” lower likely that only successful GPP
electric vehicles in Sweden. greenhouse gas emissions measures are described, which
(3) Finland: an energy compared to previous diesel leads to the question, Are other
performance contract for buses. (5) Slovenia: a decrease examples not so successful?
municipality buildings in in CO2 emissions associated
Vantaa. (4) Romania: with the specification for

63
 Results (impact on CO2 and
Source GPP measure analyzed Methodology used greenhouse gas emissions) Implications of the results
procurement of greener vehicles ranging from 3 grams
buses. (5) Slovenia: Public per kilometer to 45 grams per
Procurement Agency tenders kilometer per vehicle. (6)
for road transport vehicles Croatia: a 36% reduction in
specifying that all vehicles CO2 emissions per year. (7)
must meet the latest Euro Austria: a 20% reduction in
emissions standard or CO2 emissions compared to the
equivalent and not exceed previous tender
certain maximum CO2
emissions levels. (6) Croatia:
a municipality that published
an open tender for new fixed
street lighting with LED
lighting. (7) Austria:
tendering for greener
electrical goods.
Gröger, Comparison of green to Comparison of conventional Emissions reductions are as (1) The proposed measures to
Stratmann, and conventional procurement to green PP by means of life follows: 48% for refrigerating reduce CO2 emissions should also
Brommer 2015c with regard to greenhouse cycle analysis (LCA) systems, 22% for office be implemented in product
gases for 15 product groups lighting, 45% for street groups and services with small
in Germany lighting, 36% for cleaning contract values, as doing so puts
systems, 42% for buildings, less strain on the environment.
47% for electrical energy, 17% (2) Green electricity has the most
for cars, 41% for machinery, potential for curbing CO2
32% for computers, 47% for emissions; however, this does not
technical equipment, 15% for mean that no efforts should be
paper, 21% for dishwashers, made to reduce energy overall.
46% for textiles, 55% for floor
cover, and a whopping 3,074%
for industrial waste. Overall,
greenhouse gas emissions are
reduced by 47% (CO2
equivalents).
Green electricity, energy-
saving housing, use of LED
lamps in street lighting, and
64
 Results (impact on CO2 and
Source GPP measure analyzed Methodology used greenhouse gas emissions) Implications of the results
recycling of industrial waste
have the most potential to
reduce CO2 emissions.
Considering the full volume,
the positive impacts of cost
savings in the 10 cheaper
product groups outweigh the
negative impacts of the 5 more
expensive product groups.
Looking at the whole life cycle,
10 product groups are cheaper
when procured green; 5
product groups are more
expensive.
Jungbluth, Keller, Analysis of the environmental Full organizational LCA for According to the World GPP has a lot of potential in the
and König 2016 impact of about 20 million 160 food items linked to the Wildlife Fund, the program led agricultural step and should focus
meals served in 240 canteens food amounts of about 10,000 to a reduction of CO2 emissions on reducing the production of
in 2011. Improvement articles purchased in 2011, of 3% between 2015 and meat and poultry products. Also,
options for canteens focused, supplemented by data on 2018; emissions reductions it is not possible to achieve a
for example, on air- canteen operation between 2012 and 2015 were substantial reduction of
transported products, green higher.d environmental impacts caused by
electricity, energy-efficient canteens without taking other
lighting, cooling, ventilation, stakeholders on board.
and cooking devices, food
The program started out
waste per meal, and greener
successfully, but there is no long-
cleaning equipment. The
term evaluation at the time of
results were used to develop
writing; thus, it is not clear
a program to assist
whether the 20% target has been
companies that commission
met.
the operation of canteens on
their premises to improve
their environmental
performance. The program
aims for a 20% cut in
greenhouse gas emissions

65
 Results (impact on CO2 and
Source GPP measure analyzed Methodology used greenhouse gas emissions) Implications of the results
after full implementation in
the participating canteens.
Larsen and Analysis of greenhouse gas CF analysis of municipal Municipalities contribute It is important to include indirect
Hertwich 2010 emissions resulting from activities about 5% to the total CF in emissions in CO2 inventories. The
municipal activities Norway (private consumption wide range of CF for different
(provision of preschool, contributes the most, at 78%). schools implies that there is much
elementary, and secondary potential for GPP in educational
CF calculations of different
schooling, health care, water services in Norwegian
schools show that the CF
supply, sewage and garbage municipalities. With such
ranges between 200 and 500
collection, cultural and measures, CF can be more than
kilograms of CO2 equivalents.
sporting activities, and the halved.
The model illustrates that
maintenance of municipal
including indirect emissions in
roads and buildings).
the calculation of CO2
equivalents leads to a large
increase in CO2 equivalents.
Ministry of the Description of two Danish Does not describe the Case study 1: CO2 emissions GPP has potential to reduce
Environment, projects to reduce emissions: methodology are reduced by almost 70% emissions. However, it seems
Denmark 2013c (1) a tender for a new compared to traditional likely that the government only
chemical-free cleaning system cleaning methods. The main describes successful GPP
in a Danish municipality and reason for the improved measures, which leads to the
(2) delivery of reused bricks climate performance is the use question, Are other samples not
for construction of the first of fewer mops, which also so successful?
Danish eco-labeled weigh less and have a longer
kindergarten in Odense life span than “traditional”
Municipality mops.
Case study 2: 1 ton of CO2 is
saved each time 2,000 bricks
are recycled (thus far, 30,000
bricks have been supplied,
which has saved 15 tons of
CO2).
Pricewaterhouse Monitoring of GPP in the Analysis based on answers to GPP contributed to an average The impact of GPP on emissions is
Coopers, seven best-performing EU a digital questionnaire among reduction of CO2 emissions of significant; however, the study
member states (Austria, 2,907 contracting authorities 25% in 2006–for 10 product does not use a full LCA. Emissions

66
 Results (impact on CO2 and
Source GPP measure analyzed Methodology used greenhouse gas emissions) Implications of the results
Significant, and Denmark, Finland, Germany, in the 7 countries (response groups. The average impact on reduction varies a lot between
Ecofys 2009c the Netherlands, Sweden, and rate 38%) and selection of 10 CO2 emission reductions in countries.
the United Kingdom). The product groups frequently 2006–07 ranged from 9% in
study measures the number procured by public Germany to 47% in the
and value of “green” contracts institutions. Respondents Netherlands, depending on the
and compares them to the were asked to indicate country-specific levels of GPP
overall number and value of whether their most recent per product group. For most
PP contracts. It also measures purchasing contracts product groups, GPP resulted
the CO2 and financial impacts complied with certain green in a reduction of CO2
of GPP in the EU member criteria. To measure impact emissions, with construction,
states. on emissions, the study uses a gardening, paper, and textiles
“CÖ2 ratio,” which determines attaining the highest
the CO2 impact of GPP per reductions.
functional unit of a product
group. Linking this product to
CO2 results by procurement
value indicates the CO2
impact of GPP in 2006–07.
Pulkkinen et al. Quantitative assessment of A climate-friendly lunch meal If lunch meals are designed in Providing vegetarian lunch meals
2016 the impact of lunches on concept based on a simplified a climate-friendly way, their rather than lunch meals
climate change: How can CF of raw material production emissions can be reduced by containing meat has a lot of
lunches be designed such that and processing of ingredients 15% to 30%. The maximum potential to reduce CO2 emissions.
they reduce emissions? for 105 commonly selected climate change impact of a
lunches. Three restaurant “Climate Choice” meal, which
operators (25 restaurants in consists almost exclusively of
total) were involved in the vegetarian ingredients, is
pilot. 0.8 kilogram of CO2
equivalents; the maximum
impact of a “Better Climate
Choice” meal, also mainly
vegetarian, is 0.65 kilogram of
CO2 equivalents.
Rietbergen and Analysis of the impact of the Analysis of CO2 emission Since introduction of the CO2 It is important to include indirect
Blok 2013e CO2 performance ladder on inventories from 170 performance ladder, scope 1 (scope 3) emissions in emissions
emissions in the Netherlands, companies for 2010 CO2 emissions were reduced calculations.
by 3.5%, scope 2 emissions by
67
 Results (impact on CO2 and
Source GPP measure analyzed Methodology used greenhouse gas emissions) Implications of the results
mainly in the construction 12.6%, and scope 3 emissions
sector by 18.6%. Total emissions
between 2009 and 2010 were
reduced by 7.8%.
Trovato, Nocera, Evaluation of an energy Integration of LCA into a A retrofit of buildings with Implementation of less profitable
and Giuffrida retrofit that includes standard economic financial sustainable low-CO2 emission but more environmentally
2020 sustainable low-CO2 emission evaluation of an energy strategies can reduce energy efficient retrofitting should be
strategies, such as double- retrofit project for a public needs for heating and cooling encouraged.
glazed wooden windows, building by 58.5% and 33.4%,
organic external wall respectively.
insulation systems, and green
The use of sustainable
roofs for a public building in a
materials reduces a building’s
Mediterranean area.
CF index by 54.1% after
retrofit compared to the use of
standard materials.
UNEP 2019 Analysis of reductions of CO2 Calculations comparing Eco- (1) Korea: the CO2-equivalent Different methodologies, data
emissions due to Korea’s GPP labeled products with emissions reduction factor for sources, and baselines are used
policy; analysis for 19 conventional products using the life cycle of a product between countries to compare
product categories of the LCA data. The CO2 savings ranged from 61.8 to 1,000 per green and conventional products;
Korea Ecos-label. Data were calculation formula used in unit of production for the definition of “green” is not the
collected from all public Japan is as follows: total electrical and electronic goods. same across countries.
authorities targeted in the number of products For construction materials,
Sustainable Public purchased during the year x office furniture, and hygienic
Procurement (SPP) Policy via (% that is green – % of materials, it ranged from
KONEPS (Korea ON-line E- market share of the green 0.0005 to 8.526 per kilogram.
Procurement System), KEITI product in 2000) x (2) Japan: savings of 175,565
(Korea Environmental conversion factors of the tons of CO2 across all of the
Industry and Technology green product characteristics years measured. (3)
Institute), and GPIS-I (Green to CO2-equivalent emissions x Massachusetts: savings of
Procurement Information years of use of the product. In 154,551 tons of CO2 in 2016.
System). In addition, the Massachusetts, various (4) the Netherlands: savings of
impact of the SPP policies of calculation tools are used. In 3.8 million tons of CO2 for
select public authorities in the Netherlands, calculations electricity, 1.1 million tons for
Japan, the Netherlands, and are for product categories solar panels, 17,000 tons for

