Report

Made in Europe Requirements in Public Procurement

Risks and opportunities for climate action, circularity, and competitiveness

Every year, European governments spend around EUR 2.5 trillion through public procurement. As policy-makers consider prioritizing European products and suppliers, this report examines why "Made in Europe" requirements are gaining traction, how local content rules can be designed, and where they can create lead markets for climate-friendly and circular innovation—and where they risk falling short.

May 26, 2026

Key Messages

  • As the European Union reforms its public procurement rules, it should create better conditions for companies to compete based on long-term value creation, innovation, and credible climate action.

  • Made in Europe rules are increasingly discussed as one policy option for using procurement more strategically to support resilience, competitiveness, and industrial transformation.

  • Local content rules come with risks for costs, supply chains, trade relationships, and procurement procedures but also offer an opportunity for value creation, lead markets for low-carbon products, and competition based on green innovation.

  • Policy-makers must ensure that costs and benefits are carefully assessed and that Made in Europe rules are part of a coherent, harmonized procurement framework.

Public procurement is a powerful yet underused tool for shaping markets. In the European Union, it represents around 15% of GDP and is linked to roughly 11% of greenhouse gas emissions—giving public authorities strong leverage to influence how companies compete and what kinds of products and business models succeed. At a time of geopolitical uncertainty, industrial rivalry, and climate change, this market power is becoming more important. In that context, local content requirements (LCRs), or Made in Europe requirements, have been one of the central themes of the debate on procurement reform. 

Well-designed LCRs can support resilience, clean industry, and low-carbon markets. When combined with robust environmental requirements, they can help reduce emissions, improve circularity, and create lead markets for more sustainable products—particularly in heavy industries such as steel and cement, where decarbonization has progressed slowly despite years of effort. But if LCRs are too broad or too rigid, they can increase costs, reduce competition, add legal and administrative complexity, and create tensions with international trade partners. Origin criteria alone, without ambitious environmental standards, risk entrenching high-emitting producers rather than driving clean industrial transformation. 

The report examines how domestic preference rules can be defined and how they are used in India, Canada, and China. The report maps their main risks and opportunities, identifies the conditions under which LCRs can effectively support clean lead markets, and explores their application in the steel, concrete, and clean technology sectors. The report concludes with four recommendations for policy-makers on advancing Made in Europe requirements in the context of the Industrial Accelerator Act and the future EU Public Procurement Act.

Participating experts

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Report

Stories of Resilience: Water

Indigenous women across the Prairies

Across the Canadian Prairies, water carries memory, identity, responsibility, and life. Yet the voices of those most deeply connected to it are often absent from climate and water policy discussions.

May 25, 2026

Key Messages

  • The historical variability of the Canadian Prairies climate, coupled with anticipated changes in temperature, precipitation, and extreme storms, is shaping decision making related to water supply, health, and security.

  • Underserved and vulnerable populations exist across the Prairies, especially in many Indigenous and rural communities where access to support is inadequate and ongoing challenges to water infrastructure persist.

  • Effective collaboration among the many beneficiaries of fresh water across the Prairies is a moral imperative. It will help to avoid exacerbating existing social and structural inequalities and ensure we pave the way for a just and equitable future—where no one suffers due to water scarcity.

  • Water is far more than a resource to manage for human benefit. The stories shared by participants in this project speak of rivers as lifelines, lakes as relatives, and water as a living being that connects families, cultures, and generations.

Across the Canadian Prairies, water carries memory, identity, responsibility, and life. Yet the voices of those most deeply connected to it are often absent from climate and water policy discussions. 

Through Stories of Resilience: Water, the Natural Infrastructure for Water Solutions (NIWS) initiative and The Resilience Institute (TRI) are helping change that. This digital story map brings forward the experiences of Indigenous women, girls, and Two-Spirit people from across Alberta, Saskatchewan, and Manitoba—sharing deeply personal reflections on water, climate change, stewardship, and resilience. 

The stories reveal water as far more than infrastructure or a resource to manage. Participants speak of rivers as lifelines, lakes as relatives, and water as a living being that connects families, cultures, and generations. They also describe the growing pressures facing Prairie communities, from drought and wildfire to ecosystem loss and changing watersheds, while highlighting community-led responses rooted in Indigenous knowledge, restoration, and care for the land. 

For the International Institute for Sustainable Development, this work is part of a broader effort to support more inclusive and resilient water futures across the Prairies. By elevating voices too often overlooked in environmental decision making, Stories of Resilience: Water challenges us to rethink our relationship with water—and with each other. 

