Strengthening Public Procurement for Climate Action and Competitiveness
Reform options for the EU public procurement directive
This report explains why the current European Union (EU) public procurement directive falls short in enabling green public procurement (GPP) and highlights the missed opportunities this creates for climate and competitiveness. The report presents high-level recommendations and detailed reform options to simplify rules, use procurement more strategically, and make GPP a consistent, practical driver of the EU's green transition.
Policy Recommendations
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Make green public procurement the default across the European Union through a comply-or-explain approach supported by clear targets that create predictable demand for low-carbon and circular products.
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Tie European preference rules to environmental performance so that any "Buy European" measures meaningfully support industrial competitiveness, climate goals, and circularity.
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Simplify and harmonize procurement rules by clarifying legal requirements, improving digital tools, and aligning GPP obligations across EU sectoral legislation.
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Strengthen monitoring and professionalization by improving data systems, tracking environmental outcomes, and investing in skills and capacity for contracting authorities.
Public procurement is a powerful yet underused lever for the EU's climate, circularity, and competitiveness goals. Although public authorities in the European Union spend nearly EUR 2 trillion each year, the current framework keeps GPP voluntary. Implementation remains uneven, rules are fragmented, and buyers face legal uncertainty and limited guidance. As a result, major opportunities to steer markets and cut emissions remain untapped. The missed opportunities are clear: few tenders include environmental criteria, most contracts are still awarded on lowest price, and legal uncertainty discourages ambitious GPP. Yet where sustainability requirements are clear and predictable, countries see rapid uptake, innovation, and emissions reductions.
As the European Commission prepares to revise the procurement directives, this report sets out a practical roadmap for strengthening GPP. It identifies the structural challenges of GPP and outlines five high-level recommendations supported by detailed reform options. These include making GPP the default through a comply-or-explain approach, tying European preference rules to environmental performance, simplifying and harmonizing requirements, strengthening monitoring and data systems, and investing in professionalization.
Together, these reforms would simplify procedures, improve accountability, build the skills and capacity of contracting authorities, and better align public spending with the EU's climate, circularity, and competitiveness objectives. They offer a coherent package for turning procurement from a missed opportunity into a strategic lever for Europe’s green transition.