68
 Results (impact on CO2 and
Source GPP measure analyzed Methodology used greenhouse gas emissions) Implications of the results
the US state of Massachusetts related to transport, energy, transport services, and 6,000
were measured. and clothing. tons for vehicles.

a. Retrieved from [Link]

b. Integrated production is a knowledge-based approach to farming, based on maximizing natural control processes for pest and soil management
and growing a healthy crop. It is a dynamic approach to moving toward sustainable farming systems, introduced in steps up the integrated
production “ladder.” See [Link]
c. Not a peer-reviewed study.
d. Retrieved from [Link]
e. The paper suffers from several shortcomings, which the authors acknowledge. For example, it does not have long-term data, and it cannot attribute
how much of the reduction in emissions is actually due to the ladder, or due to other factors.

69
Appendix C: GPP uptake by country
Table C.1: Green public procurement (GPP) uptake in Africa and Oceania
Country GPP policies and targets Implementation measures Conclusion regarding implementation gap
Australia The Commonwealth Procurement Rules Australian states are at varying stages of In 2019 Australia was expected to meet and
require that tenders be evaluated based developing GPP policies and implementing exceed its targets for 2020 and 2030
on relevant financial and nonfinancial strategies to meet GPP objectives. State (Department of Environment and Energy,
costs and benefits, which include, among procurement boards are engaged in Australia 2019). However, states are at varying
other factors, environmental advising procuring authorities on the stages of implementation, which implies that
sustainability of the proposed goods and environmental attributes of products and some states have progressed little in
services. The Australian state, territory, integrating performance targets into implementing GPP. Not all states report on
and local governments are subject to procurement decision-making. Several green purchasing, and the procurement of green
GPP policies. Each state has states have included environmental products is difficult to monitor (Hasanbeigi,
environmental procurement policies standards in supplier prequalification Becqué, and Springer (2019).
and guidelines as well as web tools to schemes and listings.
→ GPP gap country
increase awareness and expertise
The government’s ECO–Buy Local Program
regarding low-impact options. The
is working to improve tracking and
Environment Protection and
reporting of expenditures for green
Biodiversity Conservation Act 1999
products. As a result, local authorities
requires government agencies to
report improvement in buying green. In
include in their annual reports
2008, 49% of ECO-Buy members had a
information about their performance in
tracking system in place, and, in 2009–10,
following ecologically sustainable
65% of ECO-Buy members were informed
development principles (Hasanbeigi,
about green purchasing. GPP performance
Becqué, and Springer 2019).
certificates are awarded. Between 2000
and 2009, the number of green products
purchased grew from 80 to more than 430.
More than 37,500 tons of carbon dioxide
(CO2) were avoided. In 2009–10, 77% of
ECO-Buy members were making good
progress in developing GPP policies and
strategies.
Australia has potential to exceed both its
2020 emissions target (5% below 2000
levels) and its 2030 emissions target (26–

70
Country GPP policies and targets Implementation measures Conclusion regarding implementation gap
28% below 2005 levels) (Hasanbeigi,
Becqué, and Springer 2019).
Côte There are no dedicated sustainable There is no information on GPP uptake. No implementation gap exists because no
d’Ivoire public procurement (SPP) or GPP policies and no targets have been set.
policies in place and no SPP or GPP
→ Basic GPP country
provisions in existing procurement
regulations. However, some preparatory
work is being done to facilitate the
implementation of sustainable
procurement in the government. A
reform of environmental taxation has
been launched (UNEP 2017b). However,
as of April 2020, evaluation criteria
were based solely on economic,
financial, and technical criteria
according to Article 72 of the
Government Procurement Code
(Chambers and Partners 2020).
Nigeria GPP is not part of any legal framework, GPP is not yet being implemented in No implementation gap exists because no
despite the existence of a Public Nigeria. policies and no targets have been set.
Procurement Act enacted in 2007, which
→ Basic GPP country
seeks to ensure the attainment of value-
for-money, accountability, equal
opportunity, and transparency in the
award of public sector contracts. No GPP
targets have been set (Akenroye,
Oyegoke, and Eyo 2013).
South Africa As of 2014, several South African GPP uptake is difficult to measure because Since South Africa lacks both a clear,
provinces and towns have developed South Africa has 36 government supply overarching strategy and a national legal
their own GPP policies. All public chain management systems, and these are framework, there is no implementation gap.
entities—national, provincial, and not automated and generally not well Mutenda (2018) describes GPP in South Africa
municipal as well as state-owned integrated (Hasanbeigi, Becqué, and to be “at its infancy stage.”
enterprises—are required to adhere to Springer 2019). Implementation of GPP or
→ Basic GPP country
GPP principles. GPP aims to encourage a SPP is still in its infancy: a range of efforts
decrease in energy and resource use, have been undertaken, with varying
promote environmental best practices degrees of success, to move forward with

71
Country GPP policies and targets Implementation measures Conclusion regarding implementation gap
in terms of waste minimization and SPP activities in the absence of an
management, water and energy overarching strategy or policy (Turley and
efficiency and conservation, pollution Perera 2014).
reduction, and socioeconomic
development as well as to encourage
suppliers to design, manufacture, and
dispose of their products in a
sustainable manner (Hasanbeigi,
Becqué, and Springer 2019).

72
Table C.2: Green public procurement (GPP) uptake in Asia
Country GPP policies and targets Implementation measures Conclusion regarding implementation gap
China China has adopted practices to implement In 2013, 29% of all national-level public Evidence points to an implementation gap.
GPP since 2004 (Zhu, Geng, and Sarkis procurement institutions followed China’s Policies are in place, but only 29% of
2013). GPP was also included in the 12th GPP regulations (Hasanbeigi, Becqué, and institutions follow them, and no
and 13th Five-Year Plans for National Springer 2019), of which 80% was quantitative targets have been set. Despite
Economic and Social Development procurement of energy-efficient and legal practices in place since 2004,
(Hasanbeigi, Becqué, and Springer 2019). environmental labeling products. In 2012, effective GPP promotion remains a major
GPP in China applies to all national, state, 80% of provincial-level expenditures were challenge and barriers to GPP still exist
regional, and local public authorities. GPP for energy and water conservation products. (Zhu, Geng, and Sarkis 2013).
is mandatory (UNEP 2019), and China has In wealthier provinces with more effective
→ GPP gap country
the largest total number of products GPP practices, 87% of procurement
certified for GPP globally (Hasanbeigi, expenditures were for these types of
Becqué, and Springer 2019). The policies products (Hasanbeigi, Becqué, and Springer
do not set quantitative targets, but they 2019). In 2011, 14% of total public
establish that the scale of sustainable procurement (PP) expenditures were for
public procurement (SPP) should be green products and services (Hasanbeigi,
widened (UNEP 2017b). Becqué, and Springer 2019). SPP training is
provided annually (UNEP 2017b). Green
public procurement is implemented
primarily using a framework provided by
eco-labels and energy labels (UNEP 2017b).
India There is no specific procurement Local governments, ministries, and No implementation gap exists, as no
legislation. In 2011 India’s Ministry of government departments have undertaken specific GPP legislation is in place and no
Environment and Forests formed a GPP initiatives. For example, Indian targets have been set.
committee to develop GPP guidelines, and Railways undertook a unique initiative in
→ Basic GPP country
in 2018 an SPP Task Force was created. 2008 to reduce peak lighting loads in its
Local governments, ministries, and residential quarters by replacing
government departments have incandescent lamps with energy-efficient
undertaken GPP initiatives, but there is no lighting. In 1991 India launched a voluntary
coherent GPP strategy (Hasanbeigi, eco-labeling scheme (Eco-Mark) that
Becqué, and Springer 2019). focused on both environmental and product
quality criteria; however, eco-labels and
environmental standards are not commonly
considered as part of public procurement of
products, works, and services, and the Eco-
Mark label has so far not been widely
adopted by manufacturers or buyers. There