Like tributaries flowing into a larger watershed, each story contributes to a growing collective understanding of what resilience can look like in a changing climate.

Report details

Topic
Gender Equality
Nature-Based Solutions
Water
Region
Canada
Impact area
Nature
Social Equity
Initiatives
Natural Infrastructure for Water Solutions (NIWS)
Publisher
The Resilience Institute
Copyright
IISD, The Resilience Institute, 2026
Report

Designed to Fail

How fossil fuel infrastructure undermines municipal finances

Low-density, car-oriented growth typically imposes long-term fiscal burdens on municipal governments while locking in higher energy use and greenhouse gas emissions. This research examines how urban development patterns shape municipal finances and emissions outcomes in the context of growing infrastructure deficits and increasing pressure to meet climate targets.

May 25, 2026

Recommendations

  • Align infrastructure pricing with actual costs: Property taxes, development charges, and user fees should better reflect the true long-term costs of infrastructure so that communities have a clearer understanding of the full costs of infrastructure.

  • Require stronger fiscal impact analyses (FIAs): Municipalities should require full life-cycle FIAs for major infrastructure projects, including long-term maintenance and emissions costs, alongside spatial analysis that evaluates the fiscal performance of different development patterns.

  • Tie provincial and federal infrastructure funding to long-term sustainability: Senior government infrastructure funding should prioritize projects that demonstrate long-term fiscal viability and support lower-emission development patterns.

Significant infrastructure deficits in municipalities across North America indicate that infrastructure is being expanded at an unsustainable rate. At the same time, governments are faced with the urgent need to reduce greenhouse gas emissions. 

This report examines how urban development patterns influence both the fiscal and environmental costs of car-oriented infrastructure. Low-density growth patterns often generate insufficient tax revenue to cover their full life-cycle infrastructure costs, contributing to long-term municipal liabilities, while also reinforcing car dependency and higher emissions. The research explores how fiscal impact analysis, infrastructure planning, and land-use policy can be better integrated to support more financially and environmentally sustainable development outcomes.

Participating experts

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Topic
Climate Change Mitigation
Infrastructure
Subsidies
Region
Canada
Impact area
Climate
Publisher
IISD
Copyright
IISD, 2026
Report

The Criticality of Gender Equality in the Race for Critical Minerals

This IGF report examines how rising demand for cobalt, copper, graphite, lithium, and nickel could deepen existing gender inequalities in the mining sector unless governments and companies act deliberately. The report analyzes risks to women’s rights in mining-affected communities particularly for Indigenous and rural women including impacts on land, livelihoods, food security, health, unpaid care work.

May 13, 2026

Policy Recommendations

  • Rising demand for critical minerals risks deepening gender inequalities unless governments and companies embed gender-responsive safeguards in mining governance.

  • Assess, monitor, and manage gendered impacts by applying intersectional gender analysis, collecting gender-disaggregated data, and integrating findings into costed, time-bound Gender Action Plans.

  • Require inclusive consultation, promote women’s agency, and secure consent by enabling safe, meaningful participation, community-led monitoring, and free, prior, and informed consent (FPIC) as the best-practice standard.

  • Establish gender-equitable benefit-sharing mechanisms so women can access jobs, compensation, livelihood restoration, supplier opportunities, and community development benefits.

Critical minerals are essential to the global energy transition, digitalization, and industrial development. But the race to secure minerals such as cobalt, copper, graphite, lithium, and nickel also risks deepening long-standing gender inequalities in the mining sector. 

This IGF report, developed in partnership with the ILO and the UNDP, examines how the expansion of critical mineral extraction can affect women’s rights, particularly for Indigenous women, rural women, and women living in mining-affected communities. It looks at how environmental impacts, the location of mineral reserves, and accelerated permitting processes can increase risks related to land, livelihoods, food security, health, unpaid care work, safety, employment, consultation, and benefit sharing. 

The report also identifies practical actions for governments and mining companies to make critical minerals governance more gender-responsive. These include integrating intersectional gender analysis into impact assessments, ensuring inclusive consultation and women’s meaningful participation, respecting free, prior, and informed consent, and establishing benefit-sharing mechanisms that expand women’s access to decent work, compensation, community development, and economic opportunities. 

By placing gender equality at the centre of critical minerals governance, the publication argues that the transition to a low-carbon and digital future can become an opportunity to advance women’s rights, strengthen accountability, and support more inclusive and sustainable mineral development with gender-responsive policies in place.

