Policy paper: “Green Public Procurement – Stimulating climate-neutral demand for a competitive EU net zero economy: A case study of Germany”
The public sector awards contracts worth around 500 billion euros a year in Germany alone – equivalent to around 13% of gross domestic product. Such massive purchasing power can be leveraged to reduce greenhouse gas emissions. By doing so, it can also enhance the market scale-up of innovative, climate-friendly products and technologies. The market ramp-up of these innovations could be rapidly increased if the actual costs of CO2 emissions were taken into account and a climate label were used for the most important goods. This impulse paper from the Tech for Net Zero alliance argues in favor of using the CO2 footprint as a central tender criterion to strengthen the procurement of climate-neutral goods and services.
Economic Assessment: „How much does Green Public Procurement (GPP) cost in practice? An Economic Assessment for Climate-Neutrality in Public Purchasing“
In addition to the policy paper on climate-neutral public procurement, the Tech for Net Zero Alliance has partnered with Future Cleantech Architects to analyze the economic effects of a corresponding practical application. The evaluation of existing research as well as own calculations show that climate-neutral public procurement is extremely cost-efficient: the costs of public procurement projects would onlyincrease by an estimated 3-6% – even in the emission-intensive construction sector, the total costs would only increase by 5-7%.