73
 Country GPP policies and targets Implementation measures Conclusion regarding implementation gap
are no estimates of the extent of GPP
(Hasanbeigi, Becqué, and Springer 2019;
UNFSS 2020).
Indonesia There are no SPP provisions in No information is available on GPP uptake. No implementation gap exists, as no
overarching or thematic national policies In 2020 an initiative was launched to specific GPP policy is in place and no GPP
and no dedicated SPP policies. SPP accelerate the shift to GPP and SPP (IGPN targets have been set.
provisions in existing procurement 2020).
→ Basic GPP country
regulations refer to the procurement of
goods and services with environmental
benefits (UNEP 2017b).
Japan Japan is a pioneer in developing a GPP Japan has a well-established GPP monitoring Japan has a long tradition of GPP, and GPP
framework (Hasanbeigi, Becqué, and system. Monitoring takes place at the central monitoring works well (100% response
Springer 2019), with policies and and local government levels. The Green rate). Many services are being provided to
regulations to promote and implement Purchasing Network publishes green GPP practitioners. The percentage of green
GPP in place since the late 1980s. The purchasing guidelines and maintains an products and services is very high (95%).
Basic Policy for the Promotion of online eco-products database of The implementation gap is small and
Procurement of Eco-Friendly Goods and environmentally friendly products and narrowing, and the GPP gap is very small
Services requires that government services (Hasanbeigi, Becqué, and Springer or nonexistent.
agencies apply green purchasing criteria 2019). Services related to GPP are being
→ Advanced GPP country
when procuring products in a wide array provided, such as GPP training sessions,
of categories. The Basic Policy Concerning networking events, and information
the Promotion of Contracts Considering resources (UNEP 2017b). The
Reduction of Greenhouse Gas Emissions implementation of GPP in local governments
by the State and Other Entities requires and enterprises has been on the rise in
government agencies and public recent years, reaching more than 68% for
institutions to follow green contracting local governments and almost 58% for
requirements when purchasing electric enterprises in 2015 (Ministry of the
power, automobiles, energy services, or Environment, Japan 2017).
building design services. The Act on
GPP has reduced greenhouse gas emissions
Promoting Green Purchasing requires that
by an estimated 210,000 tons of carbon
each ministry’s or agency’s procurement
dioxide (CO2) equivalents (Hasanbeigi,
policy include GPP considerations and
Becqué, and Springer 2019). In 2014, 95% of
targets (Hasanbeigi, Becqué, and Springer
the goods and services purchased were eco-
2019). In 1994 the government of Japan
friendly. 63.2% of the electricity supply,
published its action plan on green
90.1% of purchased automobiles, and 68.3%
government operations, which included
of the building design were contracted
GPP commitments and reporting
74
 Country GPP policies and targets Implementation measures Conclusion regarding implementation gap
requirements (UNEP 2019). GPP is through green contracts. In 2015 the
mandatory. response rate among agencies asked to
provide information on SPP was 100%.

Korea, Rep. The Act on Development and Support of Total green public purchases rose Implementation is systematic and
Environmental Technology of 1994 significantly within a few years following advanced compared to implementation in
established GPP and the Eco-label. This act adoption of the Act on Promotion and other countries (RK02). However, both the
was complemented by the 2005 Act on Purchase of Green Products of 2005 and legal system and the regulations are well
Promotion of Purchase of Green Products, continues to increase. Korea Environmental prepared, but “there exists definitely an
which requires all government sectors and Industry and Technology Institute (KEITI) implementation gap” (RK03). The
offices to submit to the Ministry of evaluates the financial, environmental, and objectives pursued in the GPP policy have
Environment an annual green purchasing societal effects of GPP annually and not yet been achieved, but they are being
implementation plan for the current year publishes the rates for different green achieved gradually (RK04). The
as well as a performance report for the products and services that are procured implementation gap is large (RK07), as
previous year. Each ministry sets its own (Hasanbeigi, Becqué, and Springer 2019). In GPP is focused on purchasing green
GPP targets. Article 6 states that the heads 2018 rates ranged from almost 38% for products, which are limited to the few
of public authorities are obliged to purchases by local governments to more product groups specified in the law
purchase green products (KEITI n.d.) than 90% for purchases by market-based (RK01). In addition, there are not enough
public enterprises. By product, vehicles support programs to encourage public
perform the worst, at a little over 17%, while institutions to practice GPP actively
more than 86% of textile, rubber, sanitary, (RK07).
and leisure products and services are
Korea has a strong institutional
procured green (KEITI n.d.). On average,
framework for GPP implementation, based
50% of all products purchased are green
on the collaboration of key actors, such as
(RK01). In 2019 Korea reported a reduction
KEITI, the Ministry of Economy and
in CO2 emissions due to GPP activities of
Finance, the Ministry of Environment, and
about 860,000 tons (KEITI n.d.). The process
PPS (Public Procurement Service) (UNEP
of aggregating performance results and
2019b). The framework is in line with the
producing statistics is also systematized
good practices reported in UNEP (2017c).
(RK02).
Furthermore, Korea is one of the few
countries to provide fiscal incentives for
GPP implementation: high-performing
local governments are rewarded with a
larger budget, and public institutions
receive a performance bonus.

75
 Country GPP policies and targets Implementation measures Conclusion regarding implementation gap
→ Advanced GPP country
Lebanon SPP provisions are included in existing The SPP action plan is a step toward No implementation gap exists, as no
procurement regulations, but no dedicated implementing GPP (UNEP 2017b). specific GPP policy is in place, and no GPP
SPP policies are in place. SPP provisions targets have been set.
exist in overarching or thematic national
→ Basic GPP country
policies. In 2012 an SPP Action Plan was
prepared, but climate change mitigation
and emissions reduction are not a priority
(UNEP 2017b). According to Democracy
Reporting International (2020),
“Lebanon’s public procurement is
governed by an outdated and fragmented
set of laws and decrees that enables
corruption and clientelism,” and green and
sustainable procurement practices have
not yet been adopted.
Malaysia SPP provisions exist in overarching or The Ministry of Finance started to raise SPP and GPP provisions exist, and GPP is
thematic national policies, and dedicated awareness about GPP initiatives in 2014 on the government’s agenda. GPP targets
SPP policies are in place; however, there (with a pilot project in five agencies). In have been set and are monitored. The
are no SPP provisions in existing 2016 GPP was expanded to other ministries number of federal ministries and agencies
procurement regulations (UNEP 2017b). and agencies. Capacity-building sessions are participating in GPP has increased from 5
Malaysia has set a goal that, by 2020, at held for all ministries and agencies. In 2016– in 2013–15 to 25 in 2018, and the number
least 20% of government procurement 17, RM 4.88 million were allocated to of green products and services registered
should be green. This goal covers all developing green technology and green has grown from 181 in 2013–15 to more
government agencies. The private sector is procurement (UNEP 2017b). GPP values than 3,000 in 2018 (UNEP 2020). Still, as
encouraged to follow the example set by under the pilot implementation project in 5 Alqadami et al. (2020) argue, “The concept
the public sector (UNEP 2017a). ministries or agencies are published (UNEP [of GPP] in Malaysia is still in its early
2017b), but these values are not related to stages and encounters barriers to make a
overall procurement value and, therefore, paradigm shift towards a greener
cannot be interpreted. The government approach.”
monitors the level of GPP (outputs) for all
The implementation gap seems to be
targeted organizations in terms of GPP
declining steadily.
expenditure on the products and services
prioritized in the action plan (UNEP 2020). → GPP gap country
Mongolia SPP provisions exist in overarching or A Sustainable Public Procurement and Green No implementation gap exists, as there are
thematic national policies; there are no Buildings Project was launched to improve no GPP policies or GPP targets.

76
 Country GPP policies and targets Implementation measures Conclusion regarding implementation gap
SPP provisions in existing procurement the efficiency and effectiveness of the → Basic GPP country
regulations and no dedicated SPP policies Mongolian PP process by incorporating
(UNEP 2017b). sustainability aspects into the national PP
framework. Since then, the Ministry of
Finance has been collaborating with other
ministries on development of an SPP
National Action Plan. The project is in its
final development stage (UNEP 2017b).
Singapore SPP provisions exist in overarching or The Public Sector Taking the Lead in GPP policies have been developed, but no
thematic national policies, and dedicated Environmental Sustainability Initiative was specific targets have been set, and there
SPP policies are in place. However, no SPP introduced in 2006 and updated in 2014. are no SPP provisions in procurement
provisions exist in procurement Under this initiative, the government set regulations.
regulations. Lowering emissions and green procurement requirements for
→ GPP gap country
mitigating climate change are priorities. information and communication technology
GPP guidelines were developed but have equipment, electrical appliances, and paper
not yet been made publicly available. GPP products. Official events and functions must
criteria are based on existing national be held in venues with at least a Green Mark
labeling schemes and voluntary certified rating. The initiative is intended to
sustainability standards. Their use is raise the standards on sustainability, so that
mandatory (UNEP 2017b, 2019). There the public service can continue to lead in
are no GPP targets (UNEP 2017b). sustainability and climate action (Fu 2020).
The Singapore government has developed
eco-labels to encourage GPP (APEC 2013;
Singapore Environmental Council 2014).
Singapore is part of the International Green
Purchasing Network (APEC 2013), which
aims to promote the development of
environmentally friendly products and
services and green purchasing activities
globally.
Thailand Since 2005, the government has adopted The Pollution Control Department has Implementation and monitoring of GPP
SPP strategies, plans, and policies. GPP initiated the implementation of GPP in the are voluntary, and there is a lack of
was introduced in 2005. Two plans have public sector and has carried out several cooperation on the implementation of
been developed since 2008 for the activities under the GPP Promotion Plan, green public procurement (UNEP 2017a).
promotion and implementation of GPP. including training workshops and seminars As a result, in 2012 only 40% of agencies
The GPP Promotion Plan of 2008–11 for procurement staff and implementation of submitted a procurement report to the
sought to increase government spending a voluntary monitoring system to assess the Pollution Control Department. In 2016 all

77
Country GPP policies and targets Implementation measures Conclusion regarding implementation gap
on environmentally preferable products progress. In 2015 Thailand reported a central government agencies and a
and services. In the second GPP Promotion reduction in CO2 emissions of around 26,000 majority of other government agencies
Plan 2013–16, the target groups were tons due to GPP activities (UNEP 2017a). An had implemented GPP (SwitchAsia n.d.).
expanded to local authorities, private electronic platform for monitoring and Hence, Thailand seems to be steadily
sector businesses, and the general public. reporting is in place (UNEP 2017a). closing the implementation gap.
GPP is conducted on a voluntary basis
→ GPP gap country
(UNEP 2017a). In its second national plan, Thailand set a
goal for the central government of at least
90% GPP by 2016 (UNEP 2017a, 2017b).