Report

Nickel Mining in Indonesia

An overview of socioenvironmental governance in the sector

This case study is part of a broader project focused on strengthening supply chain resilience through analysis of the environmental and associated social impacts of critical minerals using case studies of nickel, lithium, and copper. It describes Indonesia's environmental challenges and associated social issues from nickel mining of laterite ore and processing through high-pressure acid leaching (HPAL) and examines the country's policy measures for management.

May 5, 2026

Key Messages

  • Indonesia has invested significant resources into leveraging its nickel endowments for economic development. The use of HPAL to process low-grade laterite ore continues to grow in scale—such intense development is associated with significant environmental and social impacts.

  • Nickel laterite mining and processing have a larger environmental footprint and generate more waste per tonne of metal produced than nickel sulfide mining. And much of the energy consumed in this process in Indonesia comes from coal, resulting in higher greenhouse gas emissions.

  • Stringent legislative frameworks are needed to address mining-related issues such as tailings and water management, which have potential for significant impacts on the environment and society.

Indonesia has the world’s largest nickel reserves, with an estimated 55 million tonnes. It has been the world’s leading producer of nickel over the past few years, with a global production share of 16% in 2017 rising to 54% in 2023, when it produced 2.02 million tonnes of nickel. 

The conclusions and lessons learned from this case study can be used to guide more sustainable nickel laterite mining and processing in Indonesia as well as other jurisdictions.

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Report

Voluntary Sustainability Standards and Export Promotion

Insights from their integration in Vietnam, Namibia, Suriname, and Mozambique

This report examines how integrating voluntary sustainability standards (VSSs) into national regulatory and sectoral systems can boost exports of sustainable products while helping producers adopt and maintain sustainable practices. It also provides recommendations for policy-makers to address challenges and risks.

April 30, 2026

Key Messages

  • Strong legal and regulatory foundations, along with clear mechanisms and intervention strategies, are vital for ensuring successful VSS integration in export promotion measures.

  • Investment in training, extension services, and market information reduces VSS implementation barriers and helps producers and exporters access sustainable markets. Without continuous support, smallholders risk losing certification and access to premium markets.

  • Effective VSS integration requires inclusive and holistic stakeholder engagement. It should be accompanied by mechanisms that ensure ownership and the active participation of all relevant actors from the outset.

  • Leveraging VSSs can support market diversification, domestic consumption, and intra-regional trade. Market overdependence on a few large buyers must be reduced. This requires prioritizing access to new regional and international markets, supporting value addition, and addressing bottlenecks.

Governments in developing countries and regions are adopting VSSs in export promotion measures to ensure exported products meet sustainability-related market requirements, while also expanding trading opportunities for producers, women, and micro, small, and medium-sized enterprises.

This report examines how integrating VSSs into national regulatory and sectoral systems can drive export-promotion outcomes. It provides insights into how governments are developing measures to support the use of VSSs in key sectors to increase access to markets and to help producers adopt and maintain more sustainable production practices. The report presents examples from four countries that have integrated or supported the use of VSSs for export promotion, highlighting lessons learned, benefits for producers, key successes and challenges, and emerging best practices.  

These four cases demonstrate that despite challenges, a structured, well-supported collaboration among governments, industry, and VSS organizations can drive both market access and more sustainable production practices. This report concludes with actionable recommendations for policy-makers to effectively address emerging challenges and risks linked to the use of VSSs in export-promotion measures and the broader implications of evolving sustainability-related policies in importing countries. 

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Report

Reliability of Sustainability Claims

Addressing greenwashing through regulations

How are governments regulating greenwashing? This report compares 23 regulatory instruments across 12 countries, analyzing policy instruments, scope, stringency, enforcement, and implementation while highlighting the role of voluntary sustainability standards (VSSs). It offers recommendations for designing credible, inclusive regulations that strengthen the reliability of environmental claims.

April 29, 2026

Key Findings

  • Regulations converge on core principles, truthfulness, clarity, substantiation, and transparency, but few specify what counts as adequate evidence. This leaves uncertainty about acceptable data sources, methodologies, and verification, creating risks of weak self-declared substantiation.

  • Efficient implementation of greenwashing regulations depends on verifiable data across complex value chains. Most frameworks apply the same substantiation burden to all companies regardless of size, disproportionately affecting smallholders and SMEs that lack the resources to provide evidence.

  • Many regulations accept voluntary sustainability standards as evidence, but few define what makes such schemes credible. Clear recognition criteria, covering governance, independence, audit quality, and data transparency would strengthen green claims and reduce compliance costs for producers.

Greenwashing has become a growing policy concern as businesses increasingly market products, services, and practices using environmental claims. Misleading or unsubstantiated claims can weaken consumer trust, distort competition, and undermine genuine sustainability efforts. In response, governments around the world are introducing new rules to improve the reliability of environmental information in the marketplace. 

