Accelerating Decarbonization Through the Power of Procurement

The CO2 Performance Ladder is a CO2 management system that helps organizations reduce carbon emissions. It also functions as a procurement tool, as certified organizations can receive an award advantage in tenders. The CO2 Performance Ladder is managed by the Foundation for Climate Friendly Procurement and Business (SKAO). 

With research support from IISD, SKAO is expanding the use of the instrument beyond the Netherlands and Belgium. Ultimately, the project aims to accelerate carbon emission reductions through green public procurement. This project, Accelerating Carbon Emissions Reduction Through the Power of Procurement by Dissemination of the CO2 Performance Ladder in Europe (CO2PLEU), is funded by the IKEA Foundation. 

In the first project phase, from 2021 to 2023, IISD supported SKAO in identifying European countries and stakeholders that could use the CO2 Performance Ladder. We engaged with procurement agencies, policy-makers, researchers, and suppliers to learn about the potential of scaling up the use of the CO2 Performance Ladder.  

The resulting feasibility study explores how the tool can be implemented in 10 European countries. It confirms that there is an opportunity to use the CO2 Performance Ladder across Europe, responding directly to the demand from public authorities for easy-to-use, practical tools to reduce carbon emissions. There is a demonstrated interest in tried-and-tested approaches to stimulate decarbonization through public procurement processes, as well as a marked demand for third-party verified certification systems. 

To respond to frequently asked questions and support legal certainty for scaling up the use of the tool, we also produced an explainer document for key legal considerations while using the CO2 Performance Ladder for public procurement.  

In the second project phase until the end of 2025, IISD researched the status of green public procurement in India, Indonesia, South Africa and the work of Multilateral Development Banks. In these studies, we find increasingly strong policies and initiatives for GPP, but also observe common challenges that hinder governments from fully leveraging the power of procurement emission reductions.

In light of the growing interest in monitoring GPP, we also researched methods, challenges and case studies for monitoring the tangible environmental outcomes of more sustainable purchasing practices. IISD will also research how procurement policy reforms at the EU level can create a more enabling environment for GPP.

In addition, we provide technical advice to pilot projects with the CO2 Performance Ladder in Germany, Ireland, France, the United Kingdom, Portugal and other countries.