78
Table C.3: Green public procurement (GPP) uptake in Europe
Country GPP policies and targets Implementation measures Conclusion regarding implementation gap
Austria The 2006 Federal Act for Public In 2006 Austria was among the top performers Evidence points to a small
Procurement contained Austria’s first set with regard to the uptake of GPP (Bouwer et implementation gap. Although more
of green procurement policies. In 2010 the al. 2006). In 2011, 50% of public authorities than half of public tenders still use price
National Action Plan (NAP) on Sustainable included GPP requirements in their as the sole criterion for selecting offers,
Procurement was developed with the aim procurement process; in 2012, 73% of public a majority of public authorities include
of making GPP a key practice; however, contracts included at least one core European EU GPP core criteria in public contracts.
the plan does not contain any quantitative Union (EU) GPP criterion (Hasanbeigi, Becqué, The 50% target set by the EU has been
targets. and Springer 2019). In 2008, 36% of met. Austria is among the top third of
government officials interviewed made use of European countries (AU02).
GPP criteria “always” or “often,” and 64% did
→ Advanced GPP country
so “sometimes” or “never” (Hasanbeigi,
Becqué, and Springer 2019). Still, 53% of
public tenders use price as the sole criterion
for selecting offers (Hasanbeigi, Becqué, and
Springer 2019).
From 2005 to 2010, renewable energy sources
associated with products procured rose from
40% to 100%, and the use of certified green
electricity increased from 0% to 3%.
Greenhouse gas emissions from electricity
consumption declined during that time period,
even though electricity consumption rose
(OECD 2015).
Belgium Sustainable public procurement (SPP) For materials used to renovate buildings, a The implementation gap is small. The
including green provisions exist in guidance document has been published that 50% target set by the EU and the
overarching or thematic national policies suggests considerations for procurers and country’s own targets, where they exist,
and in existing procurement regulations; describes criteria that could be applied. Since have been met. However, GPP uptake
dedicated SPP policies are in place (UNEP 2014, every supplier of construction material could be higher if more parts of the
2017b). The Flemish government in Belgium that claims certain environmental country would set quantitative targets.
introduced GPP in 2014. The program attributes for its products has to provide an
→ Advanced GPP country
covers 19 product groups and a range of environmental products declaration based on
subgroups with a target of 100% life cycle analysis (LCA).
sustainable public purchasing by 2020.
Support tools are in place at the regional and
Mandatory criteria have been developed
federal levels, such as a help desk for e-
for several product groups (Hasanbeigi,
procurement and guidelines on green and
Becqué, and Springer 2019). There are no
79
Country GPP policies and targets Implementation measures Conclusion regarding implementation gap
green targets at the federal level. By 2017, social PP. The adoption of e-procurement is
at least 20% of public procurement (PP) in advancing, with e-notification for contracts
Brussels is to include environmental above EU thresholds being mandatory since
criteria; in Flanders, all PP will be 2013 for all levels (federal, regional, and local),
sustainable by 2020; in Wallonia, there is and mandatory e-submission being phased in
no target (UNEP 2017b). over time starting with federal authorities in
2012. E-auction, e-awarding, and e-catalog
have been available since 2011 (EC n.d.-b).
In 2009–10 Belgium was one of the top
performers in green procurement, with green
criteria applied in 40% to 60% of cases
(Hasanbeigi, Becqué, and Springer 2019).
Bulgaria Bulgaria’s PP strategy includes efforts in The Public Procurement Agency is involved in There is evidence of an implementation
GPP. The GPP NAP for the period 2012–14 training on GPP topics (EC n.d.-b). The level of gap. Bulgaria has a strategy for GPP, but
focused primarily on fostering awareness, GPP uptake was less than 20% in 2009–10 (EU implementation of this strategy is
but compulsory requirements were 2012), making Bulgaria one of the worst- lagging, as indicated by its “plans” to
introduced for a set of product categories. performing GPP countries. strengthen environmental
The government plans to strengthen considerations. The 50% target set by
environmental considerations through the EU has not been met.
cooperation with leading countries as well
as the introduction of guidance in the form
of a handbook (EC n.d.-b).
Croatia SPP provisions exist in overarching or The United Nations Development Programme, There is evidence of an implementation
thematic national policies and in existing which is a key support institution in gap. Policies exist, but GPP uptake is low
procurement regulations; dedicated SPP implementing Croatia’s GPP 2020 initiative, (one year after implementation of the
policies are in place. A GPP action plan offers a help desk to support contracting GPP NAP, only 0.2% of contracts
was approved in 2015. It sets the overall authorities looking to incorporate green and included green criteria). The 50% target
objective of 50% of all public contracts to low-carbon-intensity procurement practices. set by the EU has not been met.
include environmental criteria by 2020 for They also disseminate GPP 2020 best practices
→ GPP gap country
priority product categories. Even though via a database of educational and training
the GPP NAP is voluntary, if public materials, workshops, and GPP events. The
authorities introduce green criteria in Croatian government is pursuing various
their tenders, the use of these criteria is means to promote environmentally friendly
mandatory (UNEP 2017b). policy goals via its procurement system. The
Public Procurement Act of 2012 promotes the
voluntary use of environmental certifications

80
Country GPP policies and targets Implementation measures Conclusion regarding implementation gap
and other environmental criteria in the
technical specifications of tenders and
provides tools to facilitate their
implementation (EC n.d.-b). A monitoring
system is in place.
In 2015, the first year of implementation of the
GPP NAP, 29 of all contracts conducted
included some GPP criteria; this represents
0.2% of all contacts published in the reporting
period (UNEP 2017b).
Cyprus The GPP NAP adopted in 2012 sets several Implementation of the GPP NAP is ensured by There is evidence of an implementation
specific measures to promote the Department of Environment through an gap, but its size is unclear. GPP uptake
environmental criteria in tendering annual review of achievements. The was rather low in 2009–10, and Cyprus
processes (EC n.d.-b). The GPP NAP is Department of Environment communicates is facing the specific challenge of a small
mandatory for state authorities, public regularly through electronic newsletters to all internal market. However, Cyprus is
organizations, and local authorities. The contracting authorities and stakeholders in actively addressing this issue and also
target for most product categories is for order to update them on ongoing GPP makes efforts in training, capacity
50% of contracts to be green (Georgiou developments at the European level and other building, and others. Cyprus is also very
2018). GPP-related topics. Capacity-building activities active in various GPP projects and is
are carried out by the Public Procurement making a big effort in GPP
Directorate and the ministry—for example, implementation. The 50% target set by
training on GPP and e-procurement (EC n.d.- the EU was not met in 2009–10.
b).
→ GPP gap country
Estimated by value, GPP uptake was less than
20% in 2009–10; estimated by number, it was
between 20% and 40% in 2009–10 (EU
2012).a
A particular issue faced by the country’s
contracting authorities is the small size of the
internal market, which limits the variety of
green products available. To address this
issue, the Department of Environment carries
out market research to identify green products
on the Cyprus market to be promoted within
public procurement, resulting in green
products and eco-labeled catalogs for
81
Country GPP policies and targets Implementation measures Conclusion regarding implementation gap
contracting authorities. Since 2014 it also
gives GPP awards to contracting authorities
that were most successful in implementing
environmental criteria (EC n.d.-b). Cyprus is
also involved in various international
projects.b
Czech SPP provisions, including green GPP rules state that 25% of all state and public There is evidence of an implementation
Republic provisions, exist in overarching or vehicles need to respect environmental gap. Policies exist, but in 2009–10, GPP
thematic national policies and in standards. The Ministry of Environment uptake was still low, and commitment is
procurement regulation (UNEP 2017b). monitors the application of GPP rules and not binding. The 50% target set by the
The Czech Republic was the first Eastern publishes data in its annual report. The GPP EU has not been met.
European country to develop a NAP on rules stipulate criteria for the purchasing of
→ GPP gap country
GPP in the early 2000s. The Czech certain products. Contracting authorities need
procurement system is being used to to consider eco-labels, environmental
promote environmental policy goals in standards and certifications, energy
line with the Europe 2020 Strategy. In performance certificates, and labels
2010 official GPP rules regulating guaranteeing a renewable source of energy in
procurement procedures at the central their procurement decision. Eco-efficiency
government level were adopted (EC n.d.- throughout the product life cycle needs to be
b). taken into account. However, formally, the
“rules” only express a political will, not a
binding commitment (EC n.d.-b). Estimated by
value, the Czech Republic applied GPP criteria
in 20% to 40% of cases in 2009–10. Estimated
by number, GPP uptake was less than 20% (EU
2012).
Denmark Denmark has SPP policies in place, The Ministry of Environment has several Denmark is among the top GPP
including GPP measures; however, the initiatives to promote GPP: (a) a national performers. The 50% target set by the
GPP strategy does not set specific targets knowledge-sharing forum where procurers EU has been met. Various tools exist to
and is mostly voluntary. It covers all from both public and private organizations can promote GPP.
national, state, regional, and local public access updated best practices, methods, and
→ Advanced GPP country
authorities (UNEP 2017b). tools for GPP; (b) a GPP partnership with
several municipalities based on joint,
mandatory procurement objectives; (c) a
website where procurers can find green
criteria ready to insert into tender documents
for numerous product areas as well as total
82
Country GPP policies and targets Implementation measures Conclusion regarding implementation gap
cost of ownership (TCO) tools for select
product areas; and (d) a national task force to
assist public authorities to implement GPP,
consisting of a team of consultants who help
public organizations to implement GPP
(Ministry of Environment, Denmark n.d.).
There is monitoring on SPP and GPP policies,
but it is not systematic (UNEP 2017b).
Despite the absence of a central e-
procurement strategy, Denmark has long been
considered a leader in developing e-
procurement capabilities, having established
electronic tendering as far back as the late
1990s (EC n.d.-b). In 2006 Denmark was
among the top performers with regard to the
uptake of GPP (Bouwer et al. 2006). In 2013,
71% of the monitored tenders included at
least one green requirement (UNEP 2017b).
Case studies point to a reduction in carbon
dioxide (CO2) emissions due to GPP (UNEP
2017b). Denmark was part of the Baltic GPP
Project, a GPP capacity-building project for the
Baltic Sea region ([Link] 2015).
Estonia Estonia does not have a GPP NAP yet (EC Training workshops are organized to promote There is evidence of an implementation
2020a). Estonia’s National Reform the implementation of GPP into tenders in gap. Secondary policy goals with regard
Program declares the government’s accordance with the Europe 2020 agenda. to GPP exist, but there is still no GPP
intention to use the procurement process Estonia ranks among the most advanced EU NAP; targets are modest.
to advance secondary policy goals under member states in terms of e-procurement. E-
→ GPP gap country
the Europe 2020 Strategy, but specific notification has been mandatory since 2001,
goals and means have not been developed. and compliance is effectively 100% for
It set the goal of 10% GPP uptake by 2014. contracts above €10,000 for goods and
services and €30,000 for public works. The
rapid development of e-procurement relies on
both comprehensive e-procurement services
and wide dissemination of e-procurement
practices among contracting authorities and
economic operators through awareness-
83
Country GPP policies and targets Implementation measures Conclusion regarding implementation gap
raising actions, guidelines, and trainings.
Estonia’s highly developed e-procurement
environment and e-procurement portal are
frequently referred to as best-practice
examples for other member states because
they are rapid and easy to use (EC 2020a).
Level of GPP uptake was below 20% in 2009–
10 in terms of both value and number (EU
2012).
Finland The 2007 Act on Public Contracts states In 2006 Finland was among the top Monitoring results from 2009 indicate
that contracting authorities must try to performers with regard to the uptake of GPP; that uptake by number is low, but
organize their procurement procedures as the country had more tenders with green uptake by value is high, which means
economically and as systematically as criteria than the other 18 countries analyzed that “the big fish” implement green
possible, in combinations that are as (Bouwer et al. 2006). In 2009–10 GPP uptake criteria, but the “little fish” do not. More
appropriate as possible, while taking by number was less than 20%. However, GPP needs to be done to involve
environmental considerations into uptake by value was above 80% (EU 2012). organizations with low-value contracts.
account (Hasanbeigi, Becqué, and Springer According to results from the monitoring of
A number of tools and measures exist to
2019). Since 2009, dedicated SPP policies SPP in 2009 and 2012, around 50% of the
promote GPP, and the GPP competence
have been in place, and today there is a tender calls included some kind of
center is highly recognized.
national GPP network consisting of more environmental criteria, and around 30%
than 30 public procurement entities included well-specified environmental criteria → Advanced GPP country
(UNEP 2017b). (UNEP 2017b). A survey conducted in 2018
showed that less than half of all companies
incorporate environmental aspects in their
procurement policies. Finland was part of the
Baltic GPP Project, a GPP capacity-building
project for the Baltic Sea region ([Link]
2015). There is a Competence Center for
Sustainable and Innovative PP, and Finland
has a comprehensive set of policy measures
(KEINO 2020).
France France has had dedicated SPP policies in In 2013, 6.7% of tenders (above €90, 000) There is evidence of an implementation
place since 2007. The objectives set by the included environmental criteria (UNEP gap. The internal target is 30% of
State Procurement Directorate for 2020 2017a). Easy-to-use “environmental product tenders to include environmental
for all state buyers and agencies are that declaration” tools are available to promote the aspects, but in 2013 only 6.7% did. The
30% (in number) of purchases above use of LCC (UNEP 2017b).