This report provides a comparative overview of regulatory responses to greenwashing in Australia, Canada, Chile, Colombia, the European Union, France, India, Kenya, Peru, Switzerland, the United Kingdom, and the United States. It reviews how countries are using different policy tools, including consumer protection and competition law, sector-specific legislation, advertising standards, and upcoming specific greenwashing proposals. 

The mapping reveals significant progress. Most jurisdictions now embed core principles—truthfulness, clarity, substantiation, and transparency—into their regulatory frameworks. At the same time, persistent gaps remain. Pathways to credible evidence are often underspecified, leaving companies uncertain about what counts as adequate substantiation. Data collection along complex value chains remains a major implementation challenge, particularly for smallholders and small and medium-sized enterprises (SMEs). And while many regulations recognize third-party certifications and VSSs as admissible evidence, few clearly define the criteria that make such schemes credible. 

The report argues that effective greenwashing regulation must balance credibility with inclusiveness. It offers recommendations across three areas: 

  • strengthen the design of substantiation requirements and adopt proportionate approaches to reflect differences in company size, sector, and position in the value chain,
  • enable implementation by investing in data infrastructure and producer support, combining enforcement with guidance and consumer awareness, and promoting cooperation and experience sharing, and
  • support compliance by clarifying the role of VSSs through recognition criteria rather than endorsements of specific schemes. 

Together, these recommendations point toward regulatory responses that empower consumers, support producers, and promote credible sustainability markets globally.

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Report

Sustainable Asset Valuation of the Recovery of the Bogotá River, Colombia

Hybrid infrastructure to reduce flood risk and improve water quality in the Bogotá River

This Sustainable Asset Valuation (SAVi) examines how nature-based infrastructure (NBI) interventions like wetland restoration and flood control transformed the Bogotá River basin. The results show that hybrid infrastructure delivers far more value than it costs—generating USD 349 million in net benefits across flood protection, cleaner water, and improved quality of life.

April 28, 2026

Key Findings

  • Restoring wetlands and river functions through NBI significantly reduced flood risk, avoiding up to USD 828 million in damages by protecting homes, businesses, and infrastructure across the Bogotá River basin.

  • Hybrid infrastructure that combines grey systems with NBI delivered a positive return on investment, generating USD 1.27 in benefits for every USD 1 invested and USD 349 million in total net benefits over the project lifetime.

  • Improvements in water quality and ecosystem services generated by NBI delivered USD 554 million in value, representing the largest share of total benefits and driving gains in urban resilience, environmental quality, and quality of life.

The Bogotá River is essential to central Colombia, providing drinking water for nearly 6 million people across 46 municipalities and supporting agriculture and industry across Cundinamarca. Rapid urban growth, untreated wastewater, and the loss of wetlands degraded water quality and increased flood risks. Extreme events, such as the 2010–2011 floods, highlighted the limits of traditional flood protection approaches. 

To address these challenges, the World Bank and the Corporación Autónoma Regional de Cundinamarca funded a major restoration project combining conventional infrastructure, such as wastewater treatment and hydraulic works, with NBI interventions, including wetland restoration and river rehabilitation. 

These interventions improved water quality, restored natural flood buffers, and increased the river's capacity to manage high flows. The project closed in December 2022. 

The NBI Global Resource Centre conducted a SAVi assessment to examine the long-term performance of these investments over a 50-year period at the basin scale. 

Results show that hybrid infrastructure delivers strong economic returns when the full range of benefits is considered. The project generates USD 1.27 in benefits for every USD 1 invested, with total net benefits of USD 349 million. Avoided flood damage represents a major share of this value, with an estimated USD 828 million in avoided losses to homes and businesses. 

In addition to financial returns, the project strengthened climate resilience and improved environmental quality and living conditions for millions of people. The findings highlight the role of hybrid infrastructure as a cost-effective strategy for river basin management, delivering integrated economic, social, and environmental benefits.

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Report

Effectively Delivering on Climate and Nature: Policy analysis to maximize synergies and co-benefits in Mongolia

Focusing on Mongolia, the study examines how nationally determined contributions (NDCs), national adaptation plans (NAPs), and national biodiversity strategies and action plans (NBSAPs) align, identifying overlaps, gaps, and opportunities for enhanced coordination. It combines a policy document analysis with expert interviews. Key areas of analysis include governance structures, strategic goals, policy measures, financing, and monitoring systems.