84
Country GPP policies and targets Implementation measures Conclusion regarding implementation gap
€90,000 include environmental clauses. 50% target set by the EU has not been
There is a NAP for SPP (UNEP 2017b). met.
→ GPP gap country
Germany Dedicated SPP policies have been in place In 2006 Germany was among the top There is no or a small implementation
since 2007 (UNEP 2017b). The German performers with regard to the uptake of GPP gap. Germany is among the top
Procurement Regulation states that all (Bouwer et al. 2006). Germany did not have a performers in GPP. EU’s 50% target
public tenders must provide government GPP monitoring process in 2019, but one was seems to have been met: GPP uptake by
procurers with an LCC analysis. State and under development that will include a survey number and value is between 40% and
federal laws propose consideration of of procurement agencies and other related 60%. In 2019 Germany had nearly
ecological factors in procurement, and stakeholders. The monitoring will be done by reached its emissions reductions target
Germany adopted the world’s first eco- federal authorities, with annual reports for 2020 (although it is unclear at this
label in 1978. The German government (Hasanbeigi, Becqué, and Springer 2019). In stage whether it was met in 2020).
initiated a climate action program in 2014, 2019 Germany had nearly reached its 40%
→ Advanced GPP country
which contains more than 100 measures emissions reduction target for 2020
to be implemented by 2020 with the aim ([Link]). Germany was
of reducing greenhouse gas emissions by part of the Baltic GPP Project, a GPP capacity-
at least 40% compared to 1990 levels building project for the Baltic Sea region
(Hasanbeigi, Becqué, and Springer 2019). ([Link] 2015).
Germany has a central platform to
promote GPP and a web portal providing
information on SPP.c
Greece No GPP NAP exists yet (EC 2020a), but one Less than 20% of contracts are compliant with There is no implementation gap, as
is being developed. Environmental aspects the green procurement criteria. The public there is no legal framework or NAP as
have been included in Greece’s authorities have become more strict, especially yet.
presidential decrees (EC n.d.-b). regarding the energy performance of public
→ Basic GPP country
and private procurement contracts for
buildings and green electricity (EC n.d.-b).
Hungary SPP provisions, including environmental Contracts including green criteria increased Environmental criteria exist in
criteria, exist in overarching or thematic between 2012 and 2015 (both by value and by overarching policies, but there is no
national policies and in procurement number). However, they declined slightly dedicated GPP policy. Between 2014
regulations. There is no dedicated SPP between 2014 and 2015 (UNEP 2017b). and 2015, there was a downward trend
policy, but the government has in green contracts.
implemented some activities, for example,
→ GPP gap country
the national public procurement bulletin
indicates whether a contract includes

85
Country GPP policies and targets Implementation measures Conclusion regarding implementation gap
environmental clauses (UNEP 2017b).
There is no GPP NAP yet (EC 2020a).
Ireland SPP provisions, including green criteria, The Department of Environment, the National Policies are in place, and there is an
exist in overarching or thematic national Procurement Service, and other key action plan and a monitoring system. By
policies and in procurement regulations; a stakeholders have formed an SPP Action Plan international comparison, however, GPP
dedicated SPP policy includes green Implementation Group whose role is to uptake is low. Emissions intensity is
criteria. The target, which covers all monitor implementation of the SSP plan and to higher than in other European
national, state, regional, and local report on a yearly basis. A monitoring system countries,e and the reduction target has
authorities, is for 50% of tenders in is in place (UNEP 2017a). Guidance on GPP not been met.f
prioritized product categories to include exists for the public sector (EPA, Ireland
→ GPP gap country
SPP provisions. Enforcement is mandatory 2014). The level of GPP uptake was less than
(UNEP 2017b). 20% in 2009–10. Ireland’s target under the
Kyoto Protocol is to limit emissions to 13%
above the 1990 baseline by 2012. The use of
LCC or TOCd calculations is widespread;
however, only 25% of respondents reported
that they mostly use this evaluation criterion
(EU 2012). The use of e-procurement in
Ireland is relatively well developed, having
been implemented early; a range of services
are offered to contracting authorities and
bidders (EC n.d.-b).

Israel SPP provisions exist in overarching or SPP is mandatory only for ministries, which Only a few ministries provide full
thematic national policies (National Green are required to submit GPP reports that are information on GPP. No aggregated
Growth Plan 2012–20), but no SPP later made available to the general public. The indicators on GPP level are available, as
provisions are included in existing Governmental Procurement Administration the monitoring methodology is
procurement regulations. All government and the Ministry of Environmental Protection inconsistent. Among those that provide
ministries must ensure that out of the total develop tenders including green criteria to information on GPP, many ministries
annual expenditure on procurement, help other ministries to purchase more have been able to achieve their SPP, but
green procurement reaches the following sustainable products and services. There are not their GPP, goals. Ministries state that
shares: 5% by 2013, 12% by 2016, and green standards for building renovation and they require more help in developing
20% by 2020 (UNEP 2017b). leasing, and purchasing activities are their green procurement practices
conducted by the public administration (UNEP 2017b).
apparatus. There are green procurement
→ GPP gap country

86
Country GPP policies and targets Implementation measures Conclusion regarding implementation gap
requirements for new government vehicles
(UNEP 2017b).
Italy Dedicated SPP policies are in place. A GPP The NAP aims to encourage GPP through the The evidence of an implementation gap
NAP was issued in 2008 and revised in involvement of stakeholders at the national is mixed: the 50% target set by the EU
2013 (UNEP 2017b). According to the Law level, training and information campaigns, seems to have been met, but evidence
on Provisions on Environmental Measures methodological guidance on setting up differs between sources. Many efforts
to Promote a Green Economy and for the sustainable procurement processes and are being undertaken at the national
Containment of Excessive Use of Natural environmental criteria, periodic monitoring of level. Monitoring results on SPP are not
Resources, GPP must be included in all dissemination of the GPP, and analysis of the publicly available (UNEP 2017b).
tenders related to energy (for example, environmental benefits obtained; national
→ Mixed-evidence country; probably a
energy services, office information targets are to be attained and redefined every
GPP gap country
technology equipment, street lighting, three years (UNEP 2017b). Based on contracts
buildings) and in 50% of tenders in other signed in 2009–10, Italy applied green
product categories (UNEP 2017b). Italy is procurement criteria in 20% to 40% of cases
one of the few countries that has made (Hasanbeigi, Becqué, and Springer 2019); GPP
GPP mandatory at all levels of government uptake was between 40% and 60% in 2009–
(UNEP 2019). 10 (EU 2012). More than 50% of companies
gave a positive answer to the question, “Are
any environmental criteria taken into account
in your organization when purchasing?”
(Bouwer et al. 2006).
Latvia Environmental criteria can be introduced Latvia’s objectives will be implemented Green criteria and implementation
in tender procedures as a part of technical through the use of the EU Structural Funds and measures are still being developed. GPP
specifications or selection criteria. the Cohesion Fund. The measures foreseen to uptake is low, and targets have not been
However, the use of green public achieve its goals are the development of the met.
procurement is not mandatory for regulatory framework of GPP, the production
→ GPP gap country
contracting authorities, and their use is of guidelines and standardized documentation
limited. Latvia established requirements for the purchase of certain products and
for the development of green public services, the promotion of green products, the
procurement along with a wider supply of development of an LCC estimation model for
energy-efficient and ecological goods in certain product groups, the organization of
the National Development Plan for 2014– training courses and awareness-raising
20. It also adopted a GPP Promotion Plan campaigns for contracting authorities at the
2015–17, a short-term strategic policy state and local levels, as well as annual
that aims to promote sustainable monitoring and reporting on GPP by the
purchasing and production and to Ministry of Environment and Regional
Development (EC n.d.-b). According to the
87
Country GPP policies and targets Implementation measures Conclusion regarding implementation gap
increase GPP up to 30% by 2017 (EC n.d.- Procurement Monitoring Bureau, only 4.5% of
b). contracts awarded between 2010 and 2013
included environmental criteria (EC n.d.-b). In
2009–10 GPP uptake was below 20% in terms
of number and 20%–40% in terms of value
(EU 2012).
Lithuania Lithuania’s procurement strategy focuses Training courses on GPP and e-procurement NAPs are in place, but GPP uptake is still
on GPP, with several successive GPP plans are being organized. In 2014 around 6% of low.
set up by the Ministry of Environment. The public contracts included environmental
→ GPP gap country
GPP implementation measures for 2012– criteria (15% in value) primarily public works,
15 aim to strengthen the capacity of office and computing equipment, as well as
contracting authorities to carry out GPP, to firefighting, police, and defense equipment
encourage suppliers to put more contracts. Monitoring of GPP is centralized by
environmentally friendly products on the the Public Procurement Office and is based on
market, and to collect and disseminate direct reporting from contracting authorities,
information on these kinds of products. who are required to submit a report on their
Specific mandatory environmental criteria use of GPP and environmental criteria (EC n.d.-
are defined for 4 product groups covering b)
a wide range of purchases (EC n.d.-b).
Luxembourg There is no GPP NAP yet (EC 2020b), but a The government has taken a step toward No implementation gap exists, as no
NAP for SPP includes green criteria. No integrating environmental criteria in tenders legal framework, NAP, or targets exist.
targets have been defined, and few by agreeing to participate in the Resource
→ Basic GPP country
concrete measures have been Centre of Technologies and Innovation for
implemented to ensure the adoption of Building, which is responsible for
environmental and social criteria in tender standardizing the clauses in procurement
procedures (EC n.d.-b). contracts, in particular, regarding sustainable
building (EC n.d.-b). The level of GPP uptake is
not available for Luxembourg due to no
response (EU 2012).
Malta GPP has been included in Malta’s strategic The GPP Office is responsible for NAP and targets exist, but they have not
framework since 2005. In 2012 the GPP implementing and monitoring the 2012–15 been met so far. That said, Malta is
NAP defined the overall strategy and a NAP and works in close collaboration with the making a big effort to increase GPP
comprehensive set of measures to reach Department of Contracts. It provides uptake. Implementing the GPP strategy
50% uptake of GPP by 2015 (both in value contracting authorities with guidelines on 18 is one of Malta’s top near-term priorities
and in number of tenders). The same priority product groups and detailed (EC n.d.-b).
target was adopted in the NAP for 2009, environmental criteria to be integrated into

88
Country GPP policies and targets Implementation measures Conclusion regarding implementation gap
but was not achieved. Information is tenders. The NAP states that all tenders falling → GPP gap country
lacking at the local level, as are specific under EU-funded programs must be prepared
targets and monitoring. The Department according to these guidelines, a goal that was
of Contracts has required the creation of a achieved in 2013. Various trainings and
GPP function within contracting information sessions are organized to raise
authorities in order to implement the awareness of GPP among contracting
national strategy on green public authorities and economic operators. All
procurement (EC n.d.-b). procurements issued by the Department of
Contracts or other contracting authorities have
to be scrutinized and cleared by the GPP office
to ensure that they properly integrate
sustainable development criteria.
The Department of Contracts encourages
contracting authorities to adopt GPP and e-
procurement through the publication of
circulars. For instance, it requires each
contracting authority to create a GPP
coordinator to ensure that published tenders
comply with green public procurement
criteria. The Malta Intelligent Energy
Management Agency is reinforcing its human
resources with expertise in green public
procurement strategies and promoting eco-
innovative products within procurement
procedures.
Although most of the tenders published
include environmental criteria, few of them
meet the EU green public procurement
common criteria. In 2012 only 4.5% of tenders
falling within 18 priority product and service
groups identified in the GPP NAP were fully
compliant with GPP criteria (EC n.d.-b).
Netherlands, In 2005 the Netherlands introduced its In 2006 the Netherlands was among the top The Netherlands is a leader in the
the first set of comprehensive GPP criteria and performers with regard to the uptake of GPP, application of environmental criteria
targets for the approximately 7,500 with more tenders with green criteria than the (Melissen and Reinders 2012). Tools,
contracting authorities involved in public measures, and institutions exist to