April 27, 2026

Key Findings

  • Mongolia lacks a formal mandate to align its NDC, NAP, and NBSAP, which contributes to fragmented planning and parallel project efforts. This limits coordination and potential synergies, reflecting an opportunity to strengthen shared understanding of the benefits of more integrated approaches.

  • Limited coordination has led climate and biodiversity processes to evolve separately, resulting in parallel assessments and duplicated efforts. These patterns highlight an opportunity to strengthen linkages and improve coherence across Mongolia’s planning frameworks.

  • Heavy reliance on development partners and consultants has contributed to parallel, project based policy efforts. This can lead to misaligned actions and missed opportunities for coherence, highlighting the value of strengthening nationally led coordination.

The climate and biodiversity crises are closely interconnected, yet national policies often address them separately, leading to fragmented approaches. This policy analysis highlights the need for stronger integration and defines synergies as the intentional coordination of planning and implementation across NDCs, NAPs, and NBSAPs to achieve more effective outcomes and co-benefits. 

Focusing on Mongolia, the report begins by outlining the institutional landscape for climate and biodiversity, along with the current status of key national policies. This is followed by a synergies assessment, which examines how Mongolia’s NDC, NAP, and NBSAP intersect, highlighting shared objectives, targets, indicators, activities, stakeholders, sectors, potential trade-offs, and gaps. It then explores the potential challenges, gaps, and barriers that could hinder deeper integration and the development of effective synergies. The final section highlights actionable opportunities and strategic entry points to enhance alignment and strengthen coordination across Mongolia’s climate and biodiversity frameworks. 

The analysis was guided by the Effectively Delivering on Climate and Nature: NDCs, NAPs and NBSAPs Synergies checklist. It aims to inform national focal points; NDC, NAP, and NBSAP policy-makers and planners; and civil society organizations in Mongolia working to align their climate and biodiversity policies and actions to seek more effective outcomes and multiple and co-benefits.

Report details

Topic
Climate Change Adaptation
Climate Change Mitigation
Governance and Multilateral Agreements
Nature-Based Solutions
Region
Mongolia
Project
Advancing Synergies Between Biodiversity and Climate Change Policy
Impact area
Climate
Nature
International Governance
Publisher
Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH
Copyright
Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, 2026
Report

Tax Incentives in National Investment Laws

Bridging the gap between tax and investment policy-makers

Every year, governments across emerging and developing economies forgo significant tax revenues through incentives embedded in national investment laws, with little evidence of their broader economic and social returns. This report maps their design, legal structure, and governance arrangements across 105 national investment laws to support better coordination among the institutions that shape these policies and help countries attract quality investment.

April 28, 2026

Key Findings

  • Tax incentives dominate the incentive landscape in investment laws. They appear in 94% of laws that provide incentives, consistently across regions.

  • Investment promotion agencies sit at the centre of both the design and the administration of tax incentives. Ministries of finance, by contrast, remain at the margins; their role is shaped more by administrative habits than by formalized coordination.

  • Tax incentives rarely operate within a single legal framework. In many countries, investors can benefit from incentives across multiple regimes. Governments are approaching greater centralization to improve transparency, coherence, and alignment with development strategies, but progress is uneven.

  • Fewer than half of investment laws granting tax incentives mandate periodic review. While tax authorities often produce tax expenditure estimates to gauge revenue foregone, these are not consistently shared with or integrated into the work of investment authorities.

For decades, tax incentives have been a central feature of investment promotion strategies across the developing world. National investment laws have become the favoured vehicle for granting these incentives, particularly in least developed countries, where they form the primary legal basis for tax incentives in more than half of all cases. 

Despite their prevalence, little attention has been paid to how these incentives are governed: Who decides their design? Who grants them, and on what basis? How do they interact with other instruments granting tax incentives? Who monitors whether they achieve their stated objectives? And what institutional arrangements exist to ensure accountability when they do not? 

This report sets out to answer those questions. Drawing on a survey of 105 investment laws from Africa, Asia, and Latin America and the Caribbean, complemented by interviews with government officials, the report maps the current landscape of tax incentives in investment laws across emerging markets and developing economies: their prevalence, their design, their interaction with other legal instruments, and the governance structure that surrounds them. 

By examining how tax incentives are embedded in investment laws and the governance challenges that arise, the report aims to foster a more coordinated approach between institutions that promote investment and those that safeguard public revenue. Ultimately, it seeks to support a shared understanding of the role that tax incentives should play in attracting sustainable investment, building a common vision that promotes quality investment while contributing fully to domestic resource mobilization.

Report details

Topic
Investment Law & Policy
Taxation
Impact area
Sustainable Economies
Publisher
IISD
Copyright
IISD, 2026