89
Country GPP policies and targets Implementation measures Conclusion regarding implementation gap
procurement (Hasanbeigi, Becqué, and other 18 countries analyzed (Bouwer et al. promote GPP. Uptake is high by
Springer 2019). Dedicated SPP and GPP 2006). international comparison.
policies are in place and included in
The Netherlands is a frontrunner in GPP, → Advanced GPP country
procurement regulations. The Netherlands
having achieved, according to its own
has high ambitions regarding circular
monitoring results, the government’s
procurement, use of bio-based products,
ambitious 2005 target of 100% GPP by 2010
innovation, and climate change (UNEP
for central government procurement.
2017b).
Subsequently a 100% target was set for other
public authorities to meet by 2015
(Hasanbeigi, Becqué, and Springer 2019).
Buyer groups exist at the municipal level to
negotiate joint green criteria for purchase
projects and one-stop-shop centers to support
the demand as well as the supply side of GPP
(TN02; TN003). Tools, measures, and
institutions exist to support implementation of
GPP, such as the CO2 performance ladder,
DuboCalc, and PIANOo (Professional and
Innovative Tendering Network for
Government Contracting Authorities).
Norway Dedicated SPP policies have been in place Environmental award criteria seem to have Evidence points toward an
since 2007, and SPP policies exist in little influence on final decisions in supplier implementation gap. “Överall, Norway
procurement regulation (UNEP 2017b). selection, as little weight is attached to these has a strong foundation for sustainable
Norway follows the EU legal framework criteria in the selection process (Igarashi, de public procurement, notably in the area
on public procurement and has produced Boer, and Michelsen 2015). There are no SPP of the legal and regulatory framework.
various eco-labels and national guidelines indicators and no monitoring of SPP (UNEP Weaker points relate to the
(Igarashi, de Boer, and Michelsen 2015). 2017b). Norway was part of the Baltic GPP implementation and uptake of
Project, a GPP capacity-building project for the sustainable public procurement
Baltic Sea region ([Link] 2015). throughout Norway’s entire public
procurement system and to the
accountability framework” (OECD n.d.-
b).
→ GPP gap country
Poland SPP provisions are in place in overarching The Public Procurement Office provides GPP The EU target and a national target set
or thematic national policies and in training events, organizes an annual for 2016 were not reached in 2015.
existing procurement regulations; conference on GPP, and has developed and
90
Country GPP policies and targets Implementation measures Conclusion regarding implementation gap
dedicated SPP policies are also in place. issued two guidebooks on GPP. In 2015 the → GPP gap country
The Public Procurement Office promotes inclusion of environmental aspects in contract
the application of EU GPP criteria (on a award procedures by the Polish contracting
voluntary basis). The GPP goal to be authorities amounted to 11.4% (UNEP 2017b).
attained by the end of 2016 is for 20% of
the total number of awarded contracts to
include environmental clauses (UNEP
2017b).
Portugal The Ministry of Environment and the Level of uptake (by number and value) was The 50% target set by the EU was not
Central Procurement Agency are in charge less than 20% in 2009–10 (EU 2012). GPP as a met in 2009–10, but more than half of
of GPP. A GPP plan is being supported by share of total public procurement was 2% in procedures included environmental
the National Laboratory of Energy and 2012 (Hasanbeigi, Becqué, and Springer criteria. GPP implementation is viewed
Geology in the form of a partnership. Its 2019). GPP monitoring results indicate that as difficult. All sources are relatively old.
role is to support the capacity of and raise 56% of procedures included environmental In the meantime, there is evidence of
awareness among public procurers with criteria in 2010 (Hasanbeigi, Becqué, and efforts to implement GPP at the regional
regard to SPP, with the specific objective Springer 2019). Monitoring of the execution of level (EC 2020a; Xpress 2020).
of achieving low-carbon procurement the 2007 National Strategy for Green Public
→ GPP gap country
processes. Public authorities have Procurement has not been consistent, which
gradually expanded the incorporation of has contributed to the lack of transparency
environmental requirements into award and complicated the implementation of GPP
criteria and technical specifications. These (da Silva Gomes 2013).
environmental aspects include, for
example, energy efficiency and CO2
emissions levels, use of recycled content
and reduced packaging, as well as waste
management and fuel consumption (EC
n.d.-b). There is a 2007 National Strategy
for Green Public Procurement (da Silva
Gomes 2013).
Romania A NAP is being developed that sets targets The Ministry of the Environment organizes GPP development is in its infancy, a NAP
for the application of green criteria in the dissemination events and conferences on GPP is still being developed, and uptake by
purchase of certain types of products. The as well as training programs for public number is low. It is not clear whether
National Environmental Protection procurers in central and local administration. targets have been reached. However,
Agency issues an annual monitoring Since 2006, contracting authorities have been Romania is comparatively advanced in
report on the use of GPP. The report is obliged to conclude 40% of their annual public the use of e-procurement.
based on information registered in the procurement contracts worth more than
→ Basic GPP country
national e-procurement platform and the €30,000 through electronic methods, either
91
Country GPP policies and targets Implementation measures Conclusion regarding implementation gap
self-reporting of contracting authorities through end-to-end procurement procedures
(EC n.d.-d). or through direct acquisitions via the e-
catalog. Fully electronic procurement from
notification to submission amounted to 6.2%
of total procurement in 2011, putting Romania
ahead of many EU member states (EC n.d.-d).
In 2009–10 GPP uptake was below 20% by
number and between 20% and 40% by value
(EU 2012).
Russian Since 2014, public procurement has been The Olympic Games in Sochi were the first Since there are no clear targets and no
Federation regulated by the Law of Contractual large-budget project in Russia that was policies directly targeting GPP, there is
Relations, which includes some elements required to meet ecological standards in no implementation gap.
of sustainable procurement. The “contract construction, food and catering, transport, and
→ Basic GPP country
life cycle” is used in accounting for the life electricity, among others (Hasanbeigi, Becqué,
cycle value of projects, and some GPP and Springer 2019).
elements are required in procurement
(Hasanbeigi, Becqué, and Springer 2019).
Slovakia SPP provisions exist in overarching or The Ministry of Environment coordinates Uptake of GPP is low for three reasons
thematic national policies and in activities under the GPP NAP, supports GPP (Van der Zwan 2018): (1) The
procurement regulations. Dedicated SPP training, coordinates annual GPP monitoring, government does not prioritize
policies are in place, including a GPP NAP and coordinates working groups on GPP. The environmental concerns, and thus
for 2011–15. The Ministry of the Slovak Environment Agency organizes commitment to GPP implementation is
Environment has committed to integrating seminars for public authorities, provides help low. (2) The regulatory framework is
requirements for eco-labeled products in desk services, maintains a website on GPP, and complicated, and it is not clear what is
its procurement practices. The target was conducts other communication activities. expected from stakeholders, which
to include GPP provisions in 65% of the discourages suppliers from participating
In 2015 about 66% of works contracts, 18% of
tenders of central government and in 50% in GPP tenders. (3) Lack of experience
products contracts, and 20% of services
of those of regional governments and and knowledge prevent procurers from
contracts (in terms of number) were green. In
cities by 2015. The GPP NAP is mandatory applying GPP.
the same year, about 97% of works contracts,
for central government and recommended
3% of products contracts, and 10% of services → GPP gap country
for regional governments and cities (UNEP
contracts by value were green (UNEP 2017b).
2017b).
Slovenia A short-lived Public Procurement Agency In 2009–10 GPP uptake was below 20% in The 50% target has not been reached;
was set up in 2011 to carry out joint terms of number and 20%–40% in terms of the number of GPP requirements
procurement on behalf of the central value (EU 2012). Procurement trainings, applied in contracts is low.
government, develop e-procurement tools, including GPP, are being conducted. In 2013

92
Country GPP policies and targets Implementation measures Conclusion regarding implementation gap
and foster awareness and adoption of GPP. contracting authorities applied GPP → GPP gap country
It was dismantled in 2012 as part of a requirements for 11.7% of contracts by
reorganization effort, and its functions number and 8% by value (EC 2020a).
were devolved back to the respective
ministries. Some policies for green and
social public procurement have been
introduced. A GPP NAP adopted in 2009
set a target for 50% of awarded contracts
for 8 product categories to incorporate
GPP by 2012 (EC 2020a).
Spain SPP policies are in place, and SPP GPP uptake (by number and value) was Spain has met many (but not all) of its
provisions exist in procurement between 40% and 60% in 2009–10 (EU 2012). own targets and has either met or come
regulations; the GPP Plan of the National According to the monitoring results of the GPP close to meeting the 50% target set by
Administration has been in place since Plan of the National Administration, the target the EU. Yet development of SPP is slow
2008, setting quantitative and qualitative level of compliance was met, and positive as a result of lack of training and supply-
targets for different years for different results were achieved in many of the side issues, among others (Jimenez,
categories of products, services, and categories of products and services prioritized López, and Escobar 2019). Although
works considered a priority for GPP by the in the plan. The monitoring report concludes, environmental criteria are being
European Commission. Participation is “Significant progress was made in the main progressively introduced, their presence
voluntary (UNEP 2017b). Spain groups of products and services that are is tentative (average weight of 6.02%);
participated in EU funding of the GPP included in the GPP Plan” (UNEP 2017b). the economic aspect is still the most
2020 Project from 2013 to 2016. GPP decisive one (73.14%), followed by the
2020 aimed to increase the number of technical (18.67%) (Braulio-Gonzalo
tenders that take carbon emissions into and Bovea 2020).
account and to mainstream low-carbon
→ GPP gap country
procurement in Europe, in support of the
EU’s goal of a 20% reduction in
greenhouse gas emissions by 2020
(Hasanbeigi, Becqué, and Springer 2019).
Sweden In 2007 the government launched a NAP In 2006 Sweden was among the top GPP uptake is comparatively high
for GPP; many activities are still ongoing performers with regard to the uptake of GPP. internationally. Sweden has a high-
even though the plan is officially closed. In More than 60% of tenders included some performing public procurement system,
2016 the Swedish government launched a green criteria, and more than 90% of which is fairly advanced in its strategic
new national strategy for public organizations stated that they take dimension, including green, innovation,
procurement that relates to all aspects of environmental criteria into account when and social criteria (EC n.d.-c).
sustainability (including environmental purchasing (Bouwer et al. 2006). In 2009–10
→ Advanced GPP country
aspects). Public authorities at the national GPP uptake was 60%–80% by number and
93
Country GPP policies and targets Implementation measures Conclusion regarding implementation gap
level are required to have environmental 40%–60% by value (EU 2012). Environmental
management systems in place, to consider criteria were used in 60% of the total volume
sustainability aspects in their of public procurement in 2015, 67% in 2014,
procurement activities, and to report on and 53% in 2013 (UNEP 2017b).
how often sustainability criteria are used
in their procurement processes and
whether their framework agreements
include sustainability criteria (UNEP
2017b).
Switzerland SPP provisions exist in overarching or The integration of sustainability-related Certain goals have been defined, but no
thematic national policies and in criteria in procurement processes has to be quantitative targets have been set. No
procurement regulations. No quantitative indicated for certain product categories before information is available on GPP uptake.
targets have been set. The Sustainable the tender is published on the e-procurement A research project is being undertaken
Development Strategy 2016–19 defines platform SIMAP. General guidelines on how to to determine the status quo of Swiss
vague goals for SPP—for example, “In its implement SPP have been produced. Even procurement regarding sustainability
public procurement of goods, services, and though no priority products and service criteria.f
construction services, the Confederation categories have been formally identified, SPP
→ GPP gap country
endeavors to ensure that they satisfy high criteria have been defined for some of them. A
economic, environmental, and social course on sustainability has been designed for
requirements throughout their life cycles. procurers (UNEP 2017b).
It sets an example with its own
procurement activities, by purchasing
products and constructing buildings that
are economical, environmentally
compatible, and healthy and are produced
or built by means that are as socially
responsible as possible” (UNEP 2017b).
United In 2005 the UK government stated the The Cabinet Office monitors compliance with Evidence is mixed. Numbers from 2009–
Kingdom ambitious goal of becoming one of the EU’s the “greening government” commitments by 12 suggest that the United Kingdom has
leaders in sustainable procurement by regular surveys that all relevant organizations not met its ambitious goals. However,
2009. In 2010 the UK Department for must complete. An environmental assessment GPP uptake is comparatively high
Environment, Food, and Rural Affairs method that is appropriate to the size, nature, internationally. In 2020 the government
published the Action Plan for Driving and impact of a project must be carried out on published a Green Paper to reform
Sustainable Operations and Procurement all projects, using appropriate government public procurement “to speed up and
across Government, in support of the guidance (Hasanbeigi, Becqué, and Springer simplify our procurement processes,
policy goals. Following the NAP of 2006, 2019). place value for money at their heart, and
all central government departments and unleash opportunities for small
94
Country GPP policies and targets Implementation measures Conclusion regarding implementation gap
related organizations must ensure that In 2006 the United Kingdom was among the businesses, charities, and social
they meet the mandatory levels of the top performers with regard to the uptake of enterprises to innovate in public service
government buying standards. The Public GPP; more than 80% of organizations stated delivery,” where “value for money does
Procurement Policy and Government that they take environmental criteria into not … mean simply selecting the lowest
Buying Standards and the National account when purchasing and almost 60% of price … but involves economic, social,
Procurement Strategy for Local public tenders included green criteria (Bouwer and environmental value over its life
Government in England were designed to et al. 2006). By number of transactions, GPP cycle” (Parliamentary Secretary 2020).
support GPP at both national and local uptake was between 40% and 60% in 2009–
→ Mixed-evidence country
levels. Goals set by the UK government 10; by value, it was less than 20% (EU 2012).
were, for example, to reduce the carbon
footprint of government activities, to
support a lower-carbon public sector, and
to encourage voluntary initiatives to
reduce the carbon footprint of key
government suppliers (Hasanbeigi,
Becqué, and Springer 2019).

a. GPP uptake by number is defined as the % of individual contracts that included all core green criteria set at the EU level, while GPP uptake by value is
defined as the % of the all contracts, by value, that included all core green criteria in the EU27 in 2009–10 (EU 2012). Differences in percentages
between the indicators can be explained by the fact that, within indicator 1, a high-value contract is of greater weight than a low-value contract
(Pricewaterhouse Coopers, Significant, and Ecofys 2009).
b. For more information, see [Link]
c. For the Central Portal for Sustainable Procurement of Public Clients (Beschaffung des BMI), see [Link]
[Link]/DE/Home/home_node.html. For the Sustainability Compass, see [Link]
d. See [Link]
e. See [Link] and [Link]
f. For more information, see [Link]

95
Table C.4: Green public procurement (GPP) uptake in the Americas
Country GPP policies and targets Implementation measures Conclusion regarding implementation gap
Antigua and No dedicated sustainable public No information on GPP uptake is available in No implementation gap exists, as
Barbuda procurement (SPP) policies are in place, but any of the four sources used in this analysis. regulations for implementation have not
several laws have an impact on SPP. been developed yet.
Nevertheless, while these laws are on the
→ Basic GPP country
books, regulations are needed for their
implementation (UNEP 2017b).
Argentina SPP policies that include environmental Piecemeal evidence exists on GPP uptake— SPP policies, including green measures, are
concerns have been in place since 2012 for example, there was a high degree of in place, but there is little evidence on
(UNEP 2017b). efficiency in air conditioning units implementation or uptake.
contracted in 2014. A monitoring system is
→ GPP gap country
in place (UNEP 2017b).
Brazil SPP policies have been in place since 2010 No monitoring system is in place to measure Policies are in place, but no goals have been
that include measures for air pollution. No the uptake of SPP or GPP, but some set or specific targets expressed in the
goals or specific targets have been information is available from the Catálogo de national legislation, and results are not
expressed in the national legislation (UNEP Materiais (CATMAT): of 149,119 purchasing measured systematically.
2017b). processes, 1,047 (7%) were sustainable
→ GPP gap country
(UNEP 2017b).
Canada Dedicated SPP policies have been in place Monitoring from 2012 shows that significant The government faces several challenges
since 1996. The GPP policy does not set any progress had been made in implementing with regard to GPP uptake, although
targets or goals. It is mandatory but covers the GPP policy. Fundamental policy significant progress has been made.
only national government public mechanisms are in place, including a
→ GPP gap country
authorities (UNEP 2017b). governance structure, an implementation
plan, guidance and tools, and free online
training for government employees. In
2014–15, 99% of managers and functional
heads of procurement ran performance
evaluations that included support and
contribution toward green procurement,
and 89% of specialists in procurement or
material management completed the Canada
School of Public Service’s GPP course or an
equivalent. The government has
encountered several obstacles in
implementing GPP (UNEP 2017b). (1)
Procurement personnel have to balance

96
 Country GPP policies and targets Implementation measures Conclusion regarding implementation gap
many different objectives. (2) It is difficult to
measure actual green purchases. (3) It is
difficult to obtain a detailed, comprehensive
picture of green procurement at the
government level. (4) It is challenging to
attribute reductions in environmental
impacts directly to procurement activities.
(5) While the federal government is a major
buyer, its purchasing power alone is too
small to enable the market to offer greener
products at lower prices. (6) Much of the
lower-risk procurement activity is
decentralized.
Chile No dedicated SPP policies are in place, but The implementation of ChileCompra’s SPP No implementation gap exists, as no
in 2012 the national public procurement policy and related guidelines is voluntary for dedicated policies are in place for GPP.
agency (ChileCompra) approved the Social purchasing agencies. Nevertheless, the
→ Basic GPP country
Responsibility in Public Procurement Procurement Law and the Supreme Decree
Policy, which highlights the role of public regulating the law establish some
procurement in balancing environmental mandatory rules related to socioeconomic
and socioeconomic aspects (UNEP 2017b). sustainability. Monitoring is in place, but no
public authority is subject to formal
monitoring, and results are not published
(UNEP 2017b). In 2014 almost 40% of
purchasing orders contained some
sustainability criteria (UNEP 2017b). Chile
has implemented a thorough monitoring
system through its e-procurement platform
ChileCompra Express (UNEP 2019).
Colombia No dedicated SPP policies are in place, but In 2013 a survey to evaluate the level of SPP No implementation gap exists, as no
the Ministry of the Environment and was submitted to central government dedicated policies are in place for GPP.
Sustainable Development is formulating an agencies that had participated in training
→ Basic GPP country
SPP National Action Plan (NAP) together sessions. Almost 13% of the procurement
with the National Procurement Agency. budget was found to include environmental
Enforcement is voluntary (UNEP 2017b). or social criteria (UNEP 2017a).
Dominican SPP provisions exist in overarching or No information is available on GPP No implementation gap exists, as no GPP
Republic thematic national policies and in implementation or uptake. policies are in place.

97
 Country GPP policies and targets Implementation measures Conclusion regarding implementation gap
procurement regulations; however, no → Basic GPP country
dedicated SPP policies are in place (UNEP
2017b).
Mexico SPP provisions exist in overarching or Procurement regulations contain some Policies are in place, but no evidence on
thematic national policies and in existing provisions relevant to GPP. Since 2013, GPP GPP uptake was found. Evidence is unclear.
procurement regulations; dedicated SPP policy has been part of the National Strategy
→ Mixed-evidence country
and GPP policies are in place (UNEP on Sustainable Production and Consumption
2017b). However, air pollution and climate and the Special Sustainable Consumption
change are not a priority in sustainability and Production Program 2014–2018, which
goals (UNEP 2017b). Mexico has no overall both identify promotion of GPP as their first
policy on GPP, but efforts have been made objective. The Ministry of the Environment
in specific sectors (Hasanbeigi, Becqué, and and Natural Resources is working to
Springer 2019). implement GPP guidelines developed by the
Inter-American Network on Government
Procurement (Hasanbeigi, Becqué, and
Springer 2019). No evidence was found on
uptake of GPP.
Paraguay SPP provisions exist in procurement No information was found on GPP There is no implementation gap, as GPP is
regulations, and dedicated SPP policies are implementation and uptake. not yet a focus or a part of SPP.
in place. However, emissions and climate
→ Basic GPP country
change mitigation are not a focus (UNEP
2017b).
Peru SPP provisions exist in procurement No information was found on GPP There is no implementation gap, as there
regulations; no dedicated SPP policies are implementation and uptake. are no GPP policies yet.
in place, and there are no SPP provisions in
→ Basic GPP country
overarching or thematic national policies
(UNEP 2017b).
Uruguay SPP provisions exist in overarching or No information was found on GPP GPP seems at a nascent stage, but
thematic national policies and in implementation and uptake. information is scarce.
procurement regulations; however, no
→ Mixed-evidence country
dedicated SPP policies are in place. The
Strategic SPP Plan for 2015–20 sets the
objective to include the life cycle
perspective in public procurement (UNEP
2017b).

98
 Country GPP policies and targets Implementation measures Conclusion regarding implementation gap
United SPP provisions exist in overarching or The 28% emissions reduction target was not Systematic reviews are in place to ensure
States thematic national policies and in met in 2019.a There is monitoring of that companies comply with sustainability
procurement regulations; dedicated SPP “whether individual agencies are staying on goals and take corrective measures if they
policies are in place. There are various track toward achieving the overarching do not. However, “because there are
targets with regard to GPP, for example, government-wide goals and how much hundreds of thousands of buying points
national, government-wide, and agency- progress agencies are making to achieve the across multiple agencies, without one
specific targets exist for reductions in activities and milestones identified in their unified law or purchasing system, it is very
greenhouse gas emissions and disclosure of annual plans or as prescribed ... Agencies are difficult for US federal government agencies
carbon footprint; new federal buildings asked to conduct quarterly reviews of at to obtain accurate information and track
have to meet green standards and achieve least 5% of the acquisitions awarded in that which green products they purchase”
zero-net energy by 2030 (UNEP 2017b). period and report on compliance with the (OECD 2015). The emissions reductions
Targets have been set with regard to GPP: sustainable acquisition goals. If agencies fall target for 2020 was not met in 2019.
by 2020 the federal government will reduce below the 95% compliance rate, they are
→ GPP gap country
scope 1 and 2 greenhouse gas emissions by supposed to identify corrective actions that
28% compared to a 2008 baseline; by 2020, they will take during the following six-
the federal government will reduce scope 3 month period to address the barriers or
greenhouse gas emissions by 13% underlying conditions for noncompliance”
compared to a 2008 baseline (Hasanbeigi, (OECD 2015).
Becqué, and Springer 2019).
a. Calculations based on [Link]

